Events hit by recession - 20% drop recorded in 2010

BY STEVEN JACKSON Sunday Observer staff reporter jacksons@jamaicaobserver.com

Sunday, May 15, 2011

MERCHANTS and other purveyors of consumer goods were not the only ones to feel the cruel hand of the recession last year as promoters staged fewer events, according to just-released data from the Planning Institute of Jamaica (PIOJ).

The statistics, which show that the number of legitimate events held in 2010 totalled 14,006 -- a 20.5 per cent decrease over 2009 — mean that there were about 38 events held every day in 2010, down from 46 a year earlier.

The figures, published in the PIOJ's annual Economic and Social Survey 2010, indicate that the vast majority of these events were parties, football matches and bar openings which earned the Government $59.3 million from amusement licences or three per cent less year on year.

"The entertainment and sports activities during 2010 were affected by the lagged effects of the global downturn on the domestic economy," the PIOJ said in its analysis. "On the consumer side, this was evidenced by the reduction in disposable income due to contraction in real income and lower employment levels. Spending on leisure and recreational activities was thereby limited."

Seretse Small, a promoter and former guitarist for multi-platinum deejay Sean Paul, reasoned that the sponsorship squeeze that was "heaviest" felt in 2009 could have contributed to the staging of fewer events in 2010.

"Based on the planning of events in 2009 it resulted in the fall of events which would have been executed in 2010," stated Small who promotes jazz and alternative music events.

Promoter Bobby Chantrelle put the decline down to risk and the reduction in disposable income.

"The reality is that fewer events are being put on because they are really very risky. You may put $3 million into an event and everything burns up, or the turnout is not big enough to cover bills," stated Chantrelle who promotes Jokerswild soca events. "There is a general decrease in disposable income across the board. So my experience has been fewer patrons turning up to the events and smaller spend at events with a cash bar. So revenues from events are significantly down. So that might be the major issue. Already these events are marginal at best."

The statistics did not account for events held without permits, and Chantrelle reasoned that some promoters may have done "events on the fly" without applying for a licence.

The consequences of that, however, could see the promoters paying stiff fines.

"Anyone who contravenes the regulations is liable, on summary conviction before a Resident Magistrate, to a fine not exceeding $10,000 and, in default of payment of that fine, to imprisonment for a term not exceeding three months," stated Corrine Henry, an associate at law firm Myers Fletcher Gordon, in an Observer column published this month.

"In the case of a third offence, an offender may be fined up to $50,000, and in default of payment, to imprisonment for a term up to 12 months. In addition, the Court may order the forfeiture of the equipment used in the commission of the offence," she stated.

The highest number of registered events, 17,600, were staged in

2009 and the 2010 decline resulted in annual licences dipping below

2008 levels. The figures show that despite the overall decline in amusement licences four parishes -- St Elizabeth, St Mary, St Thomas and Portland -- recorded increases.

The 2010 data show that the capital city Kingston and St Andrew granted the bulk of the licences, 2,230;

* Clarendon granted 1,540;

* St Catherine (Portmore excluded), 850;

* Portmore, 280;

* St James, 800;

* St Elizabeth, 2,000;

* Hanover, 250;

* St Thomas, 1,430;

* Manchester, 920;

* St Ann, 580;

* Westmoreland, 1,160;

* Trelawny, 590; and

* St Mary, 1,060.

Despite the revenue decline to $59.3 million, seven parishes recorded greater revenue, led by St Elizabeth which was up by $1 million to $7.65 million. Parish councils charge between $2,500 and $15,000 for amusement licences depending on the size of the venue and expected patronage. Separate fees are charged for advertising from $1,500 to $30,000 for billboards.

In 2008, the Government began a renewed effort to enforce the Noise Abatement Act. Under the act, promoters are required to apply for permits to hold events that must end by midnight on weekdays and 2:00 am on weekends.

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Events hit by recession - 20% drop recorded in 2010