Festivals as tourist attractions are increasing in importance in Turkey, and especially in developing regions. The local population has a major role in the development or termination of festivals, which carry negative and positive impacts on the economy, environment and culture of the destination. The aim of this research is to explore the impacts of festivals on locals in the frame of social cost and benefit, and to provide implications for the continuation of festivals, while sustaining the locals’ level of contentment, based on the determined impacts. The research is conducted in Urla, which hosts numerous festivals throughout the year. A total of 32 interviews were conducted and subjected to a content analysis and this resulted in determining certain socio-cultural impacts within the factors of social cost and benefit. According to the findings, impacts within the sub-factors of social and cultural / individual benefit under the social benefit factor, as well as sub-factors of quality of life under the social cost factor have been obtained. The research also concluded that spreading festivals across time and place is supported by the local population, which further reduces negative impacts.