The Electric Daisy Carnival (EDC) in LA is one of the largest music festivals in North America. This year the decision was made to change the location from LA to Las Vegas, and it was extended to three days long. I went to EDC last year in LA and I went this year in Vegas. EDC focuses on electronic music and I think it’s one of the many reasons electronic music is blowing up in the US right now. To anyone who hasn’t ever been to EDC, I highly suggest making it at least once in your lifetime; it’s an amazing experience!
Anyway, after having gone for the last two years, I was really interested in the economic impact of the festival. Any music festival that has attendance of over 100,000 people is sure to have a pretty large impact on the area. Insomniac Inc. started EDC in 1997, and the company has been expanding just as fast as the events. Insomniac now does many electronic music festivals, year-round, nationwide.
Last year, Insomniac commissioned LA-based Beacon Economics to do a comprehensive report on the economic impact of EDC 2010. The report confirmed the belief that EDC has a HUGE economic impact on Los Angeles.
There were a total of 185,000 attendees for the two-day event, and those attendees booked a total of 34,094 hotel rooms in the area. The study estimates that each attendee spent an average of $47.38 on accommodations, totaling $8.8 million for the weekend just on accommodations. Total expenditures by all attendees for the weekend (accommodations, food & entertainment, retail, transportation) that went directly into the local economy were estimated to be more than $25 million. This does not include EDC tickets or money spent inside the venue.
Insomniac itself contributed $4.8 million directly into the local economy. This is in the form of equipment rental, security, transportation, etc. Insomniac definitely spent more creating the event, because the $4.8 million does not include stuff like advertising and fees paid to the performers. If anyone knows how much Insomniac actually spends to put on these events I would like to know!
EDC had a direct economic impact on LA as well as an indirect, and an “induced” impact. According to the report, an example of these impacts would be, “an attendee who buys a slice of pizza from a local restaurant generates a direct impact. The restaurant purchases some of the ingredients used to make that slice of pizza from local suppliers, generating an indirect impact. The employees working at the restaurant and at suppliers earn additional income through the direct and indirect expenditures, eventually spend some of those earnings in the local economy on goods and services, and generating an induced impact.”
The Beacon Report estimates that the total impact to the local economy (including direct, indirect, induced, and Insomniac’s contribution) was no less than $41,955,237.
That’s not all. EDC also generated a huge amount of temporary jobs in the area, boosting the local economy and causing an income effect of over $14.5 million. The event also generated significant tax revenue, in the form of an estimated $1.2 million for local governments, and $1.9 million in state tax revenues.
- 185,000 total attendees over two days
- $42 million total economic impact on local economy
- $3.1 million in tax revenues
This year’s three-day event in Vegas was even bigger, with 230,000 attendees. There is a report being made as we speak, and I’ll be sure to give you the low down when it comes out. I would say that the local impact on Las Vegas will be even bigger than LA! This just goes to show that music festivals of this magnitude generate an ENOURMOUS amount of positive income for local economies, which is much needed in the dire state of our economy right now.
Feel free to leave any questions or comments below!