A longitudinal study of the economic impact of gastronomic festivals on accommodation establishments and real estate market: A case study

Abstract

Festivals play a crucial role in tourism, and can be a valuable asset for economic development. However, there has been little research on the impact of festivals on accommodation establishments and the real estate market. This study examines the impact of the Cous Cous Fest on the economic development of San Vito Lo Capo (Italy) by estimating induced expenditure generated by the festival in the local economy. The Cous Cous Fest is a major gastronomic festival that has been held in San Vito Lo Capo since 1997. The festival has attracted millions of visitors over the years, and it is considered to be the main driver of tourism in the town. The authors examine the impact of the festival on the economic development of the town through two lenses: the increase in the accommodation offer and the rising real estate value of housing. The study finds that the number of accommodation establishments and the value of housing in San Vito Lo Capo has increased significantly since the start of the Cous Cous Fest. These increases are due to the festival's popularity, which has made San Vito Lo Capo a more desirable place to visit and live. The findings also suggest that festivals can be a valuable asset for economic development. Although this contribution proposes the analysis of a case study limited to a territory, the emerging considerations may represent a starting point for studying the economic impacts on other tourist destinations.