Abstract

The spatial distribution of the expenditures associated with a rural arts and crafts festival was examined. Of the nonresident expenditures associated with the festival, the mean percentage spent in the community by the survey respondents was 69.7%. Importantly, however, 77.9% of this spending was to thefestival booths, many of which were not operated by local residents. More specifically, of the $43,689 spent by the survey re spondents, $32, 719 (74.9%) was to entities outside the local economy. While the generalizability of these results is limited, the findings imply that research which fails to correct for nonlocal spending may significantly overestimate the economic benefits of festivals to the host community.

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