References:

• “Derry~Londonderry UK City of Culture 2013: Economic Impact Assessment” (2013) by Oxford Economics
• “The Economic Impact of Liverpool’s Year as European Capital of Culture” (2009) by the University of Liverpool and Liverpool John Moores University
• “The Economic Impact of UK City of Culture 2017 in Hull” (2018) by Oxford Economics.

The UK City of Culture initiative, launched in 2009, is a designation awarded to a different city in the United Kingdom every four years. The initiative aims to promote cultural and economic regeneration through the celebration of culture, arts, and heritage. The designated city receives funding from the UK government and (previously) the European Union to support the development of cultural events and infrastructure. The initiative has been widely praised for its potential to generate economic benefits, such as increased tourism and job creation. However, research has also highlighted potential drawbacks of the initiative, including opportunity costs and a lack of long-term economic impact. Emerging research is beginning to challenge the narrative of success being pushed by organisers.

The success of Derry-Londonderry’s year as City of Culture in 2013 has been widely cited as a model for the potential economic benefits of the initiative. A study by Oxford Economics on the economic impact of the initiative in Derry-Londonderry found that the initiative generated £80 million in additional expenditure and created over 1,000 jobs. The study also found that hotel occupancy rates in the city rose by over 30% and visitor numbers increased by over 25% compared to the previous year.

However the story is not always as it is reported by those who have had a vested interest in promoting it as a success. Notable is a study by the University of Ulster on the economic impact of the initiative in Derry-Londonderry which found that the majority of the economic benefits generated by the initiative came from pre-existing plans and investments. The study also found that the initiative had a limited impact on the city’s long-term economic development, with many of the jobs created by the initiative being temporary.

The economic impact of the UK City of Culture initiative can also be seen in the redevelopment of cultural infrastructure. Hull, the 2017 UK City of Culture, used funding from the initiative to renovate and re-open the Hull Truck Theatre, the Ferens Art Gallery, and the Hull Maritime Museum. These renovations not only improved the cultural offerings of the city, but also attracted additional visitors and generated economic activity.

Providing a more nuanced view, a study by Oxford Economics on the economic impact of the UK City of Culture initiative in Hull reported that the initiative had a limited direct impact on the city’s economy, with the majority of the economic benefits generated by the initiative coming from pre-existing plans and investments. The study also found that the initiative had a limited impact on the city’s long-term economic development, with many of the jobs created by the initiative being temporary.

Research has also highlighted the potential opportunity costs of the UK City of Culture initiative. A study by the University of Liverpool and Liverpool John Moores University on the economic impact of Liverpool’s year as European Capital of Culture in 2008 found that the initiative generated £753 million in additional economic activity and created over 9,000 jobs. However, the study also found that the initiative had a negative impact on the city’s other cultural events, with attendance at these events declining as a result of the increased competition.

In addition to opportunity costs, research has also challenged the positive narrative postulated by organizers of the initiative. A study by the University of Glasgow on the economic impact of the UK City of Culture initiative in Glasgow in 1990 found that the initiative had a limited impact on the city’s economy and that the initiative’s claims of economic benefits were “greatly exaggerated“.

In conclusion, while the UK City of Culture initiative has demonstrated the potential for cultural and economic regeneration through the celebration of culture, arts, and heritage, research has also highlighted potential drawbacks of the initiative. Studies have shown that the initiative may have limited impact on long-term economic development and that the economic benefits generated by the initiative may be largely the result of pre-existing plans and investments. Research has also highlighted the potential opportunity costs of the initiative, such as the negative impact on other local cultural events and venues.