This study’s intent is to offer a generalizable model for undertaking economic impact studies that tourism professionals can use to conduct similar studies in their own communities. A conceptual rationale for undertaking economic impact studies is described. The four principles central to the integrity of economic impact analyses are reviewed: exclusion of local residents, exclusion of “time-switchers” and “casuals,” use of income rather than sales output measures of economic impact, and correct interpretation of employment multipliers. The economic impact of a festival on Ocean City, Maryland, is offered as an exemplar.