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The secret economics of a night in Berlin

Bianca Pieri

Berlin is undisputedly acclaimed as the capital of techno, with its numerous clubs famous not only for the curated lineups, but also for how hard it is to rave inside of them. Many tourists come to the once divided city precisely for its nightlife, playing a great part in the national system, as reported in 2019 by the Berlin Clubcommission which estimated that clubbing contributed €1.5 billion to the German economy.


The Second World War deeply damaged Berlin, and, afterwards, the division of the city into West and East hindered the rebuilding of the many undeveloped sites and the reconstruction of the destroyed building stock. However, this did not prevent artistic minds from using these locations as cultural spaces to meet up and engage in creative activities. This phenomenon still thrives to this day, even if Berlin has become a metropolis dealing with real estate speculation and a drastic increase in the general cost of living.

 

Nowadays, the most famous Berlin club is Berghain, located in a former heating plant built in the 1950s and abandoned in the 80s.  The so-called “temple of techno” has been granted by the German court the status of cultural institution in 2016. This condition allows the former Ostgut to maintain its location, while other clubs are forced by the commercial rental market to drive out of the city. 

 A strict door policy, not explicitly stated, but implicitly defined by bouncers such as the infamous Sven, combined with the quality and niche character of its lineups have made Berghain a societally significant actor in the worldwide club culture. 


What makes clubs in Berlin stand out compared to others is, apart from the music, their ability to turn into a heterotopia by employing various stylistic techniques and their approach towards sexuality and gender identity. Each club has a specific value system, both to create a strong sense of community and belonging for those who make up the core audience, and to maintain the exclusivity of access which plays a major role in the creation of myths. 


Most Berlin clubs are open from Wednesday to Monday, as parties usually last all weekend and do not stop during the day. This is something quite unique compared to clubs in other cities and countries and further increases the sense of escaping from reality in a concrete utopia.


The “seductive power” allures tourists to Berlin, inebriating them with the possibility of being part of a culture in which everyone can be who they truly desire to be, without inhibitions and fear of being judged. 


Image by the author, 2023


Club culture, whose volume in the event market is relatively small compared to other sectors, is one of the main drivers of Berlin’s economy; it was estimated that in 2017 over a third of the surveyed visitors went to the once divided city for its clubs. The knock-on effects for other industries is extensive, especially tourism. 


In 2017 there were 9,000 people employed in the club scene, and the total turnover was €168 million. It is possible to observe an overall economic turnover of approximately €216 million in upstream and downstream markets. Around 53 million euros went back to the federal government or to the city.


Turnover is mainly generated from the sale of drinks and from gastronomy, as ticket sales usually have a gross price which makes up only a third of the gross revenue structure of Berlin’s clubs. 


Club-goers sustain other costs apart from those related to events, determining in 2017 an indirect spending of  €1.48 billion for transport, gastronomy, and the hotel and catering sector.


 A 2018 survey from the Berlin Clubcommission, the world's first and largest regional association of club operators and event organizers, estimated that the nightlife sector brought $1.7 billion in revenue and employed 10,000 people. 


On March 13, 2020, in order to prevent COVID-19 from spreading, the city of Berlin imposed a ban on indoor dance parties.  


In May 2020 some clubs were able to bypass the ban by permitting limited access to their “open air” spaces; those clubs that did not already have them, quickly found a solution by building outdoor areas. 


Many nightlife spaces also converted themselves into coronavirus testing and vaccination sites, offering former employees the possibility to continue working in the same environment, even if in a different line of work.


 During summer, a negative test and proof of vaccination or recovery were necessary to participate in open-air dance festivals.


Club-goers could finally be back on the dancefloors starting from September 4, 2021.  

 Thanks to the resilience of club owners as well as $1.71 million in financial support from the city government, all Berlin clubs were able to survive the loss of income during the shutdown. 

 

According to Berlin Clubcommission chair Lutz Leichsenring, tourism is declining, in 2021-2022, 5.5 million tourists came to Berlin, 30% fewer than pre-pandemic numbers. Moreover, inflation and the energy crisis have a great impact on the spending habits of club-goers. 


While club tourism is still only a fraction of what it was before the pandemic hit, the city’s nightlife is slowly coming back to life thanks to the communities which create and render Berlin’s club culture so special.


References

Canvas8. (2019, February 22).“Techno tourism” drives Berlin’s nightlife economy | Canvas8.  

https://www.canvas8.com/library/signals/2019/02/22/berlin-nightlife-tourism


Damm, S., Drevenstedt, L. (2019). Club Culture Berlin. 2-69.

https://www.clubcommission.de/wp-content/uploads/sites/2/2019/10/club-culture-study.pdf


Millikan, A. (2021, December 3). How Berlin’s club scene is weathering the pandemic. Culture.

https://www.nationalgeographic.com/culture/article/how-berlins-infamous-club-scene-is-weather

ng-the-pandemic




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