The Economic Impact of Festivals: A Case Study of "Radio 2 in the Park", Preston

Author: Isaac Aberra (Lancaster Royal Grammar School)

Abstract

This paper examines the economic impact of large-scale festivals on local economies, with specific reference to Radio 2 in the Park, held in Preston. Drawing on data from the 2024 event, which attracted approximately 68,000 visitors, the study highlights both direct and indirect economic benefits, including visitor spending, employment creation, and the long-term reputational value for the host city. It also considers potential challenges, such as congestion and infrastructure strain, and explores the multiplier effect of cultural events. The findings suggest that festivals not only provide immediate economic uplift but also contribute to sustainable growth through tourism development and local business support.

Introduction

Cultural and music festivals are increasingly recognised as powerful drivers of economic activity in urban areas. Beyond their cultural and social significance, these events generate substantial financial benefits for host cities through visitor expenditure, job creation, and long-term tourism promotion. Preston’s hosting of Radio 2 in the Park provides a timely case study to explore how festivals contribute to local economic resilience and growth.

The event, held in Moor Park, attracted around 68,000 visitors and resulted in an estimated £5.3 million boost to the local economy. This paper investigates how such economic impacts manifest, considers both opportunities and challenges, and reflects on broader implications for cultural and urban policy.

Literature Review

Existing research on festivals and local economies highlights several recurring themes:

• Visitor Expenditure: Studies consistently find that non-resident visitors spend significantly on accommodation, food, and transport, creating a ripple effect across the economy.

• Employment Opportunities: Festivals often generate temporary jobs in areas such as event management, hospitality, and security.

• Place Branding and Tourism: Events serve as marketing tools for host cities, increasing their visibility and attracting future tourism.

• Multiplier Effects: The economic benefits of festivals extend beyond the event site, stimulating activity across various sectors.

  
  

  This case study builds on such findings, applying them to Preston’s experience.

Findings and Analysis

Direct Economic Contributions

1. Visitor Spending

   1. Attendees contributed to local revenue streams through hotel stays, dining, and retail purchases.

   2. Preston residents themselves generated around £434,000 in additional spending during the event weekend.

2. Local Businesses and Vendors

   1. Independent food vendors and local producers gained access to a wider audience, raising their visibility and income.

3. Event Contracts and Services

   1. The festival created demand for services such as staging, catering, waste management, and security, much of which was sourced locally.

Indirect and Long-Term Benefits

1. Tourism and City Branding

   1. National media coverage showcased Preston as a cultural and leisure destination, strengthening its appeal for future visitors.

2. Employment

   1. Temporary jobs were created across multiple sectors, from maintenance crews to event stewards, providing short-term income for local workers.

3. Multiplier Effect

   1. A substantial portion of the £5.3 million boost came not directly from festival operations but from secondary spending in hotels, restaurants, shops, and transport.

4. Infrastructure Investment

   1. Hosting major events often justifies further investment in transport systems, parks, and venues, delivering benefits to residents year-round.

Challenges and Costs

Despite significant benefits, festivals also introduce challenges:

• Congestion: Large visitor numbers can strain road networks and public transport, resulting in temporary disruption.

• Infrastructure Pressure: Parks and public spaces require maintenance and repair following large gatherings.

• Unequal Distribution: Not all businesses benefit equally; hospitality and tourism sectors tend to gain more than others.

Nevertheless, revenue from parking, transport, and increased tax receipts can offset some of these challenges.

Discussion

The Preston case demonstrates how festivals function as short-term economic stimuli with long-term strategic potential. They encourage spending that supports local businesses while positioning the city as an attractive cultural hub. Importantly, the multiplier effect amplifies the impact far beyond the event site itself, confirming previous research on the economic significance of cultural tourism.

For policymakers, such findings highlight the importance of balancing economic gains with infrastructure planning and community considerations. Investment in transport, waste management, and green space maintenance can help maximise the positive legacy of large-scale events.

Conclusion

Radio 2 in the Park illustrates the transformative power of cultural festivals on urban economies. With an estimated £5.3 million injection into Preston’s economy, the event created jobs, boosted local businesses, and enhanced the city’s cultural profile on a national scale. While challenges such as congestion remain, the overall impact underscores the value of festivals as both economic and cultural assets. Future research could focus on quantifying long-term tourism growth and evaluating how repeated events contribute to sustainable urban development.