Effect of Festival Tourism on Local Economic Development in Osun State, South West Nigeria

This study investigates the effect of festival tourism on local economic development in Osun State, with particular reference to the Osun-Osogbo Sacred Grove Festival. Recognised as a UNESCO Intangible Cultural Heritage event, the festival attracts both domestic and international visitors annually, generating economic activity across hospitality, trade, and arts sectors. The study employs a descriptive survey design with questionnaires administered to 200 respondents including traders, hotel operators, artisans, and visitors during the 2023 festival period. Economic impact indicators examined include income generation, employment creation, and market expansion for local goods. Findings reveal that the festival period produces a measurable spike in hotel occupancy rates, rising from 41 percent to 87 percent during the event week. Artisan and food vendor revenues increase by an estimated 60 percent compared to non-festival months. However, the study identifies inadequate accommodation capacity, traffic congestion, and waste management failures as persistent challenges. It recommends that the Osun State government invest in festival infrastructure, introduce official vendor registration to manage economic benefits equitably, and establish a dedicated festival tourism fund to support capacity development. These strategies are intended to maximise the developmental impact of cultural tourism on host communities. Keywords: festival tourism, economic development, Osun-Osogbo, cultural heritage, community benefit