Creative Events Management - 102 (Assignment)

Write a short description (500 words) of how global economics are relevant for the Falmouth Oyster Festival

The Falmouth Oyster Festival is now in its 14^th year and is located in the heart of Falmouth in the events square. It celebrates the start of the oyster-dredging season and encompasses local chefs, seafood, children’s shell painting and live music. The website states that ‘Over 30,000 flocked to Falmouth over the four days,’ and local people and visitors voted this year the ‘Best yet!’

With the recent spending review announcing massive cuts across the cultural sector, how do Macroeconomics affect the Falmouth Oyster Festival.

Macroeconomics or (global) economics, ‘is the branch of economics that studies the overall working of a national economy.’ It looks at spending trends, influences, tax and inflation and employment and unemployment. All these factors can have significant effects on events such as the Falmouth Oyster Festival.

The Falmouth Oyster Festival is supported by sponsors and funded by Falmouth Festivals, Visit Cornwall and St Michael's Hotel & Spa. Without this funding the festival would not be financially possible, as revenue from the traders would not be sufficient enough to support it, therefore relying on this funding. Although not charging 30,000 people an entrance fee would seem like a ‘missed opportunity’, we have to look at the behaviors in the current economy. The Office of National Statistics produced a document called ‘Consumer Trends’. In this document it says that ‘Household final consumption expenditure in 2009 fell by 3.4 per cent’.  This is an indicator that prior to the date of this event UK households aren’t spending money on luxuries. With this in mind its possible that if ticket prices were introduced you would see a decrease in attendees and therefore jeopardising your sponsorship deals. In ‘Consumer Trends’ for 2010 it says ‘In the second quarter of 2010 the main areas of growth (when comparing levels of expenditure) were recreation and culture, which grew by 1.8 per cent.’  This could mean that the current spending trend is about to change and that ticket sales in the future could be an option. However, charging people to see this event might not be appropriate to the organisers due to its nature, but that’s a different matter!

Another factor of Macroeconomics is the date of the event. With the festival being located in October this helps to increase secondary spending and in my opinion this is reflected in the festivals mains sponsors. St Michael’s Hotel & Spa benefit from sponsoring by advertising and increasing revenue in what would normally be out of season dates. ‘Nigel Carpenter, Proprietor of St. Michael’s Hotel & Spa, said, “We are very excited to once again be main sponsors of this important festival”’ Through Visit Cornwall interest to this festival can be generated overseas which would increase foreign tourist spending in the UK.

In my opinion Falmouth Oyster Festival has been clever in decisions regarding how the event is funded. Acquiring strong links with their sponsors, and securing the funded needed to continue this important community festival, has led to a very successful event. However with this currently unstable economy and cuts in cultural funding, they might need to consider other means of finance and sponsors.

Press releases & festival news. 2010.Falmouth Oyster Festival. Available at: http://www.falmouthoysterfestival.co.uk/news_1005.html  [accessed 05 November 2010].

Consumer Trends. 2010.Office for National Statistics. Available at:

http://www.statistics.gov.uk/downloads/theme_economy/CT2010Q2.pdf [accessed 2010].

EASON-BASSETT, Claire. 2009. Lecture 4 - Economics. PDF Website.