OECD Culture and Local Development.pdf - PACA

2. LOCAL DEVELOPMENT BASED ON ATTRACTING VISITORS AND TOURISTS
The local economy is represented in the form of an inter-industry flowchart (Table
2.3). In the initial matrix, which constitutes the upper left portion of the table, each
vector-column represents purchases of goods and services from other sectors of the
local economy, and each vector-line represents sales of goods and services to other
sectors of the local economy. These exchanges define intermediate consumption. To
this we must add a lower left quadrant that represents factor purchases and payments
(wages, profits, taxes, imports). The upper right quadrant represents final consumption
sales of each sector, and the lower right quadrant establishes the relationship between
factor remuneration and final consumption.
Table 2.3. The economy according to the input-output matrix
Sectors Users Product
Sectors Intermediate Final Total
consumption consumption
Primary factors Factor purchases Revenues/outlays Total
Product Total Total
The advantage of this method is that we can define employment volumes
accurately, and show whether the skills required for responding to an increase in tourism
spending can be supplied or not within the territory, and what vocational training
strategies might be necessary to fill any gaps.
One study used the intersectoral approach to measure the impact and multiplier
effect of the culture sector on the regional economy of Wales (Welsh Economic
Research Unit et al., 1998). It was based on a sample of 986 individuals, associations
or businesses located a priori in all possible sectors of the local economy, in order
to deduce the flow of expenditure into the cultural sector and the resulting employment.
It found that nearly 2% of the workforce was directly engaged in cultural activities (16,000
full-time jobs), but that this percentage rose to nearly 3% if the indirect effects of interindustry
linkages were considered. The multiplier is thus calculated at 1.5.
Impact studies
The importance of the positive effects that culture can mean for a territory is often
demonstrated through the notion of impact. This notion relates both to their quantitative
importance and to the dynamics that exist between inputs, outputs and outcomes.
Impacts can be analysed using the multiplier, or by direct estimation. They can be
recorded for the entire process, or at its beginning or end. They may have a strictly
economic dimension, or they may incorporate social effects, which will then be
CULTURE AND LOCAL DEVELOPMENT - ISBN 92-64-00990-6 - © OECD 2005 59