The Return on Investment of the Guggenheim Museum Bilbao

Abstract

The city of Bilbao has made use of a museum as one of the multiple means to restructure its former industrial base. However, the effectiveness of this costly formula is not always clear. Three major issues have arisen: the effects of Guggenheim Museum Bilbao on Bilbao's image, the effects on overnight stays, and the effects on the local economy. There is little debate about the first issue, and room for more evidence on the second and third issues. The aim is to quantify the museum's impact on tourism and employment and to calculate its yield (Return on Investment and Net Present Value). The approach adopted is the quantitative analysis of statistical data to try to isolate the economic contribution of the Guggenheim.

Sustainable Cultural Tourism in Urban Destinations: Does Space Matter?

“…For other authors [1,42,43], the sustainability of these strategies also depends on the uniqueness of the building, the quality of the exhibitions, its visibility in the media, and the city's transportation connectivity.…”

One icon, two audiences: how the Denver Art Museum used their new building to both brand the city and bolster civic pride

“…While cultural consumption has economic implications on a global scale it cannot be the sole driver of rejuvenation (Zukin 1991;Clark 2004); successful projects also include a diverse economy, integration of the market, and an increase in the overall productivity of the city (Grodach 2008;Plaza 2006). The arts can be an important source of employment for cities, and urban policy can help support that employment (Grodach 2016).…”

The autonomous world reversed: comparing liberal policy and autonomy in the performing arts

“…The most notable of these studies of economic impact and spillover effects are possibly the "Bilbao effect" (Plaza 2006), as well as Richard Florida's study of creative workers and their impact on regional development (Florida 2002(Florida , 2008. In addition to this, several studies have also aimed at proving the social impacts of art and culture, and thus the potential for saving welfare expenses through investments in arts and culture (see for an introduction).…”