Estimation of Regional Economic Impacts of Musical Festival in Denmark

Similar documents
LIST OF CONTENTS. EXECUTIVE SUMMARY IMPACT ANALYSIS World Wrestling Championships September 2009 City of Herning, Denmark. Preface...

Business Aarhus. Aarhus a city of shopping

2nd Quarter. AEDC is pleased to present the Anchorage Quarterly Economic Indicators Report for the second quarter of 2010.

Tourism in Denmark. - creates jobs and growth

Ireland. Tourism in the economy. Tourism governance and funding

ECONOMIC PROFILE PARK CITY & SUMMIT COUNTY, UTAH

Economic Impact Analysis. Tourism on Tasmania s King Island

Sweden. Tourism in the economy. Tourism governance and funding

Uncertainty in the demand for Australian tourism

Nevada s Tourism, Gaming, and Entertainment Sector

Travel and Tourism in Denmark to 2017

THE ECONOMIC IMPACTS OF AIRPORTS

EXECUTIVE FORUM ON NATIONAL EXPORT STRATEGIES EXPORT OF SERVICES: HYPE OF HIGH POTENTIAL? IMPLICATIONS FOR STRATEGY- MAKERS

Produced by: Destination Research Sergi Jarques, Director

Produced by: Destination Research Sergi Jarques, Director

Produced by: Destination Research Sergi Jarques, Director

The influence of producer s characteristics on the prospects and productivity of mastic farms on the island of Chios, Greece

Regional Universities Network. Introduction. Regional Universities Network. Economic Impact of the Universities in the Regional Universities Network

Asia-Pacific Economic Statistics Week Seminar Component Bangkok, 2 4 May 2016

Benchmarking Travel & Tourism in United Arab Emirates

The Economic Benefits of Agritourism in Missouri Farms

Economic Impacts of Campgrounds in New York State

The Civil Aviation Sector as a Driver for Economic Growth in Egypt

Benchmarking Travel & Tourism in Russia

The Benefits of Tourism

The Economic Contributions of Agritourism in New Jersey

Economic impact of the Athens International Airport

Produced by: Destination Research Sergi Jarques, Director

United Kingdom. How does Travel & Tourism compare to other sectors? GDP. Size. Share. UK GDP Impact by Industry. UK GDP Impact by Industry

Canadian Tourism Satellite Account Demystified

Mexico. How does Travel & Tourism compare to other sectors? GDP. Size. Share. Mexico GDP Impact by Industry. Mexico GDP Impact by Industry

Estonia. Tourism in the economy. Tourism governance and funding

Benchmarking Travel & Tourism in Australia

Foregone Economic Benefits from Airport Capacity Constraints in EU 28 in 2035

Wyoming Travel Impacts

The Impact of Brexit on Tourism

HEALTH SECTOR ECONOMIC INDICATORS REPORT

The Benefits of Tourism

August Briefing. Why airport expansion is bad for regional economies

East West Rail Consortium

Steering the meetings industry in Kraków:

Economic contribution of the Qantas Group s regional operations Qantas Group. Commercial-in-confidence

Richard V. Butler, Ph.D. and Mary E. Stefl, Ph.D., Trinity University HIGHLIGHTS

The Economic Impact of Tourism on Oxfordshire Estimates for 2013

An outdoor waterpark is a facility offering three or more waterslides and other aquatic facilities.

Vera Zelenović. University of Novi Sad, Novi Sad, Serbia. Dragan Lukač. Regional Chamber of Commerce Novi Sad, Novi Sad, Serbia

The Economic Impact of Tourism in Maryland. Tourism Satellite Account Calendar Year 2015

The Other O: Comparing Las Vegas to a Successful Mid-Sized, Midwestern Metropolitan Area

Washington County, TN. Hotel, Restaurant, and Travel Industries: Economic Profile and Business Trends, Washington County (Jonesborough area)

ECOFORUM [Volume 7, Issue 3(16), 2018] INTRODUCTION OF BEIJING CULTURAL TOURISM DEVELOPMENT

Produced by: Destination Research Sergi Jarques, Director

Economic contribution of the Qantas Group to Australia in FY17. Economic contribution of the Qantas Group to Australia in FY17 The Qantas Group

Feature Article. Equally, counting up all employment in. conversely, that not all employment in. if industry sales rely in part

International economic context and regional impact

The Benefits of Tourism

Produced by: Destination Research Sergi Jarques, Director

Country fact sheet. Noise in Europe overview of policy-related data. Denmark. April Photo: Matthias Hintzsche

Panama City Beach CVB Travel Market Visitor Profile & Economic Impact Report

Sevier County, TN. Hotel, Restaurant, and Travel Industries: Economic Profile and Business Trends, 2006

TSA governance at national level

Hamilton County, TN. Hotel, Restaurant, and Travel Industries: Economic Profile and Business Trends, Hamilton County (Chattanooga area)

Fiji s Tourism Satellite Accounts

East Lothian. Skills Assessment January SDS-1154-Jan16

The contribution of Tourism to the Greek economy in 2017

BC JOBS PLAN ECONOMY BACKGROUNDER. Current statistics show that the BC Jobs Plan is working: The economy is growing and creating jobs.

The Economic Impact of Tourism in Walworth County, Wisconsin. July 2013

Measure 67: Intermodality for people First page:

The Economic Impacts of Cultural and Sport Tourism in Canada 2007

Jämtland Härjedalen. Strategy 2030: For the Tourism Industry. Jämtland Härjedalen leaders in nature based experiences

CRUISE ACTIVITY IN BARCELONA. Impact on the Catalan economy and socioeconomic profile of cruise passengers (2014)

Benchmarking Travel & Tourism in Colombia

An Evaluation of the impact

Business Growth (as of mid 2002)

The Benefits of Tourism

Economic Contribution of Tourism to NSW

2009 Muskoka Airport Economic Impact Study

Appendix 3 REMPLAN Economic Impact Modelling: New Energy Port Hedland Waste to Energy Project

Introduction on the Tourism Satellite Account

Australian Casino Association ECONOMIC REPORT. Prepared for. Australian Casino Association. June Finance and Economics

South Australian Centre for Economic Studies June 2016 Economic Briefing Report 28 June, 2016

March Future Capacity Requirements in Greater Copenhagen

Estimation of Tourism Employment through Tourism Satellite Account Indian Experience

Evaluation of realized investments in Belgrade s and Danube region

The 2001 Economic Impact of Connecticut s Travel and Tourism Industry

Provincial Review 2016: Limpopo

AYUBOWAN.. SRI LANKA TOURISM

Case Study Economic Impacts of Maudie. Prepared for the Canadian Media Producers Association with financial support from Telefilm Canada

Queenstown Airport Economic Impact Assessment

BILLUND DESIGNER OUTLET. The largest outlet in Scandinavia opening 2019

东莞市人民政府 The People s Government of Dongguan. Appendix 2 Charming Dongguan with Endless Business Opportunities

Economic Impact of Tourism. Norfolk

Presented by: Ms. Kanageswary Ramasamy Department of Statistics, Malaysia February 2017

Tourist Traffic in the City of Rijeka For the Period Between 2004 and 2014

Israel. Tourism in the economy. Tourism governance and funding

POVERTY REDUCTION THROUGH COMMUNITY-BASED TOURISM IN VIET NAM: A CASE STUDY

The Travel and Tourism Industry in Vermont. A Benchmark Study of the Economic Impact of Visitor Expenditures on the Vermont Economy 2005

INTERNATIONAL DRIVE ECONOMIC IMPACT ANALYSIS. Luis Nieves-Ruiz, AICP Economic Development Program Manager March 29, 2017

TOURISM AS AN ECONOMIC ENGINE FOR GREATER PHILADELPHIA

Ontario Arts and Culture Tourism Profile Executive Summary

Oregon Travel Impacts p

Transcription:

Estimation of Regional Economic Impacts of Musical Festival in Denmark Jie Zhang Centre for Regional and Tourism Research (CRT), Denmark Presentation at symposium for Economic, Environmental, Cultural and Social Impacts of Events and Tourism, University of Gothenburg, Sweden 19-21.

Central themes of the paper Examining three festivals in Denmark (as case studies); Application of Danish inter-regional macroeconomic model, the LINE model, for analysing the economic effects of tourist spending at festivals; Results and the explanation for the local and spill-over effects. Questions: 1. Are there spill-over effects to other regions besides its own region? 2. Does the regional structure where it holds musical festivals matter from a regional perspective? 3. What are implications for developing festivals for regional policies? 2

Findings from the analysis It shows there are spill-over effects to other regions beside the place where it holds festival. The regional structure, identified by the regional productivity, inter-regional trade structure, shopping and commuting patterns, plays an important role for magnitude of economic effects in the own municipalities and the effects spill-over to the other regions. From a regional policy s point of view, it prefers to attract more tourists to rural and peripheral areas due to the facts these regions face a higher unemployment rate and limited productive opportunities for regional development. 3

Presentation of three musical festivals in Denmark Roskilde Festival - the largest festival in northern Europe. It was created in 1971 by two high school students. In 1972, the festival was taken over by the Roskilde Foundation, and now it operated by Association of Roskilde Festival. As a non-profit organization for development and support of music, culture and humanism, It has granted donation and support to different organisations within the social, cultural and sport, as well as regional economical development. Skanderborg festival - an annual music festival held during the second weekend of August. Its scenic location, in a beech forest in the vicinity of Skanderborg, has given it the name Denmark s Most Beautiful Festival". 4

Presentation of three musical festivals (continue) The first festival was held in 1980 and was a one-day event with 7 bands and about 600 spectators. In 2009, Skanderborg Festival was held for the 30th time and is today the second largest festival in Denmark. The festival gathered more than 45,000 people for the concerts, including 8,500 workers, most of them volunteers. Langeland festival - known as Denmark's largest garden party, and a family festival. The festival began in 1991 and has over time has grown into one of Denmark's biggest festivals with 30,000 to 35,000 visitors in 2008. It is usually held in the last week of July and typically lasts for four days, although in 2010 it will be held for a full week, from July 24 to July 31. 5

Location of the three music festivals in Denmark 6

Population, employment and tourism at the three Municipalities Municipality Population Employment Total tourists Tourism Tourists per Tourism (1000) revenue resident revenue per (Mio. Kr.) (number) resident(dkr.) Langeland 12,861 5,277 1,153 550 90 42,765 Roskilde 83,554 40,131 1,244 972 15 11,633 Skanderborg 58,094 24,085 745 510 13 8,779 Data source: Statistics Denmark and the SAM-K database. The data shows for the year 2012. 7

Number of bed nights and tourism revenue at festivals Number of tourist nights (1000) Tourism revenue (million Dkr.) Average daily consumption per tourist (Dkr.) Roskilde 387.28 416.97 1076.7 Skanderborg 173.35 182.2 1051.1 Langeland * 100 104.02 1040.2 Data source: Estimated by the number of visitors at festivals and average length of stay. * The number of tourist nights at Langeland is estimated due to the information that the decreasing number of visitors at Langeland festival. 8

LINE model short presentation of model structure Place of production (P) Place of residence (R) Place of commodity market (S) Sectors (j) Productivity Production (Basic prices) Earned income (Pj) Producers Wages/Prices Factors of production (g) Commuting Disposable income (Rg) Private consumption (Rv) Households Shopping Commodities (v) Gross output (PV) Prices Intra- & Interregional trade /Tourism Intermediate consumption (SV) Demand (Market prices) (SV) Diagram 2 Export to abroad (PV) Prices Import from abroad (SV) 9 9

Inter-regional import and export quotients for three festival municipalities Pct Roskilde Langeland Skanderborg Inter-regional: Import Export Import Export Import Export Festival location region 23.8 17.2 54.1 46.5 56.1 55.1 Capital Region 59.8 73.4 0.8 2.5 1.3 10.5 Rest of Denmark 16 9.4 45 51.0 43 34.4 SUM 100 100 100 100 100 100 10

In-commuter and commuting quotients for the three festival municipalities Roskilde Langeland Skanderborg Person Pct. Person Pct. Person Pct. Festival location municipality 18,619 46.2 3,713 81.1 13,227 55.0 Festival location region 11,953 29.6 803 17.5 9,908 41.2 Capital Region 9,124 22.6 27 0.6 154 0.6 Rest of Denmark 630 1.6 37 0.8 761 3.2 SUM 40,326 100 4,580 100 24,050 100 11

Out-commuter and commuting quotients for the three festival municipalities Roskilde Langeland Skanderborg Person Pct. Person Pct. Person Pct. Festival location municipality 18,619 45.3 3,713 70.0 13,227 44.8 Festival location region 4,189 10.2 1,357 25.6 14,515 49.1 Capital Region 17,724 43.1 105 2.0 586 2.0 Rest of Denmark 572 1.4 133 2.5 1,222 4.1 SUM 41,104 100 5,308 100 29,550 100 12

Results from the analysis: employment effects Number of FTE jobs Effects Festival area Own region The rest Copenhagen Denmark Roskilde Festival: Direct: 252 14 54 21 321 Total: 313 41 155 58 509 Multiplier 1.24 2.86 2.85 2.74 1.59 Skanderbor gfestival: Direct: 103 29 26 4 158 Total: 119 60 60 10 239 Multiplier 1.15 2.05 2.36 2.46 1.52 Langeland Festival: Direct: 52 9 31 1 92 Total: 61 23 57 3 141 Multiplier 1.17 2.48 1.85 2.83 1.53 13

Regional employment effects by percentage Festival area Own region The rest Copenhagen Denmark (%) Roskilde Festival Direct: 78.6 4.5 16.9 6.6 100 Total: 61.5 8.1 30.4 11.3 100 Skanderborg Festival Direct: 65.2 18.5 16.3 2.6 100 Total: 49.7 25.0 25.3 4.2 100 Langeland Festival Direct: 56.5 9.9 33.5 1.1 100 Total: 43.2 16.2 40.6 2.1 100 14

Total employment effects by Roskilde festival Roskilde 313 København 58 Brøndby 8 Tårnby 8 Herning 7 Ringsted 5 Næstved 5 15

Total employment effects by Skanderborg festival Roskilde 313.02 Københav n 57.69 Brøndby 8.15 Tårnby 8.07 Herning 6.52 Ringsted 4.71 Næstved 4.56 Skanderborg 119 Århus 19 København 10 Silkeborg 8 Odense 8 Aalborg 7 Viborg 6 Herning 5 16

Total employment effects by Langeland festival Langeland 60.8 Århus 37.59 Odense 7.38 København 2.91 Horsens 2.33 17

Conclusion and discussion The finding from the analysis by case studies show that there are spill-over effects to other regions beside the places where it holds festival. Location matters from the results of regional model. Factors influencing the local and regional spill-over effects are: Productivity, economic structure, trade patterns, shopping and commuting relationships with other regions. From a regional policy s point of view, it prefers to attract more tourists to rural and peripheral areas due to the facts these regions face a higher unemployment rate and limited productive opportunities for development. The tourism is normally seen as a way for regional development in the rural regions, while in the urban regions there is a more varied production structure, better infrastructure and variety of cultural facilities. 18

Conclusion and discussion (continue) Different events must have different location choice depending on different factors and the aims which should be achieved. Aim and target of events can be scale of audiences, accessibility, lower costs, maximisation of returns, and promotion of national identity, etc. In this case, location choice is favourable for the urban regions such as a large city. If aim of events is to focus on the community building, attracting the local audiences, and more focusing on the repeat visitors to the local area, the rural region could benefit from organising festivals. On the other hand, the big events like Olympic and other sport events, on the purpose of attracting a large scale audience and maximisation of commercial effects, the large city can be the best choice. 19

Thank you! 10-02-2015 Jie Zhang, senior researcher, PhD Center for Regional and Tourism Research Denmark Email: jie@crt.dk 20 20