Local economic impact of the white night festival in Košice

Košice is the second biggest city in Slovakia. In the last 25 years (following the period of Communism) Košice has passed through several waves of transformation involving economic, social and urban changes. Košice was awarded the European Capital of Culture (ECoC) in 2013. The winning project was based on the city transformation through culture and support of the creative economy (start- up and spin-off firms). Big cultural events have not only cultural and social benefits, but also an indisputable economic impact on the hosting city. These events represent an opportunity to not only attract visitors from outside the region but also for them to spend money on accommodation, food, transport etc. Visitors’ expenditure presents additional income for the local economy and stimulates a considerable amount of economic activity and growth. The assessment of the economic impact of events has become popular of late and combines the economic approach with spatial marketing and tourism studies. A coherent methodology has also been developed to evaluate the economic impact of events in the geographical area. This paper aims to estimate the local economic impact of the biggest cultural event organised in Košice, the White Night festival, a spin-off of the Košice European Capital of Culture 2013. This impact empirical study was done in three stages. Firstly, the measurement of attendees using appropriate methods for ungated events. Secondly, the estimation of the visitors’ impact related to private spending generated by the event ́s visitors and thirdly, through estimating the overall economic impact by calculating the multiplying effects on the local economy (induced impacts). The study was based on research conducted during 2012 and 2013 in Košice. The result shows the attendance hyperbole and impact of visitor spending that was due to the festival in the local economy