A marketing analysisand economic Impact of                              the            ABSA         Kirkwood             W...
AcknowledgmentsThe authors would like to thank the following individuals and institutions:   1. Ed Richardson and Jenni Ho...
TABLE OF CONTENTS1.      INTRODUCTION                                       12.      AIMS OF RESEARCH                     ...
5.      ECONOMIC CONTRIBUTION                           205.1     The number of visitors and length of stay       205.2   ...
LIST OF FIGURES4.       RESULTS                                         3Section A: Socio-demographic                     ...
LIST OF TABLES4.      RESULTS                                                           3Section B: Economic impact       ...
1   IntroductionKirkwood is situated in the heart of the Sundays River Valley of the Eastern Cape of South Africa. Thistow...
3 Method of researchIn order to achieve the above-mentioned aims, the following approach was followed: Aquestionnaire (for...
4 Results                            Section A: Socio-demographic4.1 Gender                                               ...
31%                                                                    25%       15%                                     1...
4.4 Annual gross incomeAccording to Figure 4.4, 27% of respondents earn between R20 001 and R140 000, 18% respectivelyearn...
Other                                6%      Unemployed            2%          Student                                    ...
Outside RSA    0.3%          Limpopo     0.3%    KwaZulu-Natal     0.3%    Northern Cape     0.3%       North West     0.3...
Table 4.1: Number of people in group                                       Number of people         Percentage            ...
four persons accounted for 15%, respectively. The average number of people that respondents werefinancially responsible fo...
Table 4.3: Average expenditureNumber of people                                         Average                            ...
Section C: Consumer behaviour4.12 Number of Festival attendancesAccording to Figure 4.9, 30% of respondents were first-tim...
Other              4%                  Hostel       1%              Day visitor                                           ...
Facebook                                             17%     83%Twitter                                                2% ...
To meet new people               27%        21%   21%   14%   17%The Festival is different                                ...
4.16 Festival as main reason for visitThe majority of respondents (78%) indicated that the Festival was their main reason ...
4.18 Decision to attendThirty-six percent (36%) of respondents decided more than a month in advance to attend theFestival,...
42%                                                     30%                      23%                                      ...
4.21 Repeat attendanceThe majority of respondents indicated that they would attend the Festival again, while 14% statedtha...
Table 4.6: Festival service rating                                     Totally                                  Totally Se...
5 Economic contributionOnly additional spending in an economy can create an economic impact in that economy. Thisadditiona...
spent at an event. The average visitor stays 1.68 days at the Festival. This means that the number ofvisitor days is 61 83...
Festival, and therefore the direct money injection into the area, amounts to R12 million. If gamesales are included, this ...
Table 5.1: Economic impact of Kirkwood Festival                                                       Excluding game sales...
6 Conclusions & RecommendationsThe following conclusions can be made with regard to the survey:6.1 Profile of visitorsTabl...
Initiator of trip               Self (42%), Friends (30%)Aware of buffalo auction        Yes (47%)Repeat attendance       ...
•   Less than half the respondents indicated that they were not aware that the Kirkwood       Wildlife Festival is the onl...
Kirkwood Wildlife Festival
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Kirkwood Wildlife Festival

  1. 1. A marketing analysisand economic Impact of the ABSA Kirkwood Wildlife Festival 2012 Tourism Research in Economic Environs and Society North-West University Potchefstroom Campus Private Bag X6001 POTCHEFSTROOM 2520 Tel +27 18 299 1810 Fax +27 18 299 4140 E-mail: Melville.saayman@nwu.ac.za Prof Melville Saayman, Mr Marco Scholtz & Prof Andrea Saayman Copyright © 2012 Tourism Research in Economic Environs & Society i
  2. 2. AcknowledgmentsThe authors would like to thank the following individuals and institutions: 1. Ed Richardson and Jenni Honsbein from the ABSA Kirkwood Wildlife Festival for allowing the research to be conducted. 2. All the festival attendees for willingly completing the questionnaires. 3. The following students from the North-West University for the distribution of the questionnaires: a. Ms A van der Merwe b. Ms M van Onselen c. Ms M Louw d. Mr M Scholtz 4. Ms C van Zyl for language editing. ii
  3. 3. TABLE OF CONTENTS1. INTRODUCTION 12. AIMS OF RESEARCH 23. METHOD OF RESEARCH 24. RESULTS 3Section A: Socio-demographic 34.1 Gender 34.2 Age 34.3 Home language 44.4 Annual gross income 54.5 Occupation 54.6 Province of residence 6Section B: Economic impact 74.7 Travelling group size 74.8 Number of people paid for 84.9 Length of stay at Festival 94.10 Expenditure 94.11 Tickets purchased 10Section C: Consumer behaviour 114.12 Number of Festival attendances 114.13 Type of accommodation 114.14 Source of Festival information 124.15 Motives for Festival attendance 134.16 Festival as main reason for visit 154.17 Other festivals attended 154.18 Decision to attend 164.19 Initiator of trip 164.20 Aware of buffalo auction 174.21 Repeat attendance 184.22 Service levels 18 iii
  4. 4. 5. ECONOMIC CONTRIBUTION 205.1 The number of visitors and length of stay 205.2 The average spending 215.3 Economic contribution 216. CONCLUSIONS AND RECOMMENDATIONS 246.1 Profile of visitors 246.2 Conclusions with regard to Festival attendees 256.3 Recommendations 266.3.1 Recommendations made by respondents 266.3.2 Recommendations made by researchers 26 iv
  5. 5. LIST OF FIGURES4. RESULTS 3Section A: Socio-demographic 3Figure 4.1 Gender 3Figure 4.2 Age 4Figure 4.3 Home language 4Figure 4.4 Income 5Figure 4.5 Occupation 6Figure 4.6 Province of residence 7Figure 4.7 Length of stay 9Figure 4.8 Number of tickets 10Figure 4.9 Number of attendances 11Figure 4.10 Accommodation type 12Figure 4.11 Festival as main reason 15Figure 4.12 Decision to attend 16Figure 4.13 Initiator of trip 17Figure 4.14 Addo buffalo sales 17Figure 4.15 Repeat attendance 18 v
  6. 6. LIST OF TABLES4. RESULTS 3Section B: Economic impact 7Table 4.1 Number of people in group 8Table 4.2 Number of people paid for 8Table 4.3 Average expenditure 10Table 4.4 Source of Festival information 12Table 4.5 Motives for attending the Festival 13Table 4.6 Festival service rating 195. ECONOMIC CONTRIBUTION 20Table 5.1 Economic impact of Kirkwood Festival 236. CONCLUSIONS AND RECOMMENDATIONS 24Table 6.1 Profile of visitors to Kirkwood Wildlife Festival 2012 24 vi
  7. 7. 1 IntroductionKirkwood is situated in the heart of the Sundays River Valley of the Eastern Cape of South Africa. Thistown is at present the dynamic capital of the Sundays River Municipality, including places such asPatterson, Addo and Enon with an approximate population of 70 000 people. Kirkwood is alsoconsidered the citrus capital of the province with approximately 12 000ha of citrus orchards.Furthermore, annually, approximately 8 million cartons of oranges, lemons, grapes and soft citrusare exported from here to countries all over the world. Other than citrus fruit, Kirkwood is known forroses, game farms and its annual ABSA Wildlife Festival (Discover South Africa, 2011).The ABSA Kirkwood Wildlife Festival is seen as the fastest-growing festival of the Eastern CapeProvince (PE vibe, 2011) with over 42 000 visitors in 2011 (SA-venues.com. 2012). As part of the 11thfestival hosted from 29 June to 1 July 2012, visitors experienced live performances by top SouthAfrican artists, a wine and food gourmet lifestyle expo, Kidz Zone fun, adrenaline rides, 300 specialiststalls, a beer tent, the Isuzu 4x4 Challenge, a premier game auction, as well as agricultural andwildlife expos (PE vibe, 2011). It is because of the Festival’s fast growth that it is important todetermine the Festival’s marketing as well as economic impact. This will allow for strategic planning,which will ensure and sustain the Festival’s current growth. 2 Aims of researchThe research had the following primary aims: • To determine the profile of the Kirkwood Wildlife Festival attendees; • The motives of respondents to visit the Kirkwood Wildlife Festival; • To determine the service levels at the Festival; and • To determine the economic impact of the Festival. 1
  8. 8. 3 Method of researchIn order to achieve the above-mentioned aims, the following approach was followed: Aquestionnaire (for Festival attendees) was developed, focusing on the aspects indicated below: • Demographic data; • Expenditure patterns; • Reasons for visiting the Festival; • Consumer behaviour; and • Perceived levels of service.Based on availability sampling, 400 questionnaires were distributed of which 385 were included inthe statistical analysis. Any visitor to the Festival grounds was eligible to be a respondent. Well-trained fieldworkers were dispersed on the grounds where they handed out questionnaires towilling persons after which they explained the purpose of the research. Questionnaires werehanded out on Saturday, 30 June 2012. The data was captured and statistical analyses wereperformed to develop a total picture of the attendees of the Festival. 2
  9. 9. 4 Results Section A: Socio-demographic4.1 Gender Male 40% Female 60% Figure 4.1: GenderAccording to Figure 4.1, 60% of respondents to the Festival were female, while 40% were male.4.2 AgeAccording to Figure 4.2, 31% of respondents to the Festival were between the ages of 35 and 49,followed by those in the 50 to 64 years age group. Fifteen percent (15%) were younger than 19years, while 14 were between 25 and 34, 11% between 20 and 24 and 4% who were 65 years orolder. The average age of visitors to the Kirkwood Wildlife Festival in 2012 was 38.9 years. 3
  10. 10. 31% 25% 15% 14% 11% 4% <19 20 - 24 25 - 34 35 - 49 50 - 64 65+ Figure 4.2: Age4.3 Home languageThe majority of respondents (72%) were Afrikaans speaking and 28% were English (Figure 4.3). Therewere no persons who speak other language other than the two mentioned. 72% 28% 0% Afrikaans English Other Figure 4.3: Language 4
  11. 11. 4.4 Annual gross incomeAccording to Figure 4.4, 27% of respondents earn between R20 001 and R140 000, 18% respectivelyearn less than R20 000 or between R140 001 and R221 000 and 11% earn between R221 001 andR305 000. Nine percent (9%) earn between R305 001 and R431 000, while only 3% earn betweenR431 001 and R552 000. R552 001 > 14% R431 001 - R552 000 3% R305 001 - R431 000 9% R221 001 - R305 000 11% R140 001 - R221 000 18% R20 001 - R140 000 27% < R20 000 18% Figure 4.4: Income4.5 OccupationSixteen percent (16%) of respondents respectively were students or in a managerial occupation,followed by 15% in a professional profession and 12% who were respectively self-employed or in anadministrative position. Six percent (6%) respectively were housewives or had other occupations,which included: construction; financial controllers; fitter and turner; graphic designer; management;medical radiographer; police; or respondents who were still in school. 5
  12. 12. Other 6% Unemployed 2% Student 16% Pensioner 4% House wife 6% Education 2% Administrative 12% Sales 3% Technical 4% Farmer 2% Self-employed 12% Management 16% Professional 15% Figure 4.5: Occupation4.6 Province of residenceThe majority of respondents were from the Kirkwood Wildlife Festival’s home province, the EasternCape (91%). Only 4% of respondents were from the Western Cape and 3% were from Gauteng. Therest of the South African provinces had a low attendance level with all accounting for 0.3% ofrespondents each. Respondents from outside South Africa also accounted for 0.3% of respondents. 6
  13. 13. Outside RSA 0.3% Limpopo 0.3% KwaZulu-Natal 0.3% Northern Cape 0.3% North West 0.3% Mpumalanga 0.3% Free State 0.3% Gauteng 3% Western Cape 4% Eastern Cape 91% Figure 4.6: Province of residence Section B: Economic Impact4.7 Travelling group sizeWhen examining Table 4.1, it becomes clear that respondents prefer to travel in groups of four(24%) or two persons (23%). Fifteen percent (15%) of respondents travelled in a group of fivepersons, 12% in groups of three and 9% in groups of six. The average size of travelling groups to theFestival in 2012 was 4.24 people, meaning that the Festival mostly attracts families. 7
  14. 14. Table 4.1: Number of people in group Number of people Percentage 1 person 4% 2 persons 23% 3 persons 12% 4 persons 24% 5 persons 15% 6 persons 9% 7 persons 3% 8 persons 5% 9 persons 1% 10 persons 2% 12 persons 2% Average 4.24 persons4.8 Number of people paid forTable 4.2: Number of people paid forNumber of people Percentage1 person 24%2 persons 27%3 persons 15%4 persons 15%5 persons 4%6 persons 5%7 persons 2%8 persons 1%Average 2.70 personsTwenty-seven percent (27%) of respondents were financially responsible for two persons, while 24%were responsible for themselves only. Respondents who were financially responsible for three and 8
  15. 15. four persons accounted for 15%, respectively. The average number of people that respondents werefinancially responsible for was 2.70 persons.4.9 Length of stay at FestivalThe majority of respondents visited the Festival for only one day (61%) and they did not stayovernight (51%). Nineteen percent (19%) visited the Festival for three days and 17% for two days.When looking at respondents who stayed overnight, 21% stayed for two nights, 15% for one and 8%for three (Figure 4.7). The average number of days that respondents attended the Festival was 1.68days, while they stayed overnight in the Kirkwood area for one night. 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0 1 2 3 4 5 6 Days 61% 17% 19% 3% Nights 51% 15% 21% 8% 3% 1% 1% Figure 4.7: Length of stay4.10 ExpenditureThe average expenditure per travelling group to Kirkwood Wildlife Festival in 2012 is R1 344.13. Thecategories with the highest spending included: shopping at stalls and retail outlets (R 284.39); foodand restaurants (R 282.31); accommodation (R 194.18) and entrance fee (R 193.08). 9
  16. 16. Table 4.3: Average expenditureNumber of people Average expenditureEntrance fee R 193.08Accommodation R 194.18Food and Restaurants R 282.31Beverages R 161.79Shopping at stalls and retail outlets R 284.39Transport (return) R 183.97Parking R 11.09Other R 33.31Average expenditure R 1 344.134.11 Tickets purchasedMost respondents (29%) purchased two tickets, followed by those who bought one ticket (22%),four tickets (15%), thee tickets (12%) and six tickets (7%). Six percent (6%) did not buy any tickets.The average number of tickets purchased during the 2012 Festival was 2.77 tickets. 29% 22% 15% 12% 7% 6% 5% 3% 1% None 1 ticket 2 tickets 3 tickets 4 tickets 5 tickets 6 tickets 7 tickets 8+ tickets Figure 4.8: Number of tickets 10
  17. 17. Section C: Consumer behaviour4.12 Number of Festival attendancesAccording to Figure 4.9, 30% of respondents were first-time visitors to the Festival, while 16%respectively have attended the festival twice or three times, 13% have attended four times and 9%have attended five times. Six percent (6%) have been attending the Festival every year since itstarted (11 times). The average number of times that respondents attended this Festival is 3.47times. 30% 16% 16% 13% 9% 6% 4% 3% 2% 1% First time Twice 3 times 4 times 5 times 6 times 7 times 8 times 10 times 11 times Figure 4.9: Number of attendances4.13 Type of accommodationMost respondents to the Festival (40%) were day visitors, followed by 19% who stayed with friendsand family, 15% who camped in the area and 10% who were local residents. Eight percent (8%)stayed in guesthouses or bed-and-breakfasts and 2% opted to rent a full house. One percent (1%)respectively stayed in a hotel or hostel. Other types of accommodation (4%) were not mentioned. 11
  18. 18. Other 4% Hostel 1% Day visitor 40% Rent full house 2% Camping 15% Hotel 1% Guesthouse/B&B 8% Family and friends 19% Local resident 10% Figure 4.10: Accommodation type4.14 Source of Festival informationRadio (47%), word-of-mouth (46%), newspapers (35%) and television (20%) were the most effectivemarketing media for the Festival. Marketing media that were effective, but to a lesser extent,included: Facebook (17%); wildlife websites (15%); magazines (13%); and other media (10%) such asadvertisement boards, people who live in Kirkwood and those who visit the Festival annually. E-mail(5%); Newsletters (4%) and Twitter (2%) were the least effective marketing tools.Table 4.4: Source of Festival informationMedia type Yes NoTelevision 20% 80%Radio 47% 53%Wildlife website 15% 85%E-mail 5% 95%Newsletter 4% 96%Magazines 13% 87%Newspapers 35% 65%Word-of-mouth 46% 54% 12
  19. 19. Facebook 17% 83%Twitter 2% 98%Other 10% 90%4.15 Motives for Festival attendanceIn this question, respondents were asked to indicate what their main motives were for visiting theFestival (Table 4.5). The following motives were rated as important to extremely important: To spend time with family and friends 87% Sociable festival 87% To relax 87% To get away from my routine 80% It is a great opportunity in the area 80% The combination of wildlife and entertainment is unique 76%The following motives were rated as less important to not at all important: To purchase wildlife 77% To attend the mohair expo 74% To attend a wildlife auction 72% To see the newest trends in the wildlife industry 65% To visit the Walk on the Wildside 59%Table 4.5: Motives for attending the Festival Not at all Less Very Extremely Motives Important important important important important To get away from my 12% 8% 27% 23% 30% routine To relax 6% 7% 20% 29% 38% To spend time with family 8% 5% 17% 25% 45% and friends 13
  20. 20. To meet new people 27% 21% 21% 14% 17%The Festival is different 8% 19% 28% 21% 24%from other festivalsThe combination of wildlifeand entertainment is 8% 16% 29% 25% 22%uniqueTo attend a wildlife auction 52% 20% 10% 7% 11%Sociable festival 7% 6% 27% 28% 32%Ticket prices are 15% 23% 30% 15% 17%reasonableIt is the closest festival for 28% 14% 20% 16% 22%meTo the benefit of my 42% 10% 16% 13% 19%childrenTo see well-known 14% 14% 21% 23% 28%performersIt is a great opportunity in 11% 9% 27% 21% 32%the areaTo support the stalls 10% 19% 27% 24% 20%It is an annual commitment 18% 16% 22% 19% 25%To explore the 19% 25% 22% 18% 16%environmentIt is the best wildlife 13% 13% 25% 19% 30%festival in the countryTo purchase wildlife 61% 16% 8% 5% 10%To see the newest trends in 50% 15% 16% 10% 9%the wildlife industryTo attend the mohair expo 53% 21% 13% 6% 7%To visit the Walk on the 40% 19% 20% 9% 12%WildsideTo experience different 18% 19% 28% 21% 14%types of cuisines 14
  21. 21. 4.16 Festival as main reason for visitThe majority of respondents (78%) indicated that the Festival was their main reason for visitingKirkwood, while 16% stated that it was not. The remaining 6% were local residents. Local 6% No 16% Yes 78% Figure 4.11: Festival as main reason4.17 Other festivals attendedRespondents were asked to indicate what other festivals they attend besides Kirkwood WildlifeFestival. The following festivals were the most popular: • Klein Karoo National Arts Festival (KKNK) (28%); • Grahamstown National Arts Festival (10%); • Biltong Festival (9%); • Annibrand Festival (8%); • Loerie Naartjie Festival (7%); • Jeffreys Bay Shell Festival (8%); • The Splash Festival (4%); and • Summer Set Music Festival (2%). 15
  22. 22. 4.18 Decision to attendThirty-six percent (36%) of respondents decided more than a month in advance to attend theFestival, while 34% made a spontaneous decision. Twenty-two percent (22%) decided a month inadvance and 8% decided at other times, which include more than a year in advance or they areannual visitors. 36% 34% 22% 8% Spontaneous decision Less than a month ago More than a month ago Other Figure 4.12: Decision to attend4.19 Initiator of tripAlmost half of the respondents (42%) made the decision to attend the Festival, while 30% ofrespondents’ attendance was influenced by their friends, 23% by their spouses and 17% by theirfamilies. Media (7%) and children (5%) played less significant roles when it came to attending theFestival. Other reasons for taking the trip to the Festival included respondents’ boy- or girlfriends orattendances which were initiated by the respondents’ respective employers. 16
  23. 23. 42% 30% 23% 17% 7% 6% 5% Self Spouse Media Friends Children Family Other Figure 4.13: Initiator of trip4.20 Aware of buffalo auctionIn this question, respondents were asked to indicate if they were aware of the fact that KirkwoodWildlife Festival is the only wildlife auction where Addo Elephant National Park sells their buffalo.Forty-seven percent (47%) indicated that they were aware, while 53% were not (Figure 4.14). Yes 47% No 53% Figure 4.14: Addo buffalo sales 17
  24. 24. 4.21 Repeat attendanceThe majority of respondents indicated that they would attend the Festival again, while 14% statedthat they might and 1% that they would not. Perhaps 14% No 1% Yes 85% Figure 4.15: Repeat attendance4.22 Service levelsIn this question, respondents were asked to indicate how they experienced the Festival. To thefollowing aspects respondents indicated that they agree or totally agree: Kirkwood Wildlife Festival is well organised 78 Visible signage 71 Information about the Festival is readily available 70 Variety of entertainment is good 69 Service is effective 65Respondents did not disagree with any service aspects mentioned. 18
  25. 25. Table 4.6: Festival service rating Totally Totally Service aspects Disagree Neutral Agree disagree agree Entry fees are reasonable 16 21 32 16 15 Service is effective 3 5 27 38 27 Kirkwood Wildlife Festival 4 1 17 38 40 is well organised Information about the 3 8 19 37 33 Festival is readily available Variety of entertainment is 5 6 20 36 33 good Visible signage 3 6 20 39 32 Adequate parking 6 13 29 29 23 Payment facilities are 4 5 30 34 27 available The Festival is value for 5 7 31 32 25 money Affordable food and 6 13 32 30 19 beverages Quality of wildlife is 8 6 32 27 27 excellent 19
  26. 26. 5 Economic contributionOnly additional spending in an economy can create an economic impact in that economy. Thisadditional spending represents a cash injection into the local economy. This is often referred to asthe direct impact of an event. In any tourism activity or event, the main contributors to thisadditional spending are tourists. Factors that influence the magnitude of the direct impact include: The number of visitors; The amount they spend; and The length of time they stay for.To determine the direct impact of visitor spending at the Kirkwood Festival, these aspects have to bequantified. The numbers calculated are derived from the information obtained from the surveys,together with additional data provided by the Festival organisers.To gain a full understanding of the value of an event, all spending associated with the event can beconsidered. This includes spending by organisers in preparation for the event. Therefore, this reportnot only considers visitor spending, but also organiser spending.5.1 The number of visitors and length of stayMore visitors to the Festival mean more spending, and therefore, a greater impact. To estimate thenumber of visitors, two methods can be employed. The first is to estimate the number of absolutevisitors, that is, the actual number of people who attended the Festival. Secondly, the number ofvisitor days can also be determined, which means that a single visitor, who stays two days at theFestival, will be counted twice.When the number of tickets sold at the Festival (37 762 this year) and the average number of ticketsbought per visitor group (2.77) are used, the total number of visitor groups is calculated as 13 632.Each visitor group consists of 2.7 people, which means that the absolute number of visitors iscalculated to be 36 808. The average length of stay is not only important for determining the visitordays, but also because there is a positive relationship between spending and the number of days 20
  27. 27. spent at an event. The average visitor stays 1.68 days at the Festival. This means that the number ofvisitor days is 61 837.5.2 The average spendingThe questionnaire distributed to visitors included a question on spending at the Festival. Differentcomponents were offered as the spending breakdown, including spending on accommodation,entrance tickets, transport, food, drinks and souvenirs (see Table 4.3). From the questionnaire, it isestimated that the average festino spends R1 344.13 while at the Festival. The item that attractsmost spending is shopping (R284.39), followed by food (R282.31), accommodation (R194.18) andentrance tickets (R193.08). It is interesting to note that spending on transport is quite low and this isattributed to the high percentage of Eastern Cape festinos.5.3 Economic contributionA simple calculation to determine the magnitude of total spending by festinos on the Festival revealsthat R18.3 million is spent just to attend the Festival (excluding game sales). If game sales areincluded in this number, the value of festino spending increases to R28.1 million. However, some ofthis spending does not take place at the Festival in Kirkwood, and therefore it does not stay in thearea of the Festival. To get a true reflection of the magnitude of the direct impact of the Festival forthe local community, this leakage needs to be taken into consideration.Based on the information provided by the organisers, the following adjustments to total spendingapply. Firstly, only 3% of the souvenir stalls are owned by locals, although all shops are owned bylocals, and therefore only 51.5% of shopping sales are assumed to accrue to people in the area.Secondly, not all food vendors are from the local community (only about 20%) and it is assumed thatonly 60% of food sales are received by the local community (taken into account that restaurants areowned by locals). Thirdly, only the proportion of transport cost for Eastern Cape residents iscounted (i.e. 91%), since not all transport costs for people from other provinces accrue to the localarea. Lastly, care should also be taken to avoid double counting and, for this reason, the entrancefees are accounted for under organiser spending and excluded from visitor spending. When this istaken into account, the direct spending of festinos (excluding entrance fees) at the Kirkwood 21
  28. 28. Festival, and therefore the direct money injection into the area, amounts to R12 million. If gamesales are included, this figure is R21.8 millionHowever, to get a true reflection of the value of the event to the town, all the inflow of money dueto the event should be accounted for. The rent asked of exhibitors from out of town (excluding localexhibitors) amounts to approximately R520 000. In addition, spending by the organisers in hostingthe event should also be included. Sponsorships, entrance fees and commission from the gamesales are therefore taken as a proxy for organiser spending. Again, some adjustment should bemade to account for the fact that some of the technicians used originate from out of town, causingan outflow of money. After these adjustments, it is estimated that approximately R2.7 million isspent on local businesses, institutions and people in hosting the event.By adding these spending items to that of the festinos, the total direct spending due to the eventthat takes place in the town can be calculated. This is estimated to be R15.257 million, as indicatedin Table 5.1, excluding game sales. If game sales are included, the direct spending is R24.482 million– also shown in Table 5.1.When money is spent in an area, it provides additional income to those individuals and institutionsthat use the additional money to spend on other items. For example, businesses will pay suppliersfor additional stock and pay employees, while individuals will use the income to buy additionalproducts. This causes some businesses and individuals to receive additional income, which leads toan increase in their spending and so the process continues. This process is captured by themultiplier and represents the indirect impact of the event.Since the Kirkwood area is rural, it is anticipated that most of this money flows directly towards thelarger city areas in the vicinity, and that the indirect and induced impacts of the Festival aretherefore very small. Previous research by Snowball and Antrobus (2003) estimates a multiplier of1.1. If this multiplier is used, it is estimated that the total impact of the Kirkwood Festival on thelocal economy is R16.783 million (if game sales are excluded) and R26.93 million (if game sales areincluded), as indicated in Table 5.1. 22
  29. 29. Table 5.1: Economic impact of Kirkwood Festival Excluding game sales Including game sales Number of tickets sold 37 762 37 762 Number of visitor groups 13 632 13 632 Number of visitors 36 808 36 808 Visitor expenditure R12.046 mil R21.846 mil Exhibitor expenditure R0.519 mil R0.519 mil Organiser expenditure R2.691 mil R2.691 mil Total direct impact R15.257 mil R24.482 mil Multiplier (low) 1.1 1.1 Indirect impact (low) R1.526 mil R2.448 mil Total impact (low) R16.783 mil R26.930 mil 23
  30. 30. 6 Conclusions & RecommendationsThe following conclusions can be made with regard to the survey:6.1 Profile of visitorsTable 6.1 provides an overview of the visitors at the Kirkwood Wildlife Festival in 2012.Table 6.1: Profile of visitors to Kirkwood Wildlife Festival 2012Aspect 2012Gender Female (60%)Age Average of 38.9 yearsHome Language Afrikaans (72%)Annual gross income R20 001 to R140 000 (27%)Occupation Student (16%); Management (16%)Province of residence Eastern Cape (91%); Western Cape (4%); Gauteng (3%)Travelling groups size Average of 4.24 peopleNumber of people paid for Average of 2.56 peopleLength of stay at Festival Average: 1.68 day, 1 nightExpenditure R1 378.90Tickets purchased Average of 2.76 ticketsNumber of times Festival Average of 3.47 timeshas been attendedType of accommodation Day visitor (40%); Family and friends (19%)Source of Festival Radio (47%); Word-of-mouth (46%); Newspapers (35%)informationMotives for Festival To spend time with friends and family; Sociable festival; To relax; Toattendance get away from my routine; It is a great opportunity in the areaFestival as main reason for Yes (78%)visit to KirkwoodDecision to attend More than a month ago (36%); Spontaneous decision (34%) 24
  31. 31. Initiator of trip Self (42%), Friends (30%)Aware of buffalo auction Yes (47%)Repeat attendance Yes (85%) Kirkwood Wildlife Festival is well organised; Visible signage;Service levels Information about the Festival is readily available; Variety of entertainment is good; Service is effective6.2 Conclusions with regard toFestival attendeesThe following conclusions were drawn with regard to attendees of the Kirkwood Wildlife Festivalin 2012: • Respondents at the Festival were Afrikaans-speaking persons in their late thirties, earning an annual income of between R20 001 and R140 000 while still being students or working in a managerial position. • The majority of respondents originated from the Eastern Cape, while travelling in groups of four persons, being financially responsible for two to three of the persons. • Respondent groups spent an average of R1 378.90, which included the purchases of two to three tickets during the two days and one night they spent at the Festival. • A significant number of festinos are from the Eastern Cape and this high percentage is evident in the spending patterns as well. • Respondents had visited this Festival an average of three to four times during which they prefer to be day visitors or to stay with friends and family. • Radio, word-of-mouth and newspapers were the most effective mediums of marketing for the Festival. • The Festival was respondents’ main reason for visiting Kirkwood, and they attended the Festival in order to spend time with family and friends, to be sociable, to relax and to get away from their daily routines. Respondents also felt that the Festival is a great opportunity for the area. • Respondents either decided for themselves to visit, or their friends initiated their visit, which was decided upon either more than a month in advance or spontaneously. 25
  32. 32. • Less than half the respondents indicated that they were not aware that the Kirkwood Wildlife Festival is the only wildlife auction where Addo Elephant National Park sells their buffalo. • More than three-quarters of respondents indicated that they would attend the Festival again. This can be attributed to the good service they experienced during their attendance as well as their expectations being met. • This festival generates approximately R27 million, which compares well with a festival such as the Vryfees in Bloemfontein.6.3 RecommendationsThe following recommendations were made: 6.3.1 Recommendations made by respondents • Cheaper entrance fee; • Pensioner discount; • Get more interesting artists; • Improve parking situation; • More toilets; • Start music shows earlier; • Introduce breakfast stalls for persons arriving before lunch; • There is not enough shade to protect people from the sun during performances; • Sell special weekend packages with cheaper entrance fees for people who visit for more than one day; and • More seating. 6.3.2 Recommendations made by researchers • In order to increase the economic value, the festival has to target other provinces. Visitors need to stay over since they then spend greater amounts. • This type of research should continue in order to develop a database and identify trends. 26

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