OECD Culture and Local Development.pdf - PACA

4. THE CULTURAL FABRIC OF CITIES
• In the first case, with high integration and limited heritage weight (zone 2), the
shifts are both positive, and employment rises faster in the non-artistic than
in the artistic sector. This is likely to be the case with heritage investments in
large cities, such as the establishment of heritage or museum districts. Use of
the heritage causes employment to rise despite higher real wages: the economic
fabric is sufficiently dense for creating non-artistic jobs in response to the
higher purchasing power induced by tourist spending (which raises the incomes
of local service providers). At the same time, the relative weight of the artistic
sector is sufficiently low that the negative impact of higher prices and wages
in artistic-related services will not spill over into other sectors. In short, the positive
effects of integration are not altered: the artistic factor’s weight is sufficiently
limited and the destabilising effect from artistic investment will not be felt. This
is what justifies heritage investments in important cities, both in major
metropolitan areas like New York or Paris, or smaller ones like Bilbao.
• In the second case, where integration is weak and the artistic weight is limited
(zone 3), employment changes are still positive, but this time employment rises
less quickly in the non-artistic than in the artistic sector. This is the case with
cities where tourism sparks artistic job creation, but where the economic fabric
cannot meet the needs of artistic workers or the non-cultural needs of visitors
and tourists, meaning that goods must be imported rather than produced
locally. The positive effects of integration are no longer there, but the weight
of the artistic factor is sufficiently low to prevent excessive destabilising effect
artistic investment. This is exactly the situation in art cities like Krakow, Bruges
or Toledo, where the lack of structural diversification makes it impossible to
take full advantage of tourism activities, which can even induce inflation and
speculation damaging to other activities (heritage cities).
• In the third case, with weak integration and a major artistic element (zone 4),
the employment change is positive in the artistic sector but negative for all other
activities. This situation is likely to result from highly speculative development
of the artistic sector. The price effects will ultimately make other services
completely uncompetitive, and may induce tourists to satisfy their housing and
restaurant needs elsewhere. In short, we may say that the destabilising impact
of the artistic factor’s weight is catalysed by the weakness of integration. This
is the case with stand-alone artistic sites like Mont Saint Michel. It is also the
case in territories were non-artistic economic agents adopt speculative behaviour
and seek to exploit location advantage (Venice).
• The final case — zone 1, with high integration and a heavy artistic factor — is
more ambiguous, and perhaps surprising. We may interpret it as follows: a
major investment in a highly integrated zone can push incomes and prices up
to the point where the artistic sector is no longer competitive with other sites,
146 CULTURE AND LOCAL DEVELOPMENT - ISBN 92-64-00990-6 - © OECD 2005