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Contribution of Culture to the North West Economy FINAL REPORT June 2005 Commissioned By

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Contribution of Culture to the North West Economy FINAL REPORT June 2005 Commissioned By Contribution of Culture to the North West Economy FINAL REPORT June 2005 Commissioned by Contribution of Culture to the North West Economy CONTENTS CONTENTS............................................................................................................................... 1 EXECUTIVE SUMMARY........................................................................................................... 2 1.0 Introduction................................................................................................................. 5 1.1 Overview .................................................................................................................. 5 1.2 Key Issues Facing the Region ................................................................................. 6 2.0 Culture and Regeneration........................................................................................ 10 2.1 Culture’s Contribution to Physical Regeneration ................................................... 10 2.3 Culture’s Contribution to developing the Region’s Knowledge Capital.................. 14 3.0 Creative Industries ................................................................................................... 16 3.1 Overview ................................................................................................................ 16 3.2 Economic Impact.................................................................................................... 17 3.3 Sector Strengths..................................................................................................... 20 3.4 Levels of Investment .............................................................................................. 21 4.0 Arts............................................................................................................................. 24 4.1 Overview ................................................................................................................ 24 4.2 Economic Impact.................................................................................................... 26 4.3 Levels of Funding................................................................................................... 27 4.4 Festivals ................................................................................................................. 28 4.5 Contribution of Arts to social inclusion and healthier lifestyles .............................. 29 5.0 Museums, Libraries & Archives.............................................................................. 31 5.1 Overview ................................................................................................................ 31 5.2 Economic Impact of the Sector .............................................................................. 31 5.3 Levels of Invesment ............................................................................................... 33 5.4 Wider Impacts of the Sector................................................................................... 34 6.0 Sport and Physical Activity ..................................................................................... 35 6.1 Overview ................................................................................................................ 35 6.2 Economic Impact of Sport .................................................................................... 366 6.3 Contribution of Sport to tourism, healthier lifestyles, community regeneration and infrastructure development .................................................................................................. 38 7.0 Heritage ................................................................................................................... 411 7.1 Overview ................................................................................................................ 41 7.2 Economic Impact of Heritage ............................................................................... 422 7.2 Wider Impact of Heritage ..................................................................................... 433 8.0 The Visitor Economy.............................................................................................. 455 8.1 Overview .............................................................................................................. 455 8.2 Economic Impact.................................................................................................. 466 APPENDIX 1 – TECHNICAL ANNEX................................................................................... 500 APPENDIX 2 – BACKGROUND TO STUDY ....................................................................... 522 APPENDIX 3 – SOURCES ................................................................................................... 533 EKOS Consulting 1 Contribution of Culture to the North West Economy EXECUTIVE SUMMARY The Cultural Sector The Cultural Sector as a whole contributes £15bn to the region’s economy; GVA for the Cultural Sector as a whole has been estimated to be 12%; Cultural sector employs 12% of the region’s workforce; Average household expenditure on culture and recreational activities is 15% which is higher than UK average expenditure; Culture is a critical component of the continued economic and social renaissance of the North West region; A critical mass and excellence in culture are essential prerequisites for a competitive region. Culture and Regeneration There are over 90 iconic buildings, facilities and attractions across the region building the profile of the region and supporting its distinctive image; Over £540m of direct capital investment has occurred in cultural facilities across the region; Liverpool Capital of Culture is expected to attract £2bn of inward investment across the city, generating 14,000 jobs and 1.7m extra visitors; The North West has a unique heritage of Cultural led regeneration which has resulted in world class public realm, cultural attractions and facilities, and the transformation of many areas across the region; Combined with infrastructure developments, culture transforms local economies, attracting jobs and leveraging substantial investment; Further and higher educational institutions provide a supportive environment to foster creativity and innovation; Higher Education Institutions provide additional cultural provision, and attract over 200,000 students to the region annually who act as supporters and innovators of culture. Creative Industries GVA for the Creative Industries sector as whole is estimated to be 4.5%; 149,000 are employed within the sector – 99,000 directly employed with a further 50,000 self‐employed; Number of businesses is estimated to be 18,000; Employment grew between 1995 and 2002 by 34,000 – 29% growth; Employment is expected to further grow by 18% over the next 8 years creating 27,000 additional jobs; Creative Industries play a vital role in the development of a highly skilled, knowledge based economy; The Creative Industries are highly entrepreneurial and encourage innovation and risk taking, key to revitalising the region’s economy. EKOS Consulting 2 Contribution of Culture to the North West Economy The Arts Substantial levels of investment from Local Authorities as well as Arts Council England supports a wide range of artistic activities – over £61.5m in 2003 ‐2004 was invested in the region by local authorities, Arts Council and external funders; Festivals have a significant impact on the economic vitality of their local areas; Numbers employed in the sector: 14,825; Number of businesses in the sector: 1,883; The Arts sector is an integral part of the wider Creative Industries sector and encourages risk taking and innovation; Improving the public realm and environment through arts is a key component of physical regeneration; Attendance and participation in arts activities across the region is higher than other Northern regions ‐ 79% of adults have attended an arts event whilst 86% participated in an arts activity. Museums, Libraries and Archives There are over a 160 museums and galleries in the region; Visitor numbers to North West registered museums has increased by over 30% since 1995; The sector is a significant employer and has seen substantial growth in recent years – over 12,000 people work in the sector across the region; Over £450m has been invested in the sector; Museums, libraries and archives directly benefit the region’s economic and social renaissance; attracting visitors and increasing the cultural offer as well as providing opportunities to access learning and training for local communities. Sport and Physical Activity GVA for the sector is estimated to be 1.5%; 1.75% of the region’s workforce is employed in the Sports related activities; Volunteers play an important role and contribute an estimated £425m; 6,100 jobs and over £600m of public and private sector investment was levered in as a result of the Commonwealth Games in 2002; providing a significant boost to the long term regeneration of East Manchester with rising land values and investor confidence; Sports events showcase the region to a wide audience, attracting visitors and contribute to the overall image of the region; Sports plays a catalytic role in the regeneration of deprived areas and communities; it is anticipated that up to 10,000 jobs will be created in East Manchester through major developments established on the back of the developments undertaken for
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