It is expected that in the less demanded areas of the fair, one square meter will become more expensive by 23-33 euros. The most expensive – from 40 to 50 euros.
In this case, the cheapest store at the Sea Festival fair for three days would cost from 128 to 192 euros (6 m²), the most expensive – from 360 to 450 euros (9 m²).
They want to almost double the price of renting the space to provide services to the festival. If the area used for services is up to 50 m². m, the amount of the fee during the Fête de la Mer would increase from 7.5 currently to 13 euros for 1 square meter. Mr.
Occupying a larger area of 1 sqm. m price is falling. If the services will be provided in an area greater than 1,000 m². meters (for example, an amusement park), it is proposed to increase the rent from the current 1.7 to 3 euros per 1 m². Mr.
Eglė Šulskė, the head of the Klaipėda Festival State Company, said that the last time toll rates for the Sea Festival Fair were increased in 2016.
“We see what inflation looks like in Lithuania, we have inquired about the rental prices for the stage and other equipment, they have increased by 20-30%,” says E. Šulskė.
According to her, if the fair fee were increased, it would not affect the budget of this year’s Festival of the Sea. Klaipėda Municipality planned to allocate 250,000 for the Sea Festival this year. euros.
Among them, 219,000 EUR is the amount that was collected from entrepreneurs who sold and provided services to the Festival de la Mer last year. The rest, about 30 thousand. euros, the Municipality will add from the city budget.
In addition, “Klaipėdos śvatės” collects funds for the main event of the year from sponsors.
E. Šulskė promises that the quality of this year’s Sea Festival will not suffer from the price increase and that the event will be properly organized.
However, the purpose of the fee increase is to raise more money for next year’s Festival of the Sea.
“The goal is that the municipality’s contribution to the Sea Festival next year will be 300,000 euros,” E. Šulskė told “Vakāru ekspres”.
“Vakaru ekspresas” wrote last year that about 800 merchants participate in the Sea Festival fair.
Many of them are permanent. They know the best shopping spots and compete for them. Places are sold upon prior registration. Merchants are grouped together and must be able to reserve and pay for a place in the electronic system at any given time. This service is provided by one of the ticket distribution companies operating in Lithuania.
Traders who didn’t have time or couldn’t buy seats in a good place (preferably certified folk artists) are looking for opportunities to redeem seats.
Although E. Šulskė says that it is strictly forbidden to do so, traders interviewed by “Vakāru ekspres” did not hide that this happens all the time, and they agree to pay twice as much for places on the illegal market, if the place is really good.
Businessmen consider the Sea Festival as one of the main events in Klaipėda, and the profitability of trade throughout the year depends on the success of trade during it. It is also, together with the Kaziuk fair in the capital, one of the most expensive (according to the amount of the toll) among the city holidays.
Trade is only more expensive at popular indoor festivals.
The question arises why “Klaipėdos śvatės”, having decided to offer to raise prices, offers the least to raise the price of the most popular places, from which it is possible to earn more, and increases the prices of places less suitable for trade, which the participants of the fair avoid.
E. Šulskė herself confirms that the part of the fair, which has only been held for a few years on Pēippilis Street, is not popular. Businessmen simply run away.
“The area of the fair was limited by the reconstruction of Danė Square, because the square was renovated with EU funds, it is not possible to sell commercial spaces there”, explains E. Šulskė .
She points out that the proposed price increase is calculated according to the methodology currently in effect, where the price of the least popular location is the base price, and the coefficients of 1.25 and 1.5 are applied to the most more popular.
She could not say why it is not proposed to change the coefficients so that the municipal budget can raise more funds for popular places of the fair.
“It is the decision of the Council, the Council can take a different decision”, says E. Šulskė.
She also points out that “Klaipėdos śvatės” is a non-profit organization and earning money is not its main function.
“The Council could take the decision to fundamentally change the funding model of the Sea Festival”, E. Šulskė sees another way out.
After hearing about the price increase plans, the businessmen say they will consider whether it is worth participating in the Sea Festival.
“For traders coming from other parts of the city, the costs alone will reach around 1,000 euros. For it to be worth participating, the gain must be around 1,000 euros”, calculates Tomas (first and last name known to the editorial staff).
It assumes that merchants can choose smaller towns with lower taxes. He also predicts that the fair’s diversity could suffer due to rising prices. Merchants will sell more consistent and profitable items, and there will be fewer unique items.
“Food traders may be able to afford to pay more, but fairs are always a risk because success is largely determined by the weather,” says Tom.
Source: The Delfi