Danielle Koepp
Economics
Mr. Reuter
4/30/2017
Events such as Summerfest are what is keeping the Milwaukee area in a good economic state, with a gaining number of tourists, and an increasing income. Wisconsin holds the largest music festival, known as Summerfest. Summerfest consists of an eleven day long event that holds multiple concerts, and presents multiple restaurants and services throughout Wisconsin. The concerts are that of many genres from all around the United States. People from all around attend this event because of the large crowds, and famous music groups. In the past performers such as Zac Brown Band, Lady Gaga, Aerosmith, Bruno Mars, and many others have attended. In 2017 there are scheduled performances from artists such as, Flume, Ziggy Marley, The Chainsmokers, Shinedown, Future, and many more. People are already saving up and planning on seeing these performers. These acts have put on amazing shows that have attracted people from all across the US, bringing in a massive revenue for the Milwaukee area. The Milwaukee World Festive states that, “Summerfest 2013 generated $187 million in positive economic impact for the City of Milwaukee; $226 million for the state of Wisconsin” (MWF). The profit that is made from the festival doesn’t only come from bought tickets, it comes from locally run beer tents, shops, food stands, and games. These places all gain recognition for the Milwaukee area. All of the restaurants and bars that are open to the Summerfest grounds, are in the Milwaukee area, and give people places to come to the next time they’re in Milwaukee.
With all of these different things offered a lot of tourists are attracted giving Milwaukee the chance to self promote the city.Summerfest 2016 had brought in, “a total of 804,116 people through the Henry Maier Festival Park gates. That number was a 4.1 percent increase over the 2015 attendance” (OnMilwaukee). As shown its popularity continues to increase, and the income from this festival will continue to strive. People will not think twice about the cost of tickets or food and drink, because they go for the overall experience, and with all that Summerfest provides it is well worth the consumer’s money. As the festival gains popularity the demand increases as well, resulting in bigger crowds, larger bands, and more restaurants. Clearly Summerfest is a positive externality for Milwaukee, and Wisconsin as a whole. It brings in tourists, creates jobs, and is a place for all ages to come in and enjoy music as well as summer life.
"Summerfest 2016 Attendance up from Last Year, plus Other Festival Figures."OnMilwaukee.com. N.p., 14 July 2016. Web. 30 Apr. 2017.
Cary, Docter. "Summerfest Generated $187 Million in Positive Economic Impact."FOX6Now.com. N.p., 05 Dec. 2013. Web. 30 Apr. 2017.
I think it's interesting that Summerfest is such a big part of Wisconsin's revenue. The concerts draw many people from across the country, but is also a seemingly everyday thing for people who live near by. While yes, mass amounts of people come from everywhere to see the performers and have this great experience, however I would be interested to see how many of those fans are directly from Wisconsin, and make this a daily thing. I have a feeling, that while this brings in a lot of revenue, a lot of the revenue comes from our own state.
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Summerfest not only has a positive impact while its happening, but the grounds can be used for other events throughout the year making a even bigger impact. It also boosts complimentary businesses such as the bus line that picks people up at goerkes corner. Wisconsinites only have so much bearable weather and with Summerfest taking place in the warmest part of the year that definitely increases their revenue. Additionally those 21 and over enjoy a nice refreshing beer while listening to their favorite music. With this year being the 50th anniversary Summerfest went all out to put together a really nice lineup and I'd expect sales to boom this year.
ReplyDeleteI thought you made some great points, especially by stating that people do not really think to much about the price because they more so go for the experience. Because like you said before, it is the largest music festival meaning that it has attracted a large amount of people for a reason. It is really cool though that it brought in over 200 million dollars and I would have never thought about how it helps Milwaukee out in such a large way. So overall nice job.
ReplyDeleteLast week the blog that I read was written about Coachella, a festival similar to Summerfest. Even though Coachella is a lot more well known and brings in a lot more people, Coachella and Summerfest are similar in how they benefit the economy for the city and surrounding cities. It's not only the amount of money people spend for their ticket and how much they spend once they're in, but lots of people will spend more money in the city as well. Summerfest is also a great way of generating part time jobs for people who really need the money. It may only be for a short period of time, but for someone who is barely getting by a little bit of money goes a long way. The restaurants and sponsors of the event also benefit greatly. Once someone is in Summerfest, it is likely that they'll walk around to observe everything that is there, gaining a lot of these vendors exposure. Summerfest has a great positive impact on the city of Milwaukee and state of Wisconsin.
ReplyDeleteWhile Summerfest is worth the money to attend, it is also very cheap to attend compared to other festivals. While other music festivals sell weekend passes for hundreds of dollars, Summerfest is only $20 per night. That ends up making the 11 day music festival the same price as a weekend festival if you go everyday, and that makes the opportunity cost of spending the money so much more worth it because you can see so many more artists.
ReplyDeleteI agree that Summerfest greatly helps the city of Milwaukee, and is one of the city's most crucial events to making money for the city. Just from ticket sales the amount of money brought in is crazy, not to mention the food, beverages, and souvenirs that are sold as well. You mentioned the percentage of attenders increased since 2015, and I'm sure it'll continue to increase for years to come. I've met a lot of people at Summerfest that come from out of state, due to it being the largest music festival. I'm not sure exactly where the money goes from Summerfest, but it'd be cool if some of it went towards the poverty issues in Milwaukee, as well as the public education in the city.
ReplyDeleteYour post reminded me that summer is near, and so is summer fest! As a Wisconsin citizen I love going to all the festivals to listen to music, eat good food, and ride all of the rides. I never thought about how much profit was made at summer fest and how much it helps promote this state. People come from all over just to listen to music from various artists that they know of or are just there to listen to someone knew. Summer fest is truly a cool event that not only helps Wisconsin's economic state, but its well being as well.
ReplyDeleteSummeriest is definatly on of the best things to go to in Milwaukee besides a Brewer game. It's crazy that just from two weeks of concerts, the city of Milwaukee earns near 200 Million dollars in profit annually. Every year people keep coming back to see a band they don't care too much about, and most people are down to pay 20 bucks for a Miller Lite and Cheesy fries. I think that social media publicity will help Summeriest's profits rise exponentially.
ReplyDeleteMany people go to summer fest every year, it's an exciting event here in Wisconsin that a lot of people through all ages look forward to. I agree that summerfest's popularity will continue to increase, and so will the income. As summerfest continues to gain popularity, the demand will increase resulting in bigger and better things.
ReplyDeleteSummerfest has a positive impact on the economy of Milwaukee, especially for driving services like Uber and coach buses. Although Ubers are used daily, the demand increases by a landslide since many people consume alcohol at Summerfest. The coach buses are in huge demand for people from Waukesha county and further. I know personally I use the bus because an Uber is crazy expensive from my house, and the bus is cheap, quick, and efficient. Summerfest really has set up an awesome system with the buses.
ReplyDeleteSummerfest is such a big thing to people in Wisconsin. So many people go and the experience is amazing.The opportunity cost of summerfest is big too people take off of work for summerfest sometimes the whole 11 days. And people buy the expensive food and beer even though its cheaper somewhere else. The fact that it helps Milwaukee and Wisconsin as a whole is amazing too.
ReplyDeleteThis is a high topic of interest because many of us students go to Summerfest. I figured that such a large and vibrant event would bring in high revenue, but I never really thought about the jobs that it opens up and how that positively affects our economy. I think that our local economy would not be where it is if it weren't for events like this.
ReplyDeleteOther then the sporting venues that Milwaukee has to offer Summerfest has the largest impact on Milwaukee's economy, and the only reason that it isn't number one is because it is only a two week event compared to the others that are in season for multiple months. It is remarkable to see that within only a two week span we are able to generate $187 million dollars in positive economic impact. I believe that this year with the venues that are provided along with it being the 50th anniversary that they easily reach over the $200 million mark for Milwaukee as a positive economic impact. Good piece to read.
ReplyDeleteIt's interesting to see that an event that is so enjoyable for so many people has such a great impact on the local economy from many aspects. Not only does Summerfest bring in a great deal of revenue, but also, as you said, businesses benefit greatly from it just from getting out their own word. My friend worked at a stand last summer at Summerfest and she said that it was a hit. After being out in the sun for a long period of time, people need food and drinks to refuel and the businesses that set up areas at Summerfest take advantage of that and put their name out there.
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ReplyDeleteI honestly would have expected Summerfest to generate more than 187 million dollars for Milwaukee over the course of those 11 days, simply based upon the amount of people it attracts. I've noticed that each year, Summerfest books larger and more mainstream artists, that probably cost thousands of dollars for each performance. I hope that if they continue to book larger names, they don't increase ticket prices any further. While the demand would still be very high for tickets, I remember my freshman year a power-pass was $70 and now they're up to $95, which is incredibly pricey.
ReplyDeleteI never knew that the restaurants were all from Milwaukee. I can imagine that this dose bring in a lout of revenue for those places since there are over 500 people there a day. Even the performers who are on free stages at summerfest have an economic benefit for them. even though they pay for the spot they will get their name out there to people and then they will make more money in the long run for people would be willing to then buy ther dvds, t shirts and pay for a concert latter in the year
ReplyDeleteSummerfest has a positive impact on Milwaukee's economy. Besides sporting events that Milwaukee has to offer Summerfest brings in needed revenue for not only the preforming artists but the many small businesses that set up shop there. With this in mind, I am still shocked to see that in a matter of 11 days $187 million dollars are produced. I think Summerfest is great but usually, the only attenders of this festival are people that live in Wisconsin and Illinois maybe a few from Minnesota. One way to make this festival more economically beneficial for Milwaukee would be to try to get people from other states and broadcast the festival outside of the surrounding states.
ReplyDeleteSince growing up in Wisconsin I always thought that we had the most boring state in the country. I mean the weather sucks 7 out of the 12 months, 8 if we're lucky. However their is one thing we have that no one else has, we host the largest music festival in the country which brings in million in revenue each year. Summer fest is easily the greatest part about Wisconsin, it brings in a lot of diverse groups who come together to appreciate the music.
ReplyDeleteThe funds that Summerfest brought in were lower than I thought, but I'm glad it brings in lots of business and people. I personally love Summerfest and it definitely causes a lot of positive externalities for me. I leave happier and full and tired from a day of fun, and I also leave with a tan. Overall, I'm super happy with Summerfest and hope that it's postive externalities keep people coming and keep it going.
ReplyDeleteWe all know and love Summerfest because of the big headliners and the atmosphere. It brings a lot of big money in and creates jobs. There are positive externalities to Summerfest like an increase in revenue at local hotels and restaurants. There are also other festivities on the fair grounds like Irish Fest and Pride Fest and a multitude of others since there is a high demand for tickets and high profit.
ReplyDeleteSummerfest brings in money, and even creates jobs for certain people. They have an increase in revenue at hotels, ubers, bus companies and restaurants. There are a high demand for tickets from Summerfest, and other festivals that are held on that fair ground.
ReplyDeleteThe economic impact that Summerfest has on local and state economies is amazing to bear witness to. Not only does Summerfest generate the obvious revenue of buying out grounds and attracting individuals to spend money at Summerfest to circulate money through the economy, it also creates hype. The hype created by Summerfest creates a local demand for goods in the area. After a good time at Summerfest people go out to eat at local establishments, peruse the city, and in doing so they circulate even more money throughout the local and state economy that the event takes place in. Along with this hosting Summerfest gains your city and the grounds it was hosted on merit. It gives the area credit when the event goes well as a valid place that other event organizers can choose to host events at which repeats the cycle.
ReplyDeleteI knew Summerfest was a popular event, but I never truly realized how many people attended the event. 800,000 people is a pretty comparable number to the attendance of Coachella, which is another popular event. While it's known how much revenue Summerfest brings in, I'm also curious how many jobs it provides for ticket sellers, security guards, and other worker around the festival park.
ReplyDeleteSummerfest is always a great place to go during the summer. This year, will probably bring in millions of dollars, because it is their 50th anniversary. The bands this year, are probably the best they've ever been, so it's going to be a very positive externality since there are better bands than most years, and it's the 50th anniversary. Can't wait to hear about how much it brings in for Milwaukee!
ReplyDeleteI am a little surprised at the amount of people that actually attend Summer Fest. With an attendance of eight times of the city’s population, only positive economic impact can come from it. 800,000 people paying for entrance, special events, and summer fest merchandise are all major contributors to the city’s economy and the event itself is one of the main characteristics in Milwaukee that keeps the city on the map. The amount of attention the event gets helps surrounding businesses such as restaurants, hotels, and summer fest gift shops. In general Summer Fest plays a big role in Milwaukee’s economy by attracting people from all over the country and getting them to spend money at the music festival.
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I was kind of surprised that Summerfest did not bring in as much money as I thought it would but then it made me think that so many of those concerts are free stages so in that way Milwaukee does lose money because with the money they make they have to pay all of the artist that perform. But what will increase the revenue is all of the people who stay over night in near by hotels and go out to dinner. Overall, I think that having Summerfest in Milwaukee is good for the economy and a fun experience for everyone to enjoy while attending.
ReplyDeleteSummerfest is a major attraction in the Milwaukee area and presents to the economy a multitude of positive externalities. Travel to and from airports, hotels, concessions, tickets themselves, and so on. These all contribute to the revenue that Summerfest brings, and further leads to other events in the area for music such as Germanfest and Irishfest. It's really surprising that the 4.1% attendance increase came in recent time, and as better headliners like Flume are presented, then it only seems fair to judge that Summerfest and its revenue will increase continually.
ReplyDeleteSimilar to the post about Coachella, it is obvious that these big festivals bring in a huge revenue for the city they are located. Obviously Summerfest is a more cost effective choice seeing it is has more flexible pricing. This is why the attendance is more than 3 times the amount of Coachella. They might be hitting the equilibrium with these lower prices because their is a higher demand. Maybe coachella should consider lowering prices to raise attendance/demand.
ReplyDeleteNot only does this boost the money intake for stands and performers, but the fest also helps out the people in poverty. It can give the homeless people who are begging money that they could use to buy new clothes and go to a job interview or something like that. Additionally, the fest is like building a new sports arena because it gives a lot of people a job for a decent amount of time.
ReplyDeleteIt is very apparent that music festivals are becoming a more prevalent way to bring in income to a city. These festivals, in a way, are a lot like sporting events. They both happen annually however the music festivals last for a shorter duration of time which entices the customer or the possible customer to buy tickets. Though the food the food both looks and smells good after a few hours of walking around and talking I never end up buying anything.
ReplyDeleteSummerfest clearly has a positive impact on the economy with increased consumer spending. Apart from just ticket sales, restaurants and other businesses in the surrounding area can see tremendous increases in profits. While Summerfest can have a positive impact, it might not be a positive externality (particularly to those living near the grounds and experience increased traffic, crowds, noise levels etc.).
ReplyDeleteMusic festivals are always popular at any place in the country, especially the cold oriented places because people in Milwaukee will not get a chance to attend the summerfest until it is summer. This disadvantage inturn boosts the economy of Milwaukee as consumers will have high expectations and will prefer to go these fests no matter how their summer is. Also, it is not surprising on how the demand increases for summerfest because the companies are supplying the efficient product like the music to consumers. On the other hand, consumers will be willing to pay the high price tickets as they know that they benefit is much greater than their cost.
ReplyDeleteSeeing how many people come to summerfest really makes you realize how much money the event actually makes ,but I often ask myself how much the summerfest grounds property is worth. Relatively speaking I wonder if they could make an unbelievable amount of money if they sold the property or if they did more renting out of the property. Realistically if that was a better alternative for summerfest they would change what they are doing. Overall summerfest is an awesome place and we are very lucky to have it here in Wisconsin.
ReplyDeleteIt is very nice that they make the tickets for Summerfest so affordable for teenagers. Most music festivals today make you pay hundreds for just a single concert, but the Summerfest tickets are only $20 a night, and you get to see so many great acts. So therefore I think the low price gets many more teenagers and people there, which just brings in more revenue for the festival.
ReplyDeleteNot only Summerfest but all of the places around Summerfest bring in massive amounts of revenue for the downtown area. By hosting the event, people are exposed to the other places that the area has to offer. It's crazy to think about how much money the festival brings. People from other states even come in. Personally, I go to the event each summer. Even my parents and families attend multiple times when it's offered. Some people I know who have worked at the festivals or stand outside them, are positively effected by the crowds. Even the people who live nearby can make money by offering their homes for parking.
ReplyDeleteIt's great to know that Summerfest is growing our local and state economy. With increasing the number of people going by 4.1 percent is a lot if you think that people from not living in Wisconsin are going to Milwaukee, growing our economy. But, one thing to think about is the policing and parking of Summerfest. With the crowds growing and growing and predicted to grow more this year, there has to be a large police and security force present which cost money from that profit. Also with parking, again with a growing number of people, where are people suppose to park? and with people outside of Wisconsin it probably becomes an issue for Milwaukee.
ReplyDeleteI think it is really cool that we have the largest music festival held here in Wisconsin, because it clearly contributes a lot to our economy. A lot of relatives of mine come to visit during the festival so that they can come with us. It is clear to see that people spend a lot of money easily inside the festival grounds as well as on bus tickets or hotels. With the different music, food, drinks, and shopping there is something for everyone.
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