The problem with Carnival’s business model

The fall-off in attendance at Carnival events, acknowledged by the bodies themselves, suggests that they are losing touch with what audiences want to see and experience. There also seems to be no clear strategy on how to win them back.

In the absence of identified markets, a plan to build and keep them and most importantly, profits, can Trinidad Carnival be said to be an operational business model at all? And in light of this, why do people continue to justify dipping into the public purse, reasoning that there are hundreds of millions to be made, when the “business model” does not support this? Some of the carnival agencies are beginning to realise this.

Business Day obtained a July 2016 NCC report, which puts forward some ideas to change product offerings, bring audiences back and promote Carnival activities year-round.

The report, acknowledges, among other things, the mismanagement of Carnival’s administration process, the overly long Panorama and Dimanche Gras shows, the excessive waiting times for masqueraders to cross the Savannah stage and the overall lack of creativity in the presentations.

Possible solutions advanced were modifying the length and formats of both shows, having bandleaders draw lots to see who would take the stage first as well as stretching out major Carnival activities over the course of five days at different locations and giving greater prominence to activities such as “old time mas,” to appeal to different tastes and interests. The measures were placed in the context of sustaining a wider Carnival industry throughout the year.

In fairness, it should be noted that TUCO made an attempt, just a couple of weeks ago, to reduce the number of performers in Dimanche Gras, cutting both costs and the show’s length. For some reason, instead of the proposed 8 calypsonians and one song, the upcoming Dimanche Gras now has 16 performers, clearly the opposite course they would have wanted to take. Why? Economist Gregory McGuire told Business Day that this was the direct outgrowth of the “hustle mentality” that has permeated the Carnival.

With ever increasing prize money and heavy subsidization regardless of performance, essentially, everyone’s hand is out for their share, an attitude McGuire said is best demonstrated by pan players who hop from band to band with the hope of collecting multiple stipends. This, in turn, narrows stakeholders’ vision, causing them to miss opportunities right in front of them. He drew reference to seeing several tourists wandering by Despers’ pan tent on Ash Wednesday last year.

McGuire said he went into the yard and spoke with its management, pointing out the lost chance to earn some money by offering those tourists a tour of the facility.

“Imagine when I told him that he could have charged each tourist US$25 to enter the pan tent, experience a tour, possibly hear the band play, do you know what he said? He said it sounded like a good idea, but the Tourism Ministry and Pan Trinbago had to get involved,” said McGuire, “This, from the champion steelband, who would have had the influence to ensure their involvement.

But then again as an organisation, they didn’t need the money. They had just won $2 million.” The short shelf life of Carnival, which McGuire said ended on Carnival Tuesday, versus the hundreds of millions spent on it annually, virtually ensured that no year-round, economically viable activity could be based on the festival.

In the face of this and other problems, McGuire said the time had come to favour practical solutions over theory and talk. One such idea is the implementation of a Carnival Museum.

Business Day asked McGuire how this would have been different to other ideas broached in numerous documents over time.

The economist explained that under this business model, the museum was a permanent structure, encouraging year-round participation in and monetization of the Carnival Arts.

The museum would feature three sections, covering pan, calypso and mas, he said. Every year, winners from each sector would be added to the collection, featured in their own exhibit, permanently. McGuire said this was likely to foster more creativity, as the songs and costumes will be accessible for all time. As an added bonus, composers and masmen could be offered some small monetary compensation for having their work in the museum, engendering competition to produce the best.

McGuire proposed an admission fee of around US$25. Foreign visitors would be offered the chance to interact with the exhibits, listen to songs, even purchase a costume and play mas if they wanted. In 2014, 412,000 tourists visited this country.

McGuire said if even a small portion of these visited the museum, it would represent millions of dollars in earned foreign exchange in a time of declining energy revenues.

Meanwhile locals would also have to pay a fee to enter the museum, albeit a lower one. The economist said it was important that the country’s youth connect with the heritage in a meaningful way to prevent its loss.

McGuire also said we must understand the reality that few locals are trained to run a museum effectively and profitably. Therefore, we should look outside for this skill.

Additionally, he said management positions at the museum should not be offered as a form of political patronage, something that has dogged and hampered the proper management of state agencies.The museum, he said, would be an expensive undertaking and should be constructed with borrowed funds.

“Look at the benefits of hundreds of millions being spent on something earning revenue throughout the year as opposed to something costing hundreds of millions to produce every year, without significant earnings to show for it,” said McGuire.

This business model, he suggested, is the one that should be adopted for Carnival enterprises across the board.