How to value a cultural festival? The case of Petronio Álvarez Pacific Music Festival in Colombia

The article identifies factors related to the local context that influence the valuation of a local, traditional and internationally recognized music festival. Analyzing the case of Petronio Álvarez Pacific Music Festival held in Cali (Colombia), a valuation equation of the festival is estimated via an ordered probit model based upon microdata provided by a face-to-face survey (N = 1257). Results show that there are two key factors shaping the valuation of the festival: (i) previous experience of attending the festival, (ii) perceptions and expectations individuals have over the implications of the festival celebration (even if not participating), that is, the territory’s externalities (the creation of income and employment for the city) and personal benefits (cultural enrichment and enjoyment of a well-executed festival’s plan). Finally, our work provides policymakers with an instrument that reduces uncertainty about the characteristics of the festival, which can also be used as a managerial decision instrument based on empirical evidence about individuals’ perceptions.