How can Australian festivals and events bounce back from the COVID-19 pandemic?

Tilma Group and event management training provider rEVENTS Academy have run a survey of Australian event managers to ascertain what support Australian events and festivals will need to survive the cancellation or postponement of their event required by the COVID-19 ban on public gatherings. 

Key take outs from the survey results are:

  • Majority of respondents are event organisers hosting events of fewer than 5,000 attendees in a regional or rural community. Just under 100 respondents have completed the survey as at Monday 23 March, with more coming in. Take the brief survey here (4 minutes)

  • Almost 40% of respondents will not run an event in 2020. This is a scary thought for regional and rural communities, especially post bushfires and severe drought when they need the economic and social stimulus events provide. Events are powerful drivers of tourism. Recent research by University of Wollongong indicated that three-quarters of event attendees would not have gone to a destination if not for an event. For 57% of first-time visitors to the region, the event is the main reason for visiting and likewise for 69% of repeat visitors.

    This short video reveals the power of events to drive economic benefits to regional communities:

  • Over half (59%) predict their event will find a way to survive and bounce back in 2021, which highlights the resilience and passion of this sector. One third are still unsure of their future as they navigate their financial position and pre-purchased ticket refunds.

  • 70% will lose up to $100,000 as a direct result of COVID-19, 22% will lose up to $500,000, 5% will lose up to $1 million, with a couple of events losing millions. The nature of events means that there are many sunk costs prior to the event and depending on what stage the event planning is up to, events could have spent 80% of the budget without yet being guaranteed any revenue. Events are risky businesses, even for those with event cancellation insurance, as this does not apply during a pandemic.  

  • Further to the loss to events directly is the economic loss to the host communities. 63% of event organisers in the survey estimate their local community will lose up to $1 million in economic benefit from the loss of their event, 30% estimate up to $5 million. One estimates up to $13 million will be lost by communities across the Outback region their attendees travel through. The economic fallout of this health crisis is scary to say the least.

  • 38% of respondents will offer to refund pre-paid tickets despite the confusion around the legalities of this situation. They see the need to focus on looking after their customers and protecting their reputation.

  • Respondents report concern around what corporate sponsor arrangements will look like and if pre-paid grant funding will need to be refunded.

  • Almost 90% of respondents have started to use reserve funds to pay suppliers or are relying on good relationships to be able to extend payment terms or carry over costs to the next event. When events no longer have a reserve fund and event cancellation insurance becomes too expensive to purchase due to the pandemic, this risky business will become even riskier.

So, how can events survive the pandemic?

Close to 60% of event organiser survey respondents believe a Government support package for the sector would be the most realistic solution to assist their event to bounce back after the COVID-19 crisis, while 30% believe a combination of Government support and widespread support from ticketholders such as ticketholders holding onto their tickets until the event is next held would allow them to bounce back in 2021.

 

Things to remember 

In times like this we often need to be reminded to step back to gain some perspective on what is taking place. This often involves escaping somewhere quiet for some time to yourself to gather your thoughts (away from devices and media!). Then it is time to gain clarity on what is important, and the most responsible and effective way to handle the situation. 

Here are some things to consider as you ponder…

  • Navigate this journey daily to reduce stress and anxiety (which is very hard for those who run a business who like to plan and know what is coming!) 

  • Remain customer-focused to ensure your loyal customer base is still there on the other side of the pandemic. Qantas is a fantastic example of this - the way they are remaining customer focused in this situation is admirable.

  • Have clear and transparent communications and be consistent with your messaging

  • Once the feeling of panic subsides, use this time to work on your event - that long wish list of things you never have time to do!

  • Support each other - this is not just about us or our industry - this is about the world. Let's do what we do best in Australia and support one another so that we all come out stronger on the other side. 

 

Useful resources

 
EventsLinda TillmanComment