1. Cultural Heritage and Sustainable Tourism for Local Economic Development
“What, Who and How? Enhancing Economic Benefits of Archaeological World Heritage Sites”
Brent Lane University of North Carolina
Kenan-Flagler Business School
The Carolina Center for Competitive Economies (C3E)
Kenan Institute for Private Enterprise

2. Brent Lane
Direct UNC Center for Competitive Economies, an economic strategy research center focused on growth capital markets, local growth engines, and SMEs (esp. rural)
Former venture capital investor and entrepreneurial developer
Active as sponsor, director and researcher in heritage economic s and ventures

3. Premise
World Heritage program focused on preservation, but the listing is commonly expected to also yield economic benefits through increased tourism
Tourism can challenge heritage conservation without significant local economic benefit
Record of local economic benefits especially uneven in rural locations and developing countries
Absence of clear local economic benefits may deter the listing of additional WHS in less developed areas

4. ICAHM/WHS
International Scientific Committee on Archaeological Heritage Management (ICAHM) advises UNESCO
World Heritage Sites (WHS) are cultural or natural heritage locations designated or “listed” by UNESCO to encourage their protection and preservation.
Currently 890 World Heritage Sites around the world, a majority of which are cultural sites that encompass archaeological heritage resources.

5. UNC/ICAHM Research Action:
Research to better measure and enhance local economic benefits of archaeological World Heritage Sites (WHS)
Outcome:
Deployment of sustainable tourism and development practices that enhance the cultural, heritage and economic goals of archaeological WHS in targeted developing countries

6. Research to Date Nov. 2008: UNC initial research phase begun
Nov now: research literature assessment
Jan. – Aug. 2009: on-site consultations in Japan, China, Morocco, New Zealand, Bolivia, UK
pre/post WHS listing economic activity data
WHS expectations and outcome perceptions
Strategies and investment to capitalize on WHS
Current – distillation of initial findings and completion of study design

7. Initial Sites Fuerte de Samaipata, Bolivia Mount Wuyi, China
Historic Monuments of Ancient Nara, Japan
Sacred Sites in the Kii Mountain Range, Japan
Archaeological Site of Volubilis, Morocco
Site de Chellah, Morocco
Waitangi Treaty Grounds historic, New Zealand
Hadrian’s/Antonine’s Walls, UK

8. Today’s Agenda
What’s known and what’s not about the economic benefit of WH listing
Examples of best practices with a focus on sustainable tourism practices that emphasize host community benefits
Describe plans for expanding the research
Elicit suggestions for additional exemplars and prospective locations

9. Prior WHS Economic Assessment Results
Expectations of economic benefit remain strong but ill-defined
Anecdotal evidence highly suggestive and politically persuasive
Numerous positive qualitative outcomes experienced

10. Prior WHS Economic Assessment Results
Macro scale research show modest tourism specialization growth effect
An increase of one standard deviation in tourism activity would lead to an annualized additional growth of about 0.5 %/year (IMF’09)
Some EIAs show evidence of inconsistent marginal effect (1-5%) that may not off-set costs
Most assessments are rendered inconclusive by data problems

11. UNESCO and World Heritage Sites The limits of soft cultural power
Sep 10th The Economist

12. Prior WHS Economic Assessment Results
Conventional Economic Impact Assessment (EIAs) limited by the nature of World Heritage Sites
Revealed preference Before-After-Control Impact (BACI) assessment s designed to measure marginal tourism variation
Limited geographic scale and inadequate data from studied WH sites
WH uniqueness means lack of appropriate controls

13. World Heritage Effect?

14. World Heritage Effect?

15. EIAs offer Limited Operational Value
Macroeconomic results do not yield info critical to local decision-makers and community
Extent of local benefit not usefully calculated
Means of benefit accrual not described
Tourism market segmentation not characterized
Data granularity insufficient for entrepreneurial development planning
Tourism gains don’t equal economic benefit

16. Stonehenge 1 million visitors /year Average stay 20-30 minutes
About 50% of paid visitors never go beyond the visitor center/car park
Exemplar of “High Impact/Low Benefit”

17. Questions?

18. Operational Info Needs
What does the WH “brand” mean to which tourists?
What forms of tourism most compatible with heritage conservation?
Which tourism segments could provide highest local benefit in most sustainable manner?
What offerings most desired by optimal segments?
What gaps/opportunities do sites need to address?
How can economic progress be monitored?

19. Industry Cluster Analysis for WHS
Cluster are trading networks of local and non-local business and employees
Establishment level analysis reveals beneficiary demographics - employment , wages , ownership
Captures pervasiveness of local economic benefits and extent of indigenous population participation
Delineates areas of unrealized economic potential by segmenting “monolithic tourism industry construct

20. Heritage Tourism Cluster

21. Archaeo-Tourism Cluster
Sites in less developed areas suffer from anemic heritage tourism industry cluster
Thin cluster – unavailable goods/services
Nonexistent or low value heritage offerings
Non local ownership = profit exportation
Overemphasis on high impact/low benefit segments

22. Filling Cluster Gaps
Cluster analysis reveal gaps in the local tourism economy that represent business opportunities
unoccupied tourism product niches or niches primarily served by non-local providers
"targets of opportunity“ for entrepreneurial development programs
Toolkit: business skills, market info, microfinance, business incubators, etc.

23. Economic Terracing
External spending
Imports

24. Questions?

25. Best Practices create Goal Convergence
Communicate Culture and preserve Heritage while maximizing local Economic benefits Conflict, Coincidence, Convergence

26. Best Promises/Practices
Host community based sustainable tourism enterprises
Unify cultural, heritage and economic goals
Strengthen cluster density to capture benefits
Draw on archaeological research for authenticity value-addition
Promising and proven examples of success
Constitute a portfolio for application WH sites in developing economies

27. Archaeology’s Value Proposition Archaeological R&D enhances authenticity in portfolio of heritage tourism offerings
Conventional
Academic papers
Museums
Archaeo-tourism
Reconstructions
Guide services
Media content
Performance
Hospitality/cuisine
Artisan crafts/replicas

28. Artisan Crafts/Replica Production
Common tourism complaint is lack of local crafts and souvenirs
Archaeology research adds significant value
Local crafts enhance visitor experience and cultural awareness
Artisan training recaptures host culture heritage
Business skills, financing needs have limited several pilot projects

29. Belize Slate Carvings
Community development effort trained artisans in slate carvings
Incorporated local Mayan archaeological research
Validated Mayan self-identification
Multi-generational impact

30. Replicas Discourage Looting
Archaeology : “Forging Ahead:
How I stopped worrying and love eBay”
Rather than rewarding artifact looting, eBay has created more lucrative market for replicas/fakes
Market is rewarding authenticity of replicas and creating business opportunities in host communities
Higher quality replicas create economic disincentives that have dampened the artifact black-market

31. “Lost Colony” Outdoor Drama
Started in 1937, is oldest US heritage performance
Performed at site of first English New World colony
Archaeological excavations inform performance
Effective heritage education, tourism attraction and high value employment
Direct employment of 250
Over 3 million attendees to date

32. Cluster Enhancement Hadrian’s Wall WHS
Remains of Roman fortification 73 mile long located in rural northern England
Integration of archaeological sites at numerous locations with variety of offerings
Branded transportation serving site wide tourists
Coordinated local lodging promotion
Local artisan products program
Hiking/cycling trail and Pilgrimage

33. Specialized segment with low impact/high benefit potential
Archaeo-Tourism
Specialized segment with low impact/high benefit potential
Motivated by heritage experience immersion from tours to home stays to volunteering
Market premium reward for authenticity of offerings
Smaller market than mass tourism but with better Impact/Benefit profile

34. Amateur Excavators
Tourists who PAY to assist archaeologists in excavations
Valuable low impact/high benefit segment
Long-term visitors with big local economic footprint
Informal inter-cultural ambassadors
Limited data suggests demographic diversity across a global market

35. Vindolanda Trust Active archaeological site in Hadrian’s Wall WHS
over 3000 excavation volunteers since 1970
Typical two week stay at local lodging
Expansion to 500 excavators annually

36. Next Research Phase
Heritage Tourism segmentation, trend forecasts, and Impact/Benefit valuation
Stated and revealed WH Brand analysis by tourism segment, market, and media
Senior and Junior WHS Cluster analysis, BACI and base level assessments (15 sites)
Best practice case studies and codification
Archaeology financing program design

37. WHS Research Sites
Senior: mature sites with established clusters and learning curve experiences
Junior: Recent or tentative listing with ambiguous market definition
Criteria
Developing economy and/or rural locations
Primary, secondary and tertiary tourism statistics
Archaeological heritage
Appropriate control sites from WH Tentative List
Build on existing development agency relationships

38. Questions/Suggestions?
Brent Lane Director UNC Center for Competitive Economies University of North Carolina Kenan Flagler Business School Campus Box 3440 Chapel Hill NC