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2. LOCAL DEVELOPMENT BASED ON ATTRACTING VISITORS AND TOURISTS • If the visitor is a local resident, was he inspired by the monument to increase his spending, or has he simply diverted spending from another local use, in which case what is involved is not a multiplier but a transfer? These three questions can cast in the following sequence: • “Would you spend time in this territory if the monument were not there?” If the visitor says no, we must conclude that all of his spending can be attributed to the museum’s existence. If he responds yes, this means that he has come for several reasons, and the problem will be to determine which portion of his local spending can be attributed to the museum alone. • Then comes the second question: “Would you reduce your spending if the monument were not there?” If the visitor says no, this means that the monument has played no role in the volume of his spending, and cannot be used to explain any portion of it. If the visitor says yes, on the other hand, the monument has indeed served as an attraction, and should be credited with a portion x of the visitor’s spending in the territory. • Finally, if we are dealing with a local resident (a day trip), another question must be posed, as an alternative to the first: “would you have visited something else, or made some other expenditure, if the monument were not there?” If the response is negative, this means that all of his spending can be attributed to the monument. If the answer is negative, this means that the expenditure has displaced spending on other uses. We must then abandon the multiplier, or at least prorate its application among competing uses. The degree of a territory’s integration and the effects of diversion A portion of the expected development impact may appear in other territories than the one where the cultural resource is located. This will happen if the anticipated visitor spending goes not to products of the territory, but to those of other territories from which they are imported. The development effect will then depend no longer on the nature or importance of the monument itself, but on the territory’s degree of economic integration. A well-integrated local economy can produce high multipliers, while one that is less well-integrated, and where visitor demands must be satisfied through external activities and employment, will show weak development effects. Let us consider the renovation of a monument where several types of services will now be offered. The jobs created at the monument and in the visitor and tourist facilities are set at 100. The expected employment multiplier is 1.4, which means that for every job created initially the territory will derive 1.4 jobs. We can identify three CULTURE AND LOCAL DEVELOPMENT - ISBN 92-64-00990-6 - © OECD 2005 87
2. LOCAL DEVELOPMENT BASED ON ATTRACTING VISITORS AND TOURISTS types of territories, each with a specific diversion coefficient that depends on the territory’s capacity to meet visitors’ needs by itself (see Table 2.5): • The diversion coefficient for a “big territory” is assumed to be zero, which is to say that the territory is self-sufficient, and all needs can be satisfied from its resources. • The diversion coefficient of a “small territory” is assumed to be equal to 1, i.e. it cannot meet any visitor needs and everything has to be imported. • The diversion coefficient of the “medium-sized territory” is assumed to be equal to 0.5, which means that only half of its visitor needs can be met from internal resources. Table 2.5. Development impact values for a cultural project in a given territory Territory Jobs Total jobs Self-sufficiency Net jobs Real value created in the zone coefficient created by project or multiplier Big 100 140 1 140 1.4 Mid-sized 100 140 0.5 120 1.2 Small 100 140 0 100 1 The multiplier effect declines and may even disappear completely. In addition, spending on a given territory’s heritage may come at the expense of spending in neighbouring territories. Price effects Such analyses are done at constant (inflation-adjusted) prices. An investment in a cultural or heritage object will also change incomes and prices. • If there is a specific labour shortage, workers will have to be attracted with the promise of higher wages, which in the end will spill over to all wages within the territory. • If land has to be found to build parking lots or hotels, this will raise property prices, with a negative impact on living standards and wage claims. The cultural investment thus creates tensions that may work against local development. To analyse these tensions, we must remember that there are two sectors in the territory: the cultural consumption goods sector and the non-cultural consumption goods sector. Since these sectors may compete for the pool of labour 88 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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INTRODUCTION Yet these attitudes gr
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INTRODUCTION a basis for developmen
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INTRODUCTION Defining cultural reso
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INTRODUCTION - the one where cultur
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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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