The new producers of the Bermuda Music Festival said budget constraints caused the concerts to be moved to a smaller venue.

The new setting will create a more intimate experience for audiences, a spokeswoman promised yesterday.

This year Oxford Communications and Kingdom Entertainment Group have been hired to produce Bermuda Music Festival 2010, which will see Ziggy Marley, Angie Stone, Estelle and Toni Braxton preform at the Fairmont Southampton. The venue can hold 1,100.

The festival was held in Dockyard before moving to the National Stadium for two years. Star-studded concerts that included the likes of Beyonce, Alicia Keyes and Lionel Richie were held there, before the event returned to Dockyard last year.

The spokeswoman said this year's line-up represents a "great balance of experience and contemporary artists".

"The move to Fairmont Southampton was aimed at providing a more intimate environment for concert goers," she said in response to questions from The Royal Gazette.

"As an added note, there was a specific budget for this year's BMF and organisers wanted to avoid a venue which required high infrastructure costs, while at the same time maintaining a quality event in a quality environment.

"Additionally, the Fairmont Southampton has been an excellent partner with BMF over the years, and it seemed a natural fit to bring the festival to this hotel, which would also enhance the visitor experience."

Government will give the producers an $800,000 sponsorship fee. The new format differs from previous years the Department of Tourism spent $1.9 million for the 2009 festival. It recouped $900,000 from ticket sales. Tourism officials said 383 tourists came to the Island for the event.

In 2008 it cost taxpayers $3 million to put on the festival, which attracted 1,500 visitors. The profit or loss for 2007 has never been revealed, although revenues were $1.68 million and about 1,500 visitors attended. In 2006, the festival lost $1.5 million.

The spokeswoman said of this year's format: "The event has two key objectives, the primary one is increase awareness for the destination and the second one is to increase visitor numbers. The organisers have developed the new business model for this event to match the new vision and budget.

"This year's event will have a personal and intimate feel and the ultimate vision is to deliver a successful event in celebration of 15 years of the Bermuda Music Festival."

Kingdom Entertainment Group president Chip Quigley said: "We are absolutely thrilled to have this opportunity to work with the Bermuda Department of Tourism this year. The Bermuda Music Festival has become recognised as such a grand event and we look forward to putting on a great show for your visitors and residents alike."

Mr. Quigley's company has been involved in the Conde Nast Media Group's 'Fashion Rocks' TV special on CBS, the International Emmy Awards, Conan O'Brien in Toronto and Chicago and Conan O'Brien's Tenth Anniversary Special, according to their website.

He is partnering with Oxford Communications, which is headed by James Kerwin. The company has run the Love Festival for the last two years.

Oxford Communications has also been involved with Premier Ewart Brown's charity, The Bermuda Health Foundation. The company was the primary sponsor of the charity's award luncheon and celebrity golf tournament for the last two years.

Mr. Kerwin is also involved in the New Jersey advertising company Kerwin Communications which has contracts with the Department of Tourism for placing advertisements overseas.

Rock Media, which is locally registered, is another company Mr. Kerwin is involved in. It is responsible for all advertising signage in Bermuda's bus shelters and at Bermuda's L.F. Wade International Airport. It has also been hired to refurbish the first class lounge.