Study: Riverbend pumps $29.6 million into economy [photos]

Larry Slaseman plays a vuvuzela as he sells souvenirs on the 1st day of the Riverbend Festival at Ross's Landing on Friday, June 10, 2016, in Chattanooga, Tenn. The festival is celebrating its 35th year, and Thomas Rhett was Friday night's headlining act.
Larry Slaseman plays a vuvuzela as he sells souvenirs on the 1st day of the Riverbend Festival at Ross's Landing on Friday, June 10, 2016, in Chattanooga, Tenn. The festival is celebrating its 35th year, and Thomas Rhett was Friday night's headlining act.

Events produced by Friends of the Festival

› Riverbend Festival, each June since 1982› Riverfront Nights, annual weekly summer concert series› American Dream concert to benefit Veterans Entrepreneur Progam at UTC, annual since 2013› Children’s Classic Golf Invitational, formerly Chattanooga classic, Dalton, Ga., annual› Ocoee River Days, Cleveland, Tenn.› Lauren Alaina Homecoming Celebration, 2016› “The Moving Wall Vietnam Wall replica, 2016› Chattanooga Unite, 2015› USS LST 325, 2014› Oktoberfest, 2008› Chattanooga City Hall frand re-opening, 2007› Cooking on the Quarter, 2007› Between the Bridges, 2007› Go Fest Chattanooga, annual since 2006› Air Show Chattanooga, 2005› Harley Owners Group Club H.O.G. 22nd annual Rally, 2004

The annual nine-day Riverbend Festival at Ross's Landing sees about 350,000 attendees and pumps more than $29 million into the local economy, according to a new report.

The study was conducted by Mark Burton, research associate professor of economics in the Haslam College of Business at the University of Tennessee at Knoxville. It analyzed data gathered by Friends of the Festival, which organizes the event.

While the study found lower attendance than the 550,000 estimated in a report by the International Festivals and Events Association, the economic impact is about $1 million higher than that report estimated. Both looked at the 2016 festival.

Riverbend Executive Director Chip Baker said the IFEA report, which the friends group has commissioned every two years since 2006 except 2008, is essentially an "in-house survey," and the Burton report is more valid.

"The numbers are about what we expected, though maybe a little high on the economic impact," he said.

Riverbend uses a wristband that can be taken off and used by different people, and it doesn't count attendees as they enter the gates each night, so getting an actual count is difficult, Baker said.

"It's an estimate," he said.

To find the economic impact, Burton used data gathered from surveying more than 1,000 attendees to track their expenditures. It found that Riverbend had an economic impact of $29.6 million, with money spent on things like food, accommodations, tickets, transportation and entertainment.

It also found that "Riverbend is (or was) responsible for nearly 250 full-time, year-long jobs" and an additional $800,000 in tax collections for Chattanooga and Hamilton County.

Burton said the jobs number surprised him a little.

"There is a lot of employment and things happening in the weeks leading up to and during the event," he said. "Truthfully, that number is not that huge. I thought the numbers might be bigger."

It was the only thing that surprised him from the data, he said, adding that he's conducted similar studies many times.

"We've done this in every sort of venue you can imagine in the last 20 years, from looking at the economic impact of a surface coal mining operation to a retail facility in Nashville," Burton said. "We've done all sorts of these, so the process is pretty well set."

He said that while Riverbend has an obvious economic impact, it also has become a signature event for many people for the city.

"People identify Riverbend with Chattanooga," Burton said.

Burton offered several observations in the report, including: " Readers are urged to consider the ongoing nature of Riverbend. Because it is staged over a relatively short period each year, it is tempting to view the festival's economic contributions as transitory. However, given the longevity of this festival and its need for year-long preparations, it is more appropriately treated as a permanent, ongoing business concern, with potential benefits that extend well into the future."

Baker said he is particularly proud of that.

He's also proud of the expanded role festival organizers have taken in the community, putting on more events than just Riverbend, and he feels Friends of the Festival has been a part of the city's growth in the last 35 years.

Back in 1981, people worked in Chattanooga's downtown from 8 a.m. to 5 p.m. then drove out to the suburbs where they lived, ate and shopped. The unofficial motto was, "Last one out, turn off the lights."

At the time, city and civic leaders were looking for ways to not only bring people back, but to bring communities back together and to ease racial tensions. They began thinking of all kinds of ideas, one of which was throwing a big, multiday, multilocation festival to be held in June along the city's riverfront.

Today, Friends of the Festival has broadened its mission. It produces regular events such as the free summer Riverfront Nights series, and the annual American Dream concert to benefit the Veterans Entrepreneurship Program at UTC.

It also does special one-time events, such as bringing in the Moving Wall, a half-size replica of the Vietnam Wall, and producing Chattanooga Unite, a memorial service/concert to honor the Fallen Five military members killed on July 16, 2015.

"I love that we engage so many different parts of the community," Baker said.

Contact staff writer Barry Courter at bcourter@timesfreepress.com or 423-757-6354.

Upcoming Events