The Sundance Film Festival not only puts Park City and Utah on an international stage, but this year's festival generated $61.5 million in economic activity for the state, a 44 percent increase from last year, according to a report released Tuesday.

"We're stunned in a way," said Myles Rademan, spokesperson for Park City.

"I mean, we knew it was good," he added. "But we're still stunned by the impact."

The economic results of the festival's 11-day run were conducted by the University of Utah's Bureau of Economic and Business Research. The biggest chunk of money came from hotel accommodations, which brought in $28.5 million, followed by food and dining at $14.1 million.

Of the 53,000 filmgoers who came to Utah for the festival in January, 70 percent were out-of-state residents and nearly half were visiting Utah for the first time.

The $61.5 million generated by the 2006 festival is a far cry from the festival's economic impact nearly 10 years ago. Since then, the money spent in the state and the attendance have tripled.

"I think all of us were taken by surprise over the last five years of how big and successful it's become," Rademan said.

Most festivalgoers — 65 percent of them — said they would return to Utah and Park City for other reasons besides the festival, and 93 percent said they plan to return to future festivals.

"It's a definite economic boost for the state, especially in the post-Christmas season," said Alan Isaacson, research analyst for the university's Bureau of Economic and Business Research. "It's good exposure for the state. It's advertising which is basically free."

This year, the festival attracted some 1,200 journalists from all over the world, reaching an estimated audience of 850 million people.

But the total economic impact is not just limited to Park City. Although the biggest cut of $53 million went to Sundance's host city, $5 million was generated in Salt Lake City, $1 million at Provo's Sundance Resort and $300,000 in Ogden. The four Utah cities all screen festival films and host Sundance events at various locations.

"The economic activity is not isolated to just Park City," Isaacson said. "It looks like they're spreading around more, and the spending is spreading."

This year, a festival district was created along downtown Salt Lake City's 300 South, between the Rose Wagner Performing Arts Center and the Broadway Centre Cinema.

Sundance is definitely good for state tourism, Isaacson said, because festival coverage showcases the resort areas of the state.

Park City's challenge is to manage the growing local impact of the festival's crowds and increased traffic. Rademan said the city must walk a fine line to balance letting people party and have a good time, while also considering the locals who live in the city.

"We can't control everything, and we don't want to create a police atmosphere," he said, but it becomes difficult for the city when smaller festivals and sponsored parties piggyback off Sundance.

"Our dream is not to constantly make it bigger and make more money," Rademan said. "I mean we're pleased at this kind of economic impact. But if every year it stays the same, that's fine with us."

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