AIF warns of ‘ perfect storm ’ hitting festivals
Industry views
The UK festival season is set to be hit by a “ perfect storm ” created by the supply chain crisis , workforce shortage and the impact of Brexit , according to Association of Independent Festivals CEO Paul Reed .
Reed ’ s warning came during his opening remarks to independent festival promoters at the trade body ’ s 2022 Festival Congress event in Bristol .
He said that , while there is widespread optimism about the return of a full festival season this year , it will not be a simple case of getting back to business .
The AIF chief said suppliers do not have cash reserves to invest further funds into inventory , in a year when there will be near unprecedented demand from the commercial market and from Government-organised events such as Unboxed and the Jubilee celebrations .
He said festivals are facing cost increases of 20-30 % across operations and infrastructure , as a result of real cost increases in labour , staffing , materials and transport being passed on by suppliers .
AIF research shows that 53 % of festivals in the UK of 5,000 capacity and over did not take place in 2021 , with many honouring tickets purchased in 2019 and rolled over to 2022 , making it impossible to pass on the rise in costs to attendees via a hike in ticket prices .
Reed reiterated concerns that the Government ’ s Live Events Reinsurance scheme isn ’ t fit for purpose and festival organisers aren ’ t taking it out due to limited scope . He also called on Government to provide continued VAT relief on festival tickets at 12.5 % beyond the end of March ; and to create a loan scheme for suppliers to alleviate some of the pressures and encourage investment in the festival supply chain .
Reed said , “ We may be emerging from the shadow of the pandemic in the UK , but this year will not be a case of back to business as usual without critical support for festival organisers .”
It was announced that the AIF is to recruit a new chair . Jim Mawdsley will step down from the role in May after seven years .
Mawdsley , who is also the principal adviser for events , culture arts and heritage at Newcastle City Council , joined AIF as chair in 2014 . Previous roles include a 20-year stint at music and creative digital development agency Generator , with 12 years as CEO . He has also run music events ranging from 50-capacity bar gigs to 30,000 capacity festivals , including 12 years as co-promoter of Shindig , and 13 years as director of the Evolution Festival .
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