The contribution of the Wacky Wine Festival to the local economy

Abstract

The Wacky Wine Festival in Robertson is unique, due to the fact that there are 48 wine farms on an existing wine route that participate in the festival. Each one of these farms is offering its own unique products and entertainment programme as part of the festival in general. This article aims to determine the economic contribution of the festival to the local economy, by using a detailed spending analysis and multiplier analysis. Two surveys were conducted in June 2010, where 400 questionnaires were handed out to the visitors and 48 questionnaires to the wine farmers. To determine the direct spending due to the event, non-resident spending was isolated from local spending. Additionally, spending incurred by warm farmers in preparation for the festival is included in direct spending. Multiplier analysis was used to determine the economic contribution and it is estimated that the festival contributes R27.2 million to the local economy.