A major WA tourist attraction that allows visitors to interact with dolphins in the water has gone into voluntary administration.

The Dolphin Discovery Centre, based in Bunbury south of Perth, is a conservation-focused aquarium and well-known tourism attraction.

It offers dolphin tours in waters off Bunbury and is one of two places in WA licensed to hold public feedings of wild dolphins.

The centre has been impacted by a number of challenges in recent years, including the COVID-19 pandemic, rising supply costs and staffing shortages.

In a statement, administrator RSM Australia said it would be "business as usual" at the centre aside from some changes on the hospitality side.

"It is anticipated that the restaurant offering may be reduced in the short term," RSM partner Jerome Mohen said.

"And prior to our appointment, the board recently made the difficult decision to not proceed with the Utopia Beach Festival event, which was scheduled for early March.

"We will be working closely with relevant stakeholders including the board, staff, volunteers, and local government with the view to restructure the ongoing funding and operations of the centre, intended to ensure the long-term future and ongoing viability of the Dolphin Discovery Centre."

The announcement follows the recent resignation of several board members and the chief executive officer.

Visitors at the centre on Wednesday were unified in their hopes it would remain operating.

Yallingup residents Jan and Dave Robinson said it would be "an absolute shame" if it closed.

"We've been coming here on and off for 13 years, we love the place," Ms Robinson said.

"It's the number one tourist attraction to my knowledge ... with the Bunbury outer ring road going to cut a lot of people off, people might not have a point of coming here."

Busselton man Neil Tennant said any closure would be a big loss.

"I know it's pretty synonymous with the area," he said.

"I don't know what else Bunbury really has to offer."

Central to Bunbury identity

In its latest financial report, the Dolphin Discovery Centre warned the centre was at risk of closure if it wasn't able to secure additional grant funding and generate "sufficient cash flow".

The state government contributed $13 million towards a major upgrade in 2019 in a bid to boost tourism on Bunbury's waterfront.

Regional Development Minister Don Punch has said that he wouldn't commit to more funding to keep the centre running.

However, he said he was keen to get a better idea of the issues and work to have them resolved.

"It's pretty disappointing that this has happened," Mr Punch said.

"We've got to get to the bottom of what is needed to keep the centre functioning into the future. How should it operate? What would make it financially sustainable?

He said the state government had provided grants to the centre in the aftermath of the pandemic.

The news has come as a further blow to Bunbury's tourism, after the organisers of the region's largest music festival Groovin' the Moo pulled the pin on its plan to return to the South West.

The regional event brings more than 20,000 people to Bunbury each year.

However, Mr Punch — who is also the member for Bunbury — said the city would continue to be a popular destination into the future.

"This is a hiccup. We've got to work through it. We'll work through it systematically, but in my view, tourism in Bunbury has got a great future."