I would appreciate getting some tip exchange going for festivals in general, and the Dragon Festival in particular.
Here's what I know happens during festivals:
* Certain towns have special decorations: Ascalon, Lion's Arch, Kaineng, Kamadan and Shing Jea Monastery.
* There are special mini-games available in select towns. Winter festivals usually have a form of funny team PvP (Dwayna vs Grenth) where your bar is filled with funny skills emulating a snowball fight. Most festivals have Rollerbeetle Racing. The Shing Jea Boardwalk is a special area within the Monastery that becomes available during festivals and offers a few games (worm chasing, ring sitting, anything else?)
* During the annual celebration of GW festival the Celestial being of the year, as per Chinese calendar, visits Shing Jea. Usually you have a chance of gaining a gold minipet in the form of that Celestial.
* You can get a special festival hat during a festival. You only need to get it on one character, because the hat maker NPCs can replicate it after that for any of your characters.
* The special items you can get in abundance during festivals are: sweet, drunk and party consumables; surprise gifts that when opened give more consumables or a rare chance for an interesting item; tokens (victory, lunar etc.) that can be exchanged at special festival NPCs for the above stuff (gifts, cons, hats). Tokens are usually awarded from mini-games and special festival quests.
* Speaking of which, most festivals have several special quests that can be completed only once per character and which also reward the above stuff. Usually there's a requirement of at least level 5 (so you can't farm them easily) and sometimes they're only available on the Shing Jea island, so your characters need to have traveled to Kaineng and made their way to Shing Jea island (via Bejunkan Pier, Seitung Harbor and the short trip to the Monastery).
General tips for festivals:
* Due to large quantities of consumables being available, the prices drop. It is considered the best time to buy in bulk and attempt to maximize your drunk/party/sweet titles.
* Good opportunity to get a rare mini, a festival hat (you can't get this in any other way if you missed a festival!).
* You can make some money by selling the tokens/consumables/gifts you get.
* You can have lots of fun running around and playing games.
For the Dragon Festival specifically, there are two special types of content: repeatable and non-repeatable quests. The non repeatable quests can be done once per character, and the repeatable ones have a window of time in which they can be repeated, then you can't do them anymore.