Even with consumers cutting back on personal expenses, Austin received an economic jolt from the annual South by Southwest festival, which attracted more than 100,000 visitors from around the world.
While the festival’s economic impact is still being calculated, officials expect 2009 estimates to continue the trend of previous festivals, said Beth Krauss, spokeswoman for the Austin Convention and Visitors Bureau.
Jennifer Walker, marketing spokeswoman for the bureau, said she was pleased with participation and attendance levels for this year’s festival.
“We are cautiously optimistic about everything right now,” Walker said. “We never know how things are going to pan out. Right now we are happy about the attendance.”
Festivalgoers congregated in Austin starting March 13 to attend more than 1,500 live music performances, film screenings and industry-based conferences.
The 2008 festival generated $103 million, and in 2007 it generated $95 million, according to reports released by AngelouEconomics, a company hired by SXSW to assess the festival’s fiscal impacts.
According to the company, SXSW-driven income is determined by the amount of money generated explicitly by the festival, sales from participating retail vendors and sales from supporting companies that help supply the festival with, for example, printing materials for brochures.
Last year’s festival was the biggest in its history, and SXSW officials said they were confident that 2009’s festival would continue its growth.
By comparison, the 2008 Austin City Limits Music Festival generated $34.6 million for the city.
Walker said officials expect a strong finish through the weekend for the 10-day festival, which drew to a close Sunday night.
“Attendance for film and interactive is up but down for music slightly,” Walker said on Friday. “But they expect to do just as well as last year if not better. People are attracted to the festival because it is industry-driven.”
Brad Stein, chairman of the Austin Music Commission, said he hadn’t seen any potential downturn in attendance or sponsorship.
“I think the festival is expanding because it has become a more international music festival, and I think the sponsorship dollars — I didn’t see a drop in that,” Stein said.
Stein said the revenue generated by the festival would have surprised him, considering national market conditions, had he not seen businesses and individuals budgeting and planning for the festival beforehand.
“Alcohol providers, magazines, record companies — they were all out in full force and effect,” Stein said. “People still have money for SXSW music-related activities. Some see it as a necessary expense.”
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