From local fest to global phenomenon: Notting Hill Carnival’s economic surge
FLORENCE – As London prepares for the vibrant beats and colorful parades of the world-famous Notting Hill Carnival, scheduled for 24-26 August 2024, a new study conducted by The Data Appeal Company, part of Almawave Group, predicts1 a significant boost to the local and broader London economy.
Some of the main highlights of the upcoming Notting Hill Carnival include that it is expected to draw a record-breaking attendance, with an estimated 2 million visitors anticipated to join the festivities. This remarkable turnout would potentially cement the carnival’s status as one of the world’s largest street festivals. As a highly celebrated event, recently voted onto the list of icons of England, the carnival not only showcases the vibrant culture and spirit of the local community but also attracts a diverse audience. Both domestic and international tourists flock to London for this colorful celebration, which has a significant impact on the city’s tourism economy, extending well beyond the immediate event dates.
Recent data highlights a significant shift in the demographics ofCarnival attendees, with a growing international appeal. Traditionally dominated by local participants, the upcoming Carnival is anticipated to draw an even larger number of international visitors, building on last year’s trend. In 2023, the share of international visitors during Carnival week saw a marked increase compared to the rest of the year, with particularly strong representation from Germany, the United States, and the Netherlands.
The economic impact of the Notting Hill Carnival is projected to be substantial, with forecasts suggesting it could generate an impressive £150 million in total spending. This figure underscores the event’s significant influence on the local economy, benefiting a wide range of businesses. From local vendors and food stalls to hospitality services and transportation providers, the carnival stimulates economic activity across multiple sectors. The influx of spending not only boosts the immediate financial landscape of the area but also contributes to London’s overall economic vitality during the festival period.
Projected sector-specific boosts
- Food and Beverage: 59% – The largest portion of spending is allocated to food and drink, highlighting the carnival’s role in stimulating local restaurants, food stalls, and beverage vendors.
- Hospitality: 21% – This significant sum reflects the boost to local hotels, guesthouses, and short-term rentals.
- Transportation: 20% – This considerable amount indicates increased use of public transport, taxis, and possibly car hire services during the event.
Hospitality surge and rates spike
The Notting Hill area is bracing for a dramatic increase in hotel occupancy, with Online Travel Agency (OTA) saturation predicted to peak at 84.8% during the festival. This surge indicates extremely high demand, with almost all available accommodation booked in the area. It far exceeds London’s overall expected peak of 23.5% during the same period, highlighting the event’s localized impact.
Average hotel rates in Notting Hill are projected to jump by 8.4% at the start of the carnival, reflecting the high demand for accommodations. The economic impact extends beyond the three-day event, with rates beginning to climb several days prior, rising from £154.2 on 21 August to £211.1 on 23 August. The highest average rate is expected on the day the carnival starts (24th) at £229. Post-event rates in Notting Hill drop dramatically to £150.3 on 27 August, a 21% decrease from the carnival’s final day.
Mirko Lalli, CEO & Founder of The Data Appeal Company, commented: “The Notting Hill Carnival has a significantly more pronounced effect on the local area than it does on London as a whole. Nevertheless, the Carnival remains a highly attractive event with a huge economic impact on the English capital. No other event in London can rival its high attendance and spending figures in August. This proves that it is no longer just a fun event for residents, as some media outlets claim. It has become an international attraction with global appeal. It is crucial for tourist destinations and all stakeholders, in particular hospitality and F&B operators, to monitor the growth of events and their impact on the territory. This allows them to seize the most profitable opportunities as trends change and to redirect tourist flows to reduce pressure during peak periods.”
1. The Data Appeal Company utilizes publicly available online data such as OTA rates, in addition to GDS flight data, alongside proprietary and third party data on event spending and attendance from a variety of trusted sources.
The article From local fest to global phenomenon: Notting Hill Carnival’s economic surge first appeared in TravelDailyNews International.