In 1985, several people in the local area were presented an opportunity to extend the local tourist season, by hosting a Hot Air Balloon Event. As local pilots knew of the great flying in the Sussex Area it was suggested that the Sussex Balloon Festival Inc. be started. Balloonists were invited to the area for a weekend, and although it was rather informal, it was to become the first annual Hot Air Balloon Festival.

The Atlantic Balloon Fiesta proved to be a success and on ground and in the air activities were added to keep people in Sussex even when the hot air balloons were not flying including children s activities and games, skydiving demonstrations, helicopter rides, live entertainment at the bandstand, and amusement rides.