On Wednesday this week, the government announced a 230.86 million euro support package for culture, arts, sports and events, including 85 million euros towards a so-called event guarantee. The funds are intended to aid event organizers who are in a difficult situation due to uncertainty caused the coronavirus epidemic.
The guarantee applies to events that have to be canceled between 1 June and 31 December of this year. That means it is not applicable events that have already been canceled because of health concerns and official restrictions.
Maria Sahlstedt, Director of Communications and Public Affairs at Event Industries of Finland says it is good that the guarantee offer is valid until the end of the year, pointing out that this will encourage organizers to plan events for both the summer and autumn. She also says she believes that the 85 million earmarked for the guarantees will be sufficient..
If infection rates remain at moderate levels, there will likely be no need to cancel any more events this year. However, Sahlstedt is still cautious.
"If, for some reason, we are again in the awful situation of rising infections, then the total amount of aid will have to be reconsidered," she told Yle.
Payment plan
Under the new scheme, event organizers and their subcontractors will be able to apply for an event guarantee from the state treasury to cover costs specified in the application.
If the event is then cancelled or limited in scope by law or a public authority, compensation would be paid for the costs incurred.
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The events industry calculates it has lost a total of 2.5 billion euros because of the coronavirus epidemic.
"For the beginning of 2021 alone, losses will be at least 700 million euros," Sahlstedt estimates.
Details of the events guarantee are now being finalised at the Ministry of Employment and the Economy.
Last February, Minister of Economic Affairs Mika Lintilä (Cen) proposed the event guarantee as one way to alleviate the plight of the industry.
At that time he told Yle, "We have well-established festivals that are of great importance to the regional economy and tourism. Quite often, events are built around culture, and [total] economic losses are multiples of the losses by the actual cultural event."
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Tough times for entrepreneurs
Event Industries of Finland is a nationwide advocacy organization for the events sector with more than 200 members.
According to Maria Sahlstedt, dozens of companies have left the industry over the past year because of the impact of the coronavirus pandemic.
"The entire industry has been at a standstill since December and limited for more than a year. Existing subsidies have not reached everyone," she points out.
Sahlstedt is particularly concerned about entrepreneurs in the event industry.
"Some companies have not had any business for a year. Many of them are heavily indebted and entrepreneurs are in a really tough predicament. They may have had to mortgaged their homes because the crisis has lasted so long," Maria Sahlstedt says.