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2. LOCAL DEVELOPMENT BASED ON ATTRACTING VISITORS AND TOURISTS - It also assumes that all income received results in an equivalent amount of purchases of goods and services, which will not be true if earners save a portion of their incomes. With due regard to these sources of leakage, initial purchases result in indirect and then in induced purchases. In the case of tourists arriving in a territory to visit a site or to attend an event, the direct effect lies in their purchases; the indirect effect, in those of the businesses they purchase from; and the induced effect, in the successive waves of spending thus unleashed. The multiplier will be expressed by the ratio of two variants: (1) the characteristic economic size of the territory: output, income, employment or even public revenues; and (2) the cultural and tourist spending that is triggered. Three multipliers are used: the Keynesian multiplier, the ad hoc multiplier, and the input-output multiplier. The Keynesian-type multiplier The Keynesian multiplier, k, is formulated in terms of revenues, thus: k = 1 / 1- c = 1 / s + m where: • k represents the value of the multiplier. • c is the propensity to consume. • s and m are the propensity to save and propensity to import, i.e. leakages (See Annex 1.1). These multipliers are generally estimated at the national level. There are many illustrations for the area of tourism receipts, although not for “cultural tourism”. Table 2.1 provides a few examples. It shows that this multiplier varies inversely with the degree of territorial integration. Thus it is much higher for the United Kingdom than it is for Egypt or Mauritius, where tourism goods are typically imported. At the local level, estimating these multipliers is a complicated affair, subject to several difficulties (see section on “Methodological Issues”). The current benchmark Table 2.1. Value of tourism multipliers at the national level United Kingdom 1.73 Republic of Ireland 1.71 Egypt 1.23 Cyprus 1.14 Mauritius 0.97 Source: Cooper, CH. & al. (1998), Tourism: Principles and Practice, Longman, pp. 142-143 CULTURE AND LOCAL DEVELOPMENT - ISBN 92-64-00990-6 - © OECD 2005 57
2. LOCAL DEVELOPMENT BASED ON ATTRACTING VISITORS AND TOURISTS study is still the one done some time ago by John Myerscough (Myerscough, 1988). Analysing several local territories in the United Kingdom, he cross-referenced three sources: reports from artistic activity surveys, reports from tourism surveys, and consumption studies. He established an average value for the multiplier of around 1.4, a value that has since been used as the benchmark for most studies. But this value changed with: • The territory’s population density: the higher the density, the higher the multiplier, explained by the fact that the demand for services can be more readily satisfied by local supply. • Territorial size: the larger the territory, the higher the multiplier, because leaks become relatively less important. • The nature of activities: the higher the production share of local employment, the higher will be the indirect and induced effects, and hence the multipliers for museums will be greater compared to those for theatres (see Table 2.2). Table 2.2. Value of tourism multipliers at the local level MUSEUM THEATRE High population density 1.42 1.40 Medium population density 1.28 1.26 Low population density 1.26 1.23 Source: Based on Myerscough, J. (1988), The Economic Importance of Arts in Britain, London: Policies Study Institute, p. 88 ff The ad-hoc multiplier The ad hoc multiplier attempts to specify the previous data using possible behavioural differences between tourists within the territory (See Annex 1.2). The input-output multiplier This multiplier analyses the territorial development effects of cultural spending using relational techniques that associate different sources of production in the territory, thus bringing great accuracy to the conclusions (Fletcher, 1989). The main difficulty in using this multiplier is to distinguish clearly between initial expenditure effects that will be felt in the territory and those that will be felt outside the territory, which requires a detailed analysis of the expenditure flow sector by sector. 58 CULTURE AND LOCAL DEVELOPMENT - ISBN 92-64-00990-6 - © OECD 2005
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Culture and Local Development
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ORGANISATION FOR ECONOMIC CO-OPERAT
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Table of Contents Executive Summary
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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 44. www.ntcicfunds.com 45. id
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NOTES 69. Caserta S., & A.P. Russo
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NOTES 116. de Filgueiras Gomes M.A.
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