Assessing Economic Value of Local Festivals for Sustainable Development: A Case of Yeongju Korean Seonbi Culture Festival

Diversity of financial resources is important to increase the sustainability of festivals. This is because even if one of the festival's resources is stopped by external variables, the festival can be continued with other resources. Local festivals often suffer from low levels of economic independence as a primary concern for their economic sustainability. To solve the aforementioned real-world problem, this study investigated the determinants of festival goers' willingness to pay for the development fund for the local festival. By using the CVM method, this study initially hypothesized four festival quality factors, three festival related decisions, and four demographic factors in the model. In total, 695 questionnaires were collected from visitors who completed the festival experience through an on-site survey for the Korean Seonbi Culture Festival in Yeongju, Korea. Based on a double-bounded DC CVM, the results of this study showed that festival environment, past visit experience, and demographic factors were significant determinants of festival goers' willingness to pay for the fund. In addition, it was attempted to estimate the value of this festival through WTP (WTP; willingness to pay). This study offers the foundation for the introduction of a development fund to make the local festival economically sustainable. The theoretical and managerial implications are discussed.