November’s Dickensian Festival attracted 13,500 people and generated £1m for Ulverston’s economy.
Nearly a quarter of visitors came to the town for the first time and around half of them travelled from elsewhere in Cumbria and the UK, according to research carried out by South Lakeland District Council's Invest in South Lakeland team.
Jan Hancock, chair of Ulverston Dickensian Christmas Festival committee, said: "The festival is a wonderful event against the perfect backdrop of our historic town and it has become a landmark occasion on many people’s calendars.
"People regularly come from miles away to enjoy it and take part. Visitors love it.”
The event directly benefited the town centre economy, with each person or party spending around five hours in Ulverston, 79 per cent having a meal or drink and 37 per cent going shopping.
The research found that the average visitor spent £29 at the festival.
Visitors from outside Cumbria who stayed in the town spent around £170 per person.
The 17th Dickensian Festival, which took place on November 28 and 29, featured a variety of free entertainment, including a traditional fairground, a Christmas market, and live music.