Does the location of arts festivals matter for the economic impact?

While cultural events are primarily hosted to enhance, expand and celebrate a certain culture, the economic role that these events play in the host towns are often overlooked. The economic importance stems from the expenditure by attendants that filters through the local economy, stimulating output in the economy. This note makes use of primary data obtained from visitor (demand side) and business (supply side) surveys to determine the local economic impact of the three leading arts festivals in South Africa. The results indicate that the location and size of the town is an important factor in the impact of the event on the town and the region.