Canceled live events in 2020 results in $30 billion hit to economy

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Canceled live events in 2020 results in $30 billion hit to economy

What used to be one of the busiest parts of downtown Austin each Friday night, is now a prime example of the local economic impact of the COVID-19 pandemic.  

The economic impact of canceled events continues to add up all over the country. On Friday, concert trade publication Pollstar said lost revenue for the live events industry in 2020 was more than $30 billion

What used to be one of the busiest parts of downtown Austin each Friday night, is now a prime example of the local economic impact of the COVID-19 pandemic.  

RELATED: Live music industry forced to adapt during COVID-19 pandemic

"We've lost 30 percent of our venues in the district already due to pandemic. The Red River Cultural District, like downtown and much of Austin, will never look the same after this," said Cody Cowan, executive director of the Red River Cultural District. 

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'Save Your Cinema' new rallying cry of theatre owners

John Fithian, CEO of the National Association of Theatre Owners joined Good Day Austin's Casey Claiborne this weekend to talk about how they're hoping the #SaveYourCinema campaign will help urge lawmakers to fully pass the Save Our Stages Act and provide relief to struggling cinemas across the country.

For nearly 10 months, the majority of live event venues have been completely shut down and large festivals like South by Southwest and Austin City Limits have been canceled. SXSW said in 2019 their conference and festivals alone brought in about $356 million to Austin's economy

"People go to Austin for the music, and then they do everything else, but so much money is spent because of the magnet that these venues bring," said Audrey Fix Schaefer, communications director at the National Independent Venue Association. 

RELATED: FOX 7 Discussion: Musicians call on Austin leaders to save music venues

NIVA was created to help advocate for legislation, like the Save Our Stages Act, which would give federal financial support to live event venues

"There are definitely independent venue owners and operators that have said the only thing that's keeping them holding on with white knuckles on what feels like an oiled cliff, is the hope that Congress is going to act," Schaefer said. 

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City of Austin to distribute COVID-19 relief to local music venues

Austin City Council has established a fund to help local live music venues financially until it is safe for them to reopen.

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Austin is also taking local measures. The SAVES Act will provide some disaster relief money to music venues, and the Red River Cultural District's Banding Together program is supplying gift cards to venue employees facing food insecurity.

RELATED: Council approves more COVID relief funds for musicians, extends eviction moratorium

Still, local venues rely on tours and festivals for up to 90 percent of their income, so they will be treading water until the event industry is back in full force. 

"The likelihood of Austin coming back online as a tourism destination is probably slim to none until a year from now," said Cowan. 

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