For some businesses, SXSW is ‘really like a second Christmas’
In 2009 alone, internationally renowned two-week music, film and interactive festival South by Southwest injected approximately $99 million into the local economy, directly and indirectly, according to a study released by Greyhill Advisors, the consulting firm in charge of analyzing the economic impact the media conference had on Austin. Additionally, Greyhill found the combined value of media coverage totaled $21.4 million.
“One of the most interesting things we found is that despite a sluggish economy, 2009 was a banner year,” said Ben Loftsgaarden, who works in the firm’s Austin office. “The length of the festival makes it so significant. Most festivals tend to be set around a weekend, whereas SXSW is nine full days. That means different audiences at different times and different spending patterns.”
Locally owned businesses spend weeks preparing for the festival and anticipate record-high sales. The boom in business oftentimes carries these companies through harsher fiscal times.
“If you are a downtown business owner, SXSW may not necessarily make you or break you, but it is going to be the gravy on top,” he said. “It provides a boost to your bottom line that most local merchants usually rely on in the latter part of the year.”
Melisa Rodriguez, manager of downtown gift shop Wild About Music, recently flew back from a retail trade show in Las Vegas where she stocked up on inventory specifically geared toward SXSW crowds and Austin tourists. The locally owned store, ideally located in the thick of the conference, sees double and triple sales during the festival, one of the busiest times of the season.
