Challenges for Launching a new Edition Music Festival Overseas.

The music festival sectors in Europe and North America are becoming increasingly competitive, combined with rising production costs. There may be opportunities to consider launching a new edition in another country, but what challenges do organisers face in making this a reality and what steps can they take to overcome them.

For festival organisers considering launching an overseas edition it is essential to understand that this will not just be a case of exporting a successful brand. There are so many other factors that must be considered and assessed before making any decision. Adapting to different local markets and finding the right partners for operational and promotional activities are essential. In addition, volatile currency exchanges rates can impact potential profitability in real time. What do organisers need to do when assessing a potential new overseas edition of their already successful home country event.

International Edition Logic.
Increasing competition, rising costs and more government regulations are squeezing profit margins for festival organisers and a logical pivot is to consider new markets that are underserved by music festivals. In many developing countries governments also provide generous subsidies and assistance to bring well-known festival brands to their country. Popular destinations for new editions include Southeast Asia, India and Brazil which have large youth populations with an appetite for the music festival experience. Governments in these regions are offering financial incentives and generous tax breaks to locate new well-known branded events in their country because they can be linked to tourism sectors plus the prestige. An overseas edition can also help spread financial risk and provide year-round revenue because local weather allows for greater flexibility on event dates so an organiser could run 2 events a year spread 6 months apart, for example.

Local Operational Partnerships.
Although a well-known festival brand can launch in a new country, it requires significant localisation with more local artist curation and ticket pricing that reflects local affordability. It is essential that organisers find a local partner organisation that has experience of music festival operations who can help with translation and reliable contractor sourcing. A good Joint Venture arrangement can ensure that the organiser retains creative and brand control, and that local partners provide valuable input on cultural differences. Partners can also assist in navigating local rules and regulations for compliance by working with government officials and the police, for example.

Government and Tourism Partnerships.
A country that is keen to secure a local edition of a well-known music festival can assist organisers with every operational challenge. This can include fast track visa issuance for international artists and festival staff with expedited duty free customs import processes for equipment. If the new country is a popular tourist destination, any government sponsored tourism authority will be keen to get involved in promotional activity along with links to local accommodation. This benefits the organisers who get subsidised international advertising and the local tourism market which gets an increased number of visitors.

Currency Management.
One of the biggest challenges in launching a new music festival edition overseas is the volatility of currencies linked to international trade disputes. Ticket sales revenue will be earned in a local currency, but festival staff and artists will want to be paid in hard currencies like the USD or EUR for example. In this scenario, a small movement in exchange rates can potentially erase any profit margins. Organisers can mitigate currency exchange rate fluctuations by purchasing forward contracts where rates are locked months in advance of payment due dates. In many circumstances organisers operate multiple bank accounts with different currencies which hedge against the exchange rate volatility risks of operating in different markets.

For festival organisers planning their next event using a software management platform like Festival Pro gives them all the functionality they need manage every aspect of their event logistics. The guys who are responsible for this software have been in the front line of event management for many years and the features are built from that experience and are performance artists themselves. The Festival Pro platform is easy to use and has comprehensive features with specific modules for managing artists, contractors, venues/stages, vendors, volunteers, sponsors, guestlists, ticketing, site planning, cashless payments and contactless ordering.

Image by Arkius Robson via Pexels

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