As the Essence Festival of Culture kicks off in downtown New Orleans, thousands of people have already started to pack local hotels, restaurants and venues.
Though slightly smaller crowds are projected to visit this year, and as business owners are bracing for dampened profits, the festival is still expected to create thousands of jobs and bring an influx of cash to workers that desperately need it during the slow summer months.
Over the past three decades, Essence Fest has pumped more than $4 billion into the local economy, said Kirk McDonald, CEO of Sundial Media, which owns the Black women’s lifestyle magazine and operates the festival.
Nearly $1 billion of that came over the past three years, according to annual economic impact reports produced by Dillard University.
“We live in a time where culture has become a business,” McDonald said. “But the truth is, we’ve lived that from the very start. The economic impact of Essence delivered over $345 million in value in 2024 right back into the community. …This is a cultural movement.”
Festival first timers
For childhood friends Cheryl Burton, who traveled from Arizona, and Aletia Howard, of Ohio, the festival is a reunion. Both first timers, they are planning to play Essence by ear — no itinerary, just seeing what they can discover each day. And by the time they visit again, they said, they will be festival experts.
Howard said she has long wanted to attend Essence Fest and this year, it came together by chance. They booked the trip for the holiday weekend before they knew the festival dates and then pivoted to include it in their plans.
“We grew up on Essence Magazine, so to get to this point where they are holding festivals is a big thing,” she said. “I’ve always been curious and the timing was right.”
Cheryl Henry, of New York, met her cousin Paulette Simpson, who flew in from London, at a downtown hotel steps from the convention center.
“I’ve been to New Orleans many times but I’ve never made it to Essence,” Henry said. “I’ve always wanted to be here. We’re excited.” The two will spend their days at the Ernest N. Morial Convention Center, which opens Friday morning at 10 a.m. and runs until 6 p.m. each day as an entertainment hub hosting talks on financial planning, beauty, self care and mental health for Black women and men.
Film screenings, a market place of Black businesses from across the nation and fireside chats and panel discussions will also take place inside the convention center.
They’ll spend their nights at the Caesar’s Superdome, enjoying music from artists such as Maxwell, Erykah Badu, Patti LaBelle and a host of others.
Smaller crowds affect business
After spending many years working during Essence, Ericka Lassair, owner of Diva Dawg food truck and catering company, said this year, the slowdown in business was unmistakable.
Usually, she can count on at least $10,000 of extra cash for her business working just the auxiliary events hosted by partners over the Essence weekend. But this year?
“I haven’t even had one request,” she said, adding that other business owners she knows have had similar experiences.
If the slow weekend holds, Lassair said the lack of cash will prevent her from participating in this fall’s Fried Chicken Festival on the lakefront. Her Essence Fest profits usually cover her bills and pay her fees for that and other popular events.
“It costs me $4,000” to participate in the lakefront event, she said. “I don’t want to put myself in the hole. It might be slow. A hurricane might come. That’s $4,000 I don’t have.”
The slowdown is also visible in hotel bookings.
According to Kelly Schulz, spokesperson for destination marketing organization New Orleans & Co., last year, hotel occupancy ahead of the festival was 91%. This year, it’s projected to fall to 83%.
But Schulz said even with smaller crowds, New Orleans will see more businesses than most other cities across the nation over the holiday weekend. And she said it’s not just French Quarter restaurants and hotels that will benefit as the money trickles down.
“There’s really the direct attendee spending, but then there’s the broader impact of what that means to the economy,” Schulz said. “All the people who make their living in hospitality go forward and invest those resources into their neighborhood restaurants and gas stations and grocery stores.”
Despite the lower turnout, Essence Fest officials say excitement is still high even in the face of the economic uncertainty that may have kept some travelers away this year.
“We’re well within our expectations — especially given the uncertain climate,” the company said in a statement. “Like many across the industry, we’re seeing a shift — there’s more hesitation around holiday travel and large-scale events and how people spend their money. Even so, excitement for Essence Festival remains high. It continues to be one of the most impactful economic drivers for New Orleans and we’re proud to carry that legacy forward.”