UNCW - April 2008 market. research. culture 1 Regional Economic Impacts of Large Cultural Events Does public funding of large cultural events make sense from a regional economic point of view? Peter Schmidt Paper to be presented at UNCW / CSB 04/15/08 markt. forschung. kultur research Astrid Kurzeja-Christinck, Jutta Schmidt Aldona Kucarczuk

UNCW - April 2008 market. research. culture 2 Regional Economic Impacts of Large Cultural Events Research Questions Business / Economics  ?  Art –Contradiction or Complements? –“Art – what’s the Economists point of view?” Is an estimation of regional economic impacts possible? Does public funding of large exhibitions make sense from fiscal point of view?

UNCW - April 2008 market. research. culture 3 Regional Economic Impacts of Large Cultural Events Outline 1.Arts and Economics 2.The Visitors – describing the target group 2.1Socio-demographic characteristics 2.2Origin of the visitors 2.3Motives, Activities and Overnight Stays of Out-of- Town Visitors 3.Regional Economic Impacts 3.1Expenditures of Out-of-Town Visitors 3.2Regional Value Added: Direct and Indirect Impacts, Regional Multiplier 3.3Fiscal Impacts 3.4Additional effects:

UNCW - April 2008 market. research. culture 4 Regional Economic Impacts of Large Cultural Events ExhibitionTopicDuration Total Visitors Respondents (% of all visitors) Der Blaue Reiter ‘The Blue Rider' (Wassily Kandinsky, Franz Marc, August Macke, Paul Klee) 25/03/ /06/ (0.5 %) Van Gogh‘The Fields', landscapes in France 19/10/ /01/ (1.02 %) Klee im Norden ‘Paul Klee in Northern Germany', joint exhibitions in Hamburg, Hannover and Bremen 30/11/ /02/ (1 %) (summer 2005)(permanent exhibition) June - August (4.7 %) Monet & Camille 'Fashion and Portraits of Women in Impressionism' 15/10/05- 26/02/ (1.4 %) (summer 2006)(permanent exhibition) June - August (10.3 %) Paula in Paris Paula Modersohn-Becker in Paris and the French avant-garde. 13/10/ /02/ (1.0 %) 7 Surveys in 8 Years

UNCW - April 2008 market. research. culture 5 Regional Economic Impacts of Large Cultural Events 2. Visitors Profile (Van Gogh) - describing the target group Average age of the visitors: ~ 46 61% of the visitors were women 48 % completed a university degree 77% of the visitors from other regions came because of the exhibition For 75% the cultural experience was the most important motive for the visit

UNCW - April 2008 market. research. culture 6 Regional Economic Impacts of Large Cultural Events Who are the Visitors? aging population(?)

UNCW - April 2008 market. research. culture 7 Regional Economic Impacts of Large Cultural Events 2.2 Origin of the Visitors van Gogh Bremen Neighborhood up to dot = 1 respondent

UNCW - April 2008 market. research. culture 8 Regional Economic Impacts of Large Cultural Events Origin of the Visitors Paula in Paris

UNCW - April 2008 market. research. culture 9 Regional Economic Impacts of Large Cultural Events Origin of the Visitors Van GoghBlauer Reiter Neighbour- hood Abroad 47,500 41, ,500 50,500 12,000 43,000 27,000 52,000 24,000 3,000

UNCW - April 2008 market. research. culture 10 Regional Economic Impacts of Large Cultural Events Out-of-town Visitors and Reason to visit Bremen

UNCW - April 2008 market. research. culture 11 Regional Economic Impacts of Large Cultural Events 2.3 Further activities of out-of-town visitors

UNCW - April 2008 market. research. culture 12 Regional Economic Impacts of Large Cultural Events Type of Accommodation of out-of-town visitors Duration of stay - out-of-town visitors

UNCW - April 2008 market. research. culture 13 Regional Economic Impacts of Large Cultural Events 3. Regional Economic Impacts of the Exhibitions Step 2: Regional Value Added via indirect effects Step 1: Expeditures induced by the exhibition („new money“) Step 3: Fiscal Implications „Return on Investment for the city / region

UNCW - April 2008 market. research. culture 14 Regional Economic Impacts of Large Cultural Events 3.1 Estimation of the Expenditures of Out-of-Town Visitors 1

UNCW - April 2008 market. research. culture 15 Regional Economic Impacts of Large Cultural Events Estimation of the Expenditures of Out-of-Town Visitors 2

UNCW - April 2008 market. research. culture 16 Regional Economic Impacts of Large Cultural Events Estimation of the Expenditures of Out-of-Town Visitors 3 different exhibitions: Events vs. permanent Exhibitions

UNCW - April 2008 market. research. culture 17 Regional Economic Impacts of Large Cultural Events 3.2 Regional Value Added Multiplier (1 + k) = 1.4

UNCW - April 2008 market. research. culture 18 Regional Economic Impacts of Large Cultural Events Regional Value Added: different Multipliers

UNCW - April 2008 market. research. culture 19 Regional Economic Impacts of Large Cultural Events 3.3 Fiscal Effects Preliminary Estimate of Possible Tax Revenues

UNCW - April 2008 market. research. culture 20 Regional Economic Impacts of Large Cultural Events 3.4 Additional Effects  Local Expenditures  Import substitution  Non-Monetary aspects  Education, creative potential  Image + Identification  Successful exhibition – successful city  Nationwide (international) reports in different media  Application “European Cultural Capital” supported  Future Exhibitions  Confidence of partner institutions  New building / public + private funding

UNCW - April 2008 market. research. culture 21 Regional Economic Impacts of Large Cultural Events What did we learn ? Arts & Economics –Complementary effects ! –The economists viewpoint: Regional economic impacts: +Additional expenditures -> Value added +Public revenue +Positive image effect Public funding of (cultural) events can make sense !

UNCW - April 2008 market. research. culture 22 Regional Economic Impacts of Large Cultural Events Thank you for your attention ! Questions Comments Further aspects –Economic theory –Employment –Input / output... … Is it real …?