Evaluating the Creative Economy Applying the Contingent Valuation Method: A Case Study on the Greek Cultural Heritage Festival

Abstract

The effectiveness of the economic policies implemented by a country/region directly affects its economic growth potential. Cultural Heritage Festivals are a sector of the creative economy that, by promoting culture, may have a significant impact on national/regional sustainable economic development. This study assesses the implementation of the Contingent Valuation Method (CVM) and the estimation of the Willingness To Pay (WTP) demand curve, using data collected for the Kalamata Dance Festival as a case study, in order to evaluate creative economy investments. The results obtained indicate that the CVM is an appropriate method for evaluating festivals and suggest that females, spectators with high incomes and high educational levels, and visitors to Kalamata (non-residents) show an increased Willingness To Pay. These findings can be useful to cultural heritage festival organizers in developing appropriate policy strategies: targeting the social groups with the greatest Willingness To Pay; adjusting the pricing mechanism accordingly; modifying annual memberships/donations/sponsorships, indirect resources, and tax revenues and grants; and optimizing investments and allocating resources. Furthermore, the findings of this study will be particularly useful for Greece in designing relevant cultural sustainable development policies for exploiting the potential of the Cultural Heritage Festival, in synergy with the tourism sector, which already contributes a major share to the country’s GDP.

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“…This research study found that the multiplier of creative industries in Ukraine is equal to 1.9-2.2, which significantly impacts Ukraine's economy. In 2023, Koumoutsea evaluated the creative economy by applying the CVM to the Greek Cultural Heritage Festival, and they found that the festival has the potential to drive Greece's GDP in the future (Koumoutsea et al 2023). According to research which examined the impact of the creative industries on local economic development in Ukraine, these sectors can generate employment in the country at a rate of 1.91% annually and contribute 3.47% to the national GDP (Pavliuk 2023).…”