Thousands of Canberrans treated their tastebuds to cuisines and local delicacies from around the world, from hearty German fare to aromatic Mexican feasts and succulent Chinese meals.

It's estimated 200,000 people will attend this year's event, with Saturday night expected to be the busiest of the three-day festival.

Harmonie German Club secretary Maria Hawthorne was on hand at the club's stand, selling large amounts of German beer, sausages and pretzels.

She said she had noticed a large increase in the number of people at this year's festival.

"The Friday night this year was a lot busier than previous Fridays in other years," Ms Hawthorne said.

"There's been beautiful weather, and I think people know the Saturdays at the festivals are manic so they come when it's calmer. But Friday night we still had people queueing up at 10pm.

More than 300 stalls were packed in between Akuna Street and East Row for this year's event. However several small business owners had said they were forced out of this year's event due to large permit costs.

While others had also criticised new rules forcing commercial stall owners to sell only locally produced alcohol, Harmonie German Club general manager Paul Berger said it was the right decision.

"The festival is about the cultural experience and people selling cultural products, and when people are importing cheap beers and selling them commercially, they've made the right decision to cut it out," Mr Berger said.

"It's a fantastic initiative really."

Musical performances were also a highlight of the day, with singing and dancing taking place front and centre, on and off the main stage.

Saudi Arabian dancers and drummers captivated the crowds outside the Middle Eastern stalls.

Mohamed Abes from the Saudi Ministry of Culture said it was important to showcase the country's song and dance to a wider audience.

"In Saudi Arabia, there's many kinds of dance. There's dancing for night, dancing for day, dancing for fighting or dancing for marriage," Mr Abes said.

"Every city has its own kind of dance, and that's what's going on here. It's good to get out there and put the culture and food on show."

Erna Reo and Lawrence Atanay travelled to Canberra from Sydney to perform traditional dances from Indonesia.

Mr Atanay said the two dances he was part of showcased different parts of the country.

"We took part in West Papuan dancing and Eastern Javan dancing, which was called the Ponorogo," Mr Atanay said.

"We're proud to present the culture of our people to others."

Other performers on Saturday included Australian Eurovision entrant Isaiah Firebrace and Bosnia and Herzegovinian singer Amira Medunjanin.