1THE WORLD BANK

Stimulating the Economy by Increasing Investments in Cultural Heritage and Sustainable Tourism

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Machu Picchu Heritage Site (Peru)

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Short Movie China’s Gansu Province Project

http://digitalmedia.worldbank.org/SSP/silkroad/index.html

Click to start playing the movieBroadband internet connection and speakers required

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3THE WORLD BANK

What are cultural heritage and sustainable tourism?

Why should the Bank invest more in such themes?

What is the Bank doing in cultural heritage and sustainable tourism?

What indicators can be used in cultural heritage and sustainable tourism projects?

How can the Bank do more? President Zoellick asking about the details of the restoration of Huguang Huiguan Guild Complex, a cultural heritage site in Chongqing (China) restored with World Bank’s help

Overview

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What are Cultural Heritage and Sustainable Tourism?

Cultural Heritage is the legacy of sites, buildings, and physical artifacts of a group or society that are inherited from past generations. They should be maintained in the present, integrated in the economy, and bestowed for the social and economic benefit of future generations.

Sustainable Tourism is an industry committed to making a low impact on the environment and local culture, while helping to generate income and employment for local communities. Sustainable tourism helps ensure that development is a positive experience for local communities, private sector, and tourists themselves.

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Why Should the Bank Invest Morein Cultural Heritage and Sustainable Tourism?

Preserving cultural heritage and developing sustainable tourism facilitates economic growth, especially in countercyclical periods.

It is labor intensive, therefore creates jobs and stimulates local economy by providing foundation for further development.

80% of CASs include recommendations for tourism development, especially through heritage preservation and its adaptive reuse.

Several Governments of developed countries (United States, Germany, France, United Kingdom, Spain, Italy, Australia, and Japan) have included significant investments in cultural heritage and sustainable tourism in their stimulus packages.

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Cultural heritage and sustainable tourism projects help enhance institutional reputation and facilitate strategic relations across countries.

The reconstruction of the Mostar Bridge (Bosnia Herzegovina) is amongst the projects that enhanced Bank’s visibility, public opinion’s consensus, and reputation across clients.

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Why Should the Bank Invest Morein Cultural Heritage and Sustainable Tourism?

1930

Mostar Bridge (Bosnia Herzegovina) - 2004

2002

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Cultural heritage and sustainable tourism projects create more jobs than other infrastructure projects.

Ordinary infrastructure projects: 70% materials, 30% labor

Cultural heritage projects: 30% materials, 70% labor

Source: Donovan D. Rypkema, Measuring the Economic Impacts of Historic PreservationPresentation at the Cultural Heritage and Sustainable Tourism Thematic Group, The World Bank, April 22, 2009

Materials Labor

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Why Should the Bank Invest Morein Cultural Heritage and Sustainable Tourism?

Local workmen preserving a heritage site, Banteay Chmar(Cambodia)

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Cultural heritage and sustainable tourism projects help reduce poverty by promoting urban rehabilitation and making available assets for private sector development.

Cities classified as UNESCO World Heritage Sites have increased tourist arrivals up to 30%, retail stores income up to 20%, and manufacturing industry up to 15%.

Source: Harvard University, 2009.

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Why Should the Bank Invest Morein Cultural Heritage and Sustainable Tourism?

Preserved historic city center, Pingyao (China)

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Cultural heritage and sustainable tourism projects are gender inclusive.

Cultural heritage preservation and sustainable tourism management provide equal opportunities for social development, help women enhance their education and improve their job opportunities through handicraft production and the manufacturing industry.

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Why Should the Bank Invest Morein Cultural Heritage and Sustainable Tourism?

Women working in heritage conservation at Çatalhöyük(Turkey)

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Cultural heritage and sustainable tourism projects help local communities to look positively at economic development, as they link modernity to tradition.

Local communities, in both urban and rural areas, take sound advantage from cultural heritage and sustainable tourism projects. Heritage preservation requires simple tools, locally available materials, and knowledge of traditional techniques functional to the benefit of local economy.

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Why Should the Bank Invest Morein Cultural Heritage and Sustainable Tourism?

Preserving ancient city walls, Pingyao (China)

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Cultural heritage and sustainable tourism projects enhance social identity and strengthen social cohesion.

Local communities are fascinated by working to preserve their social identity and this makes them feel more productive and integrated in the economy.

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Why Should the Bank Invest Morein Cultural Heritage and Sustainable Tourism?

Social survey in the historic city center, Pingyao (China)

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Cultural heritage and sustainable tourism projects help protect the environment.

Preserving and reusing existing buildings, instead of doing new constructions: cut dramatically carbon emissions

(up to 50% compared to new constructions),

promote the use of renewable resources and materials having limited ecological footprint, and

reduce debris landfill due to building demolition.

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Why Should the Bank Invest Morein Cultural Heritage and Sustainable Tourism?

Preserving a heritage site with materials availablelocally, Çatalhöyük (Turkey)

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Cultural heritage and sustainable tourism projects improve living conditions in slums and neglected neighborhoods.

Rehabilitating historical buildings located in slums provides incentives for new service delivery and boosts urban rehabilitation, thus reducing marginalization of poor communities.

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Why Should the Bank Invest Morein Cultural Heritage and Sustainable Tourism?

Restoration of an historic building in a slum, Lijiang (China)

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What is the Bank Doing in Cultural Heritage and Sustainable Tourism? 1986: Approved Operational Policy Note OPN 11.03 on “Management of Cultural Projects in Bank-

Financed Projects.”

1997: Organized its first conference on the theme, “Culture in Sustainable Development” in Washington DC officially demonstrating that cultural heritage and sustainable tourism are effective development tools.

1999: Co-sponsored with UNESCO and the Italian Government a major international conference on cultural heritage and sustainable tourism, “Culture Counts,” in Florence (Italy).

2000: Created a dedicated Trust Fund (TF) sponsored by the Italian Government which contributed to frame a more structured and continuous focus on the theme.

2001: Comprehensive study by the Operations Evaluation Department (OED) highlighted a very encouraging and positive trend in lending, results, and aid effectiveness.

2004: UNESCO/World Heritage Center and World Bank high-level meeting on Cultural and Natural Heritage.

2004: Published the broad study “Culture and Public Action” with the support of the Dutch Government.

2006: Approved Operational Policy and Bank Procedure OP/BP 4.11 on “Physical Cultural Resources.”

2007: Participated proactively in the Marrakech Task Force on Sustainable Tourism Development.

2008: Organized the “Responsible Tourism Days” gathering high-level experts to demonstrate how the benefits of heritage and tourism projects are distributed at local level, improving both the social as well as economic well being of communities.

2009: Hosted the technical meeting “Economic Implications of Cultural Heritage Challenges: Climate Change, Disasters Management, and Sustainability” pointing out threats having an impact on heritage assets.

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What is the Bank Doing in Cultural Heritage and Sustainable Tourism?

Since the 1970s, the Bank has financed 241 operations (208 lending and 33 non-lending) having components in heritage conservation and promotion of local economy through sustainable tourism, for an investment of $ 4 billion.

There are currently 117 operations under implementation (100 lending and 17 non-lending), for an actual investment of $ 1.8 billion.

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The figures refer only to project components featuring direct investments in cultural heritage and sustainable tourism.

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What is the Bank Doing in Cultural Heritage and Sustainable Tourism?

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The figures refer only to project components featuring direct investments in cultural heritage and sustainable tourism.

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What is the Bank Doing in Cultural Heritage and Sustainable Tourism?

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The map represents projects approved by the Bank since the 70s, and includes only project components featuring direct investments in cultural heritage and sustainable tourism.

Investments in cultural heritage and sustainable tourism in Bank-financed operations (in $ million)

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What is the Bank Doing in Cultural Heritage and Sustainable Tourism?

Challenge: cultural heritage and sustainable tourism projects are based on sound knowledge of the country’s potential and assets, thus project preparation needs careful planning.

Bank’s response: since 2000, the Bank has been addressing this challenge with the support of the Italian Government, which has provided funding through a Trust Fund aiming at preparing projects featuring cultural heritage and sustainable tourism components.

The Present Single Donor Trust Fund has financed 29 grants for $ 5.74 million, which have been linked to 14 IDA/IBRD operations and have leveraged investments of $ 185.6 million. The Trust Fund has generated tremendous interest amongst TTLs and the investment in the theme has significantly increased over the last decade, from $ 0.9 to $ 2.6 billion.

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Grants awarded through the present Single-Donor Trust Fund

What is the Bank Doing in Cultural Heritage and Sustainable Tourism?

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What Indicators can be used in Cultural Heritage and Sustainable Tourism Projects?

Output indicators: Jobs created during and beyond project implementation; Household income increase; Retail stores income increase; Tourist arrivals and overnight stays increase; and Tourist expenditures increase.

Impact indicators: Improved affordable housing stock; Urban revitalization and rural development promoted; Historic fabric preservation implemented; Sustainable development ensured; Saved energy embodied in existing building; Reduced automobile dependence due to more concentrated population; More responsible use of non-renewable resources; Reduced development pressure on landfills; and Reduced construction debris.

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What Indicators can be used in Cultural Heritage and Sustainable Tourism Projects?Operational indicators measured by the Aga Khan Trust for Culture, a World Bank partner supported by the Present Trust Fund. Each $ 1 million invested generates the following output:

Work-days generated during project implementation: Architects and technicians: 32,000 work-daysMasons and workers: 85,000 work-days

Buildings restored (including public and private): 35 houses and community facilities

Roads rehabilitated: 11 Km

Sewerage rehabilitated: 1 Km

Training: 5 engineers and 30 masons trained in cultural heritage preservation

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Data measuring the average impact in AKTC projects, worldwide.

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How can the Bank do More in Cultural Heritage and Sustainable Tourism?Establishing a Multi Donor Trust Fund modeled on InfoDev

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New projects in

IDA and IBRD

Countries

Grants to TTLs

Donor Committee

Framework Agreement

Symposia

Technical Advisors

Using a mobile crane to stabilize and preserve the amphitheatre, Cyrene (Libya)

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How can the Bank do More in Cultural Heritage and Sustainable Tourism?Involve our technical partners to ensure aid effectiveness

IGOs Technical advisors

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Cultural heritage and sustainable tourism

Physical preservation and adaptive

reuse

Environment, disaster risk,

climate change

Economic growth, local

economic development,

small and medium

enterprises

Communication marketing and

media

Social development, community-

driven development

Education

Job creation and poverty

reduction

How can the Bank do More in Cultural Heritage and Sustainable Tourism?Establish a Multi Donor Trust Fund as a facility to work on cross-cutting themes

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How can the Bank do More in Cultural Heritage and Sustainable Tourism?Timeline to establish a Multi Donor Trust Fund

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Thank you for your attention!

Children involved in the “Vietnam World Heritage in Young Hands Program,” a formal two-year education initiative

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