This essay will examine in which way festival tourism can affect the physical location of a festival and to operationalize this we implemented a case study of the music festival Storsjöyran. Storsjöyran is a Swedish music festival held annually in the city of Östersund and since the festival, with the accompanying festival week, attract up to 300 000 visitors annually, we wanted to see what impact the festival contributed to from a development perspective of the destination. The method for gathering data has consisted of both qualitative and quantitative approaches and the data was collected via interviews and questionnaires. We also presented various theories about festival tourism and destination development, as well as previous research on urban festivals. The conclusion is that Storsjöyran contributes to a variety of factors which can help Östersund to a destination development and increased tourism. The essential and most prominent effect we have seen is in what way Storsjöyran helps Östersund to become a vibrant and attractive city and how the festival contributes to the people living there can feel proud of their city.