OECD Culture and Local Development.pdf - PACA

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