Assessing the economic impact of a UNESCO World Heritage designation

Abstract

Grand Pré Historic Site in Nova Scotia (Canada) is in the process of applying for a United Nations Educational, Scientific and Cultural Organization (UNESCO) World Heritage Site (WHS) designation. Conventional wisdom is that such a designation would generate public awareness and increase visitation to the site. The goal of this paper is to estimate the impact of a WHS designation on tourist visitation and related expenditures. Various tourism statistics (covering 1990–2008) for Nova Scotia and its only other established UNESCO site – Lunenburg (designated in 1995) – served as data. Regression analysis produced an estimate of the tourist visitation impact that a WHS designation had on Lunenburg, and could be expected to have on Grand Pré. An increase of 6.2% in tourist visitors due to a WHS designation was estimated. Survey data collected at Grand Pré provided average spending per visitor. The economic impacts were analyzed under both a projected and a historical scenario of visitation. Based on its 10-year historic visitation average, a WHS designation for Grand Pré would generate an increase of 3000 visitors per year. These visitors would generate spending of approximately $200,000 annually in the local economy. Such spending would provide a boost to the local tourism industry, which has experienced significant decline in recent years.