Destination NSW’s reported $12 million deal to secure the rights to South by Southwest (SXSW) was initially hailed as an “unparalleled coup” for Sydney. This sentiment was echoed by cultural commentators, music industry heavyweights, and filmmaker Baz Luhrmann when the announcement was made in 2022. However, as SXSW Sydney enters its third year, questions linger about whether the event has truly delivered on its promise.
While the inaugural event saw packed rooms and big names like Nicole Kidman and Chance the Rapper, logistical challenges and audience confusion have marred its reputation. Attendance dropped from over 97,000 unique visitors in 2023 to 92,000 in 2024, raising concerns about the event’s sustainability.
Challenges and Criticisms
The drop in attendance can be attributed to several factors. Logistical issues such as distant event locations, a cramped gaming showcase, and a cumbersome app design frustrated attendees. The complicated and expensive ticket pricing also deterred many potential visitors. According to media consultant Kriti Gupta, “There are so many elements to South by Southwest that it does get confusing if you don’t understand the history of the conference, or the different streams and the purposes.”
Adding to the controversy is the fact that SXSW’s expansion to Sydney was funded by taxpayers through the state government’s tourism agency. Early figures show that only 11% of ticket holders were from overseas, and 21% were from outside of NSW, suggesting the event is not primarily targeting tourists.
Who Benefits from SXSW Sydney?
The event, despite its challenges, does offer opportunities for certain groups. Fans of artists like Teddy Swims and filmmakers like Paul Feig may find value in attending their keynote addresses, albeit at a steep cost. The tiered ticketing system, with prices ranging from $25 for film rush tickets to $1495 for a platinum pass, creates a barrier for many.
Simon Cahill, co-managing director of SXSW Sydney, stated, “We’ve worked hard to make this year’s event more accessible: we’ve introduced new day-pass options, expanded our free program, and reduced the average ticket price, so that participation is within reach for more people and businesses than ever before.” However, the most influential attendees are often those who can afford the highest-priced passes.
Opportunities and Solutions
Despite the high costs, there are ways to participate without breaking the bank. Some attendees volunteer in exchange for passes, while organizations like Social Enterprise Australia provide free passes to select social enterprises and individuals. Jess Moore, chief executive of Social Enterprise Australia, emphasized the importance of inclusivity, stating, “These passes mean that people with diverse lived experience and who have audacious goals can not just be in the room, but help shape the conversation.”
For some, like media consultant Kriti Gupta, the event has been a career catalyst. Gupta secured a free pass in 2023 and has since leveraged the connections made at SXSW Sydney to further her career.
The Economic Impact
Destination NSW has been tight-lipped about the financial specifics of their investment, citing “commercial-in-confidence” reasons. However, SXSW Sydney claims to have contributed $200 million to NSW’s economy since 2023. The event’s future hinges on meeting revenue targets that could extend Sydney’s rights to host SXSW for another five years.
For local businesses, the event has been a mixed bag. Publican Bhavani Baumann of The Chippo Hotel noted that while the venue benefits financially from hosting SXSW events, the broader economic impact is less clear. “It’s a massive marketing platform,” Baumann said, highlighting the exposure gained from partnering with big brands.
Looking Ahead
As SXSW Sydney continues to evolve, the question remains whether it can overcome its growing pains and become a staple of Sydney’s cultural landscape. The event’s ability to adapt and address criticisms will be crucial in determining its long-term success.
For now, the festival remains a polarizing topic, with its benefits and drawbacks weighed differently by various stakeholders. As it stands, SXSW Sydney is a work in progress, striving to find its footing in a city eager for cultural and economic revitalization.
