Swiss singer Nemo's 2024 Eurovision victory gave Switzerland the right to host next year's event, with a huge global audience guaranteed.
Right on the borders with France and Germany, Switzerland's third-biggest city was given the nod ahead of Geneva.
The contest will be staged at the St. Jakobshalle indoor arena, with semi-finals set for May 13 and 15, while the final is to take place on May 17.
"Basel's strategic location at the crossroads of Europe makes it the ideal setting for an event that celebrates the power of music to connect people across borders," Eurovision executive supervisor Martin Osterdahl said in a statement.
From its earnest black-and-white 1950s beginnings, Eurovision has ballooned into a colourful giant kitsch celebration that never takes itself too seriously.
The contest puts host cities in the spotlight, with 163 million viewers worldwide watching this year's event in Malmo, Sweden, where Nemo triumphed in May with the highly personal song "The Code".
Hosting also has a knock-on boost for the hotel and tourism industries as Eurovision fanatics, artists and country delegations flock in.
- Football stadium party zone -
Opened in 1976, St. Jakobshalle styles itself as Switzerland's top multi-purpose arena. The venue can hold more than 12,000 spectators.
Fans without golden tickets for the arena will be able to flock to the 40,000-capacity St. Jakob-Park football stadium across the street to watch the final on a giant screen, and see performances by former Eurovision stars.
Meanwhile the Steinenvorstadt district, known for its bars and cinemas, will be transformed into "Eurovision Street".
"It is a great honour for Basel to be able to host the world's biggest live music event!" said Conradin Cramer, president of the Basel city authority.
On the River Rhine, Basel is an international hub for the chemical and pharmaceutical industries, hosting the headquarters of Novartis and Roche.
But it also has its cultural side, with several internationally-renowned museums, and the annual Art Basel event, the world's top contemporary art fair.
- Four down to one -
The decision was made by the host broadcaster SRG, and the European Broadcasting Union (EBU) public service media alliance which owns Eurovision.
The venue, public transport links, sustainability, hotel accommodation, security, investment, event experience and the support from the city were key factors in the decision.
Following a surge of early enthusiasm from Swiss cities after Nemo's victory, only four formal bids emerged by the end of June deadline.
Zurich, plus Bern in conjunction with Nemo's hometown Biel, were eliminated in mid-July, leaving just Geneva and Basel in play.
The financial demands of hosting Eurovision -- and, from a minor Christian fundamentalist party, fear of the occult -- sparked threats of local referendums that could throw a spanner in the works.
Swiss voters are used to having a direct say on how their taxes are spent, and some were bristling at the potential costs and hassle of bringing the Eurovision circus to town.
Eurovision is a non-profit event, mostly financed by weighted contributions from participating EBU broadcasters.
Eurovision says that "given the benefits that will flow" to host cities, they must make also make a contribution.
The Basel-City authority is looking at putting in 34.9 million Swiss francs ($41.5 million), subject to a vote in the city assembly on September 11.
- Shadow of Celine Dion -
Nemo's victory was only the third time Switzerland had won Eurovision.
Lys Assia won the first-ever contest in 1956 with "Refrain".
Canadian then-starlet Celine Dion triumphed for Switzerland in 1988 singing "Ne partez pas sans moi", launching her career internationally.
Switzerland staged the 1956 contest at the Teatro Kursaal in Lugano and declined to host again in 1957, while the 1989 event was held in the Palais de Beaulieu in Lausanne.
After being staged in the Italian- and then French-speaking regions, Basel will therefore bring Eurovision to the main German-speaking part of Switzerland for the first time.
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