Karen Koren: The show will go on in spite of recession

I went on the Friday, flying into Dublin and driving down to Kilkenny, which takes a couple of hours. At my first show in the evening I was surprised to see it only half full. I didn't think much of it – until I went to the next show and that was half full too! I walked along the High Street and it wasn't packed with people spilling out of the bars. I asked the organisers what was wrong. Why weren't the shows full? And of course they said – hadn't I noticed there's a recession on. The Irish are keeping hold of their money and not going out until the last minute. Instead of the town being busy for the whole bank holiday weekend, it was only busy on the Saturday and the Sunday.

Will the Festival Fringe be a success in spite of the economic downturn? Vote here

So it's a worry for us as we start selling our tickets for the Gilded Balloon's 25th Edinburgh Festival Fringe. The Gilded Balloon has always been hugely popular and busy, however, it is a worry if the recession deters people coming out and enjoying themselves. We thought that we would suffer last year, but instead our sales were up 15 per cent on the previous year. The euro is nearly the same value as a pound, so it is perceived to be prohibitive for holidaying in Europe. Better to spend our money at home, that was the feeling, last year at least. This does not mean that it will be the same this year of course. There are 17 per cent more shows attending this Festival and the competition to get audiences in is fierce. The challenges this year, however, are the same as every other year, but there is just more of them – more risk, more competition, more venues vying for attention, more promoters struggling to make money, not lose any. With the newer performers who have used their last penny to come to Edinburgh, there is more desperation than before. There is no real solution to increased competition. The Fringe is controlled by market forces and individual demand; it can't be forced into being smaller now.

When a theatre company, or major promoter, or student theatre group, or individual performer puts on a show that fails there are many more waiting in the wings. It is the individual performers and small companies that suffer, not the major London-based promoters.

They are in the business of ensuring that the performer pays out of box office takings, so if the act hasn't sold enough tickets performers end up being indebted or paying the promoter back through gigs that he or she will perform for free until the deficit is cleared. It's business and it is not nice!

Although rivalry has always been there, it's becoming more and more cut-throat. We bribe audiences with sweets, lollipops, badges, stickers or anything different that will entice the public to part with between 5 and 20 to go to a show. Clearly, ticket prices have increased steadily over the years; they may now be a significant disincentive. Anything close to 20 for an hour of a single stand-up is just too much.

A show with a company of anything from five performers upwards and with good production values can be worth it. But in the current financial climate the general public can't afford to go to more than perhaps one show a day, unless of course they take pot luck and go to a show on the Free Fringe or the 5 Fringe. This is good, but these shows with newer performers are unlikely to be the best show you ever go to. I personally feel disappointed in the local audiences who spend their money going to The Lady Boys of Bangkok (when let's face it the show is the same every year, with different a cast).

Both visiting and local audiences should do more research – into the many, many genres and different forms of entertainment that are on at the Fringe, before they simply buy a ticket to the show that they have heard of.

It is also a myth that venues are raking in cash. It is imperative to cover our costs. Approximately 60-70 per cent of the box office takings go to the performer, theatre company or promoter.

Therefore, the remaining 30-40 per cent has to pay for the costly construction of the auditoriums with seating, lighting, sound, and the expenditure does not end there – there is the staff, box office, print and marketing.

There is also rental to be taken into consideration.

There will always be winners and losers in this risky business called the arts, but there is still nothing more exhilarating than the Edinburgh Festival Fringe and whether you are working within it or you are a visitor; it is still the most exciting place in the world to be in August.

Karen Koren is the founder and director of the Gilded Balloon.