VIRGINIA BEACH, Va. — Friday, ‘Something in the Water’ comes back to the Oceanfront.
@coastalcurr3nts It's a return four years in the making and is expected to bring lots of visitors and dollars to the Resort City. But how much do festivals like ‘Something in the Water’ make for the city? #somethinginthewater #sitw #virginiabeach ♬ original sound - WTKR News 3
It's a return four years in the making and is expected to bring lots of visitors and dollars to the Resort City.
But how much do festivals like ‘Something in the Water’ make for the city, and how do events like this benefit Hampton Roads residents?
News 3 took these questions to city leaders.
“I think it’s great!”
Jamie Agnew is excited about the festival's return to her hometown.
“I think it's a great opportunity for the beach to get some young music in there,” she said.
The same goes for Patrick Siksay, who has called Virginia Beach home for more than 20 years.
News 3 asked Siksay who he’d be most excited to see at this year’s festival.
“They have the Wu-Tang Clan. I'm a big Wu-Tang Clan fan from back in the 90s. I'm a 90s kid,” he said.
Agnew added the festival’s return will help local businesses.
“It brings people in from out of town everywhere. Those businesses didn't have all of that traffic during the pandemic,” Agnew said.
Virginia Beach Mayor Bobby Dyer is also looking forward to the festival coming back after its inaugural event at the Oceanfront in 2019.
“We had one of the most positive events in the history of Virginia Beach,” Dyer said of the 2019 festival.
The return also comes three years after the start of the COVID-19 pandemic.
“It just shows that we are back, we are open for business, and we want people,” Dyer said.
News 3 also talked with Taylor Adams, Virginia Beach’s Deputy City Manager for Economic Vitality. Adams oversees factors in the city, including economic development and tourism.
“People travel for music,” Adams said.
It's no question tourism is a big money-maker in Virginia's most populated city.
Adams referenced data from Virginia Beach in 2021, which showed tourism activities across the city drummed up about $2.1 billion in direct revenue.
In terms of what that meant for the city's budget, Adams said that direct spending on tourism generated just more than $400 million worth of tax for the city.
He said music festivals, like 'Something in the Water' and the new ‘Beach It! Country Music Festival’ coming in June, equal big bucks.
“By having these festivals, we know that we can deliver a higher-quality of service at a lower cost when you look at real estate tax than many of our peers can,” Adams said.
So what are the economics behind festivals like 'Something in the Water' for Virginia Beach?
Economic Impact of 2019’s ‘Something in the Water’
News 3 got an analysis from Virginia Beach officials, produced by city leaders and officials with Old Dominion University, looking at the economic impact from the 2019 'Something in the Water' festival.
According to the study, the city spent more than $1.1 million to host the festival.
This included more than 452,000 in total expenses for the police department.
34,000 tickets were sold, according to the report.
Those ticket holders generated just north of 21.7 million of economic activity. This is all related to areas including lodging, food and beverage, and entertainment.
But how much did the city get back from hosting the festival in 2019?
The study showed the total fiscal impact, representing the tax revenue generated, totaled more than $1.2 million.
“We made a very small investment in 2019,” Adams told News 3. “We had no idea what this festival was going to do. But, thanks to the leadership of our elected body, we stepped out on faith and generated a positive result.”
Where does the money go?
Adams explained to News 3 what happens to the money that comes back to the city from the festival.
“It's spread across all of the sources of programs to ensure that our infrastructure performs, that our rec centers are able to operate, [and] that our parks continue to be world-class,” he said. “Our city council continues to be, we see year over year, committed to spending on amenities.”
Fast forward to 2023, Adams's estimate for total tax revenue for the city from this year's festival is at a minimum of four to five times that of 2019.
“That's just on the number of people that are coming here,” Adams added. “If you add in what's been a pretty heavy inflationary environment, I think it could be much larger.”
Meanwhile, those like Siksay are excited about what the festival can bring.
“Some people may complain about the tourists, but at the end of the day, we're a tourist town and we have to be able to support that,” Siksay said. “We have to be able to support that market to help our city to be able to continue to thrive.”
Adams also told News 3 an independent third-party will be doing a study on the fiscal impact of this year's festival.
He said that should be coming out in about a couple of months.
