economics

The council and events: a cost-benefit thing

Ever wondered why cities want to host events and festivals? You might think that the costs of street closures, police officers on duty, ambulances on standby, and cleaning costs would put councils off. Luckily not...

The economic benefits of events are quite often much greater than the costs. When I worked with San Francisco Pride I conducted an economic impact study on behalf of the city. The numbers were impressive:

  • $40 million was spend on retail during Pride week
  • $33 million in restaurants
  • a total economic impact of almost $360 million

Not bad for a week long event. But that's just one event that takes place in the city by the Bay. Numerous events take place throughout the year and they all contribute to the local economy

South Tyneside Summer Festival

Obviously there are costs as well. Have you ever heard of South Tyneside? Nope, me neither but in this area the council organises a few free events. They say the Summer Festival brings people to the area, provides jobs and adds £1.7 million to the local economy. But there is no such thing as a free event.

The councils has published their event budget and hence we can see how much it cost to organise Summer Festival 2016. This is how we know that they spent £21,000 on a stage and £3,000 on entertaining guests. The following article is, I think, fantastic as it highlights the costs involved in organising a great festival. Is it too late to nominate South Tyneside council for council of the year?

You can follow me on my Youtube channel: every week an interview with an event expert.