The Eurovision Song Contest 2025, hosted in Basel, Switzerland, is poised to deliver significant economic benefits across various sectors, including tourism, hospitality, infrastructure, and city branding. With the grand final set for May 17 at the 12,000-seat St. Jakobshalle, the event is poised to draw a significant influx of visitors and capture global attention.
1. IMPACT ON MACROECONOMY
a) Tourism and Hospitality Surge
Basel anticipates approximately CHF 60 million (about $67 million) in economic benefits from hosting Eurovision, drawing from the experiences of previous host cities like Liverpool in 2023, which saw a £55 million ($72.5 million) boost to its local economy.
Hotel demand has surged, with bookings up 280% compared to the same period in 2024. Average nightly rates have more than doubled, increasing from $247 to $512 during Eurovision week. Even neighboring cities like Zurich and Bern are experiencing price hikes, with some hotels increasing rates by up to 149%.
b) Public Investment and Infrastructure
The Basel government has allocated a CHF 35 million ($41.2 million) budget for hosting the contest, covering expenses such as infrastructure, security, medical services, transportation, accommodation, and supporting events. This investment is expected to be offset by the anticipated revenue and long-term benefits to the city’s international profile.
c) Employment and Local Business Impact
The influx of visitors and the scale of the event are expected to create temporary employment opportunities and boost local businesses. Restaurants, bars, shops, and transport services are likely to see increased patronage, contributing to the local economy. Additionally, the event provides a platform for local artists and vendors to showcase their offerings to an international audience.
d) City Branding and Long-Term Benefits
Hosting Eurovision offers Basel a unique opportunity to enhance its global image as a cultural and cosmopolitan city. The event’s extensive international media coverage can attract future tourism and investment, contributing to sustained economic growth beyond the immediate impact of the contest.
e) Fiscal Considerations
While the CHF 35 million expenditure is significant, the expected revenue and long-term benefits are projected to outweigh the costs. Given Switzerland’s strong fiscal position, the investment is not expected to negatively impact public debt or deficit levels—instead, it is likely to contribute positively to the country’s macroeconomic performance and public finances.
2. Educational Impact: Inspiration, Engagement, and Skill Development
While Eurovision is primarily an entertainment event, its ripple effects on education, both formal and informal, can be significant, particularly in a country like Switzerland that values innovation, cultural diversity, and multilingualism.
a) Fostering Innovation in Creative and Performing Arts Education
The scale and prestige of Eurovision inspire many young people to pursue careers in music, stage production, media, and arts management. In the months leading up to Eurovision 2025 in Basel, Swiss music academies, drama schools, and arts programs have reported a rise in student interest and participation:
b) Strengthening Programs in Media, Communications, and Event Management
Swiss universities and business schools—including the Swiss School of Business and Management Geneva—are leveraging the event to enrich their curricula in event management, public relations, and international marketing:
- Guest lectures by event organizers and media professionals.
- Real-time student projects focused on the media coverage, branding strategies, and economic modeling of the event.
- Case study research on the Eurovision impact, promoting experiential learning.
c) Multilingualism and Cultural Exchange in Classrooms
Eurovision’s emphasis on diversity and cultural understanding has inspired schools across Switzerland, especially in multilingual cantons, to integrate Eurovision-inspired content into their language and social studies programs:
- French and English classes are practiced in the Swiss School of Business and Management Geneva as the 2 official languages of the Eurovision contest, with a target to teach language comprehension and cross-cultural dialogue.
d) Technology and Innovation in Education
Eurovision’s advanced use of broadcasting technology, augmented reality, and AI-driven stage effects sparks student interest in digital fields:
- Swiss School of Business and Management Geneva is using Eurovision as a case study for various courses in Machine learning, Big data, Data Science, and related courses.
- Student research projects have analyzed data-driven voting systems, including blockchain proposals and audience sentiment tracking using machine learning.
Conclusion
The Eurovision Song Contest 2025 is more than a musical event for Basel in Switzerland; it’s a catalyst for economic stimulation, employment, and international recognition. With strategic investments and planning, the city aims to leverage this opportunity for both immediate and long-term macro and microeconomic gains.
Eurovision 2025 has created a unique moment for Swiss educational institutions such as the Swiss School of Business and Management Geneva to blend academic rigor with real-world relevance. From music and media to technology and multilingual studies, the contest serves as both a teaching tool and a motivational force, aligning with national goals for lifelong learning and international collaboration.
If the Basel anticipated approximately CHF 60 million (about $67 million) in economic benefits from hosting Eurovision and the Basel government has approved a CHF 35 million ($41.2 million) budget for hosting the song contest, covering expenses such as infrastructure, security, medical services, it means roughly that the Net Present Value (NPV) is cca CHF 25 million (cca $26 million). The estimated net gain may seem modest at first glance. However, the long-term impact on national visibility, tourism, consumer spending, and investment is likely to be significantly greater.
