Rising insurance costs put future of festivals in doubt

THE future of hundreds of festivals nationwide is in doubt because of escalating insurance premiums, Fine Gael tourism spokesperson Jimmy Deenihan has warned.

The Association of Irish Festival Events (AOIFE) also fears many festivals can’t sustain rising insurance costs.

Insurance bills have risen by over 60% in the last five years. Premiums rose by 40% in the last year alone and problems in the economy could hit festivals further, AOIFE chairman Colm Croffy said.

“If costs keep going up, many festivals will be unsustainable because they have a very small revenue base. The economic downturn could also play a part,” he said.

Small festivals pay a premium of between €4,000 and €5,500, bigger events have an insurance bill of around €20,000.

AOIFE has established its own insurance scheme, used by 200 festivals, to keep cover costs down.

“This helps because it’s cheaper than any insurance cover offered by brokers on the high street. It’s definitely a help” Mr Croffy said.

The organisation is hoping insurance costs won’t rise again next year but Mr Croffy said a decrease is unlikely.

“It’s a matter of waiting to see what happens in January. If premiums stay the same the situation might become more stable,” he said.

Mr Deenihan yesterday called on the Government to increase funding to festivals in financial difficulty.

“The Government has stood idly by and watched this happen. They must start funding a large number of festivals and not allocate most of the money to a few events,” he said.

The Fine Gael front-bench spokesperson said the cancellation of festivals will seriously damage tourism.

“This will have a major impact on tourism because these events attract many visitors to an area. Hundreds of festivals are going to die unless the Government does something quickly to help them,” he said.

If hundreds of festivals don’t take place next year they will never be organised again, Mr Deenihan said.

“A festival has to have continuity and if there’s a break one year, it’s unlikely to return the following year. Communities work hard to organise these events and now they’re going to be destroyed,” he said.