Insomniac Claims EDC Las Vegas Economic Impact Near $1.3 Billion Over Past Five Years
With all of the negative press that EDM festivals get in the United States, Insomniac Events has taken a different approach to try and sway minds to the positives of their events. Organizers have commissioned Beacon Economics to release a new study on economic impact of EDC Las Vegas on its home city and have come up with the number of $1.3 billion over the past five years from 1.7 million people.
The new report breaks down that total into several key figures. The 2015 edition, which drew 405,000 attendees, boosted the Clark County economy by $350 million. This number has risen from $137 million in 2011.
Attendees direct spending amounted to $168.3 million, bringing their spending impact to $1 billion over the past five years. The 2015 festival brought in $21.9 million in state and local tax revenue. That number balloons to $81.4 million over the past five years.
Attendees have spent $638 million over the past five years and Insomniac has spent another $280 million.
"Each year EDC brings in hundreds of thousands of visitors to Las Vegas, including many who didn't have a ticket to the festival, but wanted to experience the destination during EDC Week," said Clark County Commission Chairman Steve Sisolak. "From EDC to the overall entertainment appeal of Las Vegas, EDC Week gives these visitors an experience that only this town can offer."
These types of reports have always been fraught with issues. Sporting events generally generate the most attention and economic impact studies since there is tax payer money involved. There are arguments on both sides, but many economists believe that the big sporting events don't bring in the type of money to a city that organizers like to claim because other would be tourists tend to avoid that city or locals flee the city to avoid the congestion and mayhem of an overcrowded city.
It should be noted that tourism makes up 12.9 percent of Nevada's GDP according to a 2013 estimate, the highest in the country, which would make new visitors more impactful on the overall state economy.
Check out a nifty infographic for a bit more detail into the numbers below.