How does Arts Fest impact State College area businesses? Here’s a look

The Central Pennsylvania Festival of the Arts is back for its 60th year, bringing with it a large wave of visitors that helps spur the economy in an otherwise sleepy period for a college town.

Locally recognized simply as Arts Fest, the festival takes over downtown and a portion of Penn State campus each July, attracting 144,400 visitors last year, according to the Happy Valley Adventure Bureau, with a large number of those visitors coming from out of state.

“Arts Fest is one of the most important summer economic drivers for downtown State College and the broader visitor economy,” said Todd Dolbin, Chamber of Business & Industry of Centre County’s vice president of economic development. “It brings significant foot traffic during what would otherwise be a quieter period.”

Beyond its economic impact, the festival supports small businesses, showcases the region’s assets and strengthens the place-based economy that helps Centre County attract visitors, talent, employers and future residents, Dolbin said.

During the same weekend as Arts Fest, the People’s Choice Festival in Boalsburg and Way Fruit Farm’s Art in the Orchard in Port Matilda provide additional attractions featuring local artists, handmade crafts, food vendors, live entertainment and family activities. They offer visitors another destination to experience local art, culture and entertainment, and to make a weekend out of it.

A 2024 economic impact report commissioned by the Happy Valley Adventure Bureau and the Happy Valley Sports & Entertainment Alliance found that Centre County’s arts, entertainment and cultural activities generate $120 million annually, including $98 million in visitor spending.

Hospitality and tourism

During Arts Fest, the local hotel and tourism industry experiences a boost, with hotel occupancy at about 70% in a typical year, according to the HVAB.

With a slew of visitors coming to town, preparation before the event is key to a successful turnout, Fermin Almeida, marketing coordinator for Hotel State College, said.

The 13-room hotel on the corner of West College Avenue and South Allen Street is fully booked and performs with a full staff on deck that include student employees who are in town for the festival.

The festival generates less revenue than a Penn State football or graduation weekend, but it helps offset the summer slowdown by doubling the hotel’s revenue compared with a typical summer weekend, Almeida said.

“It’s like a very small version of a football weekend, so it really gets us ready for that kind of craziness,” he said.

Meanwhile, larger hotels such as The Hampton Inn State College located at 1101 E. College Ave., had no availability as of Friday afternoon, while its other location on 1925 Waddle Road had three rooms available for the weekend. The Nittany Lion Inn had only three rooms available, and Graduate by Hilton Garden Inn State College had two rooms available.

Local business impact

The festival’s big presence downtown impacts surrounding businesses such as Cozy Thai Bistro, by lifting revenue back to in-semester levels, which is a substantial positive impact, co-owner Peeranee Musigchai said.

The restaurant, located along the festival’s route at 454 E. College Avenue, typically sees its summer revenue nearly double during Arts Fest, reaching levels similar to a typical busy semester night, Musigchai said.

The festival is even more profitable for the restaurant than Penn State football weekends, which are “actually very slow,” she said.

Arts Fest also offers a unique opportunity for the restaurant to run a food-based fundraiser selling food outside of the restaurant where proceeds go toward a Buddhist forest monastery based in Arlington, Texas. The festival is the only event where they can feasibly do this, due to the multi-day nature and setup time, and they’ve supported the temple this way for years.

“It’s a lot of setting up and a lot of preparation,” Musigchai said. “Other events that they have on the street, they only have it for like a couple hours or a day, and we feel that we need more time to prepare.”

Still, some businesses experience a decrease in revenue due to the festival’s parking disruption downtown.

A local hair salon, Changing Times, located on 333 S. Allen St., and across the street from the festival, experiences appointment cancellations and less business revenue during the festival.

“Many clients don’t end up showing up after they realize there is a festival going on across the street,” hair stylist Robin Curry said, adding how many of the senior and out-of-town clients say they do not want to deal with traffic and parking difficulties.

Arts Fest continues Sunday from 11 a.m. to 4 p.m.. For a full schedule of events and more information, visit the festival’s website.

Paloma Pimentel

Centre Daily Times