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Festival Feast – Or Famine?
While many businesses find impact difficult to measure,
most are optimistic International Fest can bolster bottom lines
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Business New Haven
6/10/2002
By: Anne-Marie Brungard
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Whoever said, “If you build it, they will come,” may have had New Haven's International Festival of Arts & Ideas in mind. Armed with a budget of roughly $3.6 million and anticipating more than 150,000 visitors, festival wizards are carefully putting the finishing touches on their own edifice. Now in its seventh year, the event continues to attract more international artists, encouraging regional and international tourism while impacting local small businesses.
According to Christine Franquemont, development director for the festival, the general idea is to “promote New Haven as a cultural destination.” According to a survey by Quinnipiac University, of last year's visitors, 38.5 percent were from New Haven, while 66 percent of attendees said they also attended the 2000 festival. Between 1996 and 2001, the state invested $5.7 million in the festival, while nearly double that amount - $10.3 million - was raised privately. Quinnipiac's Mark Guis directed the study and estimates that the total economic impact was a positive $62 million, with attendance of 664,300, over the same period.
Certainly the festival organization itself beats the economic-development drum. Staffing ramps up to more than 200 workers in time for the festival. Of the $3.6 million annual budget, approximately 12 percent is spent on marketing and advertising.
“Virtually every dollar is spent in the New Haven area,” explains Franquemont, “with the exception, of course, of expenses for the international artists.” Most artists are provided with lodging in New Haven-area hotels and dine in downtown restaurants, compliments of the festival budget. Event organizers also encourage international artists to stay in the city for a period of time, participating in workshops or events at educational venues. In theory, at least, these talented visitors in turn explore (and spend dollars in) local retail stores and restaurants.
Franquemont explains that the festival likewise employs local businesses for transportation, hospitality and communications, and energetically recruits local vendors to sell items at the events.
Steve Williams of Jack's Concessions owns and operates five mobile food-vending carts in New Haven. During the International Festival of Arts & Ideas and the New Haven Jazz Festival, Williams also operates a food tent on the New Haven Green.
Says Williams: “The festival has a great impact on the city. Bringing new people downtown puts a positive spin on New Haven.”
No one much questions the feel-good value of the festival, but sales directly attributable to the event are more difficult to quantify for Williams. “Sales are generally fair; it really depends on the entertainment,” he says. “I do see an increase during main-stage weekends.”
In 2001, the economic impact of the festival was estimated at $20 million, according to the Quinnipiac study - a 400-percent increase over the estimated impact reported from the event's inaugural year, 1996. Artists used 1,360 hotel room-nights in New Haven during last year's festival. “We have trouble finding enough rooms,” adds Franquemont. The festival box office took in $500,000 from all ticketed events.
Says Philip Forte, general manager of the Holiday Inn at Yale, “Festivals and events are terrific for hotels and small businesses. Hotels do better during [festival] time.”
Ten Thousand Villages at 1054 Chapel Street, a non-profit organization, is one of the oldest and largest trade organizations in North America, according to manager Elizabeth Rider. The retail craft store has handmade crafts from artisans in 30 countries including Asia, Africa and South America. The business helps needy artists by displaying their wares and paying fair market value for their crafts. “The festivals (including the Jazz Festival) have a totally positive impact on the store,” Rider says.
Last year Rider's store recorded a 52-percent increase in sales between the first two weeks in June and the last two weeks, when the festival took center-stage. “We are seeing more New Yorkers, Equity players and musicians who are coming to the Shubert or Yale Repertory Theatre,” she says. Rider is confident that more people browsing the streets translates into a positive return in sales.
This year the shop plans special promotions and extended store hours to serve festival attendees. Rider has extended store hours to 9 p.m. during the week and opened the store on Sundays as well. Cross-promotions with the festival include a 15-percent discount on all musical instruments during every Friday in June.
Rider relies on multiple factors to come together to benefit the store. “Town Green Special Services also increases the number of available 'ambassadors,' and this is helpful for the retail community in general,” says Rider. “And finally, the festival has an official guide that is user-friendly. Hundreds of retail establishments are distributing nearly 50,000 program guides.” To sweeten the deal, Rider boasts that her “folding bamboo chairs are ideal for [events on] the Green.”
Of the 150,000 anticipated visitors to this year's festival, organizers estimate that 75,000 will be visitors from within the state but beyond New Haven. Approximately 3,000 international visitors were counted for the first time last year.
One industry that should benefit from the additional crowds is the bar and restaurant industry. Hungry visitors must eat. They will sample New Haven's coffee shops, hot dog stands and fine dining establishments. The Green will be filled with tents with an assortment of international and traditional palate-pleasers.
According to Ashley Sheridan, co-proprietor of both Anna Liffey's restaurant/bar and the gift shop Celtica: “There is definitely an economic impact on the bar and restaurant industry. The festival is the vehicle to get people into New Haven.”
And Sheridan counts on them eating a meal, enjoying a show and then coming back to the restaurant for an after-show drink.
“It's creative publicity and advertising,” he adds. “The city could just spend money promoting [New Haven], but this is events-based publicity and it works.”
Sheridan points out that the events draw thousands of people who would otherwise be caught up in suburban life. Restaurants likewise benefit from the artists and musicians who dine there.
“The festival has a parallel effect,” explains Sheridan. “It sows the foundation seeds for the future while bringing in business now.” When people are talking about a vibrant downtown, eventually they will come into the city to see for themselves. In his retail operation Sheridan knows that any activity is good for the business: On nights when a show is on at the Shubert Performing Arts Center, for example, his sales triple, he says.
Donna Curran, co-owner of Zinc on Chapel Street, agrees. “What's good for the city is good for [businesses].” Pondering the long-term impact, Curran recognizes that people will come back into the city if they have had a good time. From an immediate business standpoint, though, she says, “The festival giveth and the festival taketh away.” When visitors are enjoying a large event on the Green, they are not dining in the restaurant. So even though there are plenty of hungry bodies nearby, Curran may have to wait for return visits before seeing any direct impact.
The festival's greatest economic impact, obviously, is felt in the downtown area where most activities take place. The hotels are clustered there and most entertainment venues are within walking distance of one another.
Over on Broadway, where Cutler's Records & Tapes is located, the impact is less tangible.
“It is difficult to see in the figures, whether positive or negative, what impact the festival has on the business,” says proprietor Philip Cutler. “There is positive feedback in general, but I can't gauge whether it's helping or hurting - although I'm pretty sure it's not hurting [the business]. [Nevertheless,] people don't like to walk.”
Additional income also flows into transportation businesses such as taxi services, busses and trains, not to mention the parking meters and lots. These are more difficult to quantify, but there is reasonable certainty that there is some positive impact during the time of the festivals or any special events that are centered in New Haven.
Says Paul Ricci, a downtown cab driver, “Last year we got more calls and did more drop-offs at the Green.” More calls pays off in direct sales and more tips for his business.
Whether the visitors walk, drive or take public transportation, downtown retailers appear to be mainly united in their view of the International Festival: Bring the crowds in, and bring them in large numbers. Although the dollars may not be flowing heavily for all businesses yet, most are optimistic that they are paving the way for future sales.
Elizabeth Franquemont quotes one shoreline resident telling, “I haven't been to New Haven in ten years - and I'm having a good time.”
Local business people hope that enough “good times” at the festival will translate into healthy early-summer sales this year and for many years to come.
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