Edinburgh City Council has announced a massive cash investment in its 16 festivals to counter the threat posed by international festivals such as Avignon and Barcelona, as well as British events like the Manchester International Festival, which is due to launch in 2007, and Liverpool?s year as European Capital of Culture in 2008. £1m will be allocated to the festivals themselves and a new Events Unit will also be established to maximise the potential of existing events and events development. £780,000 will be dedicated to remedying the technical difficulties facing the Winter Festivals, and a central web-based ticketing portal for Edinburgh?s cultural infrastructure (festivals, theatres and concert halls) will be established.
The city?s investment coincided with reports that the Fringe Festival was drawing up plans to deal with a forecast £80,000 loss. Paul Gudgin, Director of the Edinburgh Festival Fringe, was quoted in the Scotsman as saying ?we?re having to plan to make around £100,000 worth of savings over the next few months. We are facing some very awkward decisions at the moment, ironically at a time when Edinburgh is facing a bigger threat than ever before to its festivals.? Among proposals being considered are the axing of the Fringe Sunday celebrations, job cuts and a reduction in marketing initiatives.
The news came as a new report spelt out the economic impact of the city?s festivals. Between them they support 3,900 full-time jobs in the city and provide an annual boost to the Scottish economy of £184m. The economic impact study, commissioned by the 16 city festivals, assessed the financial impact in terms of attendances and visitors attracted to the city, the region and Scotland as a whole. The study showed that the festivals generate £31.6m for Edinburgh hotels and B&Bs, and £22.5m for the city?s restaurants and pubs. The retail sector also benefited from a £17m boost. The Scottish Executive has commissioned a report, Thundering Hooves, into the threat posed to Edinburgh by competing festivals.