The Economic Impact of EDM Festivals
Introduction
The electronic dancing music (EDM) market has increasingly risen over the past recent years and is accepted by millions of people as main-stream music. These festivals happen across the world and have gradually attracted millions of fans over the years. According to Godard, the modern world is going through a musical renaissance. He explains that in 2018, EDM was valued at a projected $4 billion globally. For him, the growth of EDM would be impossible without the internet. He equally argues that with online platforms such as Spotify, Twitter, and Pandora, people come closer to the millennium’s worth of musical information. Since the industrial revolution, he argues that today’s generation has witnessed the most significant technological upheaval in history. He equally says that EDM’s acceptance has created massive revenues, including a combined $115 million in 2012. The top-paid DJ takes home about $22 million annually. In terms of size, David argues that compared to five decades ago, music festivals have grown tremendously around the world. While these festivals have grown in scale, David also says that one of its most considerable downsides is that fans cannot spread out their fun. As for Eliezer, the global EDM market was worth nearly $7 billion in 2018, down by 2 percent from the previous recording. Among these events, the electronic daisy carnival (EDC), ultra, and Tomorrow-land are the three biggest EDM festivals in the world today. They not only offer essential prospects for their visitors to enjoy, but they also promote the growth of the local economy. Thus, EDM festivals are deeply intertwined with and playing a critical role in the economic system.
Economic Relationship between EDC and Las Vegas
EDC Attracts Many Fans and Tourists to Las Vegas
Since its inception, EDC is known to attract thousands of visitors and fans to Las Vegas during any given event. It has always created positive change, from impacting the lives of attendees to locals through music and art. The EDC events also affect local and host societies economically, mainly by creating revenues and taxes that go into various developments. When combined with other festivities, EDC’s impacts on local and host economies are rather substantial. Rishty says that EDC boosted the economy of Las Vegas by almost $1.3 billion in 2016. He also says that it has attracted more than one million fans to Las Vegas, since its inauguration in Sin City nearly a decade ago. As the United States’ prominent dance music event, he says that EDC Las Vegas has played a significant part in boosting the economy by about $350 million and 400,000 fans in three days in 2015. He equally argues since 2015, EDC has created significant revenues as well as increased labor incomes for the areas. He also asserts that EDC has also helped to increase the number of job opportunities in the region than before, leading to massive employment.
Each year, Rishty affirms that EDC brings thousands of fans and other visitors to Las Vegas. He says that many of these visitors often come to these events to experience the joy and love that different performers have to offer. As such, from the EDC to the absolute entertainment charm, the EDC event gives its visitors a unique experience that only Las Vegas can provide. He explains that the Clark County economy has, over the last five years, had better economic growth and activities. The Las Vegas EDC event was the fifth festival held by insomniac in 2015 and is appealed a crowd of 405, 000, with more than $350 million for the Clark County. Since it was created in 2011, the county’s music enterprise has generated more than $80 million in taxes for the state government and produced more than 3000 work opportunities (Rishty). It has equally helped boosted labor income for the county’s workforce by nearly $140 million. The county has also seen about $668 million in direct spending from the event’s fans and visitors over the last five years, with more than 50 percent of this spending coming from hotel lodgings, foods, as well as beverages. The presence of the main event in this area has a significant effect on its local economy. This event not only involves a substantial expense in creating it, but it also brings considerable numbers of people from outside Las Vegas, who buys local products and services. According to Rishty, it was the case in the 2012 EDC event, where more than 90 percent of the attending fans and visitors came from outside the Las Vegas region.
Based on a complete report of more than 20,000 EDC 2012 visitors and attendees, it has been established that visitors and locals from other states spend a considerable amount of money in connection with this event. These expenditures included transport expenses to and from the event, foods, drinks, and accommodations. Attendees and visitors also spend a significant level of their income in local retail shops and other establishments. By and large, the three-day event increased the economic output of the county by more than $200 million. Compared to the 2011 event, the 2012 EDC festival had a substantial economic effect, generating more than $70 million in output and 619 full-time employment opportunities. These impacts and the number of attendees prove that the continued success and development of EDC events yield significant economic and cultural gains to Clark County. In addition to these benefits, this county also gains substantial exposure to a market of diverse and international visitors that might return in the future for related activities. Casino resort occupancy rate and consumption during the EDC period also increase considerably. Because this event brings in more people than any other festival in Las Vegas, casinos are often overly overcrowded, since the festival is usually miles away from them. Besides, because most of the restaurants and hotels are often filled during this event, casinos frequently present alternative places that provide people extra pleasure. Thus, just like other places in Las Vegas, casino resorts also see thousands of visitors who seek love as well as comfort that this area can offer.
EDC Creates Huge Numbers of Employment
Because of the large scale of EDC, vast numbers of employment opportunities are created. As for Rishty, the music industry has exploded and become a lucrative business for various people and stakeholders. He says that the attendance rate of EDC, for instance, has jumped significantly since its inception in 2011. Equally, the EDC has drawn more people to Las Vegas and funneled more than $1 billion to the local economy. Apart from these benefits, it has also generated many job opportunities for the locals. With over $80 million in taxes, the festival has produced more than 3000 work opportunities (Rishty). It is also estimated that it boosted the income for the county’s workforce by nearly $140 million.
The economic relationship between Ultra and Miami
Extremely High Occupancy Rates
Ultra attracts several visitors and fans into Miami during the festival period, pouring millions of dollars into this county’s economy. According to Duran, this festival is an annual activity that is held in Miami. It created in 1999 and has been one-day activity until 2006. Since 2011, it has been a three-day activity, and it often attracts more than 150,000 attendees. For Miami city, this festival has generated about $995 million in economic impact, with over $150 million in the year 2018 alone. As for Sampson, this festival accounts for more than $40 million in the Miami economy each year. These incomes include equipment rentals, glow sticks, and other vital tools. It also supports the economy indirectly. Within the three days of this event, it can help more than 900 employment opportunities. Sampson also argues that the festival’s organizations spend more than $11.5 million in operational costs alone. He equally explains that this festival also benefits all types of businesses in Miami, making it one of the most significant events in the county.
Sampson also argues that this festival often lands in Miami every year in March, bringing more than 50,000 attendees and visitors. Most of these people often come to the heart of Miami to watch and enjoy globally acclaimed DJs and signers for hours. For instance, in 201l, the event has a long list of DJs, including Madonna, among others. Approximately 60 percent of this festival’s visitors and fans come from outside Miami County. Sampson argues that many of these people appear busy looking for rooms and booking hotels to stay for the period of the festive. As such, the hotel occupancy rate during this time is high. Some visitors often book hotel rooms early before traveling to Miami. For others, especially those who are not lucky to find places to stay, Sampson says that most of the targeted hotels are often sold out before the festival even begins. He also states that hotel rooms usually get occupied, allowing them to receive higher rates. Sometimes, yet when these hotels are not filled with Ultra attendees, there is often an evident difference in the average visiting and guest age. In general, the average age of Ultra attendees is between 18 and 30. These visitors often come to Miami early in attempts to take engage in other activities, including parties (Sampson).
As for Flechas, while the Miami politics might appear intricate, the link between this city and Ultra event presents one of the biggest on and off-gain romances. He argues that politicians and policymakers often attempt to patch things up. For instance, after its ban, officials would later consider bringing the festival back to its feet. Besides, while the net income from this event might be relatively small, its economic impact outweighs many other income streams that the city uses to create its revenues (Flechas).
Money Spend at Nightclubs
Sampson asserts that the young crowd that comes to Miami for Ultra activities tend to stay out longer, even after the festival. While they participate in several other events that are connected to the festival, they also end up taking part in different parties across the city. At night, Sampson says that these visitors leave the festival and go to various nightclubs in town. A night in this town allows the visitors to experience the magic that nightclubs offer. Whether it is reggae, Hip Hop, or any other music genre, Miami’s nightclubs are hot and on the go, with every taste that would intrigue any guest. For Sampson, Miami nightclubs are always rated among the best in the country, with regular places for movies and related events. In this regard, at a glance, the tender clamor of this city’s night clubs thrills guests, making them spend significant amounts of money for more entertainment.
Adverse Effects of EDM Festival
One of the harmful effects of the EDM festival is noise. There have been several complaints from local residents that this festival. In particular, most of the locals believe that holding this festival is often disruptive to their families and business due to noise, traffic, as well as irritant behaviors from attendees. Regardless of this event generating much money for the city, the majority of the residents feel that it is unnecessary. In 2018, the city’s officials voted against permitting any festival in the area, citing grievances and several other concerns from people. In the same year, the festive organizers endorsed a move to move Ultra into another area, in Virginia Key. This area is mainly accessible from Miami through Causeway. It can also be accessed via other parts. However, this proposal met increased resistance from officials, who cited other issues, including safety and environmental degradation, as significant concerns. However, a change of the festival’s location would have a severe effect on Miami’s economy due to lost revenues. By and large, the amount of incomes and taxes accrued from this festival every year is significant, and thus, losing it would be catastrophic to Miami’s economic growth. Similarly, apart from economic gains, the festival’s relocation will also result in lost diversity because most of the attendees travel from different parts of the world.
For instance, besides experiencing reduced occupancy rates in its hospitality industry due to the festival’s relocation, the town’s transportation and hotel industries would also record low revenues and profits. Miami’s transport and hospitality industries are generally used by visitors and attendees who flock the city for different activities associated with the festival. Moreover, because of their proximity to the festival, many of the hotels around this area, including Greater Downtown Miami, are usually booked by visitors. But, moving this festival to Virginia Key means that Miami would stand to lose significantly.
The economic relationship Tomorrow-Land and Boom, Belgium
Just like other areas discussed above, Tomorrow-land attracts thousands of visitors and attendees during the festival period. It is estimated that more than 50,000 fans travel to Europe and visit Belgium, a small country that people do not usually visit (Roosens). Despite being relatively new, this festival is one of the most popular in the world. It is evident that Tomorrow-land has mainly become a central focus, and its designers have helped this festival to win the hearts of many fans from around the globe. As a large electronic festival, which is held in Belgium, this event is organized by the joint efforts of its founders. It takes place in a town known as Boom and has taken place for more than a decade. As such, since 2005, it has become one of the most notable world festivals. It is commonly known to offer its attendees the ultimate high, making everyone to feel its appeal. Moreover, this festival not only helps to unite thousands of fans and locals in Boom, it also brings tens of thousands of music enthusiasts from nearly 200 countries.
It is also interesting that unlike other festivals, Tomorrow-land has only featured topnotch artists, performers, and stage designers each year. Within the European region, it is the best event that every person anticipates to visit and explore all that it has to offer. Like any other year, this festival takes place during the last days of July, with a decorative theme that features love. It also focuses on a solar eclipse, as seen by a telescope. For fans, with the cameras zoom out, they are let to enjoy the majestic happiness of the place. In general, it also features more than 1,000 famous artists, including people like Alan Walker. With much professionalism, there is no doubt that this festival is on-of-its kind internationally. Moreover, while it does not preach the gospel of living together and anticipating for a brighter tomorrow, it also encourages its visitors to unite forever with other music enthusiasts around the world. Apart from ensuring that its fans receive satisfying music, this festival also stages innovative fireworks.
It is also no secret that this event’s tickets are sold in large numbers and early before it starts. Thus, getting a ticket is nothing less than luck. Besides, the issue of how much a ticket costs is not a concern for most attendees because their aim is always getting entry into such an epic occurrence. Also, being part of this festivity is also one of the best things that people can do while in Europe. While there are single-day tickets to this event, there are also weekend tickets for people to buy. One of the things that fans strive to see in this festival is the main stage. In particular, the event’s stage has, over the years, served as the trend-setter. For example, its designers often set the most out-of-the-box platform each year. It is always developed according to the festival’s theme (Schulze).
This festival is also famous because it marks the country on the map, placing it as the best destination for every tourist across the globe. All year-round, different events take place in Europe. With the Tomorrow-land festival, the event puts Belgium’s culture, foods, and music on display for the world to decipher. The last festival attracted an estimated 400,000 people into Belgium. For some, this event is all about the dance, disco, and crowded areas, but for others, it is about something else – a mystical land and the happiest location to be in the world. In essence, the message this festival conveys to the world is that Belgium is everything that anyone can think about and achieve. As a magical kingdom, Belgium is a destination that has the best costumes, spirits, and beats. The festival also has its party planes, which have designated theme hotels and entertainers (Schulze). Tomorrow-land is also a cashless event, which does not require its attendees to take any cash with them.
Conclusion
As seen from the above discussion, the above festivals are primarily intertwined and perform vital functions in helping economies to grow. They preeminence has increased over the last few decades, leading to a widespread acceptance of electronic dancing by most people, mainly the youths. In different areas, these festivals are also valued and embraced as crucial economic drivers because they generate significant revenues. Besides, they also take places in main cities around the world. Over the years, and as indicated above, they have also managed to attract or appeal to thousands of visitors and tourists across the world. Every year, these festivals equally convey vital messages to people, often urging individuals to stay in harmony. Festivals such as EDC and Tomorrow-land have generated crucial insights and proven that such events can be vital economic pillars. While they not only give valuable opportunities to tourists, they also provide locals with thousands of job opportunities. As already noted in the discussion above, EDM festivals are intensely knotted in local economies and helping to generate significant taxes and revenues. It is evident, given the above discussion, that festivals have a substantial impact on economic growth, development, and activities. As such, this paper has confirmed that the economics of the electronic dance music festivals must not be ignored, but embraced by every government. The EDM analysis has also revealed that festivals grow along with the technology advancement, and therefore, integration of the two is vital for economic development. The gains from EDC, Ultra, and Tomorrow-land in different areas are a testament that festivals continue to play critical roles in economic prosperity. Further comparisons of these leading brands show that these festivals will perform central functions in the future.
Works Cited
Godard, Thlerry. ‘The Economics of Electronic Dance Music Festivals’. Smartasset. 21 May. 2018
G, David. ‘The Economics of Music Festivals’. OneEdm.10 Sep. 2019
Eliezer, Christie. Report: global EDM industry now worth $7.1b, down 2% but has “sustainable wide-scale appeal”. The Music Network. 24 May. 2018
Duran, Jose D. “How Russell Faibisch Built Ultra Music Festival — and Whom He’s Battled Along the Way”. Miami New Times. March 14, 2013
Roosens, Jonas. “Tomorrowland 2017 Claims Title of Biggest Social Media Music Event Ever With Over 1 Billion Views.” Billboard. Aug 29, 2017
Rishty, David. “Electric Daisy Carnival Las Vegas Boosts Economy by $1.3 Billion”. Billboard. Feb 23, 2016.
Sampson, Hannah. “Ultra- Music Festival pours millions into economy, study says”. MiamiHerald. Oct 10, 2012
Flechas, Joey. “Miami kicked Ultra out of Bayfront Park. Now the city may bring the festival back”. MiamiHerald. June 19, 2019
Schulze, Elizabeth. “At Tomorrowland music festival, luxury can be the main event”. CNBC. Aug 2, 2017.