Cost of living and the knock on effect of COVID are being blamed for the cancellation of events around Australia.

The most severe impact of cancellations appears to be on music festivals and exhibitions.

Let’s look at music festivals first.

In an article published by The Conversation two academics have attempted to answer the question – Why are so many Australian music festivals being cancelled?

The article is co-authored by Sam Whiting, Lecturer – Creative Industries, University of South Australia and Ben Green, Research Fellow, Centre for Social and Cultural Research, Griffith University

Apart from the cost of living crisis they point to two key components

1. Rapidly increasing overheads, such as rocketing public liability insurance costs for both venues and festivals alike pointing out that this problem began with the COVID pandemic, but extreme weather events exacerbated by climate change have compounded these issues as well as affecting the viability of outdoor summer music festivals.
2. People are waiting longer to buy tickets. 2023 was the first time in over a decade that Splendour in the Grass, Australia’s biggest single-ticket festival, didn’t sell out within hours. The trend towards delayed “commitment to purchase” is cause for concern among promoters, who rely on opening-day sales for momentum and capital.

Read the full article here: Why are so many Australian music festivals being cancelled?

And also

Groovin the Moo cancelled: Music festival pulls pin on 2024 shows

SMH

The triple j-backed regional touring festival Groovin the Moo has cancelled its 2024 events, citing poor ticket sales as the reason.

The decision, announced via social media on Wednesday afternoon, comes just a week after tickets went on sale.

These two key factors are also affecting other events.

This week I attended a concert at Riverside Theatres Parramatta. I had purchased my tickets weeks in advance and then, in the days leading up to the event, there were 2 for 1 tickets on sale and plenty of empty seats on the night.

Any regular attendee of exhibitions will be aware that occupied floor space is still well down on pre-COVID levels.

The squeeze on exhibition organisers comes primarily from increased venue and supplier costs which are hard to pass onto exhibitors. And of course the rocketing public liability insurance costs.

Conferences are also affected by delayed commitment by delegates.

Another major expense, especially for attendees of business events is the ever increasing cost of travel and accommodation.

And then of course there is Taylor Swift – where none of the above applies.

Politicians (especially in Melbourne) are getting carried away by trumpeting the “Swiftonomics” phenomenon. However, if attendees have spent so much on this event will it reduce spending on other events?

This from the ABC

Sydney and Melbourne looking to cash in on Swift shows

The idea that a single pop star can create massive economic ripples when she moves through the globe might sound funny.

But there are some serious numbers backing up that theory.

About 620,000 tickets had been sold to Swift’s Australian shows before a last-minute release of more tickets dropping on Tuesday. 

The City of Melbourne estimates Swift will bring in more than $1 billion to the city’s economy alone, during the three touring nights there.

For some perspective, Lord Mayor Sally Capp said over an entire year the city normally saw about $3.3 billion in economic value from its major events schedule.

“Tay Tay is going to deliver a third of that over a weekend,” Cr Capp said. 

When the songwriter jets to Sydney for the second set of Australian concerts, the harbour city is hoping to net $133 million according to Destination NSW.

That’s about 28 per cent of what it expects to generate into this year’s visitor economy for major events. 

But not everyone’s convinced by those projections.

KPMG chief economist Brendan Rynne said his colleagues had projected Swift would help the Australian economy grow — but only by around $10 million in the March quarter. 

“Technically any spend associated with these patrons is just a transfer from one category of spending (or saving) to another,” he said. 

“So for those claiming the tour will make a huge boost to the economy, I would say: You need to calm down.”