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60% of Finnish businesses facing bankruptcy

Nearly two thirds of Finnish live businesses will not survive another six months without government intervention, according to the newly formed Event Industry Association

By IQ on 09 Nov 2020

Blockfest promoter Live Nation is a founder member of the Event Industry Association

Blockfest promoter Live Nation is a founder member of the Event Industry Association


More than 60% of Finland’s live events companies do not expect to survive the next six months, new research reveals.

A survey conducted in October by the recently launched Event Industry Association (Tapahtumateollisuus) – which incorporates all major Finnish concert businesses, including Fullsteam Agency, Live Nation Finland, Warner Music Live and CTS Eventim’s Lippupiste –  found that over 70% of businesses still have next to no work and nearly two thirds believe they will not survive until summer 2021.

“The companies in our sector are in an unprecedentedly difficult situation,” explains Kati Kuusisto, director of advocacy for the Event Industry Association.

“The constantly changing situation and recommendations weaken our customers’ confidence and willingness to buy [tickets], while compliance with the applicable restrictions increases the cost of organising events,” she adds.

According to the association, there are around 3,200 companies involved in organising live events in Finland, with the total value of the industry estimated at €2.35 billion. The sector employs 20,000 full-time, and 175,000 temporary, workers.

Kuusisto says the industry needs an “exit strategy” in the form of urgent financial support and increased cooperation with the authorities, as well as a campaign that reassure Finns they may return to shows safely.

“We need to restore customers’ trust and send them a message that participating in safe events is OK”

“Adequate financial support must be a priority, so that the damage to the ecosystem, which is vital to our sector’s activities, does not become permanent,” she continues. “Immediately thereafter, cooperation between [the industry], authorities and the government ministries should ensure that the [coronavirus] constraints and recommendations for events are at an appropriate level.

“All means available implement safe events, such as functional rapid testing, must also be widely deployed. At the same time, we need to restore customers’ trust and send them a message that participating in safe events is OK.”

In an open letter to the press written in late September, the Tapahtumateollisuus criticised media outlets for fuelling fears about Covid-19 by inaccurately pointing to major events as the source of an increase in infections in Finland.

“During the coronavirus epidemic, professional event organisers have made investments and taken comprehensive measures to make it possible to stage events safely,” the association said. “The loss of customers, and even entire events, caused by incorrect news coverage are already deepening the losses of companies in the sector and threatening the livelihoods of tens of thousands of people.”

 


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