A Northumbria University study has highlighted the positive
impact of beer festivals on the UK economy.
Research led by Ignazio Cabras, a Professor in Entrepreneurship
and Regional Economic Development at Northumbria, is the first of its kind in
the UK and investigates the multimillion-pound contribution of the Knavesmire
Beer Festival (KBF) in the city of York.
The four-day festival attracts visitors from around the world
and Professor Cabras’ study has revealed that during their stay, visitors spend
around £720,000 at the festival alone and £1.2 million across the wider city.
The KBF also contributes approximately £560,000 towards the
wider beer and brewing sector as well as generating around 18 full-time jobs.
Professor Cabras says the study shows that these festivals can
be of huge benefit to the local economy, with very little investment from
outside parties.
“These events take place across the UK and are run entirely by
volunteers, mostly from the local Campaign for Real Ale (CAMRA) branch,” he
said. “There is zero cost to the taxpayer and basically zero evidence of
negative externalities such as antisocial behaviour; in most cases all local authorities
need to do is give organisers the permission to run them.
“The KBF is not held in the city centre, so we were able to assess the amount of money spent in York during
those four days as a direct result of the festival. A third of visitors
attending the festival were from outside the city, so it is clearly a major
tourist attraction.”
Results from the study suggest that non-local visitors spend the
most money during their four-day stay, primarily due to the cost of accommodation
and dining out. However, local visitors spent more within festival premises,
creating more custom for beer and brewery businesses operating on site during
the event.
“The UK is rapidly becoming a craft-beer hotspot,” added
Professor Cabras. “Beer festivals tend to promote the kind of association
between beer and the UK that France and Italy have with wine, provide
significant opportunities to stimulate beer tourism in Britain. This study
shows that without a lot of investment, festivals can achieve economic benefit
for not only the city, but also the beer and brewery businesses that sell and
showcase their produce there.”
As more beer festivals
take place across Europe, Professor Cabras has recognised the potential of
creating new venues for future research, particularly about measuring the
impact generated by festivals and events on local economies in the UK and
worldwide.
The full study is
entitled Measuring the economic contribution of beer festivals on local economies: The case of York, United Kingdom and has been published in the International Journal of Tourism
Research.
Newcastle Business School, at Northumbria University, has a global reputation for delivering some of the best business management education in the UK.
