The Economic Impacts of Tramline Music Festival - Case Study Example

The Economic Impact of the Tramline Music Festival Student Name: Student Number: Course Code: Instructor: 2nd April, 2013 The Economic Impacts of Tramline Music Festival Introduction The Tramline Music Festival is held annually in Sheffield, United Kingdom since 2009. It is an event where all musicians are welcome to entertain the residents of Sheffield for free. With every succeeding event, not only are the number of venues are added, but the activities that revellers are allowed to engage in become more diverse. For instance, different genres of music are played in the various venues to enable music enthusiasts to choose the kind of genre they’d like to listen to at any particular time. Initially, the first event attained critical acclaim amongst the fans in Sheffield and in lieu of this, a subsequent event was organized. Since then, it has been an annual event. Music festivals, like most social events, attract more than just fans and revellers. The average benefits drawn from such an event may be classified as more than fun for the fans, exposure for new artists, and the much needed advertisement for the seasoned artists who use such events to popularise their new music or other necessary products that come with their brand names. The event organizers equally benefit as they get advertisement commissions, sponsorships from commercial entities and also get to promote their brands such as venues and other products. As a city, there are several benefits that accrue from such events. First off, such events promote cohesion among the people. The residents of Sheffield also get to be entertained for free. Sheffield records a relatively lower crime rate during such events as delinquents who frequently harass the residents get something to distract them. Other benefactors of the Tramline Music festivals include business people like shop owners, whose goods fly off the shelves faster than on regular days. When assessed strategically, we find that the economic benefits outweigh the other benefits. The economic benefits from the Tramline Music Festival affect a wider number of people than those who are involved directly. For instance, a general state of security goes a long way in ensuring peace for the passive members of the Sheffield society. On the other hand, the auxiliary industries and service providers to such events also benefit. Industries like tourism and software development have also been major beneficiaries. As an industry, the tourism sector ranges from services offered by hotels for accommodation, to those offered for leisure like gyms, spas, and other sports-related games. Digital Directions (2013) collaborated with the relevant authorities at Tramlines to help them develop software that would enable visitors to get urgent information about the event. This went well and so far, the nearly 300,000 visits from 200,000 enthusiasts have enabled the Tramlines to attain an increased capacity of visitors at the events. In this therefore, we can confidently see that apart from the regular tourists who attend such events as a form of leisure, there are other beneficiaries who might not be directly involved in the festivals. When assessing the areas of the economy affected, there are various entities that benefit without being directly involved. However, there is also an extra benefit from the event that may not be directly linked to the people, but the county of Sheffield itself. The indirect benefit of such an event to the county of Sheffield comes in terms of perception by the wider UK and the world at large. Often times, the reputation of a place grows with the hosting of such auspicious events so much so that it may attract other events. For instance, as a result of successful festivals, Sheffield County may attract the sponsors of other events to want to use it as a venue for other festivals. Haslam (2009) agrees that a similar event in other areas like Latitude, which is held in Herefordshire, serves to build a reputation for the area. In addition, the populace fondly referred to as the “baby boomers”, which were enthusiastic of such festivals back in the seventies, gains more courage to go back to what was once considered the in-thing. Economic Impacts of Tramline Music Festival The Economy of Sheffield First off, music festivals like the Tramlines are a sure way of boosting the economy in general. From most of the activities that transpire amongst those involved, we can conclusively identify one big boost among the residents of Sheffield county – improved standards of living. After all is said and done, then we find that most of the businesses that benefit finally trickle down to the residents in form of better standards of living as a result of the availability of more money in the local economy. BBC (2010) agrees that in as much as the expenses towards Tramlines music festival may be a little steep for the county government of Sheffield, the resultant effect on the people is enormous. As an event that is often scheduled to take place during summer, it is known to help businesses mitigate the effects of low sales that are characteristic of this particular season. In addition, local music outfits that have never been exposed to events of such magnitude are given a chance to showcase their talents. In this manner, the county benefits more as not only does it gain economically, but it also gets to reveal the hidden talent that is within its populace. Giving new artistes’ exposure is part and parcel of uplifting the standards of living of the people of Sheffield County. Aside from the conventional means of attracting revenue as will be discussed later, Manghan and Bianchini (2004) there are economic benefits that can be drawn from other aspects. When analysed keenly, the demographic of those who attend Tramlines Festivals reveals a massive attendance of those who are young at heart – suffice to say the demographic between 45 – 55years of age. Attendance of such festivals by this particular age group reduces stress among them, leading to a decline in health related issues. Effectively, the cost of insurance on health may reduce considerably among them. Summing up the direct economic benefits to the people of Sheffield shows how the festival impacts directly on the economic status of the county. The direct means through which economic benefit is realized through employment of locals, higher sales for shops, boost to tourism industry through visits from non-residents and foreigners and finally an attraction of a market segment that may not have been there for shops through customers who increase their frequency of visits to Sheffield just from the impact it had on them. Employment Opportunities An assessment of the employment opportunities that arise during the Tramlines Music Festival reveals quite big benefits to those who are already in employment and those who find temporary jobs during the events. For a start, those who are already employed at shops, clubs and other venues at which festival events take place may get to earn more in terms of allowances and wages. For instance, shop owners get to operate longer hours and in this regard, need to include allowances for their employees to cover for the extra hours they’ve worked. Bradwell (2010) illustrates this point by positing that at the 2010 tramlines Music Festival, shops made up to 100% more in terms of profits. This should be well attributed to the comparatively longer hours put in to ensure that more customers are accommodated during events. Same applies to the various locations like clubs and other privately owned establishments that host part of the events. The locals who are temporarily hired to do menial jobs like building of shades, temporary stages, carrying around chairs and other jobs that need semi-skilled work force also benefit. When organizing such events, there has to be a crew that is specifically employed to deal with logistical support. Not only will venues need to be specifically made to appear ready for this particular event, but they will also need to be prepared to handle excess revellers as witnesses at the main stage in the 2010 event. Manghan and Bianchini (2004) reiterate that festivals generate employment for locals. However, they also unequivocally declare that the number of new businesses that crop up during the event may not be as many as earlier thought. While placing the percentage of Sheffield residents who think that such festivals generate new businesses at a conservative 33%, the ones who thought that much business originated otherwise were 45%, a difference of 12 percentage points. Consequently, it is prudent to place the economic gains in perspective: The most dominant factor that is displayed during such a festival is increased sales, both in new and old businesses. In line with the increased volume of sales, which comes as a result of increased customers who are basically revellers, there is a boom in the transport industry due to an increased number of travellers to the venue. First off, the Travel South Yorkshire (2012) indicates that buses leave their points of departure for several venues where the festival is held at frequencies of 15 minutes each. This is the only sure way of ensuring that the transport needs are catered for. As a result of this, higher ticket sales are realized. Consequently, there are profits gained in the transport sector. However, the bus companies are wont to reduce their fares by a certain percentage to ensure that each one of them gains passengers. In the initial stages of planning an event, there are committees that are set up to help in the organization of festivals. These committees may be drawn from stakeholders, but more often than not, they are formed by ensuring that people recruited to sit in them are not in any way directly involved as sponsors or anything close that would create the impression of clashing of interests. Tim (2011) says that the success of the Tramlines festival in the year 2011 was greatly due to the prudence by the organizing committee, which ensured that the near-double attendance in 2011 at 175000 from 90000 in 2010 reflects success. Companies hired to bolster infrastructure take a considerable number of locals as temporary workers. The setting aside of certain sections of the city’s roads and venues that host passengers and revellers requires deployment of staff. In doing this, the companies may equally obtain labourers from amidst the locals. In as much as such kind of work requires skills of some sort, there are dimensions to it that may require menial or semi-skilled labourers, just like the ordinary day-to-day work. When all the areas of deployment in the various areas are taken note of, we find that very many people are employed directly and indirectly in the preparation and running of a successful Tramlines Music Festival. Boost to Tourism Industry Music festivals across the world attract different kinds of enthusiasts of music. There are those that are attended by natives of certain localities, and there are those which are attended by people from all over the world. Tramlines Music festivals is one such event that attracts fans of various artistes who attend from the different parts of the world. For instance, The Sheffield Scenester (2012) places Rafiki Jazz, Soukous Revelation and Pallav Roy as some of the international acts that graced the auspicious Tramlines Festivals held in 2012. This, in totality, may attract tourists whose cultures are mirrored in some of the bands that originate from their motherlands. For instance, Pallav Roy is an Asian band – chances are that their fans from Asia are likely to be attracted to the event, both those living in Sheffield and yonder. The international tourists are bound to use transport, accommodation and other services and commodities. In doing this, they boost the number of visitors to Sheffield. In addition to transport and accommodation, they are likely to enjoy the treats offered in the various sections and venues of the festivals, effectively injecting money into the Sheffield economy. Due to the various addictive events held during the festival, a habit may crop up of repeat attendants. This is one of the surest ways of creating a steady stream of tourists’ population into Sheffield. It is roughly estimated that the festival generates an average of 150000 visitors who attend the events. However, analysis outs the combined number of 7 million people who are directly and indirectly involved in the whole festival during the four days that it runs. Such a number is sure to inject an estimated £1.4b into the Sheffield economy over the slated period of four days. Hotel occupancy during the festival is put at full capacities for most that offer full board services for bookings. With the registration of high number of visitors seeking accommodation, it is undeniable that the demand created leads to consumption of auxiliary services that come with the use of hotel facilities. For instance, the hotels will have to order more food, directly impacting positively on the farmers and companies that supply their food and other products to the hotel industry. Other leisure activities like games, gyms and spas, swimming pools and so on equally benefit from this demand for services. The impact on most of tourism industry’s auxiliary sectors is noteworthy. Other sectors that are thus affected include the banking industry, the garbage collection industry and other related industries that are bound to have an upsurge in the use of their products. The most dominant factor in the whole tourism industry is the increase in circulation of currency between consumers and producers. As a starting point, travel and other general industries that aid in moving tourists, both from within and without, are the first to handle monies from travellers. Secondly, the hotels and other places of accommodation take in tourists who pay for their stay. Thirdly, food and relevant products also bring in more money. Finally, the experience from the events, including buying of tickets and such from ticket shops, acquisition of snacks and other luxuries during attendance of events, marks the next point from which money is obtained. Lastly, regular spending on goods and services brought about by impulsive spending mark the other point from which money accrues. Improvement of the General Sheffield Area There is consensus in the fact that music festivals help in the improvement of local infrastructure. From the organizing stage, where locals are involved in the building of venues alongside improving the ones that are already in existence, we find that the bettering of these venues and other infrastructure used during the event helps develop them. Hurst (2009) states that the Bonnarroo Music Festival was more than a music festival as it helped the people of Manchester, Tennessee gain other things as well. For instance, aside from the monies generated from the event, the event organizers insisted on a more environment-friendly approach. Effectively, the pollution that is a characteristic result of such event was considerably reduced, if not dealt away with totally. In addition to reduction in environment pollution, the people of Manchester, Tennessee learnt to utilize products from within their areas. This goes a long way in boosting sales for the producers of various goods who are indigenous. As a result, circulation of money is kept within the locality. Such practises are amongst the most effective in attempts at improving the living standards of the locals. It goes without saying that once there is development of certain aspects of an area, like infrastructural and standards of living, other factors like health equally mark great improvements. The wellbeing of the people of these areas also gets a big boost. Without a doubt, the locals of Sheffield also benefit from the goodwill shown by sponsors. In this respect, the local artistes, who may have lacked exposure before, become beneficiaries of free advertisements and interaction with the well-established ones. This is a sure way of bettering their prospects as it improves their chances at scoring sponsorships from willing corporate companies. Image Development The tourists who visit Sheffield during such events act as ambassadors when they leave. This is as a result of their going back to their respective places of origin with news of how successful the event was. A direct result of this is that more people from these areas will want to visit the Sheffield area the next time such an event is held. Equally, park (2010) notes that a direct engagement of audiences during such events is key to marketing other services offered at the various venues. Effective marketing strategies are meant to create an impact among the prospective market segments needed to attend the event. The only effective way of attaining a high percentage attendance is through marketing. The bigger the attendance in terms of numbers, the better the image portrayed as concerns capability to host such events. There is no greater development than that which fosters peace. The Tramlines Music festival may not have been exactly aimed at creating peace in the area, but it is a good way of fostering cohesion among the locals. When the indigenous population from Sheffield interact, there is a better engagement and intermingling of people with different cultures – a sure way of creating higher tolerance levels towards each other. The harmony that results from such events among the local goes a long way in bettering relationships. Festivals have been known to produce negative images of the areas within which they are hosted. This does not in any way blur the achievements that the festivals are likely to impact on residents. According to Rivero (2009), deviants take such chances to increase their delinquency in localities where music festivals are held. However, it should be noted that police recorded lower crime rates during the previous Tramlines Music Festivals. This image boosts the confidence among business people who would like to run their businesses at odd hours during the festival. Effectively, the image created goes a long way in ensuring that more money is generated and brought to the local economy. The development of image as a result of such events has a very big impact on the economy. As a start, we have noted that more businesses operate during the events without fear of criminal activities. This in itself attracts big market players, who would want to engage in business during the event. In looking at this respect, we find that prospects among foreign traders is increased as more of them would easily venture into businesses in Sheffield area as a result of the image that Tramlines has helped build. It is prudent to note that the resultant economic gain to the people of Sheffield will be immense. As more businesses race to have their goods sold during the event, so does the economy of Sheffield County improve. Image development, as aforementioned, is partly built by tourism. However, these are factors that feed on each other. When the image of an area is built on security, we are equally likely to have a major boost in the tourism sector as most tourists are mainly keen on visiting areas with tranquil environments void of conflict of any nature that would affect their stay. We have seen how tourists are ambassadors or agents of an area and are responsible for the building of the image of an area. It has also been laid bare how security of an area is likely to influence the numbers of tourists who stream into an area to enjoy what the activities and sites have to offer. Both dimensions mirror how intertwined the various sectors of an industry are related, and how a negative effect may affect the others. Finally, image creation in the music industry is such an important aspect of development of new talents. Tramlines Music Festivals is identified as a great point from which artistes have gotten the much-needed exposure to a bigger arena where they can sell their talent. ItJessica (2011) ranks festivals as amongst the biggest point at which the trends in the music industries emerge. New artistes are wont to gain more from them as they will follow what the fans view as catchy from festivals, and use it to generate what is likely to generate more income for them. They can also get sponsorships from the various companies that track talent at festivals. Sponsorships Festivals attract various forms of sponsorships. The Tramlines Festivals is majorly sponsored from the Sheffield County Council kitty to the tune of £28,000. This figure breaks down to approximately 24p for every resident of Sheffield. It may not be much when expressed as a cost to a single resident, but when pegged against the value achieved from attendance, then the cost does not really matter. Other sources of sponsorships have been reported as gate collections, vending of snacks and drinks from stages and charges on security and line-ups. Corporate sponsors like Nokia have also featured prominently in the last two Tramlines Festivals. The organizing committees aim at persuading Nokia and other corporate organizations to chip-in and ensure a better event this year. Other organization have chipped in and sponsored stages. For instance, Nandos and Irwin Mitchell are a few of such organizations, which have proved instrumental in sponsoring prizes to be won at various states that involve various competitions. Such sponsorships go a long way in encouraging revellers to participate in the various events. The more one participates, the more money is generated, both to the crowds, and for sponsors. Sumo (2010) offered to provide seats for various stages during the 2010 event. This form of sponsorship may not be of financial nature, but it still offers a generous comfort for the attendants. Sponsorships benefit both the sponsors and the other players involved. While a sponsoring company gains profits and free advertisements from the event, owners of shops and venues where goods are bought and events take place respectively get to sell their products and entertain music enthusiasts without having to use extra costs in hosting them. This is a sure way of having more people benefit from a single source without necessarily making the cost exorbitant. Any event which lacks sponsorships is mostly bound to experience hiccups in logistics as the cost required to host huge numbers is very high. Dyers (2012) clears the air on the matter of sponsorship as concerns their viability in free-to-attend events. She offers that sponsorships have been hard to get, partly due to the fact that all those corporate entities involved would like to benefit financially from such ventures. However, it is great to note that the costs attached to festivals is rising and may need to engage bigger sponsorship offers, or otherwise be forced to charge those who attend. The advantages that are attached to making Tramlines Festivals a pay-to-enter event are many. But when scrutinized against a background of the initial goals that were set in creating the events, Tramlines Festivals would rather seek better sponsors. Recommendations Therefore, it would be prudent if the organizing committee is tasked with the endeavour to engage the central government into creating a fund to be used in running such events. This would be great in continuing the goal of exposing indigenous talent that may not be at an advantage in achieving their goals. The government may not enact policies to ensure such a fund is created immediately. Therefore, a petition to other corporate entities that may find it worthwhile to sponsor the event is not a bad idea. Corporate sponsors are a better source of sponsorships as they also benefit from such events through free advertisement and marketing opportunities. The Sheffield County Council is responsible for the Tramlines Festival. This should give it the opportunity to engage the responsible stakeholders in creating a favourable framework that would lay down procedures to acquire necessary sponsorships. This is in tandem with the goal of being able to sustain the number of music enthusiasts, which has shown an upward and exponential trend annually since the launch of the event. This will have to materialize soon as a projection of apathy is imminent with the current amount of money offered in sponsorships. References Digital Direction 2013, “Digital Direction Case Study: Tramlines”, viewed 3rd April, 2013, Haslam, C 2009, “Do Music Festivals Contribute to Local Tourism?”, Viewed 3rd March, 2013, BBC 2010, “Tramlines 2010 Free Music Festival in Sheffield (23rd – 25th July)”, viewed 3rd April, 2013, Sheffield Telegraph 2013, “Tramlines Music festival in Sheffield – Weekend Guide”, viewed April 3rd, 2013,< http://www.sheffieldtelegraph.co.uk/news/business/local-business/tramlines-music-festival-in-sheffield-weekend-guide-1-455317> Manghan, C & Bianchini, F 2004, “The Economic and Social Impact of Cultural Festivals in the East Midlands of England”, Final Report, East Midland Development Agency. Bradwell, J 2010, “Tramlines Festival” has Massive Impact on City”, viewed 4th April, 2013, Travel South Yorkshire 2012, “Tramlines – Getting you to the Gigs”, South Yorkshire Passenger Transport, viewed 4th April, 2013, Tim 2011, “Hot News from the Sheffield Brewery Company”, The Sheffield Brewery Company, viewed 4th April, 2013, The Sheffield Scenester 2012, “Tramlines Gets Super Skanky with Mammouth Dance Line-Up”, viewed 4th April, 2013, Hurst, T 2009, “Bonnaroo: The (Greener) Summer Music Festival”, Sustainablog, viewed 5th March, 2013, Park, H 2010, “Communicating with Audiences: the Strategic Marketing of Music Festivals”, A Master’s Capstone. Rivero, CR 2009, “Impacts of Music Festivals on Tourist’s Destination Image and local Community”, Case Study: WOMAD and CONTEMPOPRANEA Festivals in Extremedura (Spain), Bournemouth University. ItJessica 2011, “Music Festivals – Challenges and Impacts”, ITineraryforvision, viewed 5th April, 2013, Sumo 2010, “Tramlines Music Festivals UK”, viewed 5th April, 2013, Read More