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Economy's Spiral Jeopardizing Festival Season

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The Associated Press

Published: July 9, 2008

MILWAUKEE - MILWAUKEE - For the first time in more than 20 years, the organizers of the Harbor Fest musical festival in Racine, Wis., were forced to cancel their seminal event on the shores of Lake Michigan.

Sure, attendance has dwindled in recent years, but rising costs and a 40 percent drop in corporate sponsorship dealt the final blow.

"It boiled down to, if we can't do it the right way, let's just not do it," said Joe Mooney, the event's organizer for all but one year.

Mooney's misery has company. From a hot-air balloon festival in Jackson, Mich., to parades in Clearwater to a seafood festival in Annapolis, Md., organizers grappling with the effects of a weakening economy are calling it quits. Or at least putting off their events.
Corporate sponsors are pulling out as they worry about their own financial well-being. Organizers are reluctant to raise ticket prices because families shelling out $4-a-gallon for gas may not want to pay the extra money. And costs for hiring bands, vendors and renting grounds are rising.

There are tens of thousands of festivals and parades across the country each year, ranging from events with a few balloons and a tent to those with rides, musicians and acres of vendors. Summer is the peak season, said Ira Rosen, the North American director of the International Festivals and Events Association.

The impact is big, with festivals generating hundreds of millions of dollars for organizers, many of which are nonprofit and donate proceeds to charities. They also boost local businesses, including hotels, restaurants and retailers.

This year, festivals are weighing their options and studying the impact of tough decisions, like raising prices. It's unclear how many have decided to cancel or delay their events for a year.

A number have opted to remain free but request donations to help cover costs.

Not everyone is willing to pay. Donations didn't generate enough cash this year for the Sarasota Arts Day festival, which lost so much money that organizers decided to shelve next year's event.

The festival, which normally draws about 25,000 people to downtown Sarasota during a weekend in January, doesn't charge attendees but suggests they make contributions. Those dropped by half to just more than $15,000 from last year, and the fair lost $30,000, said Martine Meredith Collier, executive director of the Sarasota County Arts Council, which organizes the fair. The year before, it lost $3,700.

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