No profits for Sziget Festival this year
This year’s Sziget Festival sustained losses of a few hundred million forints but thanks to Volt Festival in Sopron and Balaton Sound at Zamárdi, the organizer Sziget Kft will still generate profit. However, earlier plans of a foreign expansion, including to neighboring country Croatia, may be canceled.
"This year’s budget was over HUF 3.2 billion but, according to preliminary data, revenues will not exceed HUF 3 billion," Károly Gerendai, managing director of Sziget Kft told Világgazdaság. One of the most expensive events was the concert of Prince, which cost HUF 220 million, but failed to attract the expected number of audience as it was announced only a few weeks ahead of the start.
He also cited the current economic situation, the fluctuations in the exchange rate of the Swiss franc for the lack of interest. Additional costs included a HUF 50 million fee for public place use demanded by Budapest Council and the cost of enhanced security measures.
On a more positive note, sponsor revenues have increased, Gerendai added. CityPass, a package for visitors which included free spa tickets and a BKV-pass and other discounts, was sold for HUF 80 million. In line with an agreement with the Budapest Council, HUF 100 million of the revenues from CityPass must be paid to the capital.
Although exact figures are not yet available, the introduction of MetaPay Festival Card, a card replacing other forms of payment during the event, was successful, Gerendai said. The sum
As a result of reduced revenues, the fate of foreign festivals planned by Sziget Kft is questioned. Gerendai said the chances of organizing a festival in Croatia next year was less than 50%.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.