Economic Impact Of The 2008 American Folk Festival In Bangor, Maine

ECONOMIC IMPACT OF THE 2008 AMERICAN FOLK FESTIVAL IN BANGOR, MAINE

Bernardita Silva Graduate Assistant Center for Tourism Research and Outreach (CenTRO) M.S. in Resource Economics and Policy University of Maine 5782 Winslow Hall Orono, ME 04469-5782 bernardita.silva@umit.maine.edu Marilynne Mann Research Associate Center for Tourism Research and Outreach (CenTRO) University of Maine HaroldDaniel, PhD Director Center for Tourism Research and Outreach (CenTRO) Associate Professor, Marketing University of Maine Abstract Festivals and events are important drivers of tourism activity in a growing number of communities in Maine. Based on a survey of festival visitors, this study used an IMPLAN™ input-output model to estimate the economic impact of the 2008 American Folk Festival in Bangor,Maine. CenTRO estimated 95,626 local and non-local visitors to the Festival based on a Festival gate count of 168,000 visitors and reporting of the number of Festival days attended by surveyed participants. The estimated direct spending was $6.5 million. The calculated total output multiplier was 1.51 for every dollar spent; therefore, the total economic output generated in the Bangor areabecause of the Festival was $9.8 million. Survey results demonstrated the importance of festivals to local growth and tourism promotion. Policy implications for the Bangor area to increase the economic impact of the Festival are identified. 1.0 Introduction Festivals and events are important drivers of tourism activity in a growing number of communities in Maine. The Portland Sidewalk Art Festival,American Folk Festival in Bangor, Yarmouth Clam Festival, and Rockland Lobster Festival are among some of the better-known events that take place every year in Maine. The American Folk Festival, on the Bangor waterfront, has been a celebration of multi-cultural traditional arts and music for seven years. Attendees are exposed to music, dance, and other performing arts representing cultural traditionsfrom Maine, the nation, and the world. Festival-goers are offered the opportunity to purchase authentic, traditionallymade crafts from Maine artisans and the festival experience is enhanced by offering a variety of regional, ethnic and fair food. The impact of the American Folk Festival on the area has been threefold: 1) spurring economic activity in the region, 2) expanding the cultural andartistic opportunities available to Bangor residents, and 3) increasing the visibility of Bangor as a tourist destination. Working with Festival organizers, the Center for Tourism Research and Outreach (CenTRO) of the University of Maine System, conducted a study of the 2008 American Folk Festival to gauge the experience of attendees and estimate both the direct and indirect economic contribution ofthe Festival to the regional economy. 2.0 Literature Review Many studies mention the importance of festivals and events as key factors in attracting new money to a local economy and increasing tourist visits in an area (Long & Perdue, 1990; MacDonnell, Allen & O’Toole, 1999; Jackson, Houghton, Russell & Triandos, 2005). At times, festival organizers dismiss the importance of these events to thelocal economy and focus on the social benefits of festivals as an instrument to preserve traditions contributing to community cohesiveness (Gursoy, Kim & Uysal, 2004).

The number of festivals promoted as tourist attractions has increased along with the numbers of studies designed to analyze impacts in local economies (Howell & Bemisderfer, 1981; Della Bitta & London, 1982; Wilson & Udall, 1982;Getz & Frisby, 1988). Input-output models have been highly recommended for analyzing the economic impact of tourism events for a specific region (Fletcher, 1989; Johnson, 1999). Saayman and Saayman (2006) used a model to estimate the economic impact of three festivals in South Africa. They also demonstrated that location and size of the festival have a great influence on impact. Using data from...