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OECD Culture and Local Development.pdf - PACA

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2. LOCAL DEVELOPMENT BASED ON ATTRACTING VISITORS AND TOURISTS<br />

€8 million) <strong>and</strong> indirect benefits (sales of performance <strong>and</strong> co-production rights, 2<br />

million, <strong>and</strong> spending by festival-goers, 15 million) (IMEDEP,2003).<br />

The discrepancy between the studies reflects the fact that the BIPE study took<br />

no account of sales of shows related to the festival (its market dimension), <strong>and</strong> the<br />

fact that it calculated a coefficient specific to the festival, which allowed festivalgoers’<br />

spending to be netted out. It is reasonable to assume that the estimate of €15<br />

million for festival-goers’ spending in the Imedep study is exaggerated. If we apply<br />

the same specific coefficient (i.e. 1.64) to such spending in 2001, we get €5.8 million,<br />

to which would be added €8 million in direct spending: this produces a ratio of 13.8<br />

(total spending)/4.947 (total subsidies) or 2.79, compared with 1.84 in the first study.<br />

Moreover, the Imedep study estimated that some 700 jobs would be created, 96% of<br />

them through seasonal contracts.<br />

- A different kind of festival, the Wexford Opera Festival, also suggests that<br />

caution is needed when measuring the contribution of cultural activities of this<br />

type to local development (O’Hagan, 1992). This festival has been running for<br />

three weeks every year since 1951 in the little town of Wexford, about 115 km<br />

south of Dublin. It gets a subsidy from the Arts Council, which covers a quarter<br />

of its budget (the subsidy previously came from the National Tourism Board),<br />

<strong>and</strong> an indirect subsidy in the form of services provided by the National<br />

Symphony Orchestra.<br />

The initial spin-offs of this festival were assessed not in monetary terms but in<br />

terms of international prestige <strong>and</strong> sense of pride on the part of local residents <strong>and</strong><br />

the country as a whole. Later, this international prestige produced monetary benefits<br />

in terms of tourism, <strong>and</strong> promoted economic development by bringing in firms that<br />

saw the advantage of an attractive environment for their managers <strong>and</strong> employees.<br />

In non-monetary terms, the event has boosted social cohesion by encouraging<br />

volunteer activity <strong>and</strong> engaging local people <strong>and</strong> businesses. In artistic terms, the festival<br />

is a laboratory of experimentation <strong>and</strong> innovation, with an audience that is more<br />

tolerant <strong>and</strong> more receptive to “daring” works than would be the case at a conventional<br />

event.<br />

While the festival may be considered fully justified from the public interest<br />

viewpoint, there remains a question about its financial sustainability: can government<br />

subsidies be justified by benefits to the hospitality business, <strong>and</strong> more generally to<br />

the tourism industry? In terms of job creation, the results are mixed: the festival<br />

employs only three persons full-time, but on the other h<strong>and</strong> it creates jobs indirectly<br />

in the tourism industry. The monetary spin-offs are also important. The study attempted<br />

to isolate net spin-offs by recognising that some spectators would not come to<br />

Wexford, or even to Irel<strong>and</strong>, if it were not for the festival, but also that some festivalgoers<br />

take the opportunity for some tourism on the side. The authors estimate that<br />

CULTURE AND LOCAL DEVELOPMENT - ISBN 92-64-00990-6 - © <strong>OECD</strong> 2005 77

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