Geography Reference
In-Depth Information
extensive literature on
festival economic impacts
for the various events, especially
from economists or special events specialists (Allen et al.
2005
). They have pro-
moted festivals as part of urban cultural redevelopment, using the leisure consump-
tion of the festival as the new driver of change and new profit opportunities. They
have calculated the direct monetary effects of festivals through measuring local and
outside visitor numbers and spending, capital expenditure on the facilities needed
for the festival, and the wages and salaries of people involved in the events, from
performers to organisers and sponsors. But festivals also have spill-over effects, fill-
ing the local hotels, restaurants and stores, thereby boosting the economy of the cen-
tre. There are also multiplier effects which accrue from the way that money spent
directly on the event circulates in the local economy, substantially magnifying the
direct effect of the festive event. Not surprisingly these impacts vary from festival
to festival but some idea of the importance can be seen from two examples. A recent
study of the economic impact of the Mardi Gras in New Orleans in 2011 showed
that the direct festival economic impact on the city alone generated $ 144 million,
with an additional $ 156 million in indirect effects, which together accounted for
1.5 % of the city's gross domestic product; in addition the study revealed that for
every dollar spent on costs such as policing, waste disposal and medical services
etc., the city gained $ 8.5 in revenue return, illustrating its positive economic value
(NO
2012
).
The impact of the 10 day Calgary Stampede is also positive, for Calgary is often
known as the Stampede city, even though its role as the headquarters of oil and gas
companies operating in Canada is its major economic function and accounts for
much of its growth to 1.2 million people. It has been estimated that the Stampede
provided $ 189 million to the city economy, with another $ 256 million to the prov-
ince of Alberta in 2012 (CS
2013
). However a large number of other activities, from
trade shows to exhibitions, are now carried out in the 2033 acre Stampede grounds
throughout the year, which means that 3.6 million people visit the grounds dur-
ing the year, a much larger number than the 1.2 million who attend the Stampede
itself, with its rodeo, chuck-wagon races, stage-show as well as its funfair, agri-
cultural exhibitions and many concerts. This shows how the festival has spun-off
many activities on its site—a similar trend to many festivals with permanent sites.
It has also affected the city, as seen in the way that businesses and offices decorate
their premises with western themes, people wear cowboy-cowgirl inspired clothes
and hundreds of pancake breakfast and barbecues are held throughout the city to
celebrate the event.
Festivals also have longer term effects, for the financial flows usually stimulate
new investments that create the renewal or expansion of the existing urban fabric,
such as new hotels or restaurants to serve the festivals, providing new business op-
portunities and employment growth. Yet not all festivals are financially positive;
some make a loss and have to be subsidized by public funds, which might be limited
and could lead to the eventual closure of the event. Also, individual entrepreneurs
who produce or sell goods and services for the festivals may over-estimate their
sales, leading to losses and bankruptcies. These examples indicate that there are
risks involved in the economic exchanges involved in the creation and running of
festive events.
