The economic impact of art on a country's economy
01 Jun 2020
Being a global centre for fine arts has many direct benefits for a country or city. For a start, income can come in the form of revenues earned at auctions, as well as through the patronage of international dealers and collectors at hotels and other hospitality institutions during key auctions.
The presence of important art museums in a country or city is a major tourism drawcard, and those cities with a number of galleries or museums can offer packages to tourists seeking the full cultural experience.
It’s not just foreign tourists and collectors who bring in the revenues for cities – locals can also enjoy these exhibitions. Indeed, the presence of high quality galleries and museums can be an attraction for those wishing to live in a city or region – whether they’re students, professionals or retirees.
In 2019, the Louvre maintained its position as the world's most popular museum with 9.6 million visitors.
The Art Newspaper
|The most visited museums in 2019|
|National Museum of China (Beijing)||7.3|
|Vatican Museum (Rome)||6.9|
|Metropolitan Museum (New York)||6.5|
|British Museum (London)||6.2|
|Tate Modern (London)||6.098|
|National Gallery (London)||6.011|
|State Hermitage Museum (St Petersburg)||4.9|
|Reina Sofia (Madrid)||4.4|
|National Gallery of Art (Washington DC)||4.0|
However, currency depreciation can be a double-edged sword. A weaker pound may help boost sales and attract tourists, but these benefits could dissipate with time if the best works are sold off to buyers from countries with stronger currencies.
Top-performing art exhibitionsBeyond Paris, London, Rome and New York, a number of other cities enjoyed large visitor numbers for specific exhibitions in 2019, as the tables below show.
Ai Weiwei is officially the world's most popular artist. His travelling survey in Brazil was the highest-ranking show by a single artist in terms of visitor figures in 2019. More than 1.1 million people came to view his work. In Rio de Janeiro, it was seen by 9,172 visitors a day (around 600,000 in total).
The Art Newspaper
|2019's most popular exhibitions|
|11,380||663,265||*DreamWorks||Centro Cultural Banco do Brasil||Rio de Janeiro||6 Feb-15 Apr|
|9,277||605,674||*DreamWorks||Centro Cultural Banco do Brasil||Belo Horizonte||15 May-29 Jul|
|9,172||598,818||*Ai Weiwei: Root||Centro Cultural Banco do Brasil||Rio de Janeiro||21 Aug-4 Nov|
|8,931||669,846||Munch: a Retrospective||Tokyo Metropolitan Art Museum||Tokyo||27 Oct 18-20 Jan|
|7,808||577,828||Gustav Klimt: Vienna, Japan 1900||Tokyo Metropolitan Art Museum||Tokyo||23 Apr-10 Jul|
|7,735||1,423,170||Tutankhamun: Treasures of Golden Pharoah||La Villette||Paris||23 Mar-22 Sep|
|7,697||463,991||To-ji Temple: Kukai and Sculpture Mandala||Tokyo National Museum||Tokyo||26 Mar-2 Jun|
|7,026||676,5031||Jean-Michel Basquiat/Egon Schiele||Foundation Louis Vuitton||Paris||3 Oct 18-21 Jan|
|6,188||1,677,000||*Diane Arbus: Box of Ten Photographs||Smithsonian (SAAM)||Washington, DC||6 Apr18-27 Jan|
|6,019||356,867||*50 Years of Realism: Photorealism to VR||Central Cultural Banco de Brasil||Rio de Janeiro||22 May-29 Jul|
Some 7,735 visitors a day (1.4 million overall) visited the Tutankhamun exhibition at the Grande Halle de la Villette in Paris. It was the last chance to see the Boy King’s tomb treasures before they return permanently to their new home in Cairo’s Grand Egyptian Museum.
The Art Newspaper
The Bilbao effect - investing in art museums
Cities can also position themselves as fine art hubs by investing in art museums. One good example is Bilbao in Spain’s Basque Country. Once the centre of the country’s steel industry, Bilbao has managed to reposition itself as an art tourism hub, thanks to the ambitious construction of the Guggenheim Bilbao (pictured below) that was inaugurated in 1997.
A collaboration between the Basque government and the Solomon R Guggenheim Foundation, the Guggenheim Bilbao was designed by renowned Canadian- American architect Frank Gehry at a cost of US$89m (mostly paid for by Basque taxpayers).
With over 22 million visitors since its opening in 1997 (two thirds of who came from abroad), the museum has certainly had a positive impact on Bilbao, more than paying off the cost to build it through resulting economic activity, estimated at €400 million per year.
Arguably though, the museum is more of an attraction as an architectural feature – much like the Eiffel Tower in Paris or the Sydney Opera House – than simply as a receptacle of great art.
The Zeitz MOCAA is the first major museum dedicated to contemporary art on the African continent.The Zeitz MOCAA was awarded the overall Cultural Destination of the Year at the Leading Cultural Destinations Awards in 2018. Dubbed the "Oscars of the museum world", the Awards recognise the world’s best cultural destinations. It is fast becoming one of Cape Town's biggest tourist money spinners, with Tripadvisor ranking the museum 8th in the list of the city's top attractions in 2020.
About the author
Patrick writes and edits content for Investec Wealth & Investment, and Corporate and Institutional Banking, including editing the Daily View, Monthly View and One Magazine - an online publication for Investec's Wealth clients. Patrick was a financial journalist for many years for publications such as Financial Mail, Finweek and Business Report. He holds a BA and a PDM (Bus.Admin.) both from Wits University.