I wouldn't call it a 'festival'. In the States, it is a Holiday (day of special importance). The November 2 All Souls Day in Louisiana (Day of the Dead, in Mexico) approaches the feeling of a festival by the way it is observed.
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jiaruchan people translate the memorial kind equivelant of a Chinese holiday as XX Festival, which I don't think to be appropriate.I agree. It does not seem appropriate. Memorial Day is not a festival. I have never heard it called a festival.
jiaruchanBy the way, can we say 'celebrate Memorial Day'?Yes, I think so. It means to honor, recognize.