The Finance World Magazine| Edition: October 2023

Cultural tourism investments balance heritage
preservation and economic growth, overcoming
challenges through responsible practices and
embracing technology.
Cultural tourism revolves
around the idea of travelers
seeking authentic cultural experiences.
It includes visits to
historical sites, participation in local
traditions, exploration of museums
and art galleries, and interactions
with local communities. Rather than
being mere spectators, cultural tourists
actively engage with the heritage
and traditions of the places they visit.
Recent reports have identified the age
group of 18-35 is more likely to opt for
cultural tourism as compared to other
age groups.
Heritage preservation is absolutely
necessary for attracting cultural tourists
to a country and often requires
substantial investments in the restoration
and maintenance of historical
landmarks, the protection of indigenous
knowledge, and the conservation
of art and artefacts. These investments
are not just a cultural responsibility
but also an economic opportunity.
Cultural tourism investments are
made globally and continue to grow in
different parts of the world including
the Middle Eastern region. In recent
years, Middle Eastern governments
have increasingly embraced these
investments as a means to stimulate
economic growth and raise their global
profile. The governments of the UAE,
Saudi Arabia, and Oman have made
substantial investments in heritage
preservation. For instance, the Saudi
government allocated a significant $3.2
billion as part of its Vision 2030 plan,
aimed at promoting cultural tourism
within the country. Similarly, Oman is
set to experience a remarkable surge
of $7 billion in heritage and tourism
investments by the end of 2025. These
investments reflect the region’s commitment
to preserving its rich cultural
heritage while also capitalizing on the
potential economic benefits of cultural
tourism.
The Future Market Insight report
stated that a surge of 14.4% CAGR
is expected in cultural tourism investments
by the year 2033. It also
mentioned that the current market
revenue of these investments is set to
total $5,931.2 million in 2023, which
will increase to $22,772.0 million in
2033. Another study identified cultural
tourism as one of the most rapidly
expanding sectors within the tourism
industry, making up approximately 40%
of global tourism activities. These details
signify the potential for economic
benefit of preserving heritage.
Cultural tourism investments have a
significant positive impact on the local
economy. When tourists engage in cultural
tourism, they inject money into
the destination’s economy. They spend
on accommodations, which support
hotels and lodging businesses. Dining
expenditures benefit local restaurants
and eateries, while transportation
costs contribute to taxi services, tour
operators, and public transportation.
Moreover, tourists often purchase souvenirs,
supporting local artisans and
shops. This spending cycle generates
income and employment opportunities
within the community, which, in turn,
leads to economic growth.
Cultural tourism is a boon to small
and local businesses. When tourists
are on the lookout for genuine cultural
experiences and locally crafted
products, they often turn to these
businesses. Whether it’s buying handmade
crafts, sampling local cuisine,
or participating in unique cultural
activities, tourists contribute directly
to the success of these enterprises.
In essence, cultural tourism nurtures
a symbiotic relationship between tourists
and local businesses, promoting
mutual growth and prosperity.
While the economic benefits are
evident, cultural tourism investments
come with their share of challenges.
Striking a balance between economic
growth and heritage preservation can
be complex. Over-tourism, degradation
of historical sites, and cultural commodification
are potential issues. To
address these challenges, sustainable
tourism practices, responsible tourism
management, and community involvement
are essential.
Several destinations around the
world have successfully implemented
cultural tourism investments. For instance,
Bhutan’s policy of “high-value,
low-impact” tourism has preserved
its unique culture and environment
while generating significant income.
Likewise, the UNESCO World Heritage
Site of Petra in Jordan has seen
careful management and investments
that have allowed it to attract tourists
while preserving its ancient treasures.
As we look ahead, the future of cultural
tourism investments will likely
involve technology, including virtual
reality and augmented reality experiences.
These innovations will provide
tourists with immersive and educational
experiences while reducing the
physical impact on historical sites.
October 2023 www.thefinanceworld.com 81