Carnival economics

The latest European Consumer Study showed that almost half of Germans plan to eat out less in 2010 in an attempt to limit their daily expenses. Forty percent plan to make fewer visits to pubs, bars or cafes, said the GfK market research institute, which commissioned the survey, earlier this week.

But carnival in Germany's largest state North Rhine-Westphalia (NRW) is a different matter. The so-called "fifth season" season officially begins on November 11, but the festivities reach their peak in the pre-Lent period between Shrove Thursday and Fat Tuesday. It's during these "crazy days" of carnival that revelers crowd the streets - especially in Cologne and Dusseldorf - for parades and parties.

Carnival is such an ingrained tradition in the NRW region that no economic crisis can hinder people from celebrating, said Horst Krokowski, managing director of Keller costume company in Bochum.

"Our company's founder had a saying: when the people are doing well, they celebrate anyway," Krokowski said. "When the people are doing poorly, then [they celebrate] more than ever."

For the hotel and restaurant industry, carnival is a good money maker. The economic situation won't change that, according to the hotel and restaurant association Dehoga.

"We assume that the revelry is not going to be any different," said Thorsten Hellwig, spokesman for Dehoga's NRW division.

Parade as grandiose as ever

The highlight of carnival festivities in Cologne is the main "Rosenmontag" parade on the Monday before Lent, which attracts over one million visitors.

Last year, members of various carnival associations gave away about 150 tons of sweets as they paraded through the streets. Of course, all that candy, the wagons and decorations are expensive. But Sigrid Krebs, spokeswoman of the Festive Committee of the Cologne Carnival, said that the celebrations won't suffer under the economic crisis.

"The sponsors are with us," Krebs said. "But the Cologne carnival also relies on volunteers. Each year, several thousand carnival supporters - organized into more than 100 groups affiliated with the festival committee - turn out to do their bit for the festivities."

It's the members of carnival associations who have been running the show since 1823. This year's Rose Monday parade will see more than 10,000 costumed volunteers with 500 horses march through Cologne's center, throwing sweets to the partying crowd.

The thing is: those participants who give away treats generally pay for the candy out of their own pockets. Given the economic downturn, some parade fans are worried the volunteers may cut back on the amount of sweets they hand out. But Krebs said there's no danger of that happening.

"Throwing candies is a very important symbol for carnival in Cologne, because it symbolizes the gift of joy," Krebs said. "Where else on earth do you see caramel candy, sweets and other presents raining from the sky? This only happens in the Rhineland."

It's all over on Ash Wednesday

Hellwig said that Cologne is particularly profitable for the hotel and restaurant industry because it's an event that covers the entire region and attracts many visitors from other cities.

"So there are gains for the hotels, for instance," he said.

In Dusseldorf, on the other hand, carnival and the associated festivities are focused on the old town. Visitors are more likely to come from nearby areas and don't stay in Dusseldorf overnight.

Then, come Ash Wednesday, all revelry diminishes to nothing.

"It tends to be pretty dead after that," Hellwig said. This offsets the profits made during the carnival season.

"So it's a zero-sum game," he said.

Authors: Sabina Casagrande and Sarah Steffen
Editor: Sam Edmonds