The high number of people who come for one day or buy a three to four-day pass is what convinced the largest actors in the country’s economy – Banca Transilvania, Kaufland, Ursus, Huawei and Orange to name but a few, to sponsor such events with tens, hundreds of thousands or even more than one million euros.
Under the circumstances, the organizers of Untold (Cluj-Napoca), Neversea (Constanta), Electric Castle (Cluj-Napoca) and Summer Well (Bucharest) posted 130 million lei (EUR27 milion) revenue together last year, about 30% more than in 2016. The revenue came from sales of tickets and from sponsorships, according to the latest data available to ZF. Partnership and sponsorship contracts account for most of the total.
Besides the money the organizers make, such events also drive business to hotels and restaurants in the cities the festivals take place in.
Considering the four festivals gather more than 200,000 people, and a person spends RON1,500 to RON1,700 on average, the local economy in Cluj-Napoca and Constanta, mainly, as the people going to Summer Well mostly live in Bucharest, gets RON300 million to RON340 million, according to ZF estimates. Cluj-Napoca’s economy gets the bulk of this sum. (EUR1=RON4.7352)
(English version by Loredana Fratila-Cristescu)