The location of the festival was decided following various criteria. At first it was decided that the winning country would organise and celebrate the contest the next year, but after the victory of Nicaragua in 1977, the country could not host the contest due to the bloody civil war that broke out the next year. In those years, many Latin American countries suffered from political and economical instability. For that reason, from that year on, the host city was decided by an annual draw organised by the Iberoamerican Television Organisation.
