Financial authorization of €450,000 granted for an upcoming Guns N' Roses concert event.
Coimbra City Council Approves €125,000 in Financial Support for Guns N' Roses Concert
The City of Coimbra's municipal executive recently convened a meeting to approve a financial aid package worth €125,000 for the promoter "Everything Is New," with additional indirect support totaling €325,000. The proposal garnered votes from the Juntos Somos Coimbra coalition (PSD/CDS/NC/PPM/ALIANÇA/RIR/VOLT), while the PS and CDU members voted against the initiative.
The financial support comprises direct funding of €125,000 and various exemptions and services including the use of Estadio Cidade de Coimbra from May 19 to June 10, lawn and irrigation system replacements, landscaping maintenance, stalls and fences, promotional and communication support, waivers for noise licenses, and improvised enclosures.
Deputy Mayor Francisco Veiga justifies the council's decision as a strategic move to bolster tourism, strengthen the city's status as a host for major international events, and enhance Coimbra's national and international image. Veiga expects the concert to bring thousands of visitors and extensive media coverage, which should positively impact the city's economy through increased tourism and associated spending.
In 2023, Coimbra City Council supported "Everything Is New" with €440,000 for four Coldplay concerts held at Estadio Cidade de Coimbra. The Council's backing was contingent upon the selection, promotion, and choice of the city and the stadium for the performances [1][2].
While the exact financial returns from the event are uncertain, large-scale international events are generally beneficial for the host city. Expectations include increased tourism revenue, job creation in event organization, hospitality, and security, elevated media exposure, and stimulated local businesses [1][2]. The financial aid and indirect support provided to "Everything Is New" are integral to a broader strategic plan by Coimbra City Council to capitalize on high-profile events for tourism promotion, economic development, and international visibility, ultimately yielding significant positive economic impact for the city.
Despite the majority vote in favor, some PS councillors expressed disagreement with the suggested business model. The socialist councillor Regina Bento argued that the enabling of the show could result in a direct subsidy to a private operation, as the event is highly commercial, with tickets costing between €80 and €150, and is expected to generate gross revenue in excess of €4 million, all of which is intended for the private entity without returning any funds to the Municipal Council.
[1] Coimbra Business School/ISCAC Study: Direct Economic Impact of Coldplay was €36 million, with a 48% increase in revenue in the hotel industry and 55% in the restaurant industry during the event.
[2] In May 2023, Estadio Cidade de Coimbra hosted four Coldplay concerts, also produced by Everything Is New.
Tourism and entertainment will greatly benefit from the Guns N' Roses concert as the Coimbra City Council's financial support is aimed at boosting Coimbra's status as a host for major international events and increasing its national and international image. This event is expected to attract thousands of visitors, stimulate local businesses, and create job opportunities in event organization, hospitality, and security.
The financial aid for the concert, including direct funding and various exemptions and services, aligns with Coimbra City Council's strategic plan to capitalize on high-profile events for tourism promotion, economic development, and international visibility, ultimately yielding significant positive economic impact for the city.
