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THE ECONOMY of PRESERVATION World Heritage As Economic Value Denis Leontiev Project Consultant: Sergey Sitar

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THE ECONOMY of PRESERVATION World Heritage As Economic Value Denis Leontiev Project Consultant: Sergey Sitar THE ECONOMY OF PRESERVATION World Heritage as economic value Denis Leontiev Project consultant: Sergey Sitar The Heritage market Coincidence or not but the economic crisis of the early 70s came roughly at the same time as launch of a global heritage market initiated by the signing of the UNESCO World Heritage Convention (Convention) in 1972. This paper looks at the cor- relation between the development of the free market and developments in the fi eld of historic building preservation. Outlines potential scenario of UNESCO funding restructure and its effects on the World Heritage market. Economy The early 70’s signaled the end of a long period of continuous growth in the Western world by the failing of the Breton-woods fi nancial system in 1971, oil crisis of 1973 and the banking crisis of 1974. It was a time of rethinking of economic paradigm which has prevailed since World War II. Just before in the late 60s, concurrent initiatives of the UNESCO and the White house laid the foundations for a World Heritage Convention. In 1972, during the recession UNESCO Convention was adopted. The idea of the protection of the world heritage had been discussed in various forms during the1960’s. In 1965 the UNESCO supported the establishment of International Council on Monuments and Sites (ICOMOS), and with its assistance starts the preparation of a draft convention on the protection of cultural heritage. In the same time the United States actively promotes the idea of establishing the World Heritage Trust which would protect natural and historic areas around the globe. Though the ideological foundations of this new world heritage organization had been developed during the economic con- ditions of Post World War II economic expansion, its implementation started in new economic reality - the period of Washing- ton consensus. This term “Washington consensus” was coined by John Williamson in 1989 to summarize reforms which developing coun- tries should follow: “The three big ideas here are macroeconomic discipline, a market economy, and openness to the world”.1 Later the term has been wider interpreted and argued.2 I use this term to label an new period of economy globalization which absorbed developing countries in the global economy. The Washington Consensus is started in the 1980’s and fi nished dur- ing the economic crisis of 2008. Among the most growing sectors of the service economy have been: tourism, entertainment technology and information-based services. The introduction of the World Heritage List and subsequent listing of many heritage sites corresponded with the rapid increase of tourism and number of national heritage trusts members. Global mass tourism inevitably transforms World Heritage Sites to economic assets and lies on the basis of a World Herit- age monetization. Annually preservation of UNESCO World Heritage generates through its 911 sites at least 60 billion euro of income.3 Although this is only 1% of total global tourist economy,4 the potential economic benefi ts which UNESCO World Heritage status gives to the site has the tendency to prevail over the cultural aspects of preservation. “To get the World Heritage status is important,” revealed Gao Zhikai, an offi cial at the Yin ruins in Henan province. “In China, once you get the title, you get a large budget for protection”.5 With the estimated growth of tourism this annual income will most likely double by 2020. Gradual transition of heritage into the domain of the market economy lead to the fact that economic benefi t has inevitably become a central motivation for preservation of cultural monuments: as a result, preservation today can be compared to an industry. This tendency raises the question of the initial goals of World Heritage Convention, such as “ ... provides that it will maintain, increase, and diffuse knowledge, by assuring the conservation and protection of the world’s heritage“.6 1 Williamson, John, Did the Washington Consensus Fail?. Speech at the Center for Strategic & International Studies, Washington, 6.11.2002. 2 Williamson, John, A Short History of the Washington Consensus. Conference “From the Washington Consensus towards a new Global Gov ernance Barcelona: 24–25.09.2004. 3 It can be calculated as 420 mln international visitors * 140 euro (daily tourist expenses) = 58,1 bln euro. Even we will add local tourism: 200 mln local tourists * 30 euro (daily tourist expenses) = 6 bln euro. In total it will be 64 bln euros. 4 Tourism 2020 Vision Study, UNWTO, 2002. 5 China spends billions on restoration as it touts for tourists. The Telegraph, 29 Jan 2011. 6 Convention Concerning the Protection of the World Cultural and Natural Heritage. UNESCO: Paris, 1972. 1945 1970 2008 WW II Post WW II economic boom Financial Washington consensus 1 Current 1945-1970 & oil crisis 1979-2008 economic 1971-1979 crisis World heritage Trust 1972 Trust heritage World 1972 convention heritage World Unesco Juxtaposition Dow Jones index of economic & g d 2 e Trust 1 e Trust herita 8880 mln heritageheritage periodsperiods NNumber of g iinternationaln e convention 1972 e convention 9 7 totourist 2 3 7707000 mlmlnn 33,5 mln NNumber of NNational Trust oof UK mmembers 4 9911 NNumber of 550000 mlmlnn WWorld Heritage pproperties 2,1922,19 mlnmln 5 2275 mln $ 669090 NNational Trust oof America 1 Williamson, John «Review of Globalisation and its discontents» ttotal assets conference by Peterson Institute for International Economic, 1989 300 mlmlnn 2 UWTO Statistic, 2009 3 National Trust Timeline (1895-2007) 200 mlmlnn http://www.nationaltrust.org.uk/main/w-trust/w-thecharity/w-thecharity_our-past/w-history_trust-timeline.htm 4 UNESCO Statistic, 2010 5 333355 NT for Historic Preservation USA Annual Report . 2009 Kennicott, Philip National Trust’s chief retiring, Washington Post, 4 November, 2009 00,0,2626 mlmlnn 8484 29 mln $ World Heritage Sites parametre Direct Flights Visitors Visitors Amazon J-Store from 10 most states World Heritage Site Name National International books Mentioned km tourist active criterias fee euro airport km airport quantity of quantity Admission countries Distance to to Distance date of inscription of date Distance to McD McD to Distance > 8 direct flights from free > 1000 > 10000 < 4 > 5 mln visitors countries ticket books articles km till the site CAN,CHN, US, JPN, GER, max Australia Sydney Opera House 2007 17€ 7 000 000 433 2866 3 17 UK RUS,CAN,FR,NL,IT,UK,US,C Austria Historic Centre of Vienna 2001 3 - 4 429 272 2456 44615 0,5 20 HN, JPN,GER RUS, CAN, CHN, FR, US, min France Mont-Saint-Michel and its Bay 1979 3€ 9 3 200 000 408 891 8 376 UK,NL, JPN, GER, IT RUS, CAN, CHN, FR, US, France Chartres Cathedral 1979 3 free 1 500 000 66 2867 0,5 114 UK,NL, JPN, GER, IT RUS, CAN, CHN, FR, US, France Palace and Park of Versailles 1979 3 € 33 2 800 000 561 24194 0,7 45 UK,NL, JPN, GER, IT RUS, CAN, CHN, FR, US, France Palace and Park of Fontainebleau 1981 2 € 11 3 000 000 127 5956 4 80 UK,NL, JPN, GER, IT RUS, CAN, CHN, FR, US, France Pont du Gard (Roman Aqueduct) 1985 3 € 12 1 100 000 202 1472 4,8 130 UK,NL, JPN, GER, IT RUS, CAN, CHN, FR, US, France Paris, Banks of the Seine 1991 3 € 35 10 000 000 14628 359413 0,4 45 UK,NL, JPN, GER, IT RUS, CAN, CHN, FR, US, France The Loire Valley between Sully-sur-Loire and Chalonnes 2000 3 € 10 800 000 211 2353 15 200 UK,NL, JPN, GER, IT Germany Cologne Cathedral 1996 3 free 9 000 000 20 3808 0,1 16,3 RUS, FR,UK,NL, GER, IT RUS, CAN, US, CHN, GER, Greece Acropolis, Athens 1987 5€ 12 1 355 720 206 6437 0,7 35 IT, FR, UK, NL Italy Historic Centre of Florence 1982 5€ 50 3 150 000 2832 51748 0,9 20 RUS, FR, US, UK,NL,GER, IT Italy Venice and its Lagoon 1987 6 € 33 2 091 596 5 455 718 2745 35267 1,1 20 RUS, FR, US, UK,NL,GER, IT Italy Early Christian Monuments of Ravenna 1996 4€ 9 820 000 247 5600 1 73 GER, FR, IT, UK Italy City of Verona 2000 2 € 8 min 1 million 340 8958 0,1 54 GRE, FR, IT, GB, RUS, NL RUS, CAN, CHN, FR, US, Holy See Historic Centre of Rome, the Properties of the Holy See 1980 5€ 25 10 000 000 5600 109 533 0,8 10 UK,NL, JPN, GER, IT RUS, CAN, CHN, FR, US, Holy See Vatican City 1984 4€ 15 4 200 000 160 17 569 0,8 10 UK,NL, JPN, GER, IT Historic Monuments of Ancient Kyoto (Kyoto, Uji and FR, CHN, IT, US, NL, GER, Japan 1994 2€ 10 - 1 000 000 1313 24160 117 Otsu Cities) JPN Japan Itsukushima Shinto shrine 1996 4€ 2 2 600 000 2 135 5,1 79 CHN, JPN Peru Historic Sanctuary of Machu Picchu 1983 4€ 44 600 000 800 000 232 660 200 - Spain Alhambra, Generalife and Albayzn, Granada 1984 3€ 11 2 900 000 222 2128 27 140 RUS, UK, GER, NL, IT, FR RUS,NL, FR, IT, UK, US, Spain Works of Antoni Gaudi 1984 3€ 11 min 2 000 000 21 348 1,5 17 GER, CAN RUS, CAN, CHN, FR, US, UK Stonehenge, Avebury and Associated Sites 1986 3€ 10 1 100 000 227 2031 15 116 UK, NL, JPN, GER, IT Westminster Palace, Westminster Abbey and Saint RUS, CAN, CHN, FR, US, UK 1987 3€ 10 1 394 427 74 9380 0,7 27 Margaret's Church UK,NL, JPN, GER, IT Cambodia Angkor 1992 4€ 14 400 000 2 100 000 352 232 NO 10 CHN Memphis and its Necropolis the Pyramid Fields from Giza to RUS, GER, FR, IT, UK, CHN, Egypt 1979 3€ 48 400 000 4 600 000 282 2575 3,2 51 Dahshur US RUS, CAN, CHN, FR, US, India Taj Mahal 1983 1 € 10 1 200 000 1 200 000 141 843 2,6 218 UK,NL, JPN, GER, IT Indonesia Borobudur Temple Compounds 1991 3€ 14 2 468 864 111 136 56 263 37 540 CHN, JPN, NL, GER Iraq Samarra Archaeological City 2007 3 - 0 55 886 No 100 - NL, FR, IT, UK, US, Jordan Petra 1985 3€ 39 320 000 1 280 000 139 2187 128 214 GER,CHN, RUS, CAN Morocco Medina of Marrakesh 1985 4€ 4 200 000 900 000 27
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