Bristol's International Balloon Fiesta had a debt burden of more than £54,000 at the end of last year, public documents show, but its organisers are positive about the future.
The annual event, taking place this weekend, launched in September 1979 with 27 balloons and has become synonymous with Bristol.
This year, hundreds of thousands of spectators are expected to gather across the city to witness the twice-daily mass ascents of more than 100 balloons and musical night-glow shows.
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The event is one of Bristol's most valuable outdoor spectacles in economic terms. According to one report, the fiesta injected more than £22.2m into Bristol’s economy in 2023.
But despite its popularity and positive local economic impact, the event has struggled financially in recent years. It has been hampered by a combination of challenges including the Covid pandemic, bad weather and the cost-of-living crisis.
Bristol International Balloon Fiesta Limited - the not-for-profit company behind the event - has kept the fiesta free to attend and instead makes its money through business sponsorship, car parking and hospitality tickets, and direct donations from the public.
Last year, the event was forced to reduce from four days to three after falling into the red by £100,000 in 2023.
According to latest documents on Companies House, published in July, Bristol International Balloon Fiesta Limited had net liabilities of £54,115 as of December 31, 2024.
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The figure is down from a £78,600 debt pile the year previously, but as of the end of December last year the organisation had £95,000 falling due to creditors within the year.
The financial strain on the organisation is likely to have been alleviated somewhat by a major sponsorship agreement earlier this year, however.
In March, the fiesta's organisers struck a three-year deal with South West-based accountancy firm Albert Goodman. The 158-year old business, which has offices in Bristol, Somerset and Dorset, signed up as the event's headline sponsor.
The financial details of the agreement were not disclosed but it is understood the accountancy firm will provide vital support as the fiesta nears its 50th anniversary.
Ben Hardy, executive director of Bristol International Balloon Fiesta, told Business Live: “It is no secret that the Fiesta is recovering from several years of financial challenges.
“A combination of poor weather, the pandemic, rising cost of living, inflation and challenges in the supply chain has meant the event has been operating at a deficit."
He admitted that "work remains" to make up for financial losses but added the organisation had made "considerable progress" in the last couple of years.
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"From changing the operating structure to the support from our sponsors, partners and of course the visitors that have graced Ashton Court Estate; all have contributed to giving us renewed optimism for the event’s longevity as we hurtle towards our 50th anniversary in 2028," he added.
“Despite the considerable challenges, we have remained committed to the fiesta’s founding constitution. To offer a free event for the city, that celebrates Bristol, supports the region’s economy, and brings the magic of hot air ballooning to everyone. We hope this weekend is testament to that.”
The Bristol International Balloon Fiesta 2025 is taking place from Friday, August 8, to Sunday, August 10.