Reconsidering the estimation of the economic impact of cultural tourism

The assessment of the economic benefits of cultural events is necessary to inform decision-making. In many cases cultural events are designed to attract tourists and the injection of tourist spending to a local economy is one of the drivers for hosting events. From an economic perspective, the impact of staging an event can be measured using either an expenditure multiplier or a cost benefit analysis (CBA) approach. One of the difficulties with CBA is the data required to estimate the relevant benefit function. This paper addresses this limitation by illustrating how benefit functions can be parameterised with minimal data, thereby enhancing the possibility of using CBA. Our approach is illustrated with a case study of an exhibition held by a regional community in Australia. The case study compares economic impact assessments and finds using benefit estimates as we propose provides a useful method of estimating benefits with limited data.