The economic viability of heritage festivals

Many scholars agree that heritage tourism has grown in recent years. It has become a unique way for communities to diversify their economies while preserving local culture and heritage. One unique way communities are doing this is through heritage festivals. These festivals have a significant impact on local communities and are multifaceted as they do not just provide economic impact to host communities, but also positive or potentially negative social and environmental impacts.

In recent years, a more sustainable approach integrating economic, socio-cultural and environmental impacts has been suggested when analyzing short term event such as festivals. It is important for event managers and scholars alike to understand these potential impacts as heritage festivals continue to evolve and prevalent part of heritage tourism.

This study aims to measure and quantify the economic, social and environmental impacts of two heritage festivals – Gold Rush Days and Bluegrass Festival, closely following Andersson and Lundberg’s 2013 study on commensurability and sustainability utilizing willingness to pay (WTP) and willingness to accept (WTA). Both are annual heritage festivals and take place in Wickenburg, Arizona. Primary data collection methods are used to gather information regarding economic and social impacts. Paper questionnaires distributed via stratified random sample to festival attendees and town residents is the survey instrument used in the study. To determine environmental impacts, secondary data in the form of stakeholder interviews are conducted.

Findings suggest a positive economic impact to the town of Wickenburg. Visitor expenditures, retained local spending and direct, indirect, and induced impacts are presented. Social impacts show a generally positive attitude toward the festival from a resident perspective. Environmental impacts show that collaboration among town stakeholders is needed to better determine festival environmental impact as no formal measures of impact are currently being recorded. Further empirical research is needed to better determine these impacts.