Austin is about to get a lot more crowded. South by Southwest kicks off Friday.

"I think it’s great. It’s great for the city, but it gets a little crowded," said Elray, artist.

According to the Austin Convention and Visitors Bureau almost 127,000 people will be part of this year's festival. Most of these events will take place in bars and clubs, which are up to city standards. But some unofficial events will be held in less traditional venues. And that has city officials concerned.

"You cannot set up a stage inside your mercantile occupancy and have a public assembly night club without the proper permits," said Assistant Fire Marshall Don Smith.

During last year's festival, the fire department shut down a party at a clothing store in South Austin because it had more than 50 people and didn’t have the proper public assembly permit. They want to prevent a tragedy from happening here in Austin.

"It is critical because nine of the 10 deadliest fires have been in public assembly occupancies. Of those, hundreds, I mean, thousands of people, have died," said Smith.

Fire department officials says they will grant temporary permits to businesses - but it must be inspected first. The cost is about $100.

"I think there’s a way to make it work. You have to have some things sanctioned just to keep it rolling smooth and make everything safe. So yeah, I'm all for it," said Kevin Greer.

City ordinance officials will be checking SXSW venues, and they will shut-down parties and events if they're not in compliance. Fines range between $1 to $1,000, but the average is about $550.