No expenses spared on New Year's parties

Christmas. Source: Miia Kiho/ERR

Despite soaring prices, Estonian companies are not penny pinching when it comes to New Year's parties this year. On the contrary, those in the party business say that hosts are going all out following the lean coronavirus years.

"Last year's budget is no longer enough to throw an equally magnificent party in 2023. It has become more expensive," Lehari Kaustel, executive manager of Miltton Events, told ERR's "Aktuaalne kaamera."

Major gatherings weren't allowed because of Covid toward the start of the year. Now, event organizers say a real renaissance has occurred and the pre-coronavirus level has been left behind.

"What is happening post-Covid is definitely more intensive and grander than before. Perhaps smaller or weaker players have disappeared, while the strong have taken their business to the international level," Kaustel suggested.

Event organization is a long process. One needs a good idea, premises, catering, performers and equipment. Organizers say that prices have grown 20-40 percent depending on the specialty.

"Caterers have labor, volume and raw materials expenses. Prices have grown a lot. The same goes for equipment rental businesses that need to maintain warehouses and teams. The price of electricity, everyday expenses have also gone up," said Neeme Kari from party agency Hype.

That is why event prices have gone up a few dozen percentage points for this year. But this has not deterred customers.

"The needs are the same, while formats of doing things change. Training, different motivation programs are less extensive perhaps, while they are still in demand," Kari said.

At the same time, concert attendance fell some 30 percent short of expectations as people were reluctant to spend on tickets. Concert organization has also become 25 percent more expensive.

"Band honorariums have gone up, salaries, power bills and service prices. No one is about to quit, while it is a more difficult period for us," said Roman Demtšenko, head of Damn Loud Agency.

Organizers say a minor trend shift has also taken place. While company Christmas events used to take place toward the end of the year, they are increasingly held in January.


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Editor: Merili Nael, Marcus Turovski

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