ABSTRACT
This chapter describes the potential impact of wine and food events on local economies in particular by analysing their potential multiplier effect. Food and wine festivals are thus likely to constitute an important element in regional economic development strategies. The attractiveness of food and wine events is dependent on a large number of factors making the attendance very volatile. Risks and limitations associated with the development of tourism in general and food and wine events in particular are four-fold: inflationary and tax pressure;congestion costs and deterioration of local resources;crowding out;over dependency on tourism. Real estate speculation may cause a particular type of crowding out often found in tourism places: as the number of tourists grows, the tourism investment will develop and new facilities will be built, for instance in places previously dedicated to agriculture or viticulture. Consequently, local wine and food production capacities will be increasingly constrained, thus creating conflicts with the tourism industry and reducing local attractiveness.
