Excitement is building for Eurovision enthusiasts as the competition heats up. This Saturday, all eyes will be on whether Sweden’s entry, “Bara bada bastu” by the Finnish-Swedish humor group Kaj, can clinch the top spot. With Sweden currently leading the betting odds at 42% chance of winning, the country could potentially break away from sharing the title of most Eurovision victories with Ireland and stand alone at the top.
However, the cost of hosting Eurovision is no small feat, as tradition dictates when a country wins the competition. Following Loreen’s victory, the mega-event was held in Malmö in 2024, where SVT reportedly faced losses of 100 million SEK despite ticket sales, contributions, and sponsorships, as reported by DN. Police expenses alone amounted to 92 million SEK.
Yet, hosting such an event can also bring about positive economic effects. Stockholm Chamber of Commerce estimates that hosting Eurovision in the capital could generate around 368 million SEK in visitor revenues. These calculations are based on the tourism economic impacts that Stockholm experienced during the last event, adjusted for inflation.
“It’s easy to focus on the costs of hosting such a large event, but it’s important to understand that Eurovision is also a powerful engine for the local and regional economy,” says Carl Bergkvist, Chief Economist at Stockholm Chamber of Commerce.
The influx of visitors staying at hotels, dining at restaurants, and potentially indulging in sauna sessions can contribute significantly to the local economy. According to Stockholm Chamber of Commerce, events like Eurovision not only provide a platform for a cultural showcase but also serve as a means of promoting Swedish lifestyle and values, creating substantial marketing opportunities.
As the world tunes in to watch performances like “Bara bada bastu,” it becomes evident how intertwined culture and economy are. Eurovision not only offers a spectacle for the masses but also serves as a vehicle for showcasing Swedish culture on a global stage, highlighting the economic benefits that come with it. Carl Bergkvist emphasizes the importance of recognizing the broader impact of such events beyond the immediate costs, shedding light on the significant role they play in driving economic growth and promoting national identity.