The popular event, which runs from February 12-14 in 2016, will be marking its 20th anniversary.

The Black Sorrows, including lead singer Joe Camilleri, will perform a free concert at the main stage on opening night.

Multicultural affairs Minister Yvette Berry said the annual celebration of art, music, food and dance was a vibrant demonstration of the ACT community's multiculturalism.

"The Black Sorrows are one of this country's biggest bands and hearing them play some of their most popular songs in the heart of the capital will be an experience worth waiting for.

"And like all the entertainment at the festival, it's free," Ms Berry said.

She flagged changes to the festival that would prioritise local community organisations and give preference to local businesses over interstate operators.

Stallholder applications for local community, information and diplomatic missions open on Tuesday.

More than 270,000 people enjoyed the sights, sounds and smells of the 2015 National Multicultural Festival, which injected $7.8 million into the Canberra economy.

An extra 20,000 people attended the three-day event in February, up from the previous year's 250,000-strong crowd, a spectator survey found.

Visit multiculturalfestival.com.au.