ambika.jagassarsingh @guardian.co.tt
As the two-day epicentre of the Mother of all Carnivals kicks off tomorrow, there are some who may question whether all of this pomp and splendour is worth it in the end.
Every year millions of dollars are injected into the preparation of this celebration that attracts crowds from every corner of the world.
According to data drawn from the Central Statistical Office’s (CSO) Survey of Departing Visitors, the average estimated visitor expenditure for the Carnival Period grows consistently each year.
Exempt from this growth, however, were the years affected by the COVID-19 pandemic, 2021 and 2022 where observance was either laid back or non-existent.
The last viable year of data in 2020, saw around 37,861 Carnival visitors having an average expenditure of $12,101, bringing the total visitor expenditure for that Carnival period to $458,155,961.
One economist, Dr Vanus James stated following the trend in numbers, Carnival has raked in over the years, things look promising for the 2023 festival.
“Foreign visitors remain high, averaging 36,000+ over the past nine years minus 2021, and visitor expenditures are sustaining at a high level or rising, averaging more than $388 million in 2019 and above $458 million in 2020. 2023 might even be a blockbuster year,” he said.
James also indicated that while there have been no systematic studies to establish the economic viability of T&T’s Carnival, there are some clues that suggest it is thriving.
“Bigger and bigger Carnival operations are developing productions without the benefit of government subsidies, among these being mas bands such as Tribe and musical shows such as Machel’s. Some of the big bands no longer bother to participate in the competitions because the publicly funded prizes are uneconomical, given the conditions set by the NCC.”
He also referenced the trajectory that soca artiste Machel Montano’s career has taken, which has grown into the most successful artiste in the country’s history. This growth, he added “is not a likely development in an industry that is not viable.”
Not only have artistes and fete promoters developed their craft, James added that even mas bands were able to grasp their footing in new markets to maintain a level of cost-efficiency.
He said: “The mas bands have been evolving to address economic viability, moving from the historically fully integrated domestic production of bands to increasing integration into the global value chain in order to keep costs down.”
In addition to this, a study conducted for the Caribbean Development Bank in 2016 showed that the creative industries, to which Carnival belongs were a net exporter, which generated a positive intra-industry trade balance of $3.9 million.
Despite the booming industry, however, he stressed that constant attention must be paid to its growth to set T&T’s Carnival above all others.
He added that while the celebrations have been replicated, “the challenge of copying the practices and products of a dynamic creative industry is enormous.”
This, he attributes to the difficulties involved in learning and mastering a craft that is not intrinsically known by foreigners.
“A good example is the ability of the musicians to produce new music for the Carnival every year. What cultural phenomena make this possible?” he questioned.
To keep ahead of the game, however, he stressed that “policymakers must treat Carnival as an industry and pay increasing attention to the development of its creative foundations.”
James said through investments in several sectors, T&T will be able to maximise the true potential that Carnival presents. He offered several potential areas that needed more exploration.
With the permeation of technology and the presence of artificial intelligence (AI), this is an untapped market resource. More and more we see how AI assists in the reduction of human error, the mundanity of repetitive tasks and even the possibility of 24/7 availability.
James speculated that these implementations might have magnanimous effects when paired within the Carnival industry correctly. In order to do this though, James said there needed to be investments in certain areas.
“Research and development to underwrite and build on culture-based creativity, with financial and other incentives to apply AI-driven digital technologies in the direction of avatar-based and year-round spinoffs such as video production, film production, animation, especially in video games,” he said.
He also acknowledged the importance of the “development of financing instruments that recognise the intellectual property products created each year as assets that can be used as collateral.” This can possibly protect the management of the festival’s creations such as designs.
James stated that over the years, many of the profit-making aspects of Carnival were unaided by the government.
“I think that the main concern has to be with the unsustainable sponsorship-based business model of the steel bands. Soca and the works of mas have essentially taken off into sustainable growth without government support or the support of sponsors.”
This he added needs some improvement, since these industries, specifically the music industry, have great potential for bringing in revenue if the right crowds are pulled. He proposed the “transformation of the business model of the steel bands, using them to anchor the development of high-quality music schools across the economy” as well as banking on the uniqueness of the national instrument.
One market James believe has a lot of potential to capitalise on is the dynamism of Carnival, which is once again the advent of AI.
Through the use of AI, he believes there are numerous prospects.
He said that “thousands of hours of filmed footage of the Carnival from different vantage points would provide skilled programmers deploying tools like machine learning could create Carnival-inspired and photorealistic avatars using speech AI, computer vision, natural language processing, understanding and generation, recommendation engines, simulation technologies and the like.”
Through the utilisation of this technology, T&T can “foster a dynamic and continually evolving Carnival gaming environment, complete with prizes for which gamers can compete directly or through the avatars they champion.”
According to James, each year’s Carnival events will provide fresh data and information for the animation mill.
“It is safe to say that the more people participating in the Carnival, the more Carnival avatars there will be.”
He believes “if modern digitised industrialisation becomes a key basis of the year-round industry of the future,” T&T will be ahead of the game.
Another economist, Dr Vaalmikki Arjoon also stated that the Carnival industry is a lucrative one for those involved.
“Each year the Carnival ecosystem provides many opportunities for revenue earnings and job creation, especially in the creative, tourist and service industries. Tourist arrivals largely peak at this time.
“Generally, hotel occupancy reaches 100 per cent during Carnival week, but it only averages 50 per cent to 60 per cent each week for the rest of the year,” he said.
Arjoon also referenced the CSO’s Survey of Departing Visitors noting the consistent increase in visitor expenditure over the years.
Despite the setback faced last two years, he stated, “for this year, preliminary forecasts suggest that the average amount likely to be spent per Carnival visitor may range between $12,500 to $14,630.”
When compared to 2020, this shows a $399 to $2,529 increase. Another factor that should be accounted for regarding the increased expenditure, however, was the increased prices of fete tickets this year.
During this period, he said, the entire service industry within T&T experiences an increase in demand for their services.
Arguably the most profitable sector during Carnival, the creative industry also has a higher appeal for its products and services, which are not only restricted to the shores of T&T.
“Revenues are also earned through the music industry reaching international borders. Those involved in the design and manufacturing of costumes for bands not only facilitate employment locally and earn higher revenues at this time but also provide their services for Carnival in London, New York, Toronto and other Caribbean countries.
“Similarly, sound engineers typically involved in Carnival locally are also in high demand for Carnival celebrations in foreign countries, which allow them to earn revenues in foreign currency.”
Arjoon stated that while people were speculating 2023, the Mother of all Carnivals would have a “pent-up demand” by most to participate in Carnival events, this was not the case.
He said: “The demand appears to be contingent on household income levels. Many patrons in the middle to lower-income groups have been more selective about which activities they participate in. For instance, instead of attending four fetes, some opted to attend one or two—the reason being that the cost of living has surged in the last two years and many households are more prudent with how they spend their monies.”
He also mentioned the slow sales of tickets, which inevitably led to the cancellation of fetes, despite the prominence of artistes during this time.
Arjoon stated that these increases really only affected citizens who fell into the low-income brackets which highlights the significant income disparity levels locally.
“Many in the upper-income brackets, continue to patronise events in a manner similar to the pre-pandemic, with some spending even more, which explains why some of the more expensive masquerader bands and events were sold out early,” he said.
