STUDY PUTS ECONOMIC IMPACT OF SXSW AT $348.6 MILLION

Organizers cite growth of event, higher costs to attend for cash surge.

South by Southwest contributed $348.6 million to the Austin metro area’s economy in its latest fiscal year, as the growth of the organization and higher attendance costs helped drive a resurgence of economic gains for the region, according to an analysis released Wednesday by festival organizers.

While still short of the double-digit growth rates SXSW posted earlier this decade, this year’s 7.2 percent increase in regional economic contributions marked a notable rebound from the modest growth rates the prior two years. Last year, the festival generated about $325 million for the region.

The 2017 gains stemmed in large part from the growth of SXSW operations, which includes sponsorships, as well as greater spending by attendees, according to the analysis conducted by Greyhill Advisors.

The operations of the SXSW organization for the 12 months that ended on June 30 accounted for $173 million of the total contribution to the region, up 23 percent from the prior fiscal year, the report said. The impact of direct, indirect and induced spending by official participants was $149.9 million, up 8 percent.

“All those folks from Brooklyn coming in with their skinny jeans are leaving behind fat cash,” Austin Mayor Steve Adler quipped during a news conference at City Hall.

Yet, the rising cost to visit Austin during SXSW did more to boost