COMATAIDH BUILEACHAIDH PLANA CANAN 8 FEBRUARY 2016 SUSTAINABLE DEVELOPMENT COMMITTEE 10 FEBRUARY 2016

HEBRIDEAN CELTIC FESTIVAL REVENUE FUNDING 2016/17

Report by Director of Development

PURPOSE OF REPORT To consider an application for annual revenue funding from the Hebridean Celtic Festival Trust (HCFT) for 2016/17.

COMPETENCE

1.1 There are no legal, financial or other constraints to the recommendations being implemented. Provision exists within the Development Department and Chief Executive’s Revenue Budgets, subject to approval of the Comhairle’s 2016/17 Budget.

SUMMARY

2.1 The Hebridean Celtic Festival (HCF) is firmly established as a major international event on the Celtic music calendar. It plays a crucial role in bringing visitors to the islands, raising our tourism profile and branding the Outer as culturally rich and attractive tourist destination. Just as importantly the event has a strong local following and is a highlight of life here in the summer for many islanders.

2.2 The HCF had an annual income of £343,264 in 2015/2016. An estimated £115,749 (34%) of this income was re-directed back into the local economy via expenditure on employment and other goods and services required to deliver the festival. The total attendance figure was 14,052 in 2015. 4800 attendees were visitors to Lewis and Harris. The associated visitor spend on accommodation, travel, shopping, food and leisure services providing a vital impact on the island economy.

2.3 Creative have confirmed funding totalling £80,000 towards the festival in 2016, an increase of £20,000 from 2015. At a very challenging time for public funding of the arts in Scotland it is testament to the quality of the festival that the HCFT have secured this support from a national funding body. Although a significant percentage of funding for the festival is derived from private sponsorship and commercial income, continued support from the Comhairle is imperative in ensuring this inward investment from other public and private sources.

RECOMMENDATION

3.1 It is recommended that, subject to approval of the Comhairle’s 2016/17 Budget and to the satisfactory conclusion of a one year Funding Agreement for 2016/17, the Comhairle approve funding of £21,375 from the Arts Revenue Budget and £4,275 from Sgioba na Gàidhlig Budget to the Hebridean Celtic Festival Trust.

Contact Officer Elsie Mitchell, Arts Development Officer Tel 01851 822 695 Appendices 1 Attendance Table 2009 to 2015 2 Income and Expenditure 2015 and 2016 Economic Impact Summary 2015 Background Papers Report to Sustainable Development Committee 4 February 2015 BACKGROUND

4.1 The HCFT was established in 1995 to promote Celtic music in all its aspects and to increase awareness of and interest in Celtic music. It is held for four days in July, with the main events taking place in a complex of tents in the grounds of Lews Castle and at An Lanntair. Outreach performances, workshops and fringe activities take the festival atmosphere to the streets of Stornoway and to a number of rural community venues in Lewis and Harris.

4.2 “Our mission is to promote and develop Celtic music, arts and culture in all its forms against the backdrop of the Outer Hebrides. We are committed to nurturing talent and creating opportunities for artists through our international platform. We have a strong focus on conducting our business in an environmentally sustainable manner. We have an innovative and dynamic approach embracing emerging technologies. We aim to create a world class festival, generating a unique atmosphere that appeals across our community and beyond.” Hebridean Celtic Festival Trust: Mission Statement

4.3 The HCFT is a professional organisation hugely reliant on volunteer effort. Incredibly for an event of its size and profile there is only one full time employee, with temporary seasonal staff recruited annually in the short period around the event to assist with the festival office operation and the main site build. Administrative overheads are kept to a minimum by home working and extensive use of cloud technology.

4.4 A high level of local community support is demonstrated by both the voluntary commitment to the successful delivery of the event and audience figures. 140 volunteers contributed over 3700 work hours during the 2015 festival; 66% (9252) of the total attendees were residents of Lewis and Harris. The HCFT has developed strong relationships with local individuals, community groups and organisations in both the public and private sector, which greatly contributes to the successful staging of the event and the promotion of the festival experience within its unique Hebridean context.

4.5 The review of the Funding Agreement with the Comhairle for 2015 has concluded that the HCFT has successfully met their Funding Agreement requirements delivering a high quality, diverse and vibrant programme of cultural and creative activity with significant social and economic impacts.

ECONOMIC IMPACT

5.1 The HCF contributes to the viability of the local business community through cultural tourism and the attraction of visitors to the islands on an annual basis, generating visitor spend on local products and services e.g. accommodation, shopping, travel, food and drink. Analysis from ticket sales in 2015 showed that there were a total of 14,052 attendances. 34% (4800) were visitors taking a holiday on the islands.

5.2 In addition to the associated visitor spend, an estimated £115,749 34% of the total HCFT income in 2015 was re-directed back into the local economy via expenditure on the services needed to deliver the festival. Using economic impact models applied in previous years and attendance figures over the history of the event, HCFT estimate that the benefit of holding the annual festivals has contributed in the region of £20m to the local economy.

5.3 Over the last 7 years individual attendances at the festival have maintained an average of just over 14,500 over the four days of the event. This is a commendable achievement during an extended period of economic recession. The table in Appendix 1 to the Report outlines the attendance pattern.

5.4 HCFT promote the festival and the Outer Hebrides along one or more of the themes i.e. setting, music and community, extolling the attractions and merits of each across all communications to audiences including festivalgoers, sponsors and the media. This has brought positive media attention to the Outer Hebrides, attracted visitors and enhances the areas image as a vibrant, inspiring and culturally rich place to live and work. 5.5 In 2015 Songlines magazine listed HCF as Top 10 in UK Summer Festivals for the fifth year in succession. In 2014 HCF was the winner of Best Festival or Event in the Highlands and Islands Tourism Awards. In 2011 the event secured the coveted title of ‘Best Large Event’ at the Scottish Event Awards, with the beaten finalists being prominent, higher-cost, major city events and ’s Celebrations.

5.6 Within the Outer Hebrides Community Planning Partnership (OHCPP) Economic Regeneration Strategy to 2020, the growth of the Creative Industries and the development of tourism are identified as opportunities. The HCFT assist the OHCPP with two of the key actions for Tourism to “endorse and support the promotion of the Outer Hebrides as a unique island hopping destination, with a rich heritage, an outstanding natural environment, and a vibrant food, art and craft culture” and to “consolidate the festival and events market”.

5.7 The promotion of HCF and the positive image and branding of the Outer Hebrides as a tourist destination goes beyond the 4 days of the festival. HCFT have a very effective and year round social media campaign, which surpasses similar events on other islands e.g. the HCF Facebook page currently has 12,103 likes; St Magnus Festival in : 1095 likes; Shetland Folk Festival: 5400 likes. It currently has a higher reach than the local destination branding Facebook page, The Outer Hebrides which has 6711 likes. Skilful marketing, consistent delivery of a quality event and years of investment have developed Hebfest into a strong and resilient brand with a worldwide following.

5.8 HCFT creates direct employment by sustaining one full-time post throughout the year, employing temporary staff during the festival period and paying fees to musicians (some locally based) performing at the festival. Training opportunities offered to the volunteer workforce help increase employability skills. HCF Volunteers aged 25 and under receive Saltire Awards, a scheme initiated by the Scottish Government and for those aged over 25 Kisimul Awards have been developed by the Volunteer Centre Eilean Siar. Development tasks for young people include: job shadowing of key festival team members with mentoring and advice; work experience in photography, journalism, event management, public relations, writing, artist liaison, box office, lighting, filming, and the internet. For those interested in following a career in the Creative Industries the festival provides a practical and highly relevant training ground.

5.9 The total running costs for HCF in 2016 are estimated at £388,500. HCFT have successfully confirmed funding from Creative Scotland totaling £80,000 in 2016/17. This is an increase of £20,000 from 2015. Public funding for the event, while crucially important is targeted at 30% (£115,000) of the total running costs. The remainder of the costs are to be met through private sponsorship, ticket sales and commercial income. An Income and Expenditure statement for the 2015 festival along with an estimated budget for the 2016 festival is shown in Appendix 2 to the Report.

CULTURAL AND CREATIVE IMPACT

6.2 The festival promotes an eclectic range of performances that encompass new and emerging talent, Gaelic music and contemporary traditional stars. As well as promoting live Celtic music, and bringing internationally acclaimed acts to the Outer Hebrides, the festival provides local musicians with an international platform.

6.3 Over the last 20 years of this annual festival children and young people from the Outer Hebrides have been inspired by the music on offer, performed themselves and become acclaimed professional musicians in their own right. These include Norrie Maciver, Alasdair White, Mischa Macpherson, Isobel Anne Martin, Iain Morrison and . Others have gone on to further education and employment behind the scenes in the creative industries.

6.4 In 2015 an on-going partnership with Feisean nan Gaidheal provided an opportunity for young musicians from across the Outer Hebrides, to rehearse and train together at workshops in Lewis and Plockton then to perform at a trail of events throughout the festival programme, including a care home, Callinish Visitor Centre and festival lates, culminating in their own show on the Island’s Stage, which was well received by the festival audience. 6.5 To celebrate the 20th Anniversary of HCF Alasdair White was commissioned to write a ‘suite’ of new material and to arrange this into an opening show. Another demonstration of the HCFT’s commitment to nurturing emerging talent and recognising the potential for development within the local ‘talent pool’.

6.6 A unique feature of Hebcelt is its family friendliness and intergenerational appeal. This is achieved by carefully selected programming of acts that appeal to particular age groups and Fringe activities. An Lanntair annually provide family art workshops within the festival arena. In 2015 a bouncy castle, roving magician, face painting and a Mini Big Top in the centre of the green kept children entertained for hours with international acts featuring comedy, acrobatics, aerialists and jugglers. Afternoon opening on Friday/Saturday plus 3 free concerts at Martin’s Memorial Hall also help families to engage with the festival.

6.7 Gaelic is an inherent part of programming. In 2015 three mornings of Blas Gaidhlig language taster sessions were held; bi-lingual menus were provided at all catering stances; a Gaelic team interacted with the festival-going public to share short Gaelic phrases in a fun way and Radio nan Gaidheal broadcast live daily coverage, showcasing participating artists. Gaelic song featured at 10 of the performances within the main arena - Salsa Celtica, An Iuchar/The Key, Manran, Niteworks, Karen Matheson, Malin, Alyth McCormack, Shooglenifty, Feis Ceilidh Trail, Jose Rose Duncan; 6 An Lanntair events – Ceilidh Dances, Shinty Heroes, Na h-Oganaich, Shine and the Festival Club and at community outreach events – Alasdair White Band at Breasclete Hall and Norrie Maciver at Seallam! in Harris.

6.8 The festival is constantly developing new initiatives. A craft area was established within the festival arena in 2012, to allow presentation of local crafts to festival goers. In 2015 catering concessions undertook to source menu items locally and Local Food Cookery Demonstrations were introduced at 4 locations in Point, Shawbost and Stornoway. An interesting new development for Hebfest in 2016, planned as part of the “Bealach”: Creative Places Award, is the introduction of performances on the ferry journey from Ullapool in the week leading up to the festival.

6.9 Hebcelt 2016 will feature and Julie Fowlis as headline acts. The last time Runrig performed at the festival in 2010 attendances reached their highest levels (please refer to Appendix 1 to the Report). Since announcing the headline acts in December 2015 HCFT have already achieved over 40% of their target for ticket sales - an encouraging sign for the 2016 event.

CONCLUSIONS

7.1 The HCF is a unique cultural asset to the Outer Hebrides. A professional and highly successful internationally branded event, with a strong local, national and international following. It is recognised as a major contributor to tourism and inward investment.

7.2 The event supports the delivery of National and Local Outcomes under the 2016/17 Single Outcome Agreement and the delivery of the Comhairle’s Plana Cànan nan Eilean Siar.

7.3 Comhairle funding is critical in assisting the HCF to lever in support from other public bodies and to carry out its programme for 2016. It is therefore proposed to invest funding, of £25,650 (£21,375 from Arts Revenue and £4,275 from Sgioba na Gàidhlig for financial year 2016/17, subject to the satisfactory conclusion of a Funding Agreement and subject to approval of the Comhairle’s 2016/17 Revenue Budget. APPENDIX 1

HEBRIDEAN CELTIC FESTIVAL ATTENDANCE

Year 2015 2014 2013 2012 2011 2010 2009

Total 14,052 14,314 16,298 14,095 14,506 16,418 11,963 Attendance

Headline Afro Celt Sound The Levellers Capercaille The KT Tunstall Runrig Sharon Acts System Waterboys Shannon Band Big Country Van Peatbog Imelda Idlewild Morrison The Faeries May La Bottine Donnie Munro Proclaimers Souriante Salsa Celtica with Dougie Dàimh Afro Celt An Iuchair by Ally Maclean Kassidy Sound Micheal White System McGoldrick Band with guest vocalist Karen Matheson

External Calmac Ferry Circus of the Tall Ships Circus Berlin factors/ strikes early in the Orient held celebrations held in competing summer lifted a in Sty Castle in Ullapool Stornoway events with day before HCF grounds at on the same Castle grounds potential started. Wet same time dates as the at same time as impact on weather during as festival. Festival festival attendances festival site build & event. Amber All day Second Wet weather. weather warnings opening stage added Ferry & flight for 2 days of the over Fri/ Sat to main disruption during festival. initiated festival site festival APPENDIX 2

HEBRIDEAN CELTIC FESTIVAL INCOME AND EXPENDITURE 2015 and 2016 Note: provisional figures given by HCFT at December 2015

EXPENDITURE Actual 2015 Budget 2016 Artists Fees 89,659 100,000 Travel 4,535 6,000 Accommodation & Hospitality 17,700 18,000 Workshops & Street Art 8,489 8,000 PRS 4,672 6,000 Commission 6,103 0 131,158 138,000 Location Site costs, venues 39,564 31,000 Stage, sound, light 55,293 60,000 Haulage 0 16,500 Security 19,467 19,000 Accommodation and Hospitality 0 6,000 Toilet facilities 7,237 1,500 Other Venues 1900 2,000 Technical Management 5000 5,000 Contingency 5,000 128,461 146,000 Development Projects 2015 Hebcelt: Land (Hogmanay event in Edinburgh) 7263 Year of Food and Drink 6,395 13,658 Marketing Graphics 5,500 5,000 Publishing 5,950 6,000 Website 3,591 3,500 Advertising 5,343 5,500 Photography 1,240 1,400 Distribution 2,968 3,000 General Promotions 3,100 2,000 Seminars & Events 1,087 2,000 Marketing & PR 8,620 8,500 Tickets 1,281 1,800 38,680 38,700 Co-ordination Salary and on-costs 33,000 34,000 Office overheads 1,800 1,800 Travel, training & research 1,918 2,000 36,718 37,800 Administration Office staff 3,233 4,000 Office expenses 2,884 3,000 Admin support 2,496 2,500 Office Rent 1,105 1,000 Directors’ Expenses 625 1,000 Volunteers Expenses 2,434 3,500 Legal & Finance 12,350 13,000 25,127 28,000

TOTALS 373,802 388,500 INCOME Actual 2015 Budget 2016

Public Funding 136,885 115,000 Donations/Private Sponsorship 17,295 18,000 Ticket Sales 155,723 200,000 Friends 1,633 1,700 Advertising 1,570 1,600 Traders, Catering and Bars 19,040 31,200 Retailing 8,201 14,000 Other Income 2,917 7,000 TOTALS 343,264 388,500

Note: It is a part of the HCFT financial strategy to sustain financial reserves at an appropriate level (at least 20% of annual revenue expenditure) in order to provide resilience in the event of a failure to meet income targets in any one year, particularly ticket sales which can be subject to external factors outwith the control of HCFT.

HEBRIDEAN CELTIC FESTIVAL : Economic Impact Summary 2015

Employment Generated F/T P/T Hrs Give Post Start and End dates if per employment is temporary or seasonal week Job Title Start End date date Shop Admin 3 40 22 June 21 July Crew 8 50 10 July 27 July Local Security 5 80 10 July 24 July Festival Director 1 40 Bar Staff 20 20 16 July 18 July Total Expenditure on Payroll in 2015 £38,729

Skills Development Total number of individuals gaining employability skills by volunteering at the festival 140 Freelance Employment Generated within the Outer Hebrides Creative Industries Sector Total number of Outer Hebrides based Creative Industry practioners who benefited 55 from the resources provided by Heb Fest in 2015 e.g. musicians, visual artists, craft- makers who performed, exhibit, make new work, promote existing work, or lead education and outreach events. Total no. of Outer Hebrides based Creative Industry Businesses paid to deliver goods 9 or services for the Hebridean Celtic Festival Total Value of Fees and Expenses paid to Outer Hebrides based Creative Industry £15,020 Businesses to deliver goods or services for the Hebridean Celtic Festival Purchase of other Outer Hebrides based Goods and Services Total Value of other goods and services purchased by the Hebridean Celtic Festival £62,000 from other suppliers in the Outer Hebrides to facilitate staging the festival e.g. expenditure on local travel, ferries, accommodation, meals, marketing, legal and accountancy fees, etc. Driver for Tourism Total Festival attendances by visitors to Lewis and Harris 4800 In Kind In-kind contribution by volunteers, businesses & supporters 3700 man hours £37,000