The Economic Impact of the Medieval Journey of Santa Maria da Feira

Abstract

Local events play a pivotal role in enriching the tourism experience by offering visitors authentic cultural interactions, fostering community engagement, and creating unique opportunities to explore the identity and traditions of the destination while simultaneously driving economic growth, enhancing regional visibility, and strengthening the cultural heritage of the host community. Assessing the economic impact of local events is essential to understanding their contribution to regional development, justifying local investments, and help guiding policymaking. Thus, this study evaluates the economic impact of the Medieval Journey, a regional event held annually in August in Santa Maria da Feira in Portugal. This cultural event attracts not only local visitors but also visitors from abroad. As cultural tourism has gained prominence in recent years, events like the Medieval Journey have become important cultural touchstones yet significant drivers of economic activity. This study aims to quantify the economic contributions of the Medieval Journey to the local economy by investigating demographical patterns, spending behaviors, and expenditure allocations in accommodation, food, retail, and travel categories. By employing survey data from event visitors, the economic impact analysis was structured, and four scenarios were developed and tested, aiming to unveil how visitor demographics and spending alterations affect the overall calculated level of economic impact. Local visitors are the most significant contributors in each scenario because of their volume. In contrast, the smaller number of international visitors shows a high impact due to more significant per capita expenditure. These results thus underpin the economic value of the event both to the local community and to any growth potential by increasing the proportion of international attendees. The present research highlights the role of cultural events in driving regional economic resilience by showing how the Medieval Journey strengthens the local economy through significant tourism expenditures, support for businesses operating at a local level, and enhancing the cultural visibility of Santa Maria da Feira. Overall, this thesis provides practical suggestions regarding improvements in the organization of events and in the policymakers' strategies, which will enhance international attendance and data collection processes and bring out the best possible potential from cultural assets to increase economic sustainability for the event. The paper contributes to the larger area of tourism economics literature by considering how the interplay of local and international spending determines the overall economic effects of a regional cultural event.