Cultural Festivals and Regional Economic Development: Perceptions of Key Interest Groups

Abstract

In this chapter we discuss one example of the link between cultural events and local economic development and more specifically film festivals as generators of positive externalities in regional towns. Cultural events are increasingly considered to be a cost effective way to boost local economies of host cities and regions and have thus become a subject of interest at academic and public policy level. Research results on the impact of festivals and events underline the fact that important direct and indirect economic benefits are often generated for host communities. However, most studies examine this issue within standard multiplier impact analysis. One area of research that has not received much attention is the analysis of the perceptions of local key interest groups about the impact of cultural festivals on host communities. The purpose of this chapter is to present an instrument to assess the perceptions of festival organizers, local authorities and tourism market about the economic impact of regional cultural festivals on local communities. The aims of the research are, to assess if and how festivals act as regional development stimulants that encourage local economic revitalization and to investigate whether festivals are incorporated into regional economic development policies. The Delphi method was implemented through a research survey with representatives of the key interest groups. The study looks at film festivals that take place on a regular basis in regional towns in Greece and makes use of primary data obtained by a questionnaire survey addressed to festival organizers, local authorities and hotel managers about core economic and tourism impacts of film festivals and their significance for host communities.