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Explanation: The answer from Vivian made me see that there is a lot of possibilities to translate this phrase:
1) Vivian's suggestion assumes that "Happy" is the name of the festival. In this context, her construction is perfect.
2) If, in the other hand, we are talking about a banner wishing people to enjoy the festival, I would stuck with my translation (and I am sure that Vivian would agree with me)
3) The word "festival" has several possible translations: I understood that this festival is a kind of fair, where people can eat, drink, enjoy music, etc. In that case I have no doubt that in Brazil we call it "Festival" (I am not sure about the right word in Portugal). If this is a trade show, it could be called "Feira" or "Exposição".
I hope it helps,
M.Badra Brazil Local time: 02:25 Native speaker of: Portuguese PRO pts in pair: 517