Since it has been shifted to Goa in 2004, IFFI is organised indoors with limited seating capacity.
"The thought has come up that both the ceremonies should be held outdoors in an open air-conditioned dome so that we can invite more people," said Vishnu Wagh, vice chairman of the Entertainment Society of Goa (ESG), a nodal agency hosting the festival.
IFFI 2012 would be held from November 20-30 in Panaji.
The seating capacity of the existing theatres where ceremonies are held is less and hence even members of the Legislative Assembly cannot be invited, Wagh said.
"We have to give 50 per cent of seats to Directorate of Film festival and 50 percent are with the state government," he said, adding that increasing the sitting capacity is the only alternative.
At least 3,000-4,000 people would be accommodated in the outdoor facility, he said.
Discontinuing the tradition set by the earlier Congress-led government to host at least the inaugural or closing function in Margao town, 35 kms away from Panaji, Wagh said that both the functions would be held in the capital city this year.
The preparations for IFFI have begun in the state and the government appointed committee is in its final stages of deciding the festival hotel and airlines.
