"We know this won't be easy or comfortable but it's the right thing – and the only decent thing – to do."
The Sydney Festival has said publically that it is concerned about the controversy but does not intend to end the sponsorship deal.
Festival artistic director Olivia Ansell told media this week that "We feel immense empathy with the situation.
"It's sensitive, something being created to bring artists together, so we can see a myriad of perspectives."
In a report by The Guardian, president of the Zionist Federation of Australia, Jeremy Leibler, says the boycott is "appalling".
"The Sydney festival should be a safe space to celebrate the artistry and gifts of all peoples, including Israelis and Palestinians. Instead, the boycott organisers have attempted to make the festival culturally unsafe for anyone who believes in freedom of speech, and the freedom to have differences of opinion. It is appalling behaviour and the Jewish community condemns it outright."
More than 30 acts have withdrawn or distanced themselves from the festival which opened on Thursday.