The socio-economic impact of the Klein Karoo National Arts Festival

Abstract

The literature review indicates that event impacts could enhance the quality of life of the host community. Event impacts influence either the economy or social aspects of a host community (Yeoman, Robertson, Ali-Night, Drummond & Beattie-McMahon, 2004:33; Hughes, 2000:45). The positive impacts should be weighed against the negative event impacts to prove that the event holds more benefits than negativities so that the festival may gain community support, which is essential for a sustainable event (Reid & Arcadia, 2002:484, 502). Some of the economic impacts pertaining to events include job creation, infrastructure development, attracting new businesses, extending tourist seasons, business interruptions, and leakages (Hughes, 2000:93, 147, 159; Allen et al., 2005:31; Slabbert et al., 2007:39). This study found that the 2007 Klein Karoo National Arts Festival (KKNK) generated a total of R39.58 million in direct expenditure for the host community. Social impacts pertaining to events could include the following: community pride, pollution, noise and vandalism increases (Allen et al., 2005:31 ). Oudtshoorn residents indicated that they experience these social impacts as a result of the festival. Respondents to the social impact survey indicated that the festival improves quality of life through the provision of entertainment and the opportunities to spend time with family and friends. The purpose of this study was to determine the socio-economic impact of the KKNK on the community of Oudtshoorn. Socio-economic impact research studies the relationship between economics and society (Etzioni, 2003:1 09), thus social and economical impacts of the festival were measured during the festival period of 31 March to 7 April 2007. The empirical study included three surveys: survey 1 - a community survey - 260 questionnaires; survey 2 - a business survey - 79 questionnaires; and survey 3 - a visitor survey- 51 2 questionnaires. The community survey included questions relating to demographic aspects, impact questions pertaining to specific festival impacts in the community and personal impacts on residents. A descriptive analysis, statistical analysis and factor analysis was done to interpret the social data and to determine the most relevant social impact factors. The business survey asked questions regarding employment creation, leakages, and income changes during, or as a result of, the festival. The visitor survey included questions relating to demographic aspects and festino expenditures. The study indicates that the magnitude of an event's economic impacts depends on the size of the economic multiplier and that larger positive economic impacts lead to an increased number of beneficial social impacts. Research also showed that an event's main stakeholders (the host organisation, local community, sponsors, media, co-workers, visitors, and performers) play a determining role in the magnitude of the socio-economic impacts of the festival. External influential factors could also impede or increase these socio-economic impacts. Thus, event organisers have to ensure that all stakeholders are accommodated to the maximum possible extent since providing for stakeholder needs is a key aspect to which event organisers can comply to ensure that greater socio-economic benefits accrue in the host community. This study contributes to the scarce amount of literature available on the socio-economic impacts of events.