OECD Culture and Local Development.pdf - PACA

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Chapter 2 Local development based on attracting visitors and tourists The most visible contribution of culture to local development lies in its ability to attract tourists and the consequent positive effects on spending, incomes and employment. The economic potential of culture for the territory is similar to an export potential, except that in this case it is not services that are exported but consumers who are brought in. This viewpoint has inspired many studies since the early 1980s that have attempted to demonstrate the impact of culture on local development. The timing is not fortuitous: a number of European cities facing economic collapse were starting to look to cultural investments as a means of sparking new activities, generating incomes, and restoring their physical fabric. In 1988 the Policy Study Institute’s report on “The Economic Importance of the Arts in Britain” estimated that nearly 500,000 jobs could be traced to cultural activities (Policy Study Institute, 1988) 36 . In 1989, the report of the French Commissariat Général du Plan estimated that tens of thousands of jobs could be created by meeting cultural needs more effectively 37 . Since then, efforts to estimate the economic fallout from culture have continued both at the national level and at specific sites or events At the local level, the studies have sought not only to identify contributions but also to justify what are often major investments for the territories in question, investments that may eat up nearly all their resources and commit them for some time to a specific course from which there is no turning back. Restoring a monument, organising a festival, creating a museum will all condition a territory’s economic prospects and may often create high expectations. Yet despite their initial promise, the expected gains may fail to materialise, and there may be negative fallout: gentrification, disputes over land-use, inflated labour costs, environmental costs and so on. In this realm as in the preceding one, success stories and prize-winners can obscure less happy outcomes. The results of the studies must therefore be taken cautiously, and their methodological underpinnings must be clearly understood. Effects, spin-offs and impacts Developing a site or sponsoring an event will naturally involve estimating its effects. This estimate may be made ex-ante or ex-post. It may focus on direct effects CULTURE AND LOCAL DEVELOPMENT - ISBN 92-64-00990-6 - © OECD 2005 51
2. LOCAL DEVELOPMENT BASED ON ATTRACTING VISITORS AND TOURISTS or indirect effects, or even on more general spin-offs. As a result, there is a great diversity of approaches, as well as of situations and local constraints, and so the outcomes are highly variable. We shall look here at some of the major approaches, illustrating each with some specific examples, to see if some lessons can be drawn about the expected effects of such activities Types of effects The development effects of cultural activities flow from the identification and evaluation of the expenditure they generate. These expenditures are generally classed in three categories • Direct spending, i.e. spending at a site or an event. This normally involves spending by tourists (who come from outside the territory) or by visitors (who reside within the territory), during their visit to the cultural site, and may include entrance fees, restaurant and accommodation services, souvenir purchases etc. • Indirect spending, i.e. spending by businesses that provide these goods and services, whether as producers of cultural goods and services or as producers of tourism services. Given the variations in visitor and tourist demand, these businesses will outsource orders under both operating and capital headings. • Induced spending (spin-offs) relates to the successive flows of spending sparked by these indirect business expenditures. Orders placed by cultural or tourism businesses with their suppliers will in turn generate further orders to yet other firms. Since it is difficult to track the spin-offs step by step, we usually use the concept of the “multiplier” to identify them. There are five methods in use today to identify the economic effects of cultural activities on local development. The first is used when there are no a priori data available on these effects, and so the possible effects must be simulated in advance. The second begins, by contrast, with the effects already noted, in order to see the outcome: this method has several variants, including the multiplier and the impact study. Another method is to identify the industry constituted by one or several cultural activities within the local economy and to measure its relative weight against other activities. Finally, there is the more specifically financial approach of the balance sheet. As we shall see, some studies employ more than one of these methods. Contingent values In attempting to estimate the effects of future cultural activities, we may begin with existing examples and transpose the results, or simulate the spending behaviour 52 CULTURE AND LOCAL DEVELOPMENT - ISBN 92-64-00990-6 - © OECD 2005
Page 1 and 2: Culture and Local Development
Page 3 and 4: ORGANISATION FOR ECONOMIC CO-OPERAT
Page 6: Table of Contents Executive Summary
Page 9 and 10: EXECUTIVE SUMMARY the operation of
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CONCLUSION - DESIGNING LOCAL PUBLIC
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BIBLIOGRAPHY Bretton, H., (2000), C
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BIBLIOGRAPHY Frey B. & W.W. Pommere
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BIBLIOGRAPHY Karachalis N.,E. Kyria
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BIBLIOGRAPHY Myerscough, J. (1988),
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BIBLIOGRAPHY .Raffin, F., (1999),
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BIBLIOGRAPHY Walker et al, (2000) P
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ANNEX 1 This distinction between sh
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ANNEX 1 consumption sales of each s
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Annex 2 CHAPTER 3: PROMOTING LOCAL
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ANNEX 2 The second measure is given
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ANNEX 2 Table 1. The identification
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NOTES 116. de Filgueiras Gomes M.A.
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