How much does it cost the U.K. to host the Eurovision Song Contest

The UK will host the 67th Eurovision Song Contest on May 13.

Celebrated and parodied by audiences around the globe, the world’s biggest singing competition has become something of a cultural institution in the seven decades since its inception.

But behind the daring performances and fancier costumes, the annual contest is also seen as an instrument of political and economic power games.

In 2023, more than ever, this will be the case.

With the war in Ukraine (the winners in 2022) continuing, host duties fall to second-placed Great Britain, while Russia has been kicked out of the competition. Rising costs are prompting some countries to pull out of the race before it even begins.

So how much does the race cost — and is it worth it?

The Eurovision Song Contest was first held in Lugano, Switzerland in 1956. Conceived by the European Broadcasting Unionan alliance of public broadcasters to celebrate the culture and unity of a newly defined post-war Europe.

Although the EBU says the Eurovision Song Contest is apolitical, the intersection of the competition’s relationship with Europe has been noted.

Contemporary European historian at the University of Vienna, Post-war Europe and the Eurovision Song Contest. “

“That’s why people love watching Eurovision because it always reflects the political zeitgeist of Europe,” he added.

In the decades since its inception, the game has grown rapidly to include even non-European countries such as Australia.However it is still a Co-production between EBU public broadcastersall participating countries—usually around 40—pay to participate.

Europe’s largest economies — Germany, Great Britain, France, Italy and Spain, also known as the Big Five — pay the most, based on the EBU’s “Principle of Unity,” which states that the strongest shoulders should “carry the greatest weight.” They also automatically qualify for the finals.

Other countries then contributed varying amounts, totaling about $7 million. But with inflationary pressures weighing heavily on Europe in 2023, the fees were seen as too high by some, with Bulgaria, Montenegro and North Macedonia pulling out of this year’s event For economic reasons.

Still, the main cost of staging the competition is borne by the host country — usually the previous year’s winner — whose onus is to put on a memorable show. These amounts have varied widely over the years—some countries are more willing to give than others.

According to reports, in 2013, the Swedish city of Malmö held approximately $20 million. This is much lower than $42 million Moscow spent approximately $30 million Paid by Düsseldorf in 2011, $54 million Proposed by Copenhagen in 2014.

But the crown for the most expensive Eurovision Song Contest so far is held by Azerbaijan’s capital, Baku, which spent a staggering 2012 $64 million and $76 million On the event alone — not to mention the $100 million spent on a new stadium to host the event.

As the host broadcaster, the BBC will cover most of the cost – estimated at $10 million to $21 million – while the UK government has said it will foot the bill $12 million.

That budget full Revenue from ticket sales, sponsorship deals and online platforms.Meanwhile, Liverpool Local Authority will further invest in $5 millionmostly about events outside the arena.

“Culture is really important to this country, the way we portray our culture and shape our identity internationally is very important. Tourism in Liverpool is 47 per cent of our economy. So it’s not chicken feed for us, it’s It really, really matters,” said Claire McColgan, director of culture at Liverpool City Council.

The incident comes at a challenging time for the British economy, which is struggling to keep pace with its European neighbors amid soaring inflation and sluggish growth. In 2022, the UK is the only major economy that has failed to return to its pre-pandemic growth rate and has instead contracted. By 2023, a further contraction of 0.3% is expected.

This is also at a time when the BBC is making major layoffs and trying to insert a £1.4bn financial hole After the government froze licensing fees.

“We rarely get the chance to hold the Eurovision Song Contest, but this is our time. We’re obviously very, very honored to represent Ukraine and hopefully this is a great opportunity to showcase what the BBC has really done well,” said Martin Green, BBC Eurovision 2023 Managing Director.

“We’ll probably give a full figure when we’re done,” he added of the BBC budget. “It’s a mobile feast at the moment, and we’re in the middle of it.”

First, a race can be a great advertisement for the host city and country, and it can last long after the party is over. In 2019, events in Tel Aviv reached 180 million TV viewers In 40+ marketplaces, and millions of online marketplaces.

“When countries aspire to host events like the Olympics or the World Cup, they add these things to their resumes,” Vuletic said. “Think about Russia: it hosted Eurovision in 2009, then Sochi Winter The Olympics and the World Cup of Soccer.”

This can also attract tourist spending and boost the local economy. The 2022 host, Turin, a city in northern Italy, spent about $11 million to host the event, but said it has recouped that money more than seven times through travel.

James Bates, managing director of Maray Restaurants in Liverpool, said he expected a 50 per cent increase in business during the event alone.

“People talk about knock-on effects, and we really saw that in 2008, when we were the cultural capital. The city is talking about an increase in tourist numbers similar to (that), which is transformative for the city, “He said.

“Liverpool City Council invested £2 million and in six weeks we’ve made £15 million in real cash investments to help us put on this fantastic game. But the economic impact goes beyond that,” said McColgan . “We estimate the economic impact at £22m. I think it will be well over that because the number of visitors on the first day exceeds that.”