The primary goal of the research was to understand the festival not solely through attendance and ticket-sales figures, but also as a complex cultural, social and economic system connecting the communities of Kapolcs, Taliándörögd and Vigántpetend for ten days. The findings can provide directly applicable insights for the organizers, supporting visitor experience, partnerships, and the festival’s long-term development. 

The research builds on a methodological framework developed by Dr Giuseppe Attanasi and previously applied successfully at the Italian festival La Notte della Taranta. “Applying this methodology in Hungary makes it possible to compare findings across settings and to gain a deeper understanding of festivals’ economic effects through rigorous econometric analysis,” said Dr Attanasi, who developed the methodology. “A further aim is to examine social impacts in greater depth, providing a foundation for additional international comparisons and for supporting strategic development in the field,” added Dr Giovanni di Bartolomeo. 

Corvinus students played an active role in implementing the research. The ten-day on-site data collection was supported by eight university students working as volunteers, while one final-year student assisted the research team as a research assistant. The team surveyed approximately 120 vendors and nearly 1,000 festival visitors. 

Initial data indicate that the festival’s positive growth trend continued despite the heat and the higher number of visitors. Weather conditions posed a challenge this year: following cool nights at the start of the festival, temperatures rose above 38°C on the final day. 

More than half of festival visitors now belong to Generation Z. For them, the Valley offers an attractive, affordable and diverse festival experience; their main motivations are music and spending time with friends. More than 60% of respondents are returning visitors and plan to attend again next year. The preliminary findings also reveal an interesting pattern in the use of digital tools: even younger visitors appear to prefer in-person to online connections at the Valley, while technology adoption is driven primarily by cashless payments. 

The growing popularity of the Valley of Arts cannot be explained solely by its musical and other artistic programs. Over the ten days, approximately 200 craft vendors and 70 food-and-beverage vendors operate across the three villages, many arriving from different parts of the country. Through their handmade products, culinary offerings and personal presence, they do not simply serve visitors; they actively shape the festival’s atmosphere, cultural character and economic activity. 

“The value of the Valley of Arts cannot be reduced to ticket sales. The festival is a meeting place where visitors, local communities, craft vendors, and program organizers create economic and cultural value through their interactions,” said Dr Loretta Huszák, a researcher at Corvinus University of Budapest. 

Not Just Vendors, but Partners 

The first stage of the research focused on the festival’s craft and food-and-beverage vendors. The findings indicate that the Valley has developed a stable community of returning partners. Among responding vendors, 81.7% had previously participated in the festival, and more than one-quarter had returned more than ten times. This suggests that participation is not a one-off opportunity, but a lasting business and professional connection. 

For newcomers, acquiring new customers and building business relationships are particularly important. Among returning partners, supplementary income plays a more prominent role. The festival can therefore serve simultaneously as a market-entry opportunity, a branding platform and a recurring sales opportunity. 

Vendors contribute not only through their sales at the festival but also to the surrounding area’s economy. The vast majority are not local residents, and therefore spend money on accommodation, food and other local services during the festival. Based on the researchers’ indicative, scenario-based approach, local spending can be estimated; this estimate reflects only the approximate scale of local financial flows associated with vendors. 

At the same time, a ten-day presence at the festival requires considerable physical, organizational, and financial effort. The fact that many vendors return year after year with handmade, high-quality products indicates that they find participation valuable both commercially and culturally. Most are sole proprietors, for whom the festival provides supplementary income, visibility, new customers and networking opportunities. 

The Festival as a Living Learning Space 

One of the strongest findings of the vendor survey is that the Valley of Arts also serves as a setting for entrepreneurial learning. According to 95.1% of respondents, conversations with visitors help them understand what customers value, while 88.2% said customer feedback helps improve their offerings. 

Vendors also learn from one another: 83.3% consider sharing tips and information with other vendors useful, while 78.5% draw ideas from observing fellow vendors. The festival thus functions as a living market laboratory, where participants can test products, communication approaches and sales practices in real time. 

“Investment in vendors’ operating conditions yields results. Festival organizers have worked for years to make transparent transactions and cashless payments widely available, and the success of that effort is evident: they have become accepted processes and technologies among vendors. The festival – and particularly organizer-led innovation – creates a real and visible learning ecosystem,” emphasized Dr Ivett Pinke-Sziva, Associate Professor at Corvinus University of Budapest. 

More Than a Music Festival 

Taken together, the visitor and vendor data suggest that one key to the Valley of Arts’ success lies in its dual nature. On the one hand, the presence of young visitors, especially Generation Z, is growing; they come for music, friends and an affordable festival experience. On the other hand, the festival has a stable, returning community of craft and gastronomy partners that embodies its distinctive cultural character and may also appeal to older visitor groups. 

The next stage of the research will complement these findings with a detailed analysis of the visitor survey. The aim is to explore how different visitor groups connect with the festival’s craft and gastronomic offerings, and which developments could simultaneously strengthen participating businesses, visitor experience and the Valley’s cultural identity, as well as its measurable economic and social impacts. 

The research team includes Dr Loretta Huszák and Dr Ivett Pinke-Sziva from the Institute of Entrepreneurship and Innovation at Corvinus University of Budapest; Dr Giuseppe Attanasi and Dr Giovanni di Bartolomeo from CIMEO – Laboratory of Experimental Economics at Sapienza University of Rome; and Natália Oszkó-Jakab, Director of the Valley of Arts Festival.