Economic impacts on musical festivalsIntroductionThe number of musical festivals has greatly increased in the recent years. In fact, there are more than 200 music festivals taking place all over the UK. Though most are small, community-operated events, there are also many multi-million pounds events than ever. The five major musical festivals in UK include: The Big Chill, Latitude, Sonisphere, T in the park and the Isle of Wight. These are international much-admired music festivals that attract millions of music fans between them. Of course they are the pros and cons of conducting such events and the question is do they contribute to economic development?
(Chris 2009). This report looks in details at the economic impact of these music festivals. It concludes by coming up with recommendations on how to maximize the potential benefits of these musical festivals. Economic ImpactMusical festivals have a significant impact on the home economy. Musical festivals bring in millions of pounds in the home economy. Much of this money is generated by increasing the number of employees as well as the organizer’s utilization of local businesses to set up and operate the site.
Conducting businesses between 25, 000 to 60,000 individuals over one weekend is able to boost income for shops, supermarkets, petrol stations and bars (National Music Council 2002). The major musical festivals in the UK attract more than 7.7 million attendants who include music tourist, overseas and local people combined. They spend a total of 1.4 billion pounds during their visit. This enormous music migration is boosting the UK’s economy with about 864 millions pounds and sustaining about 19,700 full time employments. The expenditure of music tourist can be divided into ticket expenditure, on-site expenditure and of-site expenditure.
Off-site expenditure accounts for the largest share of expenditures. This implies that tourist’s pound is spread within the host area to the advantage of local hotels, restaurants and other suppliers of goods and services (UK Music 2012). There is a significant association between the economic impact on the area and the duration of the festival. This applies particularly for the Big Chill a festival that runs for four days. This is because it requires planning and taking days off work to attend and hence most people take it as a vacation instead of merely a music festival.
Most people treat it as a holiday since four days seems like a good vacation. Eastnor Castle is an amazing site and there is wide range of programming to ensure that people have a vacation’s worth of activities to select from (Laing and York 2002). Moreover, the duration of the festival can significantly increase spending in the local economy. Rail fares, petrol, snacks, hotels, provisions are all purchased prior to the event.
The positive economic impact on musical festivals is not only restricted to increase in passing trade. The festival organizers promote local supply of goods and services, local businesses and local contractors. Festival organizers are capable of outsourcing to the local area to fill in with every jobs required (Frontier Economic 2007). There is also a direct association between the size of a music festival and the impact it generates. The larger the size of the festival so is its potential audience, media reporting as well as potential expenditures and benefits. It has been estimated that the 2007 Glastonbury festival earned more than 73 millions pounds.
A study done by the Mendip District Council has shown that the 177,500 festival-goers who came for last year Glastonbury festival each used an average of 293.24 pounds (Bakers Associates, 2007). The total expenditure at the event site in Pilton by the festival-goers and sellers was approximately 25.6 million pounds while off-site expenditure was approximately 26.5 million pounds. This gives a sum of about 52 million pounds spend directly during the event. The estimated expenditure linked to staging the 2007 festival was 21.2 million pounds (UK Music 2012).