THE COMPLAINTS of vendors in Port of Spain about slow business on Carnival Monday were a reminder that while Carnival is back with a bang, the old assumptions surrounding the festival’s business model are not necessarily sound. If Carnival is big business, it is no longer necessarily so for all stakeholders.
But big business it undoubtedly is. There are estimates suggesting the festival generates anywhere between $800 million and $1 billion for the economy.
The National Carnival Commission (NCC) outlays about $150 million in expenditure for the festival each year, but the year-round operations of the commission cost about $186 million, according to officials. Studies suggest revellers can fork out $10,000 per season, inclusive of fetes and costumes.
Such big bucks notwithstanding, NCC officials earlier this year were shockingly vague in their accounting when they appeared before a parliamentary oversight committee.
This was of a piece with the overall approach to the State in recent years, which has not seen the collection and publication of Carnival data by agencies like the Central Statistical Office and even the Central Bank, which has a clear interest in doing so if only from the perspective of monitoring foreign exchange flows.
The lack of attention to the data surrounding the festival’s financial dimension notwithstanding, it is clear enough that aspects of its revenue-earning potential need a revamp.
[caption id="attachment_1063877" align="alignnone" width="1024"] Masqueraders rest on the side walk in Port of Spain on Carnival Tuesday. - Angelo Marcelle[/caption]
With most bands offering all-inclusive experiences, including food, beverages, "chill" zones, and more, it has long been the case that masqueraders do not generally frequent vendors along the parade route, however it is mapped out. Instead, spectators, including those in stands and people who might stroll through the city, have become the primary market for such sellers.
NCC officials have stated gate receipts account for about $25 million in revenue, but it is hard to imagine those figures being made out.
Yet, there has been little change in the number of booths erected each year.
At the same time, rental costs have been going up, moving from $700 to $900.
It seems the NCC hopes this is an area where revenue can be sustained, even as empty stands tell a different story.
Though the covid19 pandemic put a pause on Carnival, it is clear that the break was not used as an opportunity to reset and revamp the festival, inclusive of its business models.
Sooner or later, even the popular mas bands will have to re-examine the products and services they offer, if they are to keep their thousands of patrons satisfied.
To get returning customers is one thing, to inject new lifeblood and expand the market is another. This is as true of the mas experience as it is of the fete experience, which after a few years will tire even the most die-hard partiers.
Innovation, thinking outside of the box – this is needed now as we move into a
