Festivals in doubt as Splendour in the Grass cancelled

More music festivals will fall if governments don’t help the struggling industry facing cost pressures, with Splendour in the Grass becoming the latest casualty.

Organiser Secret Sounds on Wednesday confirmed the cancellation of the key Byron Bay gathering which has run since 2001 and only postponed in 2020 and 2021 due to the COVID-19 pandemic.

Australian Festival Association managing director Mitch Wilson said the soaring price of running a large music event was making it increasingly difficult for the industry to operate.

“The Australian music festival industry is currently facing a crisis and the flow-on effects will be felt across the local communities, suppliers and contractors that sustain our festivals and rely on them to support their livelihoods,” Mr Wilson said.

“If we all step back and let market conditions determine our future, cancellations will continue.”

The association called on state and federal governments to bolster funding and grants in upcoming budgets to help keep the sector afloat.

The current poor strength of the Australian dollar, high travel costs, insurance and extreme weather were other major factors impacting festivals, Mr Wilson said.

Peter Noble, director of Bluesfest, which kicked off its 35th year on Thursday at Byron, said ticket sales were down 25 to 30 per cent compared to pre-COVID times.

“The Reserve Bank has done their job,” Mr Noble told AAP.

“(It) has a policy of causing discretionary spending not to occur.

“Here we are with a one year window in between (reopening after COVID) with a situation where inflation ... has decimated the music industry.”

Challenging the notion that the industry was performing well in light of successful tours by Taylor Swift and P!nk, Mr Noble said most events and venues are not doing great.

“That Splendour has cancelled is a tragedy for our entire industry and maybe this will be the wake up call.”

“Splendour should be the bellwether. It’s the canary in the coal mine.”

Mr Noble warned more events will fall if state and federal governments don’t back them.

“I’m not lining up for the festival firing squad,” he said.

“I’m here to say it’s time to act government, and this should be a moment where you’re calling saying ‘what can we do for you?’ And my phones are silent.”

The NSW government offered financial support to help Splendour proceed but it wasn’t enough.Held annually at the North Byron Parklands in northern NSW, it was due to be staged from July 19 to 21.

Tickets went on sale on March 21, with Australian pop superstar Kylie Minogue among the artists booked to perform.

“I was so looking forward to being there and all of us having the best time,” she said in a social media post.

“Oz, I’m looking forward, now more than ever, to be home and playing shows for you.”

Organisers said “unexpected events” led to the demise of the festival this year and promised refunds for ticketholders.

“This festival has always been a huge community effort and we’d like to thank everyone for their support and overall faith,” Secret Sounds said in a statement.

Victorian Premier Jacinta Allan said her government was willing to consult with the industry and consider recommendations made to the federal government on further support.

“There’s clearly some challenges with those bigger scale outdoor music festivals,” she told reporters on Thursday.

Groovin the Moo organisers were forced to ditch the event’s 2024 tour in February due to insufficient ticket sales.

More than 25 music festivals across Australia have been cancelled since 2022 - nine of them in NSW, according to data from the Australian Festival Association.