Analysis
EURO MARKETS LIFT COVID RESTRICTIONS
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t the end of two years of uncertainty and upheaval, there finally appears to be light at the end of the tunnel for the global touring business, as multiple European markets began to roll back Covid restrictions in the last month. England’s live music industry hailed the removal of Covid-19 measures, necessitated by high immunity and falling death rates among the population, as a “huge, welcome relief” but warned of the need for ongoing government support. “With spiraling 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,” said a spokesperson for trade body LIVE. “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.” Meanwhile, the Association of Independent Festivals (AIF) warned of a ‘perfect storm’ heading for the UK festival season, with the supply chain crisis, workforce shortages, and the effects of Brexit chief among its concerns. “We may be emerging from the shadow of the pandemic in the UK, but this year will not be a case of ‘back to business as usual’ without critical support for festival organisers,” said AIF CEO Paul Reed. “That’s why we’re calling on the government to aid our recovery and maintain the current reduced 12.5% rate on tickets beyond the end of March, as well as looking at some form of government-backed loan scheme for suppliers to alleviate some of these pressures and encourage investment in the festival supply chain.” England followed in the footsteps of Denmark, Sweden, the Netherlands, Finland, Germany, Austria and Switzerland in announcing plans to lift all remaining limits.
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Promoters in Germany advised that “many questions remain unanswered” about the country’s reopening, despite the promise of a long-awaited so-called “Freedom Day” next month. Most Covid curbs will be axed from Germany’s Freedom Day – 20 March – although “low-threshold basic protective measures,” such as mask wearing, will still apply. The Event Management Forum, which includes live music bodies BDKV and LiveKomm, expressed its relief at the “steps back towards normality,” but said the plans required “considerable clarity” from the government, particularly around capacity limits. “Should it mean that capacity restrictions are perhaps only reduced but basically continue to exist, the event industry would still be a long way from a Freedom Day,” said Professor
Jens Michow, president of live music association BDKV. “Cost-efficiency presupposes that we at least have the chance to generate 100% income with 100% costs. To do this, we must be able to use the hall capacities to the full. As long as we don’t have this chance, we will still not be able to speak of normality in our economic sector.” LiveKomm chair Axel Ballreich added that certain assurances were still needed from the government. “It must now be ensured that outdoor events can take place in summer without any restrictions,” he said. “This includes standing room, without a mask, dancing and partying. If we do not receive this security immediately, we will have to cancel events now out of fairness to our guests but also in the interest of minimising damage.” DEAG CEO Peter Schwenkow acknowledged the myriad of issues facing the touring industry but shared his confidence for the months ahead. “We are very much convinced we will see a record year, just by delivering the 5,000-plus shows we have on sale,” he told IQ. “Probably not with the full profit margins, due to lack of personnel and by accepting higher costs of ticket prices from 2020 and 2021, but still strong.” Elsewhere, Switzerland lifted almost all pandemic restrictions from 18 February, with Austria following suit from 5 March. “It’s about time, after two years of uncertainty, worries, and nearly no shows,” said Goodlive Artists Austria’s Silvio Huber. “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
“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” Silvio Huber | Goodlive Artists Austria
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