The significance of festivals to rural economies: estimating the economic impacts of Scottish Highland Games in North Carolina

Festivals are often part of the economic development strategy of rural areas. This study estimates the economic impacts of visitor expenditures at two Scottish festivals in rural North Carolina, using tourist survey data and an input-output model. While local restaurants and lodging and festival vendors and sponsors benefit from substantial visitor expenditures, the multipliers are relatively small, and hence the total economic impact of the festivals represents only a small percentage of economic activity in the two regions considered. Lodging expenditures have the greatest impact on the region with a multiple-day festival, while expenditures on food and beverage have the greatest impact on the region with a single-day festival. The magnitude of the economic impact depends on characteristics of both the festival (number of days) and the local economy (other attractions and linkages). Keywords: festivals; Highland Games; tourist expenditures; economic impact; multipliers