How Major Events Boost Tourism in Local Communities

Large-scale celebrations have historically been honored for their artistic, cultural, and social significance. In addition to being very entertaining, these events are critical for reviving local economies since they increase tourism.

Festivals, whether they be food and wine fairs, music festivals, cultural fests, or sporting events, attract people from all over the world. The reason behind this attraction is the variety of distinctive experiences that may make even little communities famous. These events have the potential to have a big influence on local companies, generate employment, and promote a revitalized feeling of pride.

In this article, we will look at how these events impact tourism in local communities.

Increased Visitor Spending

A large event's immediate and palpable effects on tourism include an increase in tourists who spend money on local services. There is a noticeable surge in revenue for hotels, restaurants, and retail stores as attendees search for lodging, food, and mementos. This increase in spending benefits the entire community, not simply the venue of the event.

These guests, who require more than just an event ticket, could stay in the region for many days. They can do this to explore the area's attractions and partake in other activities. Consequently, the local economy receives a substantial boost in funding, giving entrepreneurs and service providers a boost in income during the event time.

A music festival in a small town, for instance, can attract tourists from nearby regions or even from overseas. Let's consider Taylor Swift's Eras Tour, for example. As stated by Travel + Leisure, her concerts have been known to increase hotel prices by up to 154%. Besides the hotel prices, even local vendors get to see a major boost in their revenue.

Another recent example is the major horse racing event, the Kentucky Derby. Since it was the 150th Kentucky Derby event in 2024, it was already special. Therefore, this major event was estimated to bring $405 million within a weekend to Lexington, Kentucky. That's the highest estimate made by the organization that hosts the event.

It was expected that the tourists and participants visiting the event would book a stay for the weekend in downtown Lexington, KY hotels. This will give them an opportunity to relax and go sightseeing after the races.

According to The Manchester, some hotels also offer spaces for private events that tourists can enjoy after races. If people have come as a group, they can book a private dining room or the terrace of a hotel for some entertainment. They can dine together, enjoy music, dance, play fun games, or do other activities.

Employment Opportunities

Jobs are also produced by large-scale events, both immediately and later on. Event planners frequently employ local workers in advance of events to fill a range of positions, from customer service and security to event planning. Although many of these jobs are transitory, there may be a significant need for labor, providing residents with an important source of money.

Furthermore, there's usually a knock-on effect whereby nearby companies require additional support to handle the heightened demand from tourists. Hotels, restaurants, and transportation companies may increase their employees, allowing locals to work part-time or during the summer. This short-term job creation may be beneficial, particularly in places where there may not be as many career options outside the tourism industry.

Let's consider the same example of horseracing events in Kentucky. Data shows that the racing industry in Kentucky employs over 24,400 direct employees and over 9,000 indirect employees. In fact, the competitions alone support close to 8,000 direct and around 2,800 indirect employment of Kentuckians.

What is the creation of employment opportunities?

The process of creating new work possibilities for people within an economy is referred to as employment creation. This is important for nurturing social cohesiveness, economic development, and the general well-being of the local populace. Popular events attract large numbers of tourists, who may have significant service expectations that may be satisfied by creating jobs.

Infrastructure Development

Another key advantage of hosting large events is the building of infrastructure that supports both the event itself and future visitors. To be ready for big events, cities and towns frequently spend money on enhancing their roads, public transit, and amenities.

Since the updated infrastructure continues to benefit current residents and future tourists, these advancements may have a long-lasting positive effect.

When a city organizes an international conference or sporting event, for example, it could spend money renovating public areas, constructing additional lodging facilities, etc. These post-event improvements benefit the town by increasing its tourism appeal and simplifying the hosting of subsequent events.

One major event that comes to mind when thinking about infrastructural development is the Olympics. It is the biggest international sports competition event in which athletes from over 200 nations compete. Such an event calls for a huge influx of tourists in the hosting city, which requires substantial infrastructure development.

For example, Los Angeles is hosting the upcoming Olympics in 2028. However, the biggest hurdle the city faces is that of traffic congestion. According to The New York Times, an average driver in the city loses around 89 hours annually due to traffic. To overcome the challenge, Los Angeles leaders have promised that they will make the event accessible without a car.

Although this is a bold claim, it can be achieved with infrastructural development, and that's what the leaders are planning. Paris also vowed to make the event easily accessible by transit. While it was not car-free access, the city was able to achieve what it had planned.

What is infrastructure in an event?

Infrastructure comprises any facilities and services that are required as part of your event. Before you decide on your event area and the route, look carefully at what infrastructure you will require and what is already in place.

Cultural Exposure and Branding

Events that highlight a place's distinctive history, culture, or abilities frequently draw travelers searching for genuine encounters. Cultural festivals may showcase regional cultures and traditions in a way that draws tourists in.

Examples of these festivals include culinary fairs, traditional music performances, and art exhibitions. In addition to increasing transient tourists, this exposure helps establish a long-lasting brand for the area.

Positive impressions from a local event increase the likelihood that visitors will suggest the location to others or make a repeat visit. Since suggestions from friends and family frequently have a greater impact on travel selections than commercials, word-of-mouth advertising may be quite effective.

A location's profile may also be further improved by media coverage of significant events. Media coverage can present the location and the event to a wider audience and position it as a popular tourist destination.

Why is culture important in branding?

The growing interconnectedness of the world has made cultural branding a significant strategy for corporate firms. Cultural branding helps them engage with a wide range of global consumers. You're not simply promoting things when you include cultural tales and values into your brand's identity; you're forging genuine relationships.

Large-scale events have a profound impact on nearby areas, increasing tourism in ways that go beyond the event's brief lifespan. From better infrastructure to more tourist spending, these events are important for boosting the local economy and generating long-term business prospects. Furthermore, events' cultural exposure and long-term branding help smaller towns and areas become more well-known, drawing both first-time and returning visitors.