How festivals impact SA’s economy

Since the success of the first three national arts festivals, Aardklop in Potchefstroom, the National Arts Festival in Grahamstown and the Klein Karoo kunstefees in Oudtshoorn, an estimated six hundred festivals " large and small " have sprung up around the country, each bringing in at least R10 million. PICTURE IAN LANDSBERG

Since the success of the first three national arts festivals, Aardklop in Potchefstroom, the National Arts Festival in Grahamstown and the Klein Karoo kunstefees in Oudtshoorn, an estimated six hundred festivals " large and small " have sprung up around the country, each bringing in at least R10 million. PICTURE IAN LANDSBERG

Published May 3, 2015

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Cape Town - People generally think “fun” when they hear about arts festivals – and not the financial benefits that accrue from them.

But a recent research study showed that even small-town festivals can provide major financial injections. The annual Wacky Wine festival in Robertson, a small town in the Western Cape, saw the festival provide a boost of some R20 million to the town’s economy.

Since the success of the first three national arts festivals, Aardklop in Potchefstroom, the National Arts Festival in Grahamstown and the Klein Karoo kunstefees in Oudtshoorn, an estimated six hundred festivals – large and small – have sprung up around the country, each bringing in at least R10 million.

And successful festivals benefit not only the organisers, but the region as well, with Grahamstown bringing in approximately R80 million and Klein Karoo R105 million to their respective host towns.

Professor Melville Saayman of TREES, the tourism research unit at the University of Potchefstroom said: “This spending stimulates further economic activity and the value of the festival for the Robertson region could be as much as R20 million a year.”

An economic impact study by TREES showed that in 2013, the Cape Town International Jazz festival contributed R522 million to the Western Cape economy as well as creating 2,721 jobs.

The festival brought in 35 000 visitors from all over the world with the bulk of the associated spending being for flights, accommodation, food and transport to get around the city during the weekend festival.

The other five top South African festivals, Klein Karoo, Aardklop, Vryfees in Bloemfontein, Innibos in Nelspruit and Kieriekrankie, have had similar impacts to the economy which have been the focus of a TREES study for the past 12 years.

Competition among festivals was intense and they tended to have the same target market, and festivals that wanted to thrive and grow needed to make sure that they knew exactly who their festinos (the term for festival goers) were and what they expected in terms of festival offerings, service quality, pricing and the like, Trees found.

“Festinos put time and effort into deciding to attend a festival, and attracting those who buy tickets for shows is crucial for the survival of festivals,” says TREES team member Professor Elmarie Slabbert.

Knowing what the festinos want is useful as the festival organisers can tailor their marketing to attract visitors to a variety of events, thus helping to ensure the long-term sustainability, she said.

“Festival organisers and marketers need to know what influences their buying decisions.”

A market profile study of festinos at Innibos, the national arts festival in Nelspruit in Mpumalanga, revealed four different decision-making styles – “spontaneous”, “limited”, “extended” and “routine” decision making.

Understanding how local communities perceived them, was just as important as knowing what the festinos want. To keep track of community perceptions, the TREES team typically go knocking on residents’ doors, asking them face-to-face about their attitudes to festivals and what changes they would like to see implemented.

The strategies they used included giving locals free tickets to attend performances and creating opportunities to showcase their own talent.

“The success of an event depends on community support because local communities share their facilities and services with the visitors,” Slabbert said.

“Residents should see the direct benefits of the event as this will influence their attitude and behaviour towards the visitors, and ultimately the competitiveness and sustainability of the festival.”

ANA

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