Abstract
Diversity of financial resources is important to increase the sustainability of festivals. This is because even if one of the festival’s resources is stopped by external variables, the festival can be continued with other resources. Local festivals often suffer from low levels of economic independence as a primary concern for their economic sustainability. To solve the aforementioned real-world problem, this study investigated the determinants of festival goers’ willingness to pay for the development fund for the local festival. By using the CVM method, this study initially hypothesized four festival quality factors, three festival related decisions, and four demographic factors in the model. In total, 695 questionnaires were collected from visitors who completed the festival experience through an on-site survey for the Korean Seonbi Culture Festival in Yeongju, Korea. Based on a double-bounded DC CVM, the results of this study showed that festival environment, past visit experience, and demographic factors were significant determinants of festival goers’ willingness to pay for the fund. In addition, it was attempted to estimate the value of this festival through WTP (WTP; willingness to pay). This study offers the foundation for the introduction of a development fund to make the local festival economically sustainable. The theoretical and managerial implications are discussed.
Highlights
Festivals play an important role in achieving community goals in terms of social, cultural, economic, and environmental aspects, as well as in contributing to the tourism industry [1,2]
The literature of festival tourism has been dominated by economic benefits, but at the same time, many studies have been conducted to emphasize the dysfunction of festival tourism from the perspective of sustainable development [2,11,12]
Research on the negative effects of festivals and festival tourism along with sustainability recently forms a line of related research [9,13]
Summary
Festivals play an important role in achieving community goals in terms of social, cultural, economic, and environmental aspects, as well as in contributing to the tourism industry [1,2]. Festivals create opportunities for value-added activities and expenditures for residents and visitors and are becoming very useful and effective means of urban branding [3,4,5] These effects have made festivals an important policy target for revitalizing the local economy, and nations or cities are fiercely competing to host festivals [6,7]. In this regard, festivals have been considered as “an emerging giant” in the tourism industry worldwide over for 30 years [8]. Research on the negative effects of festivals and festival tourism along with sustainability recently forms a line of related research [9,13]
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