Pricemark supplies a wide range of custom branded membership & RFID access products for the Health & Leisure Industry.read more
Festival promoters call for Federal Government insurance scheme
Music festival promoters are calling for a Federal Government backed insurance scheme to protect against future cancellations.
The push for governmental support follows a challenging year of the sector, suffering cancellations and massive losses, first due to bushfires and subsequently due to the ongoing Coronavirus restrictions.
Speaking to the ABC News, Bluesfest Director Peter Noble said putting on an event was a “huge risk” in the current environment.
Noble was forced to cancel this year’s music festival in Byron Bay, despite having sunk around $10 million into marketing, artist deposits, flights and accommodation, booked suppliers and 30,000 sold tickets.
While Bluesfest had cancellation insurance, that included pandemic risk which he described as “a godsend for us”, Noble advised “all it meant was our ticket buyers were insured,” he said. “It didn’t cover our profit or creditors. It covered that our ticket buyers would get their money back.”
However, other festival promoters were so not fortunate, with Groovin the Moo’s insurance not covering communicable diseases.
Groovin The Moo General Manager Kathryn Holloway told ABC News the result of the cancelled festival was “a huge financial loss and emotional loss”, noting “in terms of finances, there was all the costs that are sunk that you can’t recoup.
“By the time we refunded tickets to patrons as well, the losses were substantial.”
However, specialist insurance broker Ian Stack says the result of the current situation means major events can no longer get coverage for communicable diseases.
Stack noted “unfortunately, now that COVID-19 is a known risk, all the insurance companies are actually excluding communicable disease and not allowing it to be bought out.
“It’s virtually impossible at the moment to get cover for that risk.”
While some festivals are looking at returning in 2021, Stack told the ABC they are “second guessing themselves at the moment.
“If the promoters are going to run events, they’ll have to look at non-insurance ways to protect their exposure.”
Noble called on the Federal Government to underwrite the risk so that major events can go ahead, suggesting “nobody wants to spend $10 million to find that on the day they can’t open their gates.
“We’ve all been through that once. We don’t want to go through it twice.”
Holloway said the industry is facing the double whammy of increased insurance premiums and no coverage for communicable disease as part of their policies.
She concluded “that means there’s a gap and no safety net for the promoter.
“We could suffer a massive loss and even more jobs will be lost, that would be completely catastrophic.
“The government needs to step in and provide us with an interruption fund.”
Images: Bluesfest (top) and promoter Peter Noble (below).
21st October 2020 - Bluesfest 2021 adds to its line-up to appeal to broader audience
15th October 2020 - NSW event management scholarships assist those living in regional communities
14th October 2020 - Live entertainment industry counts the cost of COVID
2nd October 2020 - Venues in 25 nations light up red to back #WeMakeEvents initiative
25th September 2020 - NSW Government relaxes restrictions for cinemas, events, sport and theatre
30th April 2019 - Pill testing saves lives at ACT’s Groovin the Moo festival
16th July 2018 - Pollstar acknowledges Bluesfest as Australia’s top music festival
20th February 2018 - LPA releases new Safety Guidelines for the Live Entertainment and Events Industries
2nd September 2014 - Live entertainment industry generates record $1.47 billion in revenue
21st April 2014 - Byron Bay Bluesfest celebrates 25th anniversary
Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?
The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.
However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.
Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.
Subscriptions cost just $90 a year.
Click here to subscribe.
The Complete Guide to Leisure Industry Products & Services.
Smart Connection Consultancy is a boutique sport and recreation consultancy who has become one of Australia’s leading advocates for the use of synthetic sports surfaces as a vehicle to grow…read more
Polin was founded in Istanbul in 1976, and has since grown into a leading company in the waterparks industry. Today Polin is one of the world leaders in the design, production, and installation of…read more
The Jump Pad is a safe, flat inflatable made in a variety of sizes which can be used indoor or outdoor. From 3mx3m up to a whopping 9mx21m. Markets include Indoor and outdoor playgrounds, schools,…read more
Whether your goal is increasing your centre's revenues or creating an engaging environment, why not add play to your project? If you're looking for stylish aquatic play features, kid-tested…read more
Anti Wave International is the original suppliers of top performance swim, aquatic sports, leisure and pool programming equipment. Founded in 1971, Anti Wave International is proud of its…read more
Ausfit began in 1992, providing software services to the health and fitness sector including ClubWise, a fully hosted web-based product which combines state of the art club management software,…read more
At easyemployer we've come up with a software solution that manages one of your most important, and often most costly, business resources - your staff. We are helping 100s of clients to…read more
get listed with our suppliers directory
Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!