The concert business in the Netherlands has reported a post-pandemic resurgence, but concerns over rising costs remain, according to the Association of Dutch Music Venues and Festivals’ (VNPF).

The newly published Poppodia and Festivals in Figures 2022 report shows venues and festivals received a total of 7.6 million visits in 2022, compared to 883,000 in 2021 and 8.6m in the last pre-Covid year of 2019, despite an “abnormal” year for the business, with corona restrictions not lifted until three months in.

Employment in the industry was also up, with music venues employing more than 8,000 staff last year – approximately 3% more than in 2019 – with more paid working hours and less voluntary work.

The statistics are based on figures from 48 music venues and 55 festivals. However, the report notes that the total expenditure of those venues increased by 8% in 2022 compared to 2019, even though fewer activities were organised in Q1 2022 due to the strict Covid measures.

Chief among its stated concerns are high cost increases for venues, including for personnel, housing, catering and programme, while municipal subsidies “were not increased proportionally”.

“The costs for energy, personnel, catering purchasing and artists rose sharply, and will still do so in 2023”

“In addition to the aftermath of the pandemic, VNPF members also faced high inflation in 2022,” it adds. “Among other things, the costs for energy, personnel, catering purchasing and artists rose sharply, and will still do so in 2023.”

VNPF stages received €36.1 million in Covid intervention in 2021, with the vast majority of that amount coming from the national government and the organisation stresses the need for further support from the authorities.

“The figures for 2022 show that the municipal subsidy is increasing, but not enough to cope with autonomous cost increases,” it says. “This is particularly worrying for the longer term. This means that talent development of both artists and staff and the retention of good staff will come under further pressure.

“Adequate and appropriate subsidies for the subsidised part of our sector remain of vital importance. Organisations that are not subsidised also need the government as a cooperation partner and facilitator.”

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The UK government-backed insurance scheme for live events paid out just one claim of £180,500, while generating almost £6 million in premiums, according to the Financial Times.

Launched in September 2021, the £800m Live Events Reinsurance Scheme was designed to cover costs incurred if an event had to be cancelled, postponed, relocated or abandoned due to a government-imposed lockdown in response to Covid-19.

It did not, however, payout if a festival needed to reduce capacity or cancel due to restrictions being reintroduced. Nor did it cover an event cancelled due to an artist or production staff catching Covid.

The year-long programme collected £5.9m premiums to cover 169 events and paid out to just one – Trick Scotland, an electronic music festival that was cancelled because the venue was needed as a vaccination centre. These details were published by the Treasury in response to a freedom of information request by the FT.

The live industry previously expressed concerns about the “extremely limited scope” of the scheme, with one promoter even dismissing it as “a joke”.

Umbrella body LIVE (Live music Industry Venues and Entertainment) today (24 April) told IQ it has failed to find a member that has used the scheme.

“Despite government’s best efforts, the reinsurance scheme was never right for our industry,” says Jon Collins, CEO of LIVE. “It was expensive, arrived too late and, crucially for a scheme to give confidence during Covid, did not cover for cancellation due to an artist having Covid.

“The reinsurance scheme was never right for our industry”

“Festival organisers moved mountains to put on safe, vibrant and successful events last year and are planning for a similarly strong summer of live music in 2023. With ongoing supply chain, energy and cost challenges and pressure on our audience’s disposable income, LIVE would ask that the government reallocate the huge underspend on this scheme to support artists, festivals and the public through targeted funding and a return to 5% VAT.”

IQ has reached out to the Department for Culture, Media and Sport (DCMS) for comment on how the £6 million in premiums will be spent.

The Live Events Reinsurance Scheme, a partnership between the government and the Lloyd’s of London insurance market, was available to purchase alongside standard commercial events insurance for an additional premium.

To be eligible, event organisers had to purchase the relevant cover from participating insurers within the scheme, including Arch, Beazley, Dale, Hiscox and Munich Re.

Premium was set at 5% of the total value of insured costs (plus Insurance Premium Tax) and claims were subject to an excess of 5% of the value of the insured costs or £1,000 (whichever is higher) per policy.

If events had to cancel, organisers will pay a pre-agreed excess and the government and insurers have agreed on a risk share per claim. This would start with the government paying 95% and insurers 5%, progressing to them covering 97% and 3%, respectively, and finally government covering 100% of costs. The split depends on the losses incurred by the insurer from the scheme to date.

At the time, culture secretary Oliver Dowden said the scheme would give organisers “the confidence they need to plan for a brighter future”.

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The Japanese government is relaxing its longstanding ban on cheering at concerts and sporting events after announcing it is to reclassify Covid-19’s disease status.

From 8 May, coronavirus will be downgraded from class Class 2 to Class 5 – the same tier as seasonal flu – in the country, with residents told to use their own judgement when it comes to mitigation measures, including mask-wearing.

“With the change in categorisation, the nation’s Covid-19 measures will change from one where government agencies make various requests (to people and institutions) and intervene, to one that respects the choices of individuals, like in response to seasonal influenza,” says a statement by the infectious disease panel, as per the Japan Times.

“The government will need to make detailed explanations of its basic view and changes to be brought on by the reclassification, and provide necessary information.”

“Some in the audience will probably keep masking up, while others won’t”

Under the current restrictions, which will be lifted immediately, cheering is permitted only at venues where attendance is limited to 50% or less of capacity. Music venues have been able to operate at 100% capacity as long as audience members “wear masks, keep their voices down to conversational levels, and cheer or sing along for less than a quarter of every song”, reports Nikkei Asia.

“Some in the audience will probably keep masking up, while others won’t,” says Masashi Kondo, head of the Live House Commission trade group. “It’s hard to respond unless there are clear standards, so I hope the government will provide an explanation based on science.”

It was revealed last month that concert-goers in Japan could require government-issued ID cards to attend gigs under plans being considered by the government to help combat ticket touting.

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South Korean authorities are investigating claims that Psy’s water-spraying concerts could be contributing to the spread of Covid-19.

The Gangnam Style singer’s Summer Swag tour came under fire earlier this summer for allegedly wasting water during a nationwide drought.

First held in 2011, the popular shows involve audience members being drenched in water as they sing along to the music, but attracted criticism after it was revealed that each gig uses around 300 tons of water.

“We use the performance venue’s water supplies as well as sprinkler trucks,” Psy told talk show Radio Star.

“We have launched an investigation to see what kind of actions are taking place during the event that could be risk factors in transmitting the virus”

Now, with Korea in the midst of a Covid spike, the Central Disaster and Safety Countermeasure Headquarters says it has received reports from people claiming they have contracted coronavirus after attending the shows.

“We have launched an investigation to see what kind of actions are taking place during the event that could be risk factors in transmitting the virus,” a spokesperson tells Korea JoongAng Daily.

Music promoters are being urged not to spray water during events while the claims are looked into.

In response to the concerns, Psy’s label P Nation says it will hand waterproof masks to each concert-goer at his upcoming Korean tour dates in Yeosu (6 August), Daegu (13-14 August) and Busan (20 August).

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A new report on the Dutch live music sector has laid bare the dramatic impact of the Covid crisis on concerts and festivals.

The Netherlands’ touring scene enjoyed a record year in 2019, attracting 2.7 million visitors to events, but that figure plummeted to 328,000 in 2020 – with 94% of that year’s shows pre-dating the spring lockdown – according to the new Monitor Festivals & Concerts study published by Respons and the Association of Event Makers (VVEM).

In addition, the number of festivals fell from more than 1,100 in 2019 to a record low of 155 in 2020, before rebounding slightly to 343 in 2021.

“Festivals and concerts are the big corona losers”

“Festivals and concerts are the big corona losers,” says VVEM spokesperson Willem Westermann. “The figures for 2020 and 2021 are dramatic after the records of previous years.

“We hope that 2022 will be the year of recovery. We have seen that the sector has a lot of creativity, but you just have to experience concerts and festivals live.”

The best-attended concert series of 2020 was Holland sings Hazes, with 49,000 visitors. In 2019, the series reached fifth place in the ranking with 68,000 visitors.

In 2021, Dutch party act the Snollebollekes led the list, playing to 100,000 fans over four nights at the Gelredome in Arnhem. The report also notes that the 2021 Amsterdam Dance Event attracted 350,000 visitors across five days.

The Dutch government finally lifted all remaining Covid restrictions on live events in March this year after tireless lobbying from the sector.

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Indoor concerts in New Zealand can now go ahead without capacity restrictions after the country’s traffic light system switched to ‘orange’.

The system, which came into effect last December, assigns a colour (green, orange or red) based on vaccination rates and the spread of Covid-19 in the community, as well as a set of corresponding restrictions. It was previously set at ‘red’, meaning venues using vaccine certificates were limited to 200 people with 1m social distancing.

However, a “sustained reduction” in Covid infections has prompted the move to orange, which means venues face no limits on gatherings at events, retail and hospitality.

“Over the past few weeks we’ve seen a sustained reduction in cases and hospitalisations despite the relaxation of settings”

“Over the past few weeks we’ve seen a sustained reduction in cases and hospitalisations despite the relaxation of settings, so we’re confident a move to orange can lock in those gains while helping the country return to a greater degree of normality,” says Covid-19 response minister Chris Hipkins.

“Under orange there are no indoor capacity limits and the seated and separated rule for hospitality venues lifts, so bars, cafes and restaurants are able to fill up again.”

Last month, prime minister Jacinda Arden announced the removal of vaccine pass requirements, most vaccine mandates, QR code scanning and outdoor gathering limits, while doubling the limit for indoor gatherings from 100 to 200 people.

However, festival organisers and promoters argued the rollback of restrictions was “meaningless” at that point in the events calendar.

Live Nation-owned Rhythm and Vines was cancelled for the first time in its 19-year-history and will now celebrate its 20th anniversary at the end of the year instead. Elsewhere, Auckland’s Outerfields festival, which has twice been beset by Covid delays, is now scheduled for 3 December and Lorde’s Solar Power tour has shifted to February/March 2023.

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The English live music industry has welcomed the government’s plans to lift all remaining coronavirus restrictions.

Prime minister Boris Johnson today (21 February) announced the ‘Living with Covid-19’ plan which will put an end to self-isolation and free testing.

From Thursday (25 February), the legal requirement to self-isolate after a positive Covid test will be removed in England.

Meanwhile, free Covid testing – which has reportedly cost £15.7 billion – will end for the general public in England from 1 April.

The PM says restrictions can be lifted now because the levels of immunity are high and deaths are low.

“This is not back to business as usual for festivals and it is not a case of ‘job done’ for ministers”

The live music industry has hailed the end of Covid-19 restrictions as a “huge relief” but warns that ongoing support from the government is needed.

Paul Reed, CEO of the Association of Independent Festivals (AIF), says: “While we welcome legal restrictions around Covid-19 coming to an end and the prospect of a full capacity festival season, the effects of the pandemic are still being felt by the independent festival sector and the need for government action remains. With festival organisers facing crippling cost increases of up to 30% across operations and infrastructure, this is not back to business as usual for festivals and it is not a case of ‘job done’ for ministers.

“AIF reiterates its call for ongoing support from government in the form of continued VAT relief on festival tickets to maintain the current reduced 12.5% rate on tickets beyond the end of March; and to also explore some form of government-backed loan scheme for suppliers to alleviate some of these pressures and encourage investment in the festival supply chain.”

Greg Parmley, CEO, LIVE says: “The end of Covid-19 restrictions represents a huge, welcome relief to the live music sector, which lost billions in revenue throughout the pandemic. But with spiralling costs and thousands of companies struggling with pandemic debt, it’s crucial that government does not abandon and set the sector adrift, just as it starts to tread water again.

“We are calling for a reverse to the planned hike in VAT rates and the imminent end to business rates relief in order to avoid further business closures and job losses within our sector.”

“The extension of VAT & Business rates relief remains a key ask”

Michael Kill, CEO of NTIA, says: “The withdrawal of the remaining covid restrictions is welcomed by the industry, and will further support business recovery and go some way to regaining customer confidence.

“Our responsibility to keep customers and staff safe remains our focus, maintaining baseline mitigations as we have done since the 19th July 2021.

“Experts have suggested that recovery to pre covid trading levels will take several years, but we cannot lose sight of the short term role that the government must continue to play in supporting the sector, beginning with the chancellor’s budget in March.

“The extension of VAT & Business rates relief remains a key ask, allowing businesses the financial headroom to survive, on this long road to recovery.

“Given the commitment and support, over the last two years, that the sector has given to the government’s public health strategy, it is only right that they recognise and support the hardest-hit industries through the final phase of this crisis.”

Greg Marshall, general manager of Association for Electronic Music (AFEM), says: “AFEM welcomes the end of all legal Covid-19 regulations and the move to guidance announced in the UK today. However, the fragility of the chain of businesses and individuals which make up the electronic music club and events ecosystem needs to be recognised. Ongoing support measures will be required to ensure the recovery of this sector, in parallel with industry action to build consumer confidence and ensure a return of audience numbers to all event types in the long term”.

England follows in the footsteps of Denmark, Sweden, the Netherlands, Finland, Germany, Austria and Switzerland – all of which have recently announced plans to lift all remaining restrictions.

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DEAG CEO Peter Schwenkow is predicting a record 2022 after the German government unveiled its roadmap back to full capacity live events.

With most coronavirus rules already or about to be lifted in the UK, Denmark, Sweden, and the Netherlands, Germany has now confirmed a gradual, three-step approach to reopening, culminating in a long-awaited “Freedom Day” on 20 March, amid falling infection numbers.

Beginning with the removal of restrictions on private indoor meetings for the vaccinated, capacity limits on major outdoor events will be raised from 10,000 to 25,000 (or 75% capacity) on 4 March, with clubs also allowed to reopen from that date. Most other Covid curbs will then be axed from 20 March, although basic protective measures such as mask-wearing will remain.

Berlin-based DEAG reported a 126% increase in sales in its most recent financial report, and Schwenkow tells IQ he is confident of the touring market is on an upward trajectory, while acknowledging the ongoing issues it faces with regards to rescheduled shows, re-staffing and the supply chain.

“We are very much convinced we will see a record year”

“We are very much convinced we will see a record year, just by delivering the 5,000-plus shows we have on sale,” he says. “Probably not with the full profit margins due to lack of personnel and by accepting higher costs at ticket prices from 2020 and 2021, but still strong.”

Over in Austria, where measures will be lifted on 5 March, Goodlive Artists Austria’s Silvio Huber warns there are still major obstacles on the live sector’s road to recovery.

“We are glad that restrictions will be lifted soon. It’s about time after two years of uncertainty, worries and nearly no shows,” he tells IQ. “On the other hand, we will face lots of challenges and 2022 will be a tough ride for sure. The market is packed with shows, there is an immense lack of experienced local crews and we will see a significant rise in production costs, rentals and more.

“Additionally we shouldn’t forget that we are not used to a pre-pandemic workload yet! I guess this will be the hardest challenge for our industry this year. I’m really looking forward though as I’m convinced we will overcome all these difficulties.”

“The sale of tickets for regularly planned events will only start slowly and the market will only recover after several months”

Switzerland will also lift almost all pandemic restrictions from midnight on 18 February. Swiss trade body Alliance of Organizer Associations has welcomed the planned easing, but pointed out that it will be months before public confidence is restored and ticket sales return to pre-pandemic levels.

“On the one hand, the existing measures and the cautious behaviour of the public led to the cancellation or postponement of almost all major events planned until the second quarter of 2022,” it said in a statement. “In the same period, almost all events with international artists had to be postponed or cancelled. This presents the industry with the problem of a production backlog and the resulting oversaturation of the market. It can therefore be assumed that the sale of tickets for regularly planned events will only start slowly and the market will only recover after several months.

“On the other hand, the event industry is subject to numerous international dependencies, which – despite easing in Switzerland – continues to pose planning uncertainties for the industry.

“These special circumstances and difficulties in the event industry must be taken into account by ensuring support and compensation measures for as long as there are restrictions and also for an after-effect period of at least 12 months. The latter is also urgently indicated because the lead time for planning large events is several months to one and a half years.”

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Organisers of Australia’s HomeBrewed festival say the event’s cancellation has resulted in a negative economic impact of AUS$5 million (€3.2m).

Promoted by the team behind the city’s established Beer & BBQ Festival (BBF), artists due to perform at the festival included Bad//Dreems, Teenage Joans, Luke Million, Peter Combe and Horror My Friend.

HomeBrewed, which attracted 10,000 punters to its inaugural edition last year, was set for Adelaide Showground from 21-23 January, but has now been axed due to Covid restrictions – including rules banning “vertical consumption” (drinking while standing) dancing – in South Australia will remain in place until at least 27 January.

“The BBF team have been working hard on this event for several months and have been excited to present a Covid-safe festival by following the guidelines that were set to come into place on 28 December in line with the government of South Australia’s 90% vaccinated re-opening plan,” says event director Gareth Lewis in a social media post.

“This plan has obviously been quashed and instead has been replaced with heavy restrictions for South Australian events indefinitely, at least until 27 January, which includes a ban on ‘vertical consumption’ and dancing, amongst other things – even at fully-vaccinated events.”

The constantly changing goalposts and inconsistency of any real financial support, coupled with total lack of empathy or respect, has led to the destruction of businesses and livelihoods

Lewis notes that South Australia is the only state or territory in Australia whose restrictions would not allow the event to safely proceed.

“We simply can’t run HomeBrewed in a seated format, and a postponement into a time where we would be competing with the beasts that are Adelaide Festival, Adelaide Fringe and WOMADelaide is simply not viable,” he adds.

Breaking down the losses, organisers told The Music that local businesses have missed out on $1,6m in revenue streams and put the overall economic impact lost at upwards of $5m.

“Our industry desperately wants to get back to work in a safe format but the constantly changing goalposts and inconsistency of any real financial support coupled with total lack of empathy or respect has led to the destruction of businesses and livelihoods, the degradation of mental health to the point of costing lives and will now take years if not decades to recover,” adds Lewis.

“We call on the government to engage with the events and hospitality industries, end the state of emergency, develop a proper events insurance scheme as other states have, give us a clear roadmap and stick to it so we can plan for the future.”

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Italian event bodies have written an open letter to the government requesting a series of measures to ensure the live sector’s survival.

Assomusica, Arci and KeepOn LIVE, who previously united for ‘The Last Concert?’ campaign, have responded after the authorities banned concerts until 31 January and extended the country’s state of emergency to 31 March 2022.

Nightclubs will also remain closed until the end of this month, and the consumption of food and drink at concert halls and other indoor locations is also banned until the end of March, amid the spread of the omicron variant. The use of FFP2 masks is also compulsory on public transport, in theatres, concert halls and cinemas and for sporting events until at least 31 March.

The groups’ letter says the ban “should be reviewed and lifted as soon as possible, with a view to restoring more acceptable conditions” to the industry. It also calls for compensation for artists and behind-the-scenes staff in the event of sudden closures and an extension of the redundancy fund, along with social safety nets and other assistance.

It is paradoxical that a sector… of fundamental importance in the socio-cultural and economic life of the country, continues to be discriminated against

“Live music shows require time and planning,” it says, adding that the current situation has returned Italian event organisers to the “complete darkness in which they have sailed for almost two years”.

“It is paradoxical that a sector… of fundamental importance in the socio-cultural and economic life of the country, continues to be discriminated against compared to the rest of the entertainment funded by the FUS [Unified Fund for the Performing Arts],” it continues.

Arci, Assomusica and KeepOn LIVE conclude by asking for “immediate intervention” from the government “to try to keep alive what little is left of one of the categories most penalised by the entire pandemic”.

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