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