Culture & Tourism in Economic Development &

Inward Investment

Dr Jim ColemanHead of Economics - Happold Consulting

Crossovers Event University of Greenwich

19th September 2012

Creative & Cultural Industries?

• Advertising• Architecture• Art & Antiques• Crafts• Design• Fashion• Film• Music• Visual Arts• Performing Arts• Publishing• Software & Gaming• Broadcasting• Museums

Creative & Cultural Industries:Economic Characteristics

• Support 2million jobs in the UK

• £600billion or 6.2% GVA

– Particularly important to London

– Financial Services = 8.3%

• UK has the world’s largest creative sector as a share of the economy

• Creative Industries grew by 5% per year, versus 3% for the whole economy

• Exports of £16.6billion in 2007

– 4.5% of all goods and services exported

• Biggest grouping – software, computer games and electronic publishing

Tourism Sector?

• Accommodation

• Attractions

• Events and Conferences

• Food and Beverage

• Tourism Services

• Transportation

• Travel Trade

• Adventure Tourism and Recreation

Tourism Sector:Economic Characteristics

• Britain’s 5th largest industry

• 3rd largest export earner

• worth c£115 billion a year

• Employs c2.6 million people

• Supports over 200,000 SMEs

• Overseas visitors contribute £3 billion to the Treasury every year.

Creative & Cultural Industries & TourismRelevance to Economic Development?

• Employment generation

• New business formation

• Supply chain development

• Skills enhancement

• Multiplier impacts

• Community development

• Place making, image & marketing

• Demonstrating creative capacity

• Synergy between Culture & Creative Industries & other sectors

– Digital Technology

– Business Services

Creative & Cultural Industries & TourismRelevance to Economic Development?

Challenges - domestic

• Cuts to public spending

– Threat to places that have based regeneration strategies on cultural industries & creative quarters

– Cuts to specialised education (e.g. Design)

• Small companies

– Difficult to raise finance for major change/development

– How to protect intellectual property

• Rapid pace of digital change

Challenges - international

• Competition

– China, Brazil, South Korea, Russia, Middle East

• Strong national and regional policy

• Significant funding

• Quality

• Rapid pace of development

Culture & Tourism

• Drivers and facilitators of economic development and inward investment

• How best to take this forward under challenging conditions?

Culture & Tourism As part of Regeneration?

• Effective strategy

• Resilient business models

• Finance

• Effective planning & physical regeneration

• Well defined product targeted at a specific market segment

• Understanding place context

• Displacement

Culture & Tourism As part of inward investment?

• Understanding what inward investors want?

• Who are the target investors?

• Matching offer to investor needs?

• Demonstrating quality of life/place

• Demonstrating availability of a high quality skills base

Culture & Tourism As part of International Competitiveness

• Demonstrating the presence of a creative environment

• Education and training

• Space

• The importance of design across the economy

Conclusions

• Definition

• Product

• Business resilience

• Legacy

• Impact

• Communication

• Participation