Economic impact of craft beer festivals

Abstract

The economic impact of craft beer festivals is not well understood. While the craft beer industry generated an estimated $76.2 billion to the U.S. economy in 2017, this robust figure excludes an assessment of the role craft beer festivals play within state and local economies. Locales hosting these community events may enjoy significant impacts on a wide range of tourism related industries, including lodging, food and drink, and retail. The economic impact of craft beer festivals is inextricably linked to geographic considerations, as the ability to attract out-of-town visitors is the primary driver of the overall impact of these community events. Furthermore, craft beer festivals provide a vehicle for neolocalismrelated initiatives such as community branding, further growth opportunities for local craft breweries and associated (beer tourism) activities. Craft beer festivals also have significant political implications as these community events generate sizeable tax revenue for state and local governments. The chapter utilizes a case study of the 2017 Oregon Brewers Festival to highlight the prospects and challenges in utilizing economic impact analysis to buttress tourism, economic development, and government relations efforts. Potential benefits of economic impact studies of craft beer festivals to state and local craft beer industry leaders, event organizers, tourism officials, and government partners are highlighted. Methodological and analytical lessons and their application to a wide range of craft beer events are explored.