Károly Gerendai talked about the information technology developments at this year?s Sziget and noted that there are festivals comparable to the size of Sziget where visitors can only use electronic cards for payment. However, the Sziget organisers want to implement a simpler system which does not require such complex banking support.
This year?s new development is a Sziget card issued by the organisers which is not a proper bank card but works as an electronic voucher, enabling the holder to pay only during the festival and on the festival grounds.
The holder can top up the card at dedicated machines and use it for payment throughout the festival. It makes transactions faster, simpler and safer. All transactions can be traced, which increases transparency and makes bookkeeping simpler.
The only disadvantage of the system is that such a method of payment is not yet common practice in Hungary.
?For instance, bartenders have complained that they do not get tips if guests pay by card,? Gerendai said. But if the test run of the system brings good results, then ?we may make it compulsory at all our events,? he added.
The other IT-related novelty this year is minute-based ticketing. The service has been developed in cooperation with a mobile telecommunications company. In principle, its operation is similar to paying for parking by text message. Visitors can pay for their time spent in the festival by the minute, with the help of their mobile phone, Gerendai said. He added that this was a unique method and they were not aware of any other festivals where it was in use.
Gerendai said the Sziget was focusing on developments in areas where it could successfully compete. In richer countries with larger markets, ticket sales are also higher, thus even more and bigger stars can be invited. Revenue from sponsorship and advertising can therefore also be higher, he added.
Current VAT regulations put the Sziget at a disadvantage considering that the average VAT rate at Europe?s ten biggest festivals is 9 percent as a result of special discounts affecting cultural events, whereas VAT in Hungary is 25 percent.
One of the areas of opportunity for the Sziget is information technology and the organisers plan to place increased emphasis on this aspect in the future, Gerendai said.
State secretary in charge of info-communications at the Ministry of National Development Zsolt Nyitrai agreed with Gerendai that IT provides an excellent opportunity, not only for this event but for the whole country. Hungary is developing its info-communications strategy with this in mind, he added.
Source: Hungarian News Agency (MTI)
