Festival Economy : How to Make it Thrive

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Festival Economy: How to Make it Thrive


The increasing focus on activities that cater to various lifestyles has led to the development and diversification of festival, making them increasingly popular and growing trends.

In 2024, the global market for activity-based tourism, including festivals, is expected to reach US$1.63 trillion and is projected to grow more than 1.5 times to US$2.38 trillion within the next 10 years. 

Moreover, festivals offer various benefits, such as generating income for local communities, promoting local culture, and facilitating the development of local infrastructure. Given these advantages, many countries, including Thailand, have utilized festivals as a tool to drive their economies (Festival Economy). 

Secretary General to the National Economic and Social Development Council (NESDC) said Thailand has been actively promoting and elevating festivals under the creative economy initiative, with the Thailand Convention and Exhibition Bureau (TCEB) serving as the primary agency supporting festival organization. According to the TCEB, the agency supported 100 events which could generate 50 billion baht in the past five years.

Thailand’s festivals, most events have low attendance

However, in the past, Thailand’s festival organizing has revealed several challenges. Large-scale festivals are relatively scarce, most events have low attendance, and there is limited local engagement.

The report of South East Asia: Catalysts for the Creative Economy of the British Council Indonesia showed Thailand organized not much large-scale festivals due to budget constraints and less participation of the attendance. Most budget were from private sector while less involving of local and national attendance or accounted only 52% of the public participation. The study showed 48% of the festivals, the attendances were less than 5,000.      

Mr Danucha said moreover, there are constraints such as traffic congestion, increased prices for goods and services, insufficient service points, and crime. 

By studying successful global festivals, NESDC suggested Thailand can identify solutions and strategies to address these issues appropriately within its own context. 

1)Creating a unique selling point for a festival that differentiates it from others can be achieve by leveraging the strengths of a unique culture.For example,the Rio Carnivalin Brazil incorporates the vibrant dance of samba, giving it a charm and distinctiveness that sets it apart from carnivals in other countries.Creativity and innovation can be add, such as theLa Tomatina festivalin Spain, which originated from a food fight using tomatoes.

2)Enhancing safety measures to build trust among participants. For example, duringthe Rio Carnival,laws are enforceto protect and ensure the safety of women. Similarly,the La Tomatina festivalhas implemented measures tolimit the number of attendees and has prepared for safety and emergency situations. Moreover,technology is being use in event management, such as the implementation of advance weapon detection technology at the global hip-hop festival,Rolling Loud.

3) Providing amenities for attendees. For example, Belgium has implemented support measures for the Tomorrowland music festival, such as connecting transportation systems, including airport shuttles and trains, to the event venue. They also offer package deals that include event tickets, flights, accommodations, and other amenities like lockers, restrooms, charging stations, etc. The event is also designed with accessibility for people with disabilities in mind. 

4) Public relations and targeted marketing for the festival. For example, the Edinburgh Festival Fringe in Scotland systematically collects and segments tourist data to understand their target audience and tailor marketing efforts accordingly. They also utilize social media for widespread promotion.

5)Government support and collaboration between the public and private sectors, as well as local authorities. Roles and responsibilities should be distribute according to expertise. For example, in South Korea’smud festival, local authorities organize activities utilizing the mud, while educational institutions contribute by developing cultural plans to attract tourists; and

6)Managing the environmental impact of festivals.The Coachellamusic and arts festival in the United States promotes waste reduction by encouraging attendees to bring empty bottles in exchange for water or other souvenirs.

the National Economic and Social Development Council

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