Film Festival: Success Stories and Initiatives for the Future of Tourism

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1 Film Festival: Success Stories and Initiatives for the Future of Tourism Claus Mueller Professor Dept. of Sociology & Social Research Hunter College, CUNY 183

2 I would like to thank the UN World Tourism Organization and the Korea authorities inviting me. It gives me great pleasure sharing this information and discussing the opportunities and challenges of International Film Festival Tourism. Permit me to define first what we are talking about. Film Festival Tourism refers to packaging a film festival with other attractions its location offers to upscale individuals who are engaged in or interested in cultural tourism. THE IMPORTANCE OF TOURISM For many developing countries tourism and migrant labor are large sources of income. In Mexico, tourism is the third largest source of income after oil and remittances from migrants relying heavily, as other countries on foreign visitors. In order to sustain this continual growth of revenue, tourism marketing has become more differentiated and focuses increasingly on audience groups which are more affluent. The packaging of Film Festivals as a tourist destination is an important new strategy that fits the appeal to affluent groups and reflects a new niche segment of the tourist trade. ECONOMIC BENEFITS AND PUBLIC SUPPORT FOR FILM FESTIVALS Film festival tourism is a relatively recent phenomenon is. It refers to the organized effort to use film festivals as a central incentive to attract cultural tourists or consumers in addition to the film professionals, like buyers, filmmakers and actors, drawn by the theme or the importance of the festival for the film industry. Numerous studies demonstrate the contribution cultural tourism makes to the local 184

3 economy but few focus specifically on the economic impact of film festival tourism. Among the exceptions are an economic impact study carried out in 2006 revealing that the annual ten-day Santa Barbara Film Festival generates an additional $7.3 million in revenue and a report on the 2004 Film and Visual Media in Austin which estimates that $9.3 million were prompted by their film festival. These studies focus on the clear economic and political benefits derived from investing in cultural events since more visitors come to the venue of the festival and support the local economy through expenditures on lodging, meals, local products and other leisure activities. The continued expansion of film festivals, by now more than 2500 worldwide, is well known. What is less known is that public authorities frequently provide financial support. Public and private agencies are embracing film festival tourism to facilitate new sources of income both for local business and taxation. Further from a political perspective support for the arts is not controversial and bestows prestige. In the United States such support is no longer an exception. On the international scale, the Cyprus Tourism Organization generated funding for the first Cyprus International Film Festival, a festival that intends to combine the glamour of Cannes with the talent of Sundance and places, guided by the motto (sponsor Vakis Loizides) that Cultural tourism is a priority for us. The 2006 Bangkok International Film Festival was so well financed by the Tourism Authority of Thailand and had such a great appeal for tourists that for some observers the celebration of cinema receded into the background as did its relevance for the local film industry. Among other international festivals co-funded out of tourism budgets are the festivals of the Cayman Island, the Bahamas, Singapore, Ankara, Istanbul, Tirana, and Zanzibar. The Zanzibar fest actually is branding itself as an "East Africa Cultural Tourism Product". EXPANSION OF CULTURAL TOURISM This development has to be placed into the context of cultural tourism, that is the attraction which museums, historical sites, concerts, large art exhibits and other cultural events offer. It is also a consequence of cultural globalization and the rise of mobile and affluent cosmopolitan groups. Whereas cultural tourism was pretty 185

4 much restricted to economic elites and special interest groups during most of the past century, it has developed over recent decades into a significant niche activity for the rapidly expanding upper middle class. The consumption of soft cultural products ranging from events to visual representations has become an integral part of the upper middle class life style as is the greater acceptance of having this consumption packaged by external agents. Given the image orientation of post-industrial societies both film and film festival tourism have taken on a growing significance in the field of cultural tourism. Individuals engaging in cultural tourism are willing to pay for a packaged experience, presumably saving time and energy for a more effective consumption of culture during their trips. It is obvious that reaching affluent culture travelers generates a high profit margin than margins derived from average beach or mountain tourists. The key to effectively accessing these groups is by selling experience through highly individuated and personalized approaches. This cultural tourism, which is part of what is also known in the trade as destination or event tourism is facilitated by the growing discretionary income of upscale groups who are willing to pay thousands of dollars for participating in a film festival, attending a literary event, or listening to operas. Examples of all inclusive expensive packaged culture trips include participation in Bayreuth s Wagner festival for about $6000 or a trip Jews in India lasting 12 days for up to $ In the United States and Western Europe increased interest in film festivals is fueled by exposure to college-based film and communications programs, rising consumption of visual products through stationary and portable platforms (which, in the US, will reach this year an estimated weekly 42 hours per individual), and the advent of a sensate here and now culture. Last but not least, film festivals have become an important part of the cultural landscape surrounding us. Consumption of culture can be used as a factor differentiating audience groups since it serves as a social status symbol. After all, participating in an established film festival in a wellknown or exotic and foreign location provides intangible prestige since it reflects a unique experience that can be ranked higher among peers than driving a BMW. Socially speaking, there is more to sharing with friends the talk one had with 186

5 Nicholas Cage or Shirley MacLaine than discussing the acceleration of the upscale car one owns, though access to both actors and car are equally expensive. In addition there are several characteristics of post industrial societies which contribute to film festival tourism and the consumption of culture. As noted we have greater affluence in upscale groups and growing discrepancy between social classes, a phenomenon we also observe in many developing countries. Declining family size increases the discretionary income. We observe an increase of the white collar blues that is dissatisfaction with one s professional occupation (though by far not as stark as in blue-collar jobs). This fosters a growing re-orientation to the private sphere as the principle area of self realization and the shift towards a leisure life promising instant gratifications It has become more accepted in upscale groups that the individual s or the group s experience is packaged by external agencies, be it a travel agency or a lifestyle coach. Further participation in a film festival bestows prestige and differentiates the individual festival attendee from others. CHARACTERISTICS OF FESTIVAL TOURISM ENTHOUSIASTS The profile of the U.S. audience of cultural tourists who could be participating in international film festivals is not surprising. Though there are no similar empirical studies of tourists from other post-industrial societies, I suspect that they would have similar findings. After all, these societies share systemic similarities. Based on data generated by Canadian Tourism Commission, festival tourism enthusiasts,, comprised in 2000 about four million adult Americans, of which approximately forty percent have taken recent trips to Mexico, the Caribbean, Europe and other countries outside North America (75% having completed such trips over the last two years). Most festival tourists live in adult only households and 187

6 come from middle, upper middle and high-income groups with above average educational achievement. About 1.4 million of the four million festival tourism enthusiasts are grouped as "Performing Arts Festival Tourism Enthusiasts," having attended two or more festivals on a recent trip. 450 thousand have participated in international film festivals and an additional 145 thousand individuals from the Themed Community Festivals group listed past participation in an international film festival. Their average household income reaches $68,100, which is considerably higher than that of the average US household income of $ for 2000, the year of the study. Festival enthusiasts have above average education, with 55% reporting some post secondary education and 31% reporting university graduation. Their consumption patterns in cultural or other areas are shaped by upscale education and income. Thus many of them participate during their trips in local performing arts events, include museums in their travels, and visit historic sites. Further, there is a high preference for culinary activities and international dining, all factors that need to be taken into account when cross marketing film festival tourism. To quote Marc Lhomer from the Sanoma Valley Film Festival Our festival appeals to a range of people with interest in film, food and wine. In that context note that, one out of six Americans engaging in leisure trips make culinary activities part of their travels. Film Festival Tourism has therefore a solidly mid- and upscale consumer base which is likely to grow in tandem with the establishment of more film festivals, thus with greater ease of access. The Canadian Tourism Commission estimates that the international film festival audience is likely to increase by 40 percent by Since there are no indications that the structural characteristics of our societies will change, I suspect that film festival tourism' growth rates will be larger than the Canadian estimates, in part because the niche market of film festival tourism has not yet been commercialized at all. WHAT FEW AGENCIES OFFER TO FILM FESTIVAL TOURISTS 188

7 This socio-economic context combined with the shift to the experience-based society, leads too the emergence of the lucrative and stimulating niche of film festival tourism, which follows the patterns of event and destination tourism. What was packaged in 2006 and 2007 by relatively few agencies and individuals ranges from the eleven-day, biannual Floating Film Festival cruise from Costa Rica to the Caribbean, costing between $3,300 and $9,500, to the four-day Vancouver International Film Festival package, more affordably priced at $876. These charges do not include airfare nor cover single-occupancy. Spending close to $10,000 for an eleven-day film cruise may strike the observer as excessive, yet in the upscale luxury range of event/destination tourism for affluent travelers, there is sufficient demand*. The end-of-the year Judith Christ s Tarrytown Film Fest offers 3 nights of accommodations, meals, receptions, ten groundbreaking new movies and encounters with Judith Crist and other film professionals for about $1.200 per person. In a similar vein, the Bahamas International Film Festival now in its fourth year at the upscale Atlantis hotel complex, will offer a special package deal with reduced ratesfor staying at the Atlantis Hotel during the early December 2007 festival. Eventually this film festival package may also include discounted air fares. In the film festival tourism niche, the standard packaged tour offered by agencies includes accommodations, briefings, breakfasts, lunch, tickets or a festival pass, attendance of the opening or closing night film, and access to parties. The Seattle International Film Festival sold through the Let s Travel agency based out of L.A. a package totaling $1.450 for five days at the 2007 Palm Springs International Film Festival, including airfare. Limited to 20 participants, the 2007 Tribeca Film Festival package offered by the same agency cost $1845 without airfare, and included meals for two days at some of New York s best restaurants, a ticket to one Broadway play, admittance to post-screening discussions and the promise to meet privately with film directors and other luminaries. A similar Berlin International Film Festival package was also offered by the Let s Travel agency, as was a five day package to the Savannah Film Festival for $1,570. Silver Screen Tours prominently features a well-established film professor, Virginia W. Wexman, as the tour leader, a sort of a film tour coach or personal handler. She selects the films that participants will be screening and leads the discussion 189

8 sessions arranged for the group. The tours that Virginia Wexman handles are booked through a travel agency. The cost of four days at Tribeca with Wexman is $1746, covering hotel, breakfasts, one dinner at an upscale restaurant, a tour of New York and other minor items. Similar four-day packages, including invites for the opening and closing night galas, were offered at $1339 for the 2006 Vancouver International Film Festival, at $1475 for the 2006 American Film Institute festival, and at $1604 for the 2007 Palm Springs International Film Festival. The only festival organized for upscale film tourists that has apparently delivered on all promises is the Floating Film Festival. By restricting the audience to 200 participants, as determined by the size of the theater of the luxury cruise ship used, the festival has succeeded in providing an intensive introduction to cinema by featuring outstanding films and influential directors, such as Martin Scorcese. George Anthony, Roger Ebert, Mary Corliss and other professionals have comprised the regular crew, ensuring the quality of the enterprise. It goes without saying that, given its convocation on a luxury liner, the film cruise offers gourmet cuisine and other amenities. As noted previously, the cost does not include airfare to the cruise departure location, and charges for the film cruise run from $ 3,300 to $9,500, thus including air fares and discretionary spending the costs can easily go up to $ CONDITIONS FOR SUCCESS Access by film festival tourists to the big film festivals in North America and Europe, above and beyond the provision of travel, accommodations, and passes or tickets is rather problematic. If we recall the demographic profile of festival enthusiasts, then film festival tourism seems to be most suited to smaller festivals and international film festivals in appealing locations in developing countries. There, the tastes and desires of film tourists can be more readily catered to. The film festivals of Newport, the Bahamas, Telluride, the Hamptons, San Miguel de Allende and the Samona Valley to name a few are among those fit for effective cultural film festival tourism, bestowing apart from additional revenues prestige to the location, region, or country hosting them 190

9 Evidently, success of ventures into film festival destination tourism cannot be taken for granted. They may succeed if certain conditions are met. For once the festival has to deliver quality programming since the individuals engaged in film festival tourism tend to come from affluent well-educated backgrounds with more refined cinematic tastes. Further the location of the festival must reinforce the attraction of the fest and the festival organizer need to develop a comprehensive travel package in private public sector partnerships. Ironically this applied to the Havana Film Festival before the current US administration cracked down. U.S. travel agencies offered festival packages and tourists received discounted Havana film festival passes. But there are numerous other locations with ready made appeal. These festivals take place in small but attractive geographical locations which are frequently of historical interest. They are already appealing to upscale tourists due to their exotic, foreign, maritime, or other attributes which are likely to satisfy the artistic, culinary and other leisure interests of visitors. These festivals are important enough to incorporate good productions in their programs, but small enough to permit film festival tourists access to the receptions, film directors, critics, local notables involved in organizing the festival, and other interesting festival participants. In cooperation with local travel agencies and tourist boards, these festivals can develop cross marketing strategies with effective appeals to the diverse interests of film festival tourists without standardizing their offers. Services can range from a highly individualized, though expensive, program including a local escort (or film coach) for a single cinema tourist to a package for small groups of individuals for participating in the film festival tour guided by a knowledgeable individual. Certainly there are problem areas, yet I do not think they are substantive. Some observers raised the issue that an infrastructure capable of handling an influx of film festival tourists is necessary. Let me suggest that smaller international film festivals should start with pilot projects, selling film festival tourism packages to no more than ten film festival tourists. There is a need to start small because the absorption capacity of the festival determines how many tourists can be accommodated. This capacity covers hotel rooms, upscale restaurant facilities, travel arrangements, festival events, such as receptions and parties, meetings with 191

10 film directors and film actors, and screening space. It also is advisable to test first in order to develop the best package and gauge the potential impact on local economic activities in the hotel, gastronomic, and other areas. Keep in mind that the more exclusive the package is the more expensive it will be. Also I am not sure if a costly infrastructure is necessary. If it is a small project you probably need only one individual working closely with the film festival director, the public tourism authorities and private sector interests, such as upscale travel agencies and hotels. You also have to have your package written up in upscale magazines such as the Conde Nast Traveler and U.S. as well as European tourism trade papers. Another issue pertains to direct benefits small community based film festival can derive from tourism. This question was raised at the Expresion en Corto festival in San Miguel de Allende last July reflecting resistance to having more US tourists. This concern can be overcome by incorporating in the total film festival package a fee or a community tax the film festival tourist has to pay, with the revenue restricted to use by the community. There are other problem areas. Keep in mind that film festival tourism is a new field. There has to be a close working relationship between the film festival and the public and private interests participating in film festival tourism. In one case hotel and film festival management agreed to a hotel discount actually advertised by the film festival. Yet middle and lower level hotel management were not advised of the special, thus making it virtually impossible to secure the discount reservation, generating a frustrating experience. In another case it proved not feasible to get an airlines discount for film festival tourists from the airlines sponsor of the festival. Lastly in some cases the festival has to brand or profile itself to stick out. For example, the Newport International Film Festival is considering focusing on maritime, colonial and upper class themes, while retaining traditional program components. Also if the festival is firmly entrenched in the local community, there may be local opposition to opening the festival to outsiders and broadening the program. But these are problems which can be readily overcome. 192

11 Thus film festival tourism is an attractive option for film festivals with a recognized programming profile if they are located in appealing venues provided they offer additional benefits ranging from exposure to art and historical sites to culinary excitement. This new cultural tourism niche has not yet been exploited by professional travel agencies and has tremendous potentia or any upscale boutique packagers in the U.S. or Western Europe specializing in film festival tourism. Though it should be added that several l for development. There are only two small agencies in the United States which specialize in Film Festival Tourism; to the best of my knowledge there is no other agency in that area interested individuals are currently setting up a corporation which will specialize in world film festival tourism and consulting. 193

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