A decision on the immediate future of Festivale hangs in the air, with the organisers expecting to reach a final verdict by the end of next week.
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Organisers delayed the event's 2022 launch and the release of tickets on Tuesday after being told their COVID plan could only cater for 5000 people.
Festivale Committee chairman David Dunn said a late Monday night meeting had left the organisers with two options to consider: go ahead with a cap of 5000 in a similar fashion to this February's Indulge festival, or scrap the 2022 event planned for Launceston's City Park altogether.
Mr Dunn said a final decision was expected to be made by the end of next week.
We want to protect the name, brand and location, so when we can come back people will walk through the gates to an event they remember.
- Festivale Committee chairman David Dunn
The delay came just three days before tickets for the event were set to go on sale, and weeks after Mr Dunn had said the event would be going full steam ahead in February.
It is understood the decision was made all the more difficult due to the financial viability of the festival requiring more than 5000 attendees.
A Tasmania Public Health spokesperson confirmed it was all but impossible the event would be able to proceed at a capacity of greater than 5000, and Tourism, Hospitality and Events Minister Sarah Courtney effectively dashed the committee's hopes securing an event plan that would allow more than 5000 attendees altogether.
"I am disappointed that Festivale 2022 is unable to proceed in its traditional format," she said.
"We acknowledge that some larger-scale events may be unable to comply with the [COVID-19 events] framework which ultimately aims to keep Tasmanians safe."
The spokesperson said free moving and mixing events like Festivale had been continually identified throughout the pandemic as among the highest risk environments for spreading COVID, and, as such, it would not be approved to exceed 5000 patrons.
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With Public Health holding firm, it became inevitable Festivale would not look the same as it before this year, and the hand of the event's committee was forced.
The Public Health spokesperson floated the idea the event could operate on a one in, one out basis.
The proposed model was one that would be used by Taste of Tasmania, an event that was still set to go ahead this New Year.
Pinpoint consortium chairman Jarrod Nation said their business model was altered to account for COVID and was capable of fulfilling the one in, one out parameters.
But Mr Dunn said the format of Festivale made that same model impossible.
"Especially on Friday and Sunday, people come for the duration of the day, and under that model we just don't know what it would look like," he said.
We don't want to sell all these tickets and on the day there are 5000 people lining up not knowing whether they'll be able come in for five minutes or five hours.
- Festivale Committee chairman David Dunn
Mr Dunn said future planning for the event had left organisers stuck in a precarious position.
Whatever decision was made would have to walk a fine line of providing what has become a "community obligation", but not besmirch the name that earned Festival that community standing.
The festival calendar staple has attracted upwards of 10,000 attendees to City Park in the past, and has been known for helping launch the success of small businesses in Tasmania.
In 2020, Festivale had capacity for more than 120 stallholders, while about 60 stallholders had been finalised for the 2022 incarnation.
Previous year stallholders Small Grain and Cheesecake Baculo said the news of uncertainty about the event in 2021 was upsetting, but COVID unsettling future plans had become part of the fabric of operating festival-centric hospitality businesses since the pandemic first hit.
Both stallholders received an email on Tuesday morning alerting them to the uncertainty shrouding the event, but remained steadfast in hoping it would go ahead.
"If it doesn't go ahead then so be it. We're happy with where we're sitting," Cheesecake Baculo owner Melissa Burr said.
Ms Burr said her company had taken part in several events where less than 10,000 people were able to attend, but understood the challenges Festivale faced.
It costs stallholders about $2500 to $3000 and Mr Dunn said, if the event went ahead at a reduced capacity, it was expected both that cost and the number of stallholders would be reduced.
Festivale committee treasurer Michael Hine in 2020 revealed the event, in its traditional capacity, generated about $12 million in economic activity, focused primarily in Launceston.
Launceston Chamber of Commerce chief executive David Peach said regardless of whether the event was reduced or called off, there would be an impact on the local economy.
"It brings a lot of people into town, and restaurants, pubs, cafes and other businesses won't get that flow on," he said.
"It's been a rough year, and normally those places can count on that happening to get people in. They will really feel it. It will leave a big hole in the calendar."
It's been a rough year, and normally those places can count on that happening to get people in. They will really feel it. It will leave a big hole in the calendar.
- Launceston Chamber of Commerce chief executive David Peach
Mr Peach said he felt sorry for the Festivale Committee and urged certainty for event planners in the future.
"All event organisers are struggling with this at the moment. There is still so much uncertainty around events," he said.
"What businesses need under any circumstances, even at the best of times, is confidence.
"With an event like Festivale, we've got these proud, maverick, entrepreneurial types who don't want to ever give up ... the only thing they want is certainty, and that has been snatched away from them by something completely out of their control."
Mr Peach said continued precariousness about events could see organisers forces to a point where they think it is no longer viable to continue.
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