These days, media across Europe report on the effects of a world-wide recession caused by (or leading to) falling real estate prices, increasing fuel prices and higher interest rates. In such times, it would be easy to assume that the leisure industry is also affected, as people may travel less and have fewer discretionary funds available for entertainment.Yet, one might also find arguments for exactly the opposite, namely that a time of recession is actually when the entertainment industry thrives, since people seek comfort in the social bonds nurtured by time spent with peers in theatres, at the movies, at concerts and at festivals. If this is true, our industry might have great times ahead.

Is there any such thing as an “objective truth” about the current state of affairs of IFEA members and other festival organisers? It would be my guess that different cultures have different reactions to national and international recession. It would also be my guess that certain festivals in certain countries - because of their magnitude and their nature of constituting annual “traditions” in certain communities - might be less affected than more permanent entertainment offers such as theatre or outdoor leisure parks. It would also be my guess that other festivals of less “important” nature to their host communities may be experiencing the same kind of difficulties as boutiques selling luxury goods, as people in general are opting to spend less money on items they can do without.

But what is your opinion? In IFEA, we’d be curious to know about our members’ situation, and find out how you are dealing with recession, if at all. Do you reposition your event; make programming cuts, look for new audiences, or offer extra discounts? Or is it just business-as-usual?

Please send any thoughts that you would like to share with your colleagues should be sent to news {at} ifeaeurope(.)com.