«Prepared for Caribbean Export Development Agency Barbados April 2001 CHAPTER ONE INTRODUCTION The rapid growth of an intellectual property and ...»
Table 6: St. Lucia Jazz: Financial and Economic Analysis Festival Budget: EC$3.9 million Visitor Expenditure: EC$37.5million R.O.I: 933% Source: Keith Nurse, Festival Tourism in the Caribbean, 2001 It is important to note that the key success factors for the festival have been the management and organization as well as the continuous improvements and the innovations in the format of the festival. The latter factors are important to consider given that there are several competing jazz festivals in the region many of which are following the lead set by the St. Lucia Tourist Board.
The World Creole Music Festival
The idea of having a music festival, primarily a cadence festival was formulated in 1994. This idea was eventually modified and started in 1996 as the World Creole Music Festival. Dominica is a well placed to host the Festival because of its position between the two French Departments, Martinique and Guadeloupe, and the fact that Dominica is one of the promoters of creole music. To manage the Festival effectively, a Festival Commission was established. This Commission is directly responsible for the performances, finances, as well as the marketing and promotion of the Festival.
The Festival showcases local acts such as WCK, Exile-One and Grammacks, as well as folk acts that perform traditional music like jing ping, quadrille, and belle. The organisers attract top artists from French or Creole speaking territories like Haiti, Martinique and Guadeloupe, and Francophone Africa. The festival has extended the repertoire of music to include English-speaking Caribbean artists such as calysonians from Trinidad and Barbados. Every year a CD is produced in time to be sold at the Festival. Entitled the “Music Festival Commemorative CD”, the 1998 CD was a huge success.
Attendance at the Festival has been growing over the years. For the three nights of the Festival a total number of 26,000 persons attended. It is felt that this large number was mainly due to the fact that Dominica was also celebrating 21 years of independence around the same time.
The majority of the visitors to the Festival come from the neighbouring French islands of Martinique and Guadeloupe. These patrons use the ferry service which is a cheaper than the airfare and takes just about an hour from either island. During the Festival period, the ferry normally has to put on extra trips to satisfy the demand.
It is estimated that the Festival costs approximately EC$1 million to pay the bands, including their accommodation as well as the marketing and promotion of the Festival. Some costs are offset by a Government subvention; however the amount is often debated and even questioned by some MPs. The Festival also has a number of sponsors that help to offset some of the costs. Its major sponsors include RFO, Texaco, L’Express des Iles (the ferry service between the French islands and Dominica), Kubuli, El Express and WILB. The main source of revenue is gate receipts. The cost of admission is EC$50 for a ticket or EC$60 at the gate nightly and EC$125 for the season. As an encouragement to patronise the Festival, a raffle for a vehicle is drawn on the season tickets sold.
The Festival is given significant exposure through the international media who, every year, come on their own and are hosted by the Division of Tourism for the entire Festival. In fact, the Festival is broadcast throughout the Francophone World. Due to this significant exposure the Division of Tourism firmly believes that the World Creole Music Festival has played a pivotal role in boosting its tourism particularly at the time of the Festival.
For example, it is virtually impossible to get a flight into Dominica during the time of the World Creole Music Festival.
The music industry in the OECS region has great potential as a source of employment and foreign exchange earnings. This is already evident in the contribution of performance artists and record producers to the growth of an entertainment sector in the respective territories. However, the potential is under developed because of the weak institutional base of the sector, the high level of piracy and other forms of infringement and the lack of governmental support in terms of educational, industrial, trade and intellectual property policy.
In addition, the synergies between the music industry and the tourism sector are not fully appreciated. The contribution the former makes to the hospitality sector and the competitiveness of the hotel sub-sector is largely lost to most hoteliers.
This sector plays a critical role as a nursery for emerging professionals. Festival tourism is the area where the music industry enjoys its greatest returns as the various territories are able to create a demand-pull utilizing foreign as well as regional and local musical talent.
There is a clear need for the music industry to work with state agencies and regional and international organizations to boost the institutional capacity of the sector. This calls for an organized sector at the national and regional levels, for example, through the creation of industry associations.
References Berry, Paul. (1999). Feasibility Study Relating to Regional Collective Management of Copyright in the Caribbean. Geneva: WIPO.
De Freitas, Denis. (1991). A CARICOM UNDP UWI project. St. Augustine:
Caribbean Inter-Cultural Music Institute.
Guilbault, Jocelyne (1993) Zouk: World Music in the West Indies. Chicago:
Chicago University Press.
Henderson, Gordon (n.d.) Zoukland: A Musical Journey.
Nurse, Keith (2000) “Copyright and Music in the Digital Age: Prospects and Implications for the Caribbean” Social and Economic Studies.
Nurse, Keith (2001) Festival Tourism in the Caribbean. Washington D.C: IDB.
Pollard, B.T.I. (1989) “Copyright Protection in the Caribbean Community.” In B.G.
Ramcharan & L.B. Francis, eds., Caribbean Perspectives on International Law and Organizations. Dordrecht: Martinus Nijhoff.
Rabess, Gregory (2000) “Contemporary Music in Dominica: 1950-2000” in Dominica’s Art and Culture Magazine. Roseau: Division of Culture.
THE STRATEGIC INDUSTRIAL AND EXPORT PLAN
1.0 The Case for Industrial Policy In broad terms, industrial policy involves interventions by the state or other agencies (e.g. trade and industry associations) “designed to affect the allocation of resources among economic activities and alter what would otherwise have been the market outcome” (Leipziger, et. al. 1997: 595). Industrial policy can include instruments that fall under the ambit of trade, tax and credit policies. The rationale for industrial policy is premised on the need (1) to assist resource reallocation from declining to rising sectors; (2) to correct externalities associated with specific industries; and, (3) to use ‘strategic trade policy’ to help firms capture an international pool of profits in globally oligopolistic markets.
Based on these criteria the Caribbean music industry is a good candidate for intervention in that it is an emerging export sector plagued with market failure in key business services and weak institutional support at home and constrained by oligopolistic practices in mainstream markets.
It is recognized, however, that industrial policy is not an unqualified success.
There are some problems, which have plagued efforts in various countries. It is noted that state intervention can (1) distort relative prices and lead to resource misallocation and a loss of economic efficiency; (2) introduce an additional complex political element since they provide a popular remedy for importcompeting firms reluctant to adjust to trade liberalization; and, (3) inspire countervailing measures and competition among governments to outspend one another thereby squandering resources (Leipziger et al 1997: 595). The experience
of successful industrial policy interventions, however, suggests that:
It is possible to influence the market-place while taking account of price signals in setting priorities and mapping out strategies and, in so doing, serve the long-term interests of the enterprise sector and the economy as a whole (UNCTAD 1996: 78) The cultural industries and the sub-industry of music have not been traditionally viewed as targets for industrial policy. Industrial policy is largely associated with the manufacturing or goods sector. However, many of the problems and requirements of the goods sector, especially the small and medium-sized enterprise (SME) sub-sector, also apply to the cultural industries sector. For example, the problem of limited access to credit and finance, the high cost of export marketing and inadequate institutional capacity. Where the cultural industries differ relates to the fact that cultural goods and services are genredriven products built on creativity and reliant on copyright protection. In broad terms the main features of the industrial context for cultural industries can be
summarised as follows (UNCTAD/ILO 1995: 34-35):
entertainment product is typically a “one-off” and must be perceived as different from previous products, albeit minimally.
The foregoing analysis illustrates the specificity of the industrial challenge facing
the cultural industries. Based on this industrial context, analysts argue that:
To build up a diversified industrial structure and reach a critical mass are essential in order to sustain increasing competition. Maintaining competitiveness requires financial and marketing muscles in order to assemble financing for intellectual and artistic production; to pay the high fees demanded by talented or world famous authors, movie stars, film directors or singers; to bear the relevant risks; to obtain consumer loyalty by promoting massively the product or the brand (the author) over a variety of media; to bundle the rights and protect them; and to be able to gain from ancillary markets such as merchandising. Vast global distribution networks are critical in maximizing returns and
spreading the risk and cost over larger markets (UNCTAD/ILO 1995:
2.0 Competitiveness Analysis
The analysis reveals that artistic production is the strength of the Caribbean music industry but suggests that there is much scope for improvement in professionalism, entrepreneurship and product development. Manufacturing and merchandising are areas that have been plagued by business failure, competition from overseas and the seasonality of some of the artforms.
Marketing, distribution and retailing are the weakest phase in the entertainment industry, both at the local, regional and international level. Copyright protection remains problematic because of the high level of piracy and collective administration has been largely dependent on foreign copyright societies, except in the case of Trinidad and Tobago. Overseas royalties collection is likely to improve with the establishment of a regional administration system. There is also an absence of dedicated training and educational facilities in the area of cultural industries.
The economic and export performance of the entertainment industry illustrates that there is an overseas market for indigenous cultural products and services but the sector is not as competitive as it could be, nor is it marketed appropriately to take advantage of existing opportunities. To expand the export market, the entertainment industry must create and nurture foreign demand through joint ventures or promotional and distribution deals with international entertainment firms. The export thrust will be facilitated by market and media access, human resource development and training, and innovation and industrial upgrading at home.
The sector is largely under-researched and suffers from inadequate data. This situation has made policy formulation difficult. Inertia and arrested development have been the order of the industry. Adequate market and industrial information is a pre-requisite for industrial expansion enhanced market penetration and sustained competitiveness.
The industry suffers from an under-developed enterprise sector, low domestic value-added, dependence on foreign manufacturing, distribution and marketing, weak institutional and political support and high levels of copyright infringement, particularly piracy (cassettes and CDs) as well as a large number of unlicensed users (e.g. radio stations, bars, restaurants and hotels). The latter problem is particularly acute in the Dominican Republic where a national collections society is yet to get off the ground.
These industry problems were compounded by the shift in the techno-economic paradigm in the mid-1980s towards CDs soundcarriers. The industry’s inability to respond to the new manufacturing format made the industry more import dependent in the 1990s. The consequent decline or stagnation in income generation and export competitiveness reduced investment in the industry. It is not until the late 1990s did manufacturing investment for CD production emerge in Jamaica and the Dominican Republic. The industry is now faced with the new challenge of Internet-based technologies, which facilitate alternative distribution, marketing, promotion, merchandising (e.g. direct downloading), retailing (e.g.
ecommerce) and broadcasting options.
The first phase of musical production, the artistic and creative component, is largely localized. The higher value-added phases of the industry, such as manufacturing, marketing and distribution have remained offshore.