The mega concert by singer Lady Gaga in Costa Rica has provoked discussion on the profitability of such ventures.

The many different forms of business models that exist for performances of this type by internationally renowned artists in markets such as Costa Rica, demonstrate that the cost benefit analysis of this activity is not easy.

The risks become clear when you add up the number of cancellations or rescheduling of these events in Costa Rica during 2012:

– Laura Pausini and Luis Fonsi: canceled (TMG Productions).
– Angelica Maria and Enrique Guzman: canceled (Double Jack).
– Luis Fonsi, Chino y Nacho: canceled (Rumbas Costa Rica SA)
– 80’s Awesome Fest: canceled (Rpmtv)
– Big Time Rush: canceled (Flevent).
– Chayanne and Marc Anthony: rescheduled (Arceyut).
– Jose Luis Perales: change of venue (American Productions).

The main costs deducted from the income produced by these events, as noted in an article in Elfinancierocr.com are: taxes which are 30.5% of income, sales tax (13%), copyright (6.5%), National Theatre (6%) and municipality (5%), planned activities by the company in the country, assisting them in establishing and facilitating economic and technical cooperation.

Source: ElFinancieroCR.com