News & events


Assessing the Economic Impact of a cultural festival: The Case of the 2014 Marula , Limpopo Province, South Africa

17 November 2014
11:30 - 12:30

Speakers: Stewart Ngandu, Yvonne Gwenhure, Vandudzai Mbanda

Date:  Monday, 17 November     Time: 11:30  – 12:30

Venue:    VCRs, Pretoria, Cape Town, Durban

In recent years, cultural festivals have become important tools for tourism promotion in South Africa. Local authorities view these events as important platforms for marketing the tourism assets of small rural economies as part of their local economic growth and development strategies. This study assessed the economic impact of the Marula Cultural Festival in, the Ba-Phalaborwa Local Municipality, Limpopo Province.

Most event impact assessment studies generally use input-output or Social Accounting Multipliers to assess impact. The problem with these approaches at the small regional economy level is that such tables are generally not readily available. At the same time these economies are characterised by strong leakages due to the absence of a diverse industrial base. High leakage ratios dampen the impact of festival visitor spending in the local economy. In order to resolve some of these issues, this study conducted two surveys during the February/March 2014 Marula Cultural Festival.

A business survey captured the share of business stock procured from outside the local economy together with business perceptions about the impact of the event. A visitor survey captured typical expenditure patterns of festival attendees. Basic leakage ratios and details of festival costs and revenues from the organiser are then used to compute a simple Keynesian multiplier which is then used in the impact assessment. Finally, a simple and novel way of assessing the scope of local business’s ability to reduce leakage from the local economy is also presented.

The seminar may be attended in Pretoria, Cape Town and Durban

RSVP by 16 November
Cape Town: Ray Adams (021) 466 7936,  12th Floor, Plein Park Building, Plein Street, Cape Town
Durban: Ridhwaan Khan (031) 242 5400,   1st Floor, 750 Francois Road, Ntuthuko Junction, Pods 5 and 6, Cato Manor
Pretoria: Arlene Grossberg (012) 302 2811,  1st  Floor, HSRC Building, 134 Pretorius Street, Pretoria