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Heritage and the Economy 2019 HERITAGE AND THE ECONOMY 2019 HERITAGE COUNTS HERITAGE AND THE ECONOMY 2019 England VALUE (GVA) EMPLOYMENT The heritage sector is an important source of Heritage is an important employer economic prosperity and growth in England total GVA of jobs total over £31.0bn 464,000 (equivalent to 1.9% of national GVA) For every £1 of GVA directly generated, an additional For every direct job created, an additional £1.21 of GVA is supported in the wider economy 1.34 jobs are supported in the wider economy Direct Indirect Induced Direct Indirect Induced £1 + 68p + 53p 1 + 0.78 + 0.56 1 £7 n 1 11,000 £ £9.6b n .3b 1 55,000 14.0b n 98,000 TOURISM Heritage attracts millions of domestic and international tourists each year Visits (m) no. of visits Spend (£bn) 17.5 14.9 218.4m 3.4 tourist spend 9.3 4.3 186 £17.0bn n International trip n Domestic day visit n Domestic overnight trip Source: (Cebr, 2019) 2 HERITAGE AND THE ECONOMY 2019 HERITAGE AND THE ECONOMY The historic environment is intrinsically linked to economic activity, with a large number of economic activities occurring within it, dependent on it or attracted to it. Heritage and the Economy examines the economic aspects of heritage conservation and presents evidence on the numerous ways that the historic environment contributes to the national economy and to local economies. I. Heritage and the economics of uniqueness (p.4) 1. Investing in heritage creates places for businesses to grow and prosper (p.6) 2. Heritage and the creative economy (p.12) 3. Heritage shapes people’s perceptions and authentic experiences of places (p.16) 4. Heritage generates demand and a property price premium (p.20) 5. Heritage still has a great untapped potential (p.22) II. Heritage and the economy: The sum of many parts (p.28) 1. Heritage construction and development (p.32) 2. Heritage tourism (p.36) 3. Heritage volunteering (p.40) III. Heritage and the economy: A focus on skills in the heritage sector (p.44) IV. The ‘Total Economic Value’ of heritage is greater than the sum of all its parts (p.50) The evidence presented here includes recent research findings as well as past seminal pieces, forming part of the heritage sector’s rich, multi-dimensional knowledge base. The evidence is presented as brief bite-sized facts with links to the detailed evidence sources for more technical readers, or those with more specific evidence needs. Together with Heritage and Society, Heritage and the Economy can be used by anyone to make the case for heritage. HERITAGE AND THE ECONOMY 2019 3 I. Heritage and the economics of uniqueness “In my generation as retailers, we successfully cloned every town in Britain so they all looked the same, but clearly that doesn’t work. All towns have a heritage and history and their reason for uniqueness needs to be brought to the fore”. (Bill Grimsey, former head of Wickes, Iceland and Focus DIY (BBC, 2018). n Historic buildings, monuments and spaces Every place must identify its strongest, most shape how our towns, cities and rural areas distinctive features and develop them or run look and feel. They form a vital part of our the risk of being all things to all persons and nation’s infrastructure providing homes, nothing special to any” (in Licciardi et al. 2012). amenities, utilities and premises for businesses. The historic environment provides a sense of They add to the unique character of places, authenticity, beauty and distinctiveness. This signifying the culture of places and playing an attracts people, businesses and investment, important part in shaping peoples’ perceptions and can provide places with their competitive and authentic experiences of a place. advantage. “Using the historic environment as an asset, and giving it new life, has also been n The Nobel Prize winning economist, Robert one of the cornerstones of the economic and Merton Solow stated that “over the long term, social revival of our towns and cities” (Deloitte, places with strong, distinctive identities are 2017). more likely to prosper than places without them. Rievaulx Abbey, North Yorkshire. 4 HERITAGE AND THE ECONOMY 2019 Battle Abbey, East Sussex. HERITAGE AND THE ECONOMY 2019 5 1. Investing in heritage creates places for businesses to grow and prosper Many of our local shops, hotels, offices, warehouses and industrial units are located within historic buildings. Distinctive and characterful place and working spaces attract businesses and customers contributing to the competitiveness of businesses and places. Businesses in Listed buildings 142,000 +18% Businesses operating in Listed buildings across England 2012-2018 Occupiers of Listed buildings – Occupiers of Listed buildings – change 2012-2018 top 10 most prevalent % +154 eating & drinking eating & drinking Retail brands % +173 eating & drinking eating & drinking Eating and drinking brands retail services eating & drinking -18% Independent retail eating & drinking retail services -3% Independent eating and drinking retail services professional services Source: Heritage Counts (2018) 6 HERITAGE AND THE ECONOMY 2019 Abbey Road Studios, St John’s Wood, Greater London. HERITAGE AND THE ECONOMY 2019 7 HERITAGE IN COMMERCIAL USE: The research shows that there DRIVING THE REVITALISATION OF OUR are approximately 142,000 retail, TOWNS AND CITIES hospitality and commercial operations in listed buildings. Independent retail Heritage assets in commercial use play and hospitality sectors are the largest a vital role in the prosperity of local and most likely occupiers of listed economies. In the retail sector, experts buildings. However, over the past 6 years refer to the growing importance of the number of independent businesses “experiential retail” where consumers occupying listed buildings has increasingly demand immersive and declined, while unique experiences instead of routine the number of branded shopping. Places must now also provide retailers and branded food and drink emotional and human connections to establishments located in listed attract consumers. Heritage assets play buildings has grown by 173%. Today, an increasingly important role in helping branded pubs are the largest single type places differentiate themselves from others occupiers of listed buildings, followed thus contributing to the competitive closely by large coffee chains advantage of places ( ). Moore, 2018 Evidence from a survey of 509 Research for Heritage Counts, 2018 commercial businesses occupying examined the commercial use of heritage listed buildings also shows that the in towns and city centres locations. main advantage of occupying a listed building is that it “contributes Madison Square, Liverpool, Merseyside. to the positive atmosphere of the surrounding area” and it “provides a positive exterior appearance”. Amongst surveyed businesses, “ambience” and “attractiveness” are highly competitive features of the built environment. Heritage brings authenticity and a sense of uniqueness to places (Heritage Counts, 2018). The research concluded that towns and cities must protect their historic environment as a key resource for emerging and existing economic activities. Heritage assets in commercial use are vital contributors to economic growth in local economies to day and in the future. 8 HERITAGE AND THE ECONOMY 2019 n Heritage density is positively and strongly n A survey of 1,345 listed building residential related to the overall movement of owners found that a fifth of respondents businesses into an area. Using cross- (21%) undertake some sort of commercial sectional and longitudinal local authority data, activity within their properties: researchers conclude that heritage assets are – 12% of respondents indicated that they had important ‘pull’ factors influencing business office space at their property. location decisions (TBR, 2016). – 9% indicated that they provided n The density of heritage assets is highly and accommodation such as bed and breakfast positively related to the concentration of of cottage rental, while 3% provided firms in a local economy. An econometric accommodation at their property through analysis using local authority cross-sectional data Airbnb/One Fine Stay or similar. for the year 2013 and using a fixed effect model for the period 2003-2013 found a correlation – Around 7% of respondents were self- between heritage and firms (TBR, 2016). employed or running a business from home. n Historic places are increasingly attractive to – Over 2% were involved in farming businesses. Since 2012 the number of listed or agriculture. buildings occupied by a brand has increased by 154%. This is based on a research carried (Ecorys, 2017) out in in 55 cities and town centres ( Heritage n Heritage enhances business opportunities. Counts, 2018). In a telephone survey of 509 businesses located in listed buildings, 62% of the n Heritage influences the location choices of businesses. One in four businesses in a survey respondents replied that the historic nature of 122 businesses that had received investment of their building improved their business in the historic environment agreed that the (Historic England, 2018). historic environment is an important factor in deciding where to locate (AMION and Locum Consulting, 2010). Corn Street, Bristol. HERITAGE AND THE ECONOMY 2019 9 Eagle Works, Little Kelham, Sheffield, South Yorkshire. © Historic England Archive CASE STUDY: AGILE WORKING IN functions as the separation between HISTORIC BUILDINGS work and life becomes increasingly blurred. In essence, modern workspaces Research by Ramidus Consulting in 2018, are being transformed from being shows that the purpose of the workplace the place where works happens, to has changed in recent years and it is becoming a business driver. argued that this is likely to continue to Knowledge workers have more change in the future. Modern workspaces transferable skills, which makes them less encourage innovation by creating an dependent on a single employer and also environment that promotes trust and places greater demands on employers. team-work. They connect people Evidence shows that workers increasingly and promote social and professional demand quality and collaborative networks.
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