According to information reaching the Guardian, contrary to media reports, the Government of The Bahamas does not receive any revenue from Junkanoo ticket sales.
The report, an analysis of the costs associated with staging Junkanoo, specifically stated that “the revenue from the ticket sales went not to the government…but directly to the groups through the generation of prize money”.
Ticket sales is one of the more recent changes in an ever-evolving Junkanoo. Prior to the introduction of bleachers, people lined the street sitting and standing at what they considered the most advantageous points. The bleachers were introduced not only as a means of making it more comfortable for Bahamians to enjoy the rush but also so the government could defray some of the costs of staging the parade.
The report states that “gross ticket sales have traditionally raised 40 percent of the annual expenditure on Junkanoo”. And the annual expenditure borne by the government was projected for 2005-2006 to be $1,167,000.
Without going into a detailed account about which group gets what the report notes that the bulk of the approximately $1.2 million goes to “seed and prize funding”. And for all Junkanoo activity in 2005-2006, seed funding was projected to be $300,000, while prize money ‘for New Providence, was $400,000 while Grand Bahama and the Family Islands received $65,000.
Although the breakdown does not indicate, it is assumed that the Parade expenses covers expenses involved in getting all the parades throughout the country staged. For this the government earmarked $105,000 for Junior Junkanoo and $252,000 for Senior Junkanoo.
The government also picks up the tab for the Junkanoo Awards Banquet estimated at $35,000 for 2005-2006.
Now to the bleachers, where the revenues are made. Prior to 2002 the government had the stewardship of all aspects of Junkanoo as far as funding and revenue generation were concerned. According to the report, the government decided to upgrade the bleachers for the “greater comfort and safety” of the Bahamian public, as well to “generate more revenue”.
The idea was that the government through its new initiative would be able to increase both “the prize money and the seed money offered to the groups”.
Without going into the details of the 2002-2003 Junkanoo season – five instead of the usual three parades – the government came in for severe criticism from the public and opposition party about the $1 million spent on procuring a 90,000-seat capacity bleacher system.
The Guardian has been reliably informed that 60,000 seats were placed on Cable Beach and 30,000 on Bay Street. The “downtown seats made a slight profit”. The Cable Beach seats “lost money because they were poorly attended.”
Wishing to wash its hands of the perceived bleacher fiasco, the government contracted with a Bahamian company C3 to provide seating for Junkanoo “at no cost to the government”. The contract appeared to be a good one. The government no longer had to fund the seating. But seemingly someone did not do their homework.
What was thought to be a good deal for the government soon turned out to be anything but. Not only was the government losing revenue, but its costs increased.
According to the report, “by giving up 25 percent of its expenditures the government also relinquished over 90 percent of its revenue, which covered over 40 percent of the government’s total costs”. In one fell swoop, the government gave C3 the right “to erect , manage and market the bleachers”. They would bear the costs and enjoy the revenues.
As a seeming token the government received 10 percent of the gross ticket sales which, according to the report, did not include the $90,000 annually from VIP seating. Thus the government found itself with a mere 10 percent or approximately $70,000 from the ticket sales which covered “only 6 percent of the remaining non-bleacher expenses for Junkanoo”.
The report notes ruefully, that “C3 is the only officially-sanctioned entity in the history of Junkanoo that has turned a net profit from the parade”.
Hence the arrival of the Junkanoo Corporation of New Providence, more of which later as we explore the business of Junkanoo.
By C. E. HUGGINS, Business Editor, The Nassau Guardian
