Exit Festival Returns to Novi Sad in 2027
Exit, a prominent music festival, is set to return to Novi Sad in 2027, albeit in a reduced capacity, with a full-scale event planned for 2028. The festival’s absence in 2026 resulted in significant economic losses for the city and Serbia, highlighting the importance of such events in boosting local economies.
The festival’s economic contribution was estimated at 24 million euros in 2024, according to a study by the TIM Center. This figure represents the direct spending of attendees, which includes expenses on hotels, private accommodations, restaurants, cafes, and other services.
Exit has become a major international event, attracting tourists from over 100 countries. In 2024, the festival drew over 210,000 visitors from 120 countries, with 67% of attendees coming from abroad. The average spending per person was 592 euros, with visitors from Western Europe spending an average of 832 euros, and those from Eastern Europe spending 688 euros.
Economic Impact of the Festival
The festival’s economic impact is not limited to ticket sales, but also includes the money spent by attendees on various services. Hotels, restaurants, and private accommodations benefit from the increased demand during the festival period. The event also creates temporary jobs in production, security, transportation, and other services.
In 2024, the festival generated an estimated 23.7 million euros in economic benefits for Novi Sad and Serbia. However, this figure should be interpreted with caution, as it is based on a study commissioned by the festival organizers and may not reflect the net economic benefit to the country.
Consequences of the Festival’s Absence
Instead of hosting the festival in Novi Sad, the organizers held events in other countries, including Montenegro and Egypt. This decision had a ripple effect, with other businesses and industries also feeling the impact of the festival’s absence.
For example, the Crnogorska vlada (Montenegrin government) expected to generate at least 210,000 overnight stays and over 40 million euros in direct tourist spending from two events related to Exit in 2026. This demonstrates that other countries are willing to recognize the potential of international music festivals and incorporate them into their tourism strategies.
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A similar example is the Sea Star festival, which is part of Exit’s festival ecosystem and takes place in Umag, Croatia. According to a study by the TIM Center, the festival generated around 40 million euros in direct economic benefits for the Croatian economy between 2017 and 2024, with an additional 30 million euros in promotional value.
The festival’s economic challenges, including rising production costs and honoraria, as well as the fixed capacity of the Petrovaradinska tvrđava (Petrovaradin Fortress), will need to be addressed in order to ensure the event’s long-term sustainability.
The fact that the loss of state support immediately led to the decision to leave the city and cancel the 2026 edition suggests that the festival’s financial margins were already precarious.
Financial Challenges and Industry Trends
Exit faced significant financial challenges in the years leading up to its hiatus. Rising production costs and honoraria, often referred to as “festival inflation,” put pressure on the event’s budget. The fixed capacity of the Petrovaradin Fortress, the festival’s central venue, limited growth potential. Higher ticket prices further constrained purchasing power, particularly among domestic and regional audiences.
Rising production costs and honoraria, known as “festival inflation,” have impacted the industry globally, particularly in Serbia.
Rebuilding and Transparency
By separating gross consumption, local added value, tax revenues, and public costs, stakeholders can make data-driven decisions about the festival’s future, moving beyond political opinions and public sentiment.
