THE IMPACT OF COACHELLA

EVENTS ON LOCAL ECONOMY

Event Management
PHAN QUYNH KHANH THUYEN
STUDENT ID: 20010104
ACADEMIC YEAR: 2022 - 2023
LECTURERS: NGUYEN PHAN THUY UYEN
 TABLE OF CONTENT

I. Introduction

II. Abstract

IIII. The economic benefits of Coachella

IV. Other positive impacts

V. Coachella's Negative Impact

1. Environment Impact.

2. Social Impact

VI. Conclusion

Reference

Appendices
 I. Introduction

Well-planned events can have significant impacts, both positive and negative,
that extend far beyond the actual date of the event. These impacts may be
economic, environmental, political, or social in nature, and effective management
of these impacts can be the deciding factor between the event's success or
failure. It is, therefore, crucial for event managers to have a deep understanding
of these potential impacts in order to plan appropriately and achieve positive
outcomes while avoiding any negative consequences.

Today's essay will explain more clearly the connection between events and
economics and how they impact each other.

But first, an overview of the relationship between events and economics:

The relationship between events and economics is complex and multifaceted.
Events can have a significant impact on economic activity, both in the short and
long term. On the one hand, events can stimulate economic growth and
investment, such as through the hosting of major sporting events or the influx of
tourists for cultural events. These events can generate significant revenue for
local businesses and drive job creation in their respective regions.

On the other hand, events can also have negative impacts on economic activity,
such as disruptions caused by natural disasters, political instability, or conflicts.
These events can damage infrastructure, disrupt supply chains, and cause a
decline in business activities, resulting in an economic slowdown or recession.

Overall, events can have a significant impact on economic indicators such as

GDP, inflation, employment, and investment. Understanding this dynamic
relationship is key to navigating the challenges and opportunities presented by
events and economics.
 II. Abstract
After the pandemic slowly calms down, people start working and enjoying their
lives again, which means that there are a thousand events and festivals being
hosted every day or week. The purpose of these events is to attract more tourists,
help the economic growth of their country, or simply celebrate and preserve
cultural heritage. But lately, there has been a famous music festival that brought
some of the world's biggest artists and some up-and-coming musicians from
many different countries together, which was Coachella. According to the music
industry how-to, Coachella is a music festival held in Indio, California, every year.
This mega-event started in 1999 as a two-day music festival and has evolved
ever since to become what it is today. It's held over two weekends of three days
each and draws upwards of 250,000 in-person attendees. The festival also brings
in a lot of revenue, with over $100 million in revenue every year, and creates job
opportunities for locals. It also attracts visitors from all over the world, increasing
sales and potential new customers for businesses in the Coachella Valley region.
However, Coachella is on hold until 2022 due to COVID-19 becoming a threat to US
citizens in 2019. But now Coachella is back and bigger than ever, bringing
thousands of dollars to the local economy.
 III. The economic benefits of
Coachella
According to We Rave You, thanks to Coachella, many people are employed in
sectors like planning, production, marketing, hospitality, transportation, and
security. Thousands of local residents and visitors from other parts of the
country are given temporary jobs as a result of the festival. It also benefits the
local economy because guests spend money at local businesses. Coachella
indirectly helps reduce unemployment by offering job opportunities and
supporting local companies. Besides that, the festival generates significant
revenue for businesses in the area, including hotels, restaurants, and retail
shops. The festival is also a great source of revenue for the local government
through taxes and permits. Moreover, Coachella has put Indio and the
surrounding region on the map as a go-to destination for tourists and music
enthusiasts. This has not only led to an increase in tourism but also in real
estate development in the region. The chart below shows the profit during
Coachella:
According to Coachella Valley Music and Arts Festival producers Goldenvoice, the
event brings millions in financial benefits to the local economy. The annual festival
creates roughly 700 full-time jobs and more than $1 billion in local economic
activity. In addition, the event generates 90 million dollars in tax revenue and 3,000
temporary jobs. Coachella is not only a music festival but also an economic
engine that drives the Southern California area. The COVID-19 epidemic, however,
caused the festival to be canceled, a move that harmed the region's local
economy, especially in terms of employment opportunities. Many individuals rely
on Coachella to supplement their income during the season. Other income
streams, such as Airbnb and VRBO rentals, hotels, and accommodation providers
in the valley, were severely affected, with cancellations being a significant concern.
Moreover, local accommodation suppliers and facilitators recorded the most
significant losses, with an estimated $50 million downward spiral as a result of
Coachella's postponement. It has also resulted in reduced tax revenues for the
surrounding cities due to a drop in hotel occupancy and the closure of local
businesses. Although it is unclear when the festival will resume its annual
tradition of holding Coachella, California's economic conditions are still in good
shape as the state reopens. The September release of the festival's lineup, as well
as the capacity limits, would signal a return to the pre-COVID era. The festival will
undoubtedly generate significant revenue for the area's business owners when it
comes back in 2021. However, according to the Coachella Valley Economic
Partnership and the Greater Palm Springs Convention and Visitors Bureau, the
festival and its related events, such as Stagecoach, bring in a whopping $704
million in economic activity, including consumer spending. Of that amount, $106
million is generated in Indio alone. This information was provided by a source as of
2022. Since the COVID-19 epidemic has undoubtedly impacted the festival's
revenue potential, it has likewise exposed the need to diversify the regional
economy to reduce its reliance on large shows and events in Indio. Because the
district is heavily reliant on tourism and hospitality revenue, more economic
diversification is required to guarantee economic sustenance in the absence of
significant events such as Coachella.
 IV. Other positive impacts
Coachella is more than just a regular music festival; it's a celebration of various
musical genres and a chance for guests to mingle and express their creativity. It
encourages diversity in music, interpersonal contact, different fashion and artistic
expressions, and nostalgia. Coachella is a distinctive and thrilling event for music
lovers since it features a wide variety of musical styles, including rock, hip-hop,
pop, electronic, and alternative. The opportunity to network with people who
share their interests while showcasing their personal fashion sense and creativity
give guests another benefit. In addition, the festival interacts with the
neighborhood by engaging in charitable work, raising money for local causes, and
volunteering. Finally, it provides a platform for artistic expression and inspiration
for musicians, writers, and other creatives.
 V. Coachella's Negative Impact
While the Coachella Music and Arts Festival has many wonderful qualities, it also
has certain negative consequences that cannot be overlooked. Here are a couple
of examples:

1. Environment Impact.

As one of the most anticipated

events of the year, the annual
Coachella music festival draws in an
excess of 250,000 people to the water-
scarce Indio Valley desert ecosystem
of Southern California. Though the
festival is an unforgettable experience
for attendees, it has been reported
that it may lead to a concerning level
of resource waste. With the
staggering number of guests in
attendance, the event is responsible
for generating approximately 1,600
tons of waste inside the venue and
campgrounds, largely due to the
overuse of single-use plastic items
such as water bottles and food
containers. Additionally, the festival's
high energy consumption,
transportation requirements, and
water usage may have a negative
impact on the environment.

2. Social Impact

Although Coachella has a positive impact on social, the event's ticket costs are
prohibitively high, preventing many individuals from attending. Furthermore,
because of the festival's location and a lack of public transportation, many people
are obliged to drive, contributing to traffic congestion and air pollution in the area.
 V. Conclusion
Overall, Coachella has a huge impact on both the local community and the music
industry. It brings in money and tourists, but it also causes noise pollution and
traffic congestion. To increase its sustainability, Coachella should adopt eco-friendly
procedures and minimize trash through recycling and composting. They should
also look at alternative modes of transportation to help with traffic congestion.
Additionally, they should engage with the local community and support local
companies to alleviate some of the negative effects.
 Reference

James, M. (2022). What Is Coachella? Everything You Need To Know About This
Festival. Music Industry How To. https://www.musicindustryhowto.com/what-is-
coachella/

Gonzalez, C. (2022, April 16). Coachella 2022: Festival’s return leaving local
businesses dancing. FOX 11 Los Angeles. https://www.foxla.com/news/coachella-
2022-festivals-return-leaving-local-businesses-dancing

Kale, R. (2023, April 7). Coachella 2023: Impact of festival on the Local. . . We Rave
You. https://weraveyou.com/2023/04/coachella-2023-impact-on-local-
economy/#:~:text=According%20to%20the%20Coachella%20Valley,in%20Indio%20alon
e%20.

Buzz, B., Buzz, B., & BizzBuzz. (2022). BizzBuzz. BizzBuzz.

https://www.bizzbuzz.news/opinion/understanding-the-impact-of-festivals-on-
local-economy-1171655?infinitescroll=1

Thomas, L. (2023, April 21). Can a Music Festival Ever Be Truly Sustainable? Vogue.
https://www.vogue.com/article/can-a-music-festival-ever-be-
sustainable#:~:text=The%20annual%20Coachella%20music%20festival,inside%20the%
20venue%20and%20campgrounds.

Afp. (2022, April 15). Coachella music festival returns after Covid hiatus. The National.
https://www.thenationalnews.com/arts-culture/music/2022/04/15/coachella-
music-festival-returns-after-covid-hiatus/
Appendices