The economic impacts of annual community festivals: A case of the Sturgis Falls Celebration, 2013

This study examines spending patterns and economic impact of visitors to the community of Cedar Falls, Iowa for the annual Sturgis Falls Celebration. The following aspects of festival tourism development were addressed: (1) visitors’ travel motivations and satisfaction; (2) visitors’ spending patterns and (3) the economic impacts of Sturgis Falls Celebration visitors in Black Hawk and contiguous counties. The data for the study was collected using a questionnaire based intercept survey that was distributed to the attendees at the Sturgis Falls Celebration during the festival in 2013. Of the residents and visitors in attendance at the festival, 539 people participated in the study. Therefore, the findings of the study are applicable only to Black Hawk and contiguous counties in the state of Iowa. The Sturgis Falls Celebration was held the weekend of June 27‐30, 2013. The festival attracted both first time and repeat visitors, who traveled to Cedar Falls from around the state with the purpose of attending the celebration. Approximately 71.6% of the 63,000 attendees were local residents (Cedar Falls or Waterloo residents). Initial Sturgis Falls Celebration visitors’ expenditures of $2.96 million generated $4.4 million in terms of sales, $2.2 million in terms of personal income, and created 56 new (seasonal) jobs. For every dollar spent by festival visitors, an output of 1.5 was generated in terms of sales (gross output multiplier 1.5). Furthermore, an estimated income multiplier of 1.57 and employment multiplier of 1.33 were generated