Danish gov unveils DKK 500m safety net for events
The Danish government has announced a DKK 500 million (€67.2m) safety net for festivals and major events, allowing organisers to plan for this summer without the financial risk posed by a potential Covid outbreak.
The safety net will cover organisers of recurring events with at least 350 participants (such as music festivals, super league matches, conferences and markets), as well as events that were planned before 6 March 2020, but will not include new events created during the pandemic.
The scheme is a ‘continuation and simplification’ of the existing organiser scheme and will cover eligible events between 1 May and 30 September 2021 in the event that the Covid-19 situation results in the cancellation, postponement or significant changes to an event.
The full agreement, which must be approved by the European Commission, includes a ‘compensation ladder’ which provides organisers with an estimation of what they can expect to receive in compensation and deliver on to suppliers.
“Festival organisers can continue to plan with peace of mind”
In addition to the safety net, the agreement also includes an emergency pool of DKK 30m for bankruptcy-threatened large charitable music festivals, which each year distribute their profits to charitable causes.
“We all hope for a summer where the infection situation allows us to gather for festivals again,” says minister for culture, Joy Mogensen. “Until then, the festival organisers can continue to plan soundly with peace of mind. With the agreement, we ensure that festivals will be compensated if they have to cancel due to restrictions.”
Esben Marcher, head of Denmark’s live music association, Dansk Live, says: “It is positive that there is now a financial safety net for the festivals, so that the organisers can complete the preparation of this summer’s festivals. We will, of course, follow the implementation of the agreement closely. However, we still need clarification on whether there will be restrictions this summer, and which scenarios we must plan based on.”
Last week, Denmark’s ‘restart team’ submitted a catalogue of recommendations on the reopening of the cultural and sports sectors to the ministry of culture for government approval.
Denmark is the latest market to announce an event cancellation fund, taking note from Germany’s €2.5bn pot, Austria’s €300m ‘protective umbrella’, the Netherlands’ €300m fund, Belgium’s €60m festival cancellation pot and Norway’s €34m festival safety net.
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European markets seek clarity on festival season
Major European festival markets are urgently seeking clarity on the viability of this year’s summer season in a race against the clock.
In Switzerland, promoters’ association SMPA has released a statement, co-signed by 26 of the country’s festivals, calling for clarity on the conditions under which Swiss festivals can be held regularly and at full capacity without social distancing.
The appeal also relays three key requirements for the restart of Swiss festivals: a transparent strategy and uniform conditions for holding events safely, a continual review of measures to ensure they are proportionate to the risks posed, and an event cancellation fund that covers 100% of losses.
“2021 is not 2020, the statement reads. “There are better treatment options, testing options are constantly evolving, and vaccinations are ongoing. In combination with the expected lower case numbers in the summer months, this creates a different starting position for the summer of 2021. The task now is to find a strategy for summer 2021.”
“2021 is not 2020. There are better treatment options, testing options are constantly evolving, and vaccinations are ongoing”
The statement has been co-signed by festivals including OpenAir St Gallen (cap. 30,000), which is part of the majority CTS Eventim-owned wepromote, SummerDays (12,000), and Seaside Festival (10,000) – all of which were cancelled last year after the Swiss government outlawed live events until the end of summer 2020.
In Denmark, festival organisers have been given a glimmer of hope after the government announced the spring arrival of a vaccine passport, but are still seeking the security needed in order to plan for the summer.
Acting minister of finance, Morten Bødskov, announced in a press conference on Wednesday (3 February) that digital Coronavirus passports will be ready for use in three to four months but will initially apply only to travel.
According to Bødskov, whether the digital passport can be used to go to a concert or a festival is a political discussion that will be decided by the infection situation.
The Danish live industry is cautiously optimistic about the news and have called for a roadmap for reopening to allow organisers to plan for the summer.
“[The vaccine passport] can be crucial in ensuring that we can quickly reopen venues and hold festivals this summer”
“The corona passport is an important tool that can be crucial in reopening the live industry,” says Esben Marcher, head of Dansk Live. “It is positive that a digital corona passport is now being established. It can be crucial in ensuring that we can quickly reopen venues and hold festivals when the summer comes.”
“Time is, of course, a significant challenge right now, and in organiser optics, three to four months is a very long time. The infection is currently fairly under control and the vaccine plan is being rolled out. Therefore, it should now be time to reconsider the plan for reopening. It will allow the country’s many organisers to plan for the future. ”
Danish festivals organisers say the ongoing uncertainty about whether the festival summer is to go ahead is keeping them in a stalemate situation.
“There are quite a few deals we do not close so as not to commit too much financially. Otherwise, we can have problems if the health authorities believe that we can not hold the festival,” Nicklas Lundorf, Langelandsfestival told Berlingske.
Lundorf revealed that the organisers are still planning to hold the festival until told otherwise.
“When are we going to throw ourselves in at the last minute and close the agreements that are crucial?”
“It’s something we go and discuss internally. When do we have a cut-off date? When are we going to throw ourselves in at the last minute and close the agreements that are crucial in order to get the festival off the ground?” he says.
Vaccine passports have been gaining traction across Europe, with Poland becoming the latest concert market to confirm it will issue its citizens with a vaccine passport when they have been immunised against Covid-19.
Elsewhere in Europe, Portugal is examining whether ‘safe bubbles’ of vaccinated festivalgoers could be the key to keeping fans and artists safe this summer, French festival operators ‘have 11 days to save festivals’, and the UK festival sector is waiting with bated breath for the prime minister to reveal a roadmap on the 22 February.
The lessons that can be learned from 2020’s lost festival summer will be discussed at ILMC during Festival Forum: Reboot & Reset, while leading festivals operators will be discussing the evolving passions, priorities and unique features of their events in Festival Futures: Core Priorities.