JEDDAH, 28 July 2007 — This 45-day-long Jeddah Summer Festival, which is in its second week, is running so far at a financial loss, according to a source close to the festival’s administration who did not want to be named.
According to a report in Al-Eqtisadiah business daily, the festival’s first two weeks has cost about SR9 million and has generated only SR4 million in revenue. Arts events are estimated to cost SR3.75 million while fireworks were billed at SR1.5 million.
Some boosters for the festival had given a lofty estimate that the festival would gross SR3 billion and attract three million tourists, almost as many as the 3.2 million tourists that visit the city of Paris (the world’s No. 1 tourist destination) in an average 45-day period.
“Having been the most popular festival in the Kingdom, the Jeddah Summer Festival’s revenue reached SR14 million in 2001,” the source said. “While last year both its income and expense stood at SR8 million, this year’s income, if to go by the present indications, would be the lowest since its launch in 1999,” the source said.
Wael Yamani, head of the Arts Committee for the festival said that the festival should continue regardless of profit motives.
“Festival activities should continue regardless of the losses,” he said. “The national vision underlying the festival comes above profit and loss considerations.”
According to Wael, the final accounts of the arts events showed a deficit of more than SR 3.3 million. He attributed this deficit primarily to the rather higher wages for the participating artists besides the unusually high number of free allotments given to sponsors.
While the hall where performances are taking place (at the headquarters for the Jeddah Chamber of Commerce & Industry) had the capacity for 1,400 chairs, 40 percent of the seats have been given to sponsors and employees of the chamber of commerce; an additional 140 chairs are given to the media representatives.
The ticket prices range between SR250 and SR500. Singers have charged between SR112,500 and SR562,500 besides the cost of the bands and roadies to set up and break down the sets.
The Jeddah Summer Festival has largely attracted locals to its events, while larger cultural events in the Gulf tend to promote regional and international tourists. The Jeddah Summer Festival, however, is hampered by the country’s restrictions on visits to the Kingdom from abroad. And people inside the Kingdom still overwhelmingly prefer to leave the country for their leisure activities, leaving only local interest in the Jeddah Summer Festival. Other has said that the heavy participation of the chamber of commerce and the business community is hampering the festival’s activities.
“This fact stresses the need for an independent administration for the festival guaranteeing total freedom from the chamber’s control,” the source said. He also suggested the option of the festival being hosted by the Makkah Tourism Council.
