Events are economic engines. From a village fete that brings footfall to local shops to a major festival that generates millions for its regional economy, events create economic value that extends far beyond ticket sales. Understanding this impact helps organisers make the case for their events to local authorities, funders, and communities -- and helps those communities recognise the value of the events they host.
Direct spending
The most immediate economic impact of an event is the money attendees spend in the local area. This includes spending at the event itself (food, drink, merchandise), spending in the surrounding area (accommodation, restaurants, shops, transport), and spending by the event organisation on local goods and services.
UK Music's annual economic impact report consistently shows that live music events generate billions in direct spending across the UK. Their research indicates that the average festival-goer spends approximately £220-280 beyond their ticket price on accommodation, food, drink, transport, and shopping in the local area.
For a 10,000-capacity festival, that equates to £2.2-2.8 million in local visitor spending over a single weekend. Even a 500-person community event can generate £10,000-20,000 in local spending from visitors who wouldn't otherwise be in the area.
The multiplier effect
Direct spending is only part of the story. When money enters a local economy, it circulates. The hotel that receives £100 from a festival-goer pays its staff, who spend money in local shops, who pay their suppliers, who employ local people, and so on. This circulation creates what economists call the "multiplier effect."
The size of the multiplier depends on how much spending stays within the local area versus leaking out to non-local businesses. A festival that sources food from local farms, hires local staff, and uses local suppliers generates a higher multiplier than one that imports everything from outside the area.
Research typically estimates multipliers of 1.5-2.0 for events in UK regional economies. That means £1 of direct spending generates an additional £0.50-1.00 of indirect economic activity. Applied to our 10,000-capacity festival example, the total economic impact (direct plus indirect) could reach £3.3-5.6 million.
Employment
Events create employment at multiple levels. There are the jobs directly created by the event -- stewarding, catering, technical production, box office, cleaning, and management. There are jobs supported by attendee spending -- in hotels, restaurants, shops, and transport. And there are jobs in the supply chain -- equipment hire, marquee companies, waste management, and portable sanitation.
The UK events industry employs an estimated 700,000 people, making it one of the largest employers in the creative and hospitality sectors. Many of these jobs are seasonal or freelance, which provides flexibility but also means that event workers are vulnerable to cancellations and industry downturns -- as the pandemic demonstrated starkly.
For local economies, event-related employment is particularly valuable because it often provides work during periods when other employment opportunities are scarce. Rural areas that host summer festivals see seasonal employment that complements agricultural and tourism work.
Infrastructure investment
Major events can catalyse infrastructure improvements that benefit local communities long after the event ends. The classic example is the London 2012 Olympics, which drove billions of pounds of investment in transport, housing, and public spaces in East London. While few events operate at that scale, the principle applies at all levels.
A festival that improves access roads, installs better drainage, or upgrades local broadband to support its operations creates infrastructure that benefits the wider community. Even smaller investments -- like improving a village hall to host a regular events programme -- create lasting value.
Measuring economic impact
If you want to demonstrate your event's economic impact, you need data. The simplest approach is a visitor survey that asks attendees where they've come from, how long they're staying, and how much they've spent or plan to spend in the area. Even a sample of 100-200 responses gives you a reasonable basis for estimating total visitor spending.
More sophisticated economic impact assessments use input-output models to calculate multiplier effects and indirect impacts. Organisations like Eventbrite and BEIS (the Department for Business, Energy and Industrial Strategy) have published guides on measuring event economic impact.
For local authority and funding applications, economic impact data is invaluable. Being able to demonstrate that your event generates £X in local spending and supports Y jobs strengthens your case for licensing, planning permission, and public funding.
Maximising local economic benefit
Event organisers can actively maximise the economic benefit their events bring to local areas by hiring locally wherever possible, sourcing goods and services from local businesses, promoting local accommodation, restaurants, and attractions to attendees, scheduling events to extend visitor stays (a Thursday-Sunday festival generates more accommodation spending than a Saturday-only event), and partnering with local tourism bodies to promote the wider area.
The economic impact of events is a compelling argument for community and local authority support. When you can show that your event puts real money into local pockets, resistance tends to soften and relationships improve.
Tickts supports event organisers in maximising their revenue -- and therefore their capacity to invest locally -- by charging zero booking fees. Every pound that doesn't go to a ticketing platform stays with the organiser, available for investment in the event and its community.
Curious how tickts compares? See our side-by-side comparison of tickts vs Eventbrite: fees, payouts, and features for UK organisers.
