OECD Culture and Local Development.pdf - PACA

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2. LOCAL DEVELOPMENT BASED ON ATTRACTING VISITORS AND TOURISTS culture. This meant strengthening the city’s cultural potential in terms of developing cultural industries, and including Bilbao on the major international cultural circuits. The objective that interests us here was to create new cultural infrastructure, and in particular the Guggenheim Museum, which opened in 1997. Even before its opening in October 1997, the Museum was seen as a beacon for revitalising Bilbao, thanks to its architecture, conceived by Frank Gehry, and its location within the old city walls on the site of a former shipyard. The Basque government financed purchase of the land and construction of the museum (around $100 million) and contributed $50 million to the purchase of works of art from a local collector, while the Guggenheim Foundation of New York conferred its name and expertise (worth the equivalent of $20 million) and agreed to transfer 350 works of art over a period of 20 years, with a possible extension to 75 years. The impact of this project can be measured quantitatively in terms of audience, spending, jobs and tax revenues, but it can also be measured qualitatively in terms of image. - In its first year, the museum welcomed 1.37 million visitors, three times the projected number, and 30% of these were foreigners, while 32% were from other parts of Spain. Spending by museum visitors generated value-added of more than $154 million, enough to fund 3,816 jobs, and net tax revenues of close to $24 million. - These direct benefits were accompanied by indirect benefits for the hotel industry. Whereas the city had previously been exclusively a business destination, the presence of the Guggenheim Museum attracted tourists. In September 1998 Bilbao counted 68% more visitors than the previous year, and the average hotel occupancy rate in the city reached a record 70%. - To these quantitative benefits must be added the qualitative ones, in social, psychological and image terms. Greater Bilbao had previously suffered from a very poor image, because of industrial decline, social problems, terrorism, and environmental degradation. Today, the city’s external image-makers focus on the Guggenheim Museum, on culture, and on a new lifestyle. The people of Bilbao themselves feel vindicated, and they feel they can hold their own against the great European centres. These benefits in terms of image can be appreciated in the media coverage of the museum: in 1998 alone, there were 8,500 articles published, 60% of them in the international press. In conclusion, while the economic impact of the Guggenheim Museum is obvious, the overall future of the Bilbao region remains hostage to the economic and political climate, and in particular the threat of terrorism, and these are matters that it will have CULTURE AND LOCAL DEVELOPMENT - ISBN 92-64-00990-6 - © OECD 2005 69
2. LOCAL DEVELOPMENT BASED ON ATTRACTING VISITORS AND TOURISTS to address in order to provide a feeling of security for tourists and for investors, who have been few to date. The Museum District of Paris The spin-offs from these museums are important, then, and they are even more so in the big cities, such as Paris. In 1998, nearly 12 million tourists came to Paris, for various reasons: cultural, business, recreation, etc. “Museum tourists” were defined within this group as those visiting at least three museums or similar institutions. Given the difficulty of identifying these visits, when admission is sometimes free, two hypotheses were constructed: a low hypothesis, according to which 2.98 million tourists had visited the Louvre, Versailles, and La Villette or Orsay; and a high hypothesis, according to which 4.2 million tourists had visited the Eiffel Tower, the Louvre and Versailles (Greffe, 1999). These tourists behave differently depending on whether they are French or foreign. They do not spend the same number of nights in Paris 48 . Their daily spending patterns are not the same: a French tourist is assumed to spend on average 121 euros a day for accommodation, transportation and entrance fees, while a foreign tourist would spend around 151 euros, with substantial differences from one person to the next 49 . From this we derive overall spending of €1.17 billion under the low hypothesis, and €1.62 billion under the high hypothesis. We must then apply a multiplier coefficient to take account of the effect of this spending on the incomes of hotel, museum and transportation workers, since those incomes will be spent and passed on through other economic sectors successively. For this purpose, we selected Myerscough’s multiplier coefficient for London (1.4), as one of the most plausible. Total spending, then, is €1.64 billion under the low hypothesis and €2.26 billion for the high hypothesis. It remains to add in spending on souvenirs or luxury goods that, because they are not generally produced in Paris, will not have a multiplier effect on the immediate territory, but may contribute to creating jobs elsewhere in the country. Based on the same surveys, we assume average souvenir spending of €45.45 for a French tourist, and €75.75 for a foreign tourist. This gives total spending of €1.84 billion under the low hypothesis and €2.64 billion under the high hypothesis. If the cost of creating one job in the services sector is around €40,000, this amount represents a total of 43,000 jobs created or maintained. If we take a lower figure (€30,000 ) as the cost for creating a service job, the figure for employment created or maintained is 86,000. The first figure seems considerably more plausible, since we must first deduct from this total spending the amount of spending on materials. The bottom line from this type of analysis, which relies on many hypotheses, each of which reduces the reliability of the final outcome, is that the amount of this spending and the number of jobs created are very significant 50 . 70 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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EXECUTIVE SUMMARY the operation of
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EXECUTIVE SUMMARY new projects; and
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EXECUTIVE SUMMARY is the fact that
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EXECUTIVE SUMMARY A new agenda for
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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 16. V. Ponthieux S. (2003), p
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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 98. The craftsman will retain
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NOTES 116. de Filgueiras Gomes M.A.
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