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 Hebrides 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 Scotland 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 Celtic Connections and Edinburgh’s Hogmanay 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 Orkney: 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.