The return of a festival celebrating Latino culture over the summer fell short of financial projections and saw a decrease in attendance. But despite the shortfalls, McAllen officials are still calling it a success.
A report on the performance of the MXLAN festival showed a decrease in attendance this year compared to its first iteration in 2019 and a financial shortfall of $24,000, according to the report from the McAllen Chamber of Commerce which hosts the festival.
Josh Mejia, CEO of the McAllen Chamber, presented the findings to the McAllen city commissioners during a workshop Monday afternoon.
Mejia said the festival went over budget by about $14,400 and fell short of projected income by about $29,600, resulting in the $24,000 loss.
Part of the shortfall was due to the Chamber’s struggle to obtain corporate sponsors for the event, according to Mejia. He added there was an increase in security as well this year which led to an additional $34,000 in expenses.
However, the loss was considerably smaller than what the Chamber saw for the event’s inaugural run in 2019 in which they had a loss of about $151,000.
“If you compare this to other festivals of the same stature, the same kind, throughout the nation,” Mejia added, “typically these festivals run (at) a loss for up to the third year.”
As for attendance, Mejia could not immediately provide an exact figure to the city commissioners but he said it was lower than the 81,000 visitors they had in 2019.
“We’re reducing those deficits every single year so I believe by the third, we should be at … net zero as the worst possible scenario,” he said.
City Commissioner Tony Aguirre praised the Chamber’s work in putting the event together and said he viewed the financial report as a step in the right direction.
“It was very close to breaking even so I thought that it was a tremendous event,” Aguirre said. “I enjoyed it, I think everybody there was enjoying it.”
City Commissioner Pepe Cabeza de Vaca agreed, noting the benefits to providing such an event for the community.
“When you almost come even with this kind of thing but you are able to give this kind of experience to the citizens of McAllen, the people in the Valley, it’s worth it all the way,” Cabeza de Vaca said.
For the possible future of MXLAN, the McAllen Chamber hopes to work closer with the city.
“We feel that the city of McAllen is, logistically speaking, better suited to be able to spearhead the entire festival,” Mejia told the commissioners, “and, in return, the McAllen Chamber of Commerce can go ahead and specialize on the specific experiences that were found throughout the festival.”
He added that by working closer with the city, they could obtain additional corporate sponsors that would allow them to improve the experience for attendees.
McAllen Mayor Javier Villalobos further suggested cutting the length of the festival to reduce expenses, especially given that attendance during the first two days, Wednesday and Thursday, isn’t as significant as it is on the weekend.
Mejia seemed open to the idea.
“We can definitely improve and that’s something I highly encourage everyone to consider,” Mejia said. “I do see this as a very positive outlook in the near future.”
“I think it’s perhaps one of the few events in the entire state of Texas that celebrates Latin diversity,” Mejia added, “and I think if we grab onto that and be able to provide more refreshed amenities to provide every single day, I wouldn’t be surprised if it becomes a home run every single year.”
