Coachella
Paula Peyton
Mr. Reuter
Economics
25 April 2017
Coachella
Coachella 2017 is currently being held in Indio, California. It’s a music and arts festival that’s highly attended from people around the country, including many celebrities. Coachella consists of 2 different 3 day weekends, containing the current most popular performers. Musical heavyweights include Lady Gaga, Beyonce, and Kendrick Lamar. With large music festivals, come huge revenue for the city. Coachella has given a huge boost to the economy. Nearby hotels are in high demand and booked months ahead of the festival’s dates, giving profit to the hotel and economy from taxes. Consumers and businesses spend $704 million overall during the festival. It’s estimated that $403 million is spent in the city of Indio. $106 million is estimated to be injected into the economy. Just the cost of tickets brings in $3.18 million of profit, and that accounts for 5% of the city’s general fund. The cost of a 3 day pass in 2015 was $375, and in 2017 it’s now $400 for the same ticket package. The event is able to raise the price, because they know people will still buy them because it’s such a popular festival. Each day 99,000 people attend Coachella. Most spend their entire day there, so they are inclined to spend their money on food, beverages, and the various activities and booths set up.
Coachella invigorates the local economy in Indigo where 21% of the population is under the poverty threshold. Goldenvoice, a company based in LA, gives the city $5.01 for every pass sold to the festival. Businesses that support Coachella, such as food vendors, receive a positive externality from this music festival. So do businesses outside of the festival grounds, as they are going to be visited more from people going to and leaving the festival. Despite the total cost of tickets, hotels, flights, etc to attend this festival, I personally think it’s worth the opportunity cost. Coachella would be a vacation to California, a chance to meet new people, spend time with friends, and see all your favorite artists in one package.
Works Cited
"Coachella 2017: What Does It Really Cost to Attend? | Money." Time. Time. Web. 25 Apr. 2017.
"Coachella by the Numbers: A Breakdown of the Festival's $700-million Impact." Los Angeles Times. Los Angeles Times. Web. 25 Apr. 2017.
Seabrook, John. "The Mastermind Behind Coachella." The New Yorker. The New Yorker, 12 Apr. 2017. Web. 25 Apr. 2017.
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