Each event has their own criteria but for the most part they judge on appearance, quality of displays (history etc), and hospitality. Most use several judges with check sheets and you see them going about observing and scoring.
Other examples:
This is from the Smoky Mountains Highland Games Website: Best Clan tent:
Clan tent setups will be judged for overall appearance; layout; most effective display of Highland heritage.
Link to judging criteria for Northwest Florida
http://neflgames.com/uploads/BEST_CL..._Repaired_.pdf
Fergus Ontario: The criteria used in judging the "Best Clan Tent" at the Avenue of the Clans includes decoration (banners, flags, etc.), presentation (displays, etc.) and knowledge of clan history and the helpfulness of those manning the tent.
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