A one-word answer to your question would have to be "yes."
But I think festivity is more likely to occur in writing.
Celebration sounds okay to me when you're talking about a holiday. Otherwise it generally refers to an accomplishment:
We celebrated our 50th wedding anniversary.
The people took to the streets to celebrate when the home team won the championship.
We had a celebration at the office when Susie was promoted.
I hope you'll be celebrating the new year in style!