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DATE DUE DATE DUE DATE DUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6/07 p:/CIRCIDateDue.indd-p.1

MICHIGAN STATE UNNERSITY

 

Urban and Regional Planning Program

Heritage Tourism and Urban Destinations:

A Local Economic Development Strategy

A Plan B Paper

Jenelle Collins

 

August 2000

Titian

 

I} I .RFTURNI
' we in

HERITAGE TOURISM AND URBAN DESTINATIONS:
A LOCAL ECONOMIC DEVELOPMENT STRATEGY

BY

Jenelle Collins

A PLAN B PAPER

Submitted to Michigan State University
in partial fulfillment of the requirements
for the degree of

MASTER OF URBAN AND REGIONAL PLANNING

Department of Geography
Urban and Regional Planning Program

August 2000

T ‘1'}; R! s

CONTENTS

Chapter

List of Tables
List of Figures

Introduction

1.1 Purpose, Hypothesis, and Need
1 .2 Methodology

1.3 Limitations of the Study

1 .4 Organization

Review of Literature

2.1 Terminology and Definitions

2.2 Economic Development Strategy

2.3 Economics of Historic Preservation and Tourism
2.4 Urban Attraction

2.5 Traveler Motivations

2.6 Local Non-Economic Benefits

Case Study: New Orleans

3.1 Description

3.2 History and Sense of Place
3.3 Heritage Meets Tourism
3.4 Interview Discussions
General Findings

Conclusion
5.1 Recommended Future Study

List of References

Page
Number

TABLES

 

Table
Number

1

Employment growth forecasts for major industries in the
US economy

Travel Industry Association of America, US traveler
spending

Population report for Orleans Parish

Economic impact of travel on the two most common
Louisiana parish tourist destinations

Page
Number

16
18

FIGURES

 

Figure
Number

1
2

\IOJU'l-hw

Graph of activities participated in by travelers

Graph of historic travelers’ spending amounts in
comparison to all travelers

Map of New Orleans in a regional context

Photograph of St. Louis Cathedral in Jackson Square
Photograph of French Quarter bed and breakfast
Photograph of Creole architecture in the French Quarter

Photograph of Mardi Gras festivities on Bourbon Street

Page
Number

12
13

15
16
16
17
19

INTRODUCTION

 

Chapter 1

1. INTRODUCTION

 

Travel has always been a part of human behavior. Throughout history, people
have traversed the globe by foot, horse, covered wagon, steamship, train,
automobile, plane, and many other forms of transport. As the world’s technology
has advanced, most specifically in terms of communication and transportation,
the eariy random traveler has evolved into a member of the mass tourism
industry. The industry has become not only the physical journey from Point A to
Point B, but embodies the formal understanding, definition, and organization of
the entire commodity that is the tourist experience. This experience represents
the consumption of tangible goods and services (food, transportation, lodging) as
well as the intangibles (education, emotion, quality of life) while supporting
numerous occupations (travel agents, tour guides, food service, hotel staff).
Tourism is a balance of emotive encounters within the realm of blatant
consumerism.

As today’s fastest growing industry with worldwide traveler expenditures
exceeding $4 trillion during 1999, it is an understatement to say that tourism is a
lucrative business with significant economic importance (Edgell 1999, 14).
Domestic travel volume in the United States reached over a billion person trips in
1998 (http://www.tia.orglpress/fastfacts3.stm). In the US economy, tourism is the
third largest industry, the second largest employer, and the largest services
export (Edgell 1999, 14). Despite these notable statistics, the study of tourism is
rarely taken seriously by those outside of the profession. After all, it is basically a
leisure activity and the notion of analyzing pleasure seems rather senseless. It is
because of this misrepresented viewpoint that tourism “just happens” in many
communities much to the resentment and detriment of the local government,
residing population, and the built and natural environments. A better
understanding of the diverse economic and social benefits produced by tourism
will allow individual communities to develop appropriate, agreeable strategies
using existing assets to create a considerable revenue source. “A well-managed
tourism program improves quality of life as residents take advantage of the
services and attractions tourism adds. It promotes community pride, which
grows as people work together to develop a thriving tourist industry” (National
Trust for Historic Preservation 1993, 3).

1.1 Purpose, Need, and Hypothesis

This paper explores the aspect of tourism, specifically heritage tourism to urban
destinations, as an economic development strategy. This strategy affords
opportunities to communities that respect and preserve their history for the
benefit of both local residents and visitors. Development opportunities created

by heritage and urban tourism provide economic advantages and diversification
while contributing to a community’s sense of place and overall quality of life. The
purpose of this study is twofold:

1. To determine how the partnering of historic preservation and tourism can
become a viable and significant contributor to a community’s local economic
development.

2. To determine what qualities enhance a city’s position as an urban tourist
destination.

From this purpose, the hypothesis is derived:

1. Successfully implemented heritage tourism, defined as tourism where
indigenous resources are merged to promote history and conservation, has
the ability to generate economic prosperity, development opportunities, and
improve the quality of life for its host community.

2. Historic preservation maintains a community’s character, identity, and sense
of place, qualities that are necessary to attract visitors in the establishment of
an urban tourist destination.

“The economic benefits of tourism are often discussed but are seldom fully
appreciated” (Edgell 1999, 15). Tourism is a means to economic development
and revitalization, as is historic preservation; both contribute to the local
economy. The need for this study hinges on the fact that the symbiotic inter-
relationships among heritage and urban tourism, historic preservation, and
economic development are a relatively unexplored dynamic. Historically,
planners and municipalities have not viewed tourism as a function of the city and
not within the scope of their responsibilities. “Perhaps foremost is the lack of
understanding of tourism at the local level. It is often thought of as the
business of someone else or merely ignored completely” (Gunn 1997, 1).
Because tourism is generally considered a peripheral activity, not fundamental to
the city itself, potential economic development opportunities are not seized and
optimal capital gain is not often fully recognized.

1.2 Methodology

The purpose and hypothesis proposed in this study are supported by several
research methods including a review of literature on the topics of tourism
planning, urban tourism, heritage tourism, historic preservation, and local
economic development. Existing statistical research includes data from the
Travelscope Survey conducted for the Travel Industry Association of America
(TIA). This Profile of Travelers Who Participate in Historic and Cultural Activities
was published in 1997 for travel during 1996. This paper also features a profile
of New Orleans as an example of an urban destination that capitalizes on its

history, culture, and unique built environment to attract visitors, making tourism a
pivotal factor in the City’s economy. The case study is used to apply theories
and concepts described in the literature review to a practical example. Included
in this profile is a summary of two personal interviews conducted by the author
with professionals, independent of one another, working with New Orleans’
historic preservation efforts and travel industry. All of these methods endorse the
affirmation of the proposed hypothesis.

1.3 Limitations of the Study

Economic development, tourism, and historic preservation are very complex
entities in their own rights. This paper does not attempt to explain all facets of
each subject. Rather, this paper predominately concentrates on the economic
benefits of heritage and urban tourism and the characteristics that constitute a
tourist destination. The intangible benefits of tourism are briefly referred to, but
not fully researched due to the time constraints and this report’s narrowed scope.
Historic preservation is mentioned frequently throughout this paper. However,
the purpose of this study is not to explain the economic benefits of preservation,
although there are many. In this paper, historic preservation is described as a
means to strengthen an urban tourist destination and, therefore, a part of a local
economic development strategy.

1.4 Organization

This paper consists of five chapters. Chapter 1 — Introduction provides a brief,
rudimentary description of the evolution of travel and the tourism industry and
presents the purpose and need for this study. Chapter 2 - Review of Literature
is the foundation of this report. This chapter introduces the terminology used
throughout the paper as well as the economic development, tourism, and historic
preservation concepts with appropriate existing research findings that support the
purpose and hypothesis. Chapter 3 - Case Study: New Orieans is a profile of an
urban destination, New Orleans, Louisiana, with an economic dependence on
tourism. In addition to this dependence, the preservation of New Orleans’ built
environment, local customs and heritage, and the City’s sense of place are
critical in its ability to maintain its position within the tourism industry. Chapter 4
- General Findings reviews the purpose of this research, re-states the
hypothesis, and summarizes the relevancy of the case study to the concepts
introduced in the literature review. Chapter 5 - Conclusion closes with some
ending remarks and suggests directions for future study.

REVIEW OF LITERATURE
Chapter 2

2. REVIEW OF LITERATURE

 

As stated earlier, the study of economic development opportunities created
through urban and heritage tourism has been relatively ignored. However, a few
authors, mostly European, have approached the subject and published materials
concerning to this type of tourism development occurring in, appropriately, cities
in Europe where history is revered as the basis of most travel activity. With
regard to the United States, “until recently, critics did not believe the nation was
old enough to value its past. Within the nation, the drive toward business,
industry, and progress was so strong that many citizens saw no reason to protect
older buildings and artifacts” (Gunn 1997, 27). This chapter summarizes the
terminology, concepts, and existing research findings associated with the two
fundamental perspectives of this paper - the economics of tourism and the
characteristics of a destination.

2.1 Terminology and Definitions

Local economic development is a process whereby local governments or
community-based organizations work to create or sustain business activity and
employment. The primary goal of this activity is to encourage development and
opportunity that improves the community’s quality of life while capitalizing on
existing assets and resources. Quality of life is a contrived rating that assembles
a wide range of cih'zen concerns into a subjective image assessment.

“In many respects tourism is the geography of consumption outside the home
area...” (Law 1993, 14). The term tourism encompasses day travel as well as
extended trips for all purposes. The World Tourism Organization defines the
term visitor as any person visiting a location, away from home, for any reason. A
tourist is a temporary visitor staying for any reason, business or pleasure, at least
24 hours in the place visited while a visitor staying less than 24 hours is an
excursionist. In the United States, a tourist is generally referred to as one who is
traveling for pleasure (i.e. “on vacation”). In this report, the terms tourist and
traveler will be used interchangeably to describe those partaking in travel for
leisure and recreational purposes.

Urban tourism is travel to a major city. 'Large cities are arguably the most
important type of tourist destination across the world” (Law 1993, 1). Amenities
such as museums, shopping, theaters, history, architecture, and professional
sports found in large cities, initially developed for the high standard of living of
local residents, draw a large visiting population. The city’s status itself as a
center of culture, education, and physical development provide the urban sense

sought out by urban tourists who are drawn to places of historical, cultural,
architectural, and ethnic importance.

Historic preservation is “the careful management of a community’s historic
resources; avoidance of wasted resources by careful planning and use; the thrifty
use of those resources” (Rypkema 1994, 5). Preservation assists in the
establishment and maintenance of a community’s sense of place (unique
attributes that distinguish it from all other places), reinforcing its distinctive
character, and providing a way for local residents and visitors alike to rediscover
the past.

Tourism and preservation have historically been perceived as mutually exclusive
entities. However, according to Arthur Frommer, tourism aficionado and author
of many travel guidebooks, every travel study pertaining to motivations indicates
that “interest in the achievements of the past is among the three major reasons
why people travel” (Preservation Forum quoted in Beaumont 1996, 17). The
Travel Industry Association of America defines a heritage tourist as one who
includes a visit to a historical place or museum. The synergy between tourism
and historic preservation creates a powerful economic development strategy
benefiting both the host community and the traveler. The outcome of this
synergy is heritage tourism, where indigenous resources are merged to promote
history, conservation, and economic development.

2.2 Economic Development Strategy

“... urban researchers have substantially ignored this link between consumerism,
tourism and cities. They appear to be embarrassed, or at best disbelieving, that
a ‘real’ city could be devoted to such frippery. ‘Real’ cities have ‘real’ industries
like manufacturing, or at best, financial and commercial services” (Mullins 1999,
2003). Despite this dated viewpoint, tourism has emerged as a feasible local
economic development strategy equivalent to business attraction, creation,
retention, and expansion. In a service-driven economy with an aging population,
possessing more discretionary time and income than previous generations, the
trend in tourism industry growth is predicted to continue at rates ahead of other
industries within the US economy.

“Cities must perpetually strive to attract economic growth or else they will face
the prospect of decline” (Law 1993, 20). As the nation has become
deindustrialized and the perpetual trend of suburbanization has continued, major
US cities, especially those heavily dependent on manufacturing, mining, and
other declining industries, have experienced devastating economic and fiscal
plight. In an effort to combat this hardship, many of these cities have instituted
tourism as a way to diversify their local economies. “The promotion of culture
and tourism quickly became a principal component of the new economic
development strategy. In assessing their prospects, mayors knew that the

central cities would never regain their dominance in manufacturing” (Judd and
Fainstein 1999, 35).

Tourism is an export subject to the economic forces of supply and demand. Like
most industries, tourism provides a revenue source for the host community and
employment opportunities for local residents. A location’s ability to become a
tourist destination hinges on its comparative advantage over competing
communities, relative to its attributes and targeted customer base.

2.2.1 Supply and demand

Tourism is driven by the two classic economic factors, supply and demand.
Demand is simply the segment of the population that has the interest in and
ability to travel. This paper focuses more on supply, the tourism product, which
includes a destination’s natural and built environment, attributes, infrastructure,
overall feeling of hospitality, and “all of the physical development and programs
that provide for the needs and desires of travelers” (Gunn 1997, 31). Essentially,
tourists comprise demand; destinations constitute supply. As with any industry,
in order to achieve optimal benefits from tourism, there needs to be a reasonable
balance between these two economic factors.

When considering the supply and demand alliance in tourism, most often it is the
demand side that receives the majority of the attenb'on. A possible explanation
for this is that the demand deals with the travelers. The travelers’ interests and
motivations are matched with available supplies, which are then extensively
marketed and promoted. There exists a profession of destination marketers that
do nothing else but sell a destination. Convention and visitors bureaus,
chambers of commerce, cruise lines, travel agencies, hotels, tour companies,
and the like employ these professionals. Their job descriptions do not include
anything related to the quality or sustainability of the tourism supply, only to make
the destination look and seem attractive to potential customers. Again, as
mentioned in the introductory chapter of this report, municipalities do not
ordinarily consider tourism as a function of the city. Therefore, the supply side of
tourism that includes the value and quality of a city’s indigenous built and natural
environments are misunderstood because, generally, no one claims
responsibility for it and necessary time and resources are not expended on its
development or management. Yet, the supply side variables of tourism are
indicative of a location’s ability to become a tourist destination.

2.2.2 Exporting the tourism product

“Cities are sold just like any other consumer product“ (Judd and Fainstein 1999,
4). However, the product is not a tangible good, but a sociocultural experience or
collection of experiences. A location’s product, which is actually a service, is its
attractions and general level of consumer appeal and interest. The experiences
encountered by tourists, positive or negative, depend on the development of the
attractions and the travelers’ personal preferences.

The conventional definition of an export is “the amount and value of goods and
services produced in one place that are sold and shipped to another place”
(Kotler, Haider, and Rein 1993, 261). In this same mindset, exports are
considered “hard goods.” It is assumed that services are much less exportable
than manufacturing. However, that is not true; in terms of the balance of trade,
services have the same relevance and exportability as material products.
Tourism is sometimes referred to as an invisible export, where the experience is
the export. Invisible in the sense that as an export, it is not produced, packaged,
shipped, or received like a hard good. The market (tourists) brings itself to the
product (destination) at the point of sale for consumption within the seller’s
domain. Unlike a typical export, the product never leaves its place of origin.

On-premises consumption creates additional opportunities for selling other goods
and services. Outside the realm of direct tourism-related products such as
transportation, lodging, meals, and entertainment, tourists make use of other
peripheral goods and services not typically associated with the tourism industry —
banking services, medical services, auto repair, apparel sales, etc. Additional
income created through these purchases made by the visiting consumer would
not exist without the onset of tourism.

2.2.3 Employment

The tourism industry generated a total of 16.9 million jobs in 1998, 7.5 million
direct and 9.4 million indirect. Since 1990, employment created by travel has
grown by 27.7 percent compared to the 19.6 percent increase in total non-
agricultural US employment (http://www.tia.org/research/employ99.asp).
Currently, tourism is the second largest employer in the United States with the
promise of increasing employment opportunities into the 213t century (Edgell
1999, 16).

 

 

 

 

 

 

 

 

graced Growth
in Employment
Industry 1996-2006
Travel 21%
Construction 9.30%
Manufacturing -1 .90%
Mining¥ -22.80%

 

 

Table 1. Employment growth forecasts for major industries in the US economy
(http:llwww.tia.orglremarchlemploy99.asp).

After years of high employment rates concentrated in the manufacturing industry,
critics are quick to discount tourism as a serious employment contender in the
US economy because of its nature and tendency to employ those in the services
industry. Jobs in the services industry are perceived as being low paying, part-
time, and seasonal with little or no opportunity for growth and advancement.
However, the myths and stereotypes of these types of positions continue to

evolve. With the exception of finance, insurance, and real estate, average hourly
earnings in the services sector have increased at a rate faster than wages in all
other industries. This rate of increase over the past ten years is at nearly 37
percent for the services industry versus just over 32 percent for all other private
employers (http:l/www.tia.org/research/employ99.asp).

Tourism trumpets a variety of flexible employment opportunities in its many
segments. These various opportunities are appropriate to and representative of
the world’s diversified economy and labor force. Contrary to popular belief, high
compensation positions do exist throughout the travel industry, requiring formal
education, skills, and training. The forecast increase for these types of executive
positions is 29.3 percent by 2006, as compared to 14.8 percent for employment
increase in the overall economy (http:/Iwww.tia.orglresearch/employ99.asp).

The US Department of Labor estimates that minorities, women, and immigrants
now comprise 80 percent of new entrants into the workforce (Edgell 1999, 17).
These groups tend to experience the greatest difficulty in securing employment.
The travel and tourism industry will play a key role in alleviating this hardship.
With its diversity in employment levels, tourism offers a range of job opportunities
for those just entering the workforce and reduces their probability of dependence
on public assistance. Without the tourism-created employment, the US
unemployment rate for 1998 would have been ten percent. Because of tourism,
the actual national unemployment rate was between four and five percent
(http://www.tia.orglresearch/employ99.asp).

Like tourism, historic preservation is labor intensive. In a typical historic
preservation project, between 60 and 70 percent of total project costs are
dedicated to labor; new construction projects tend to allocate only 50 percent of
total costs to labor. Each preservation undertaking generally creates five to nine
more construction jobs than new construction, while prompting an additional 4.7
jobs elsewhere in the community. Labor is usually hired locally and “those
individuals, in turn, spend their wages locally” (Rypkema 1994, 14).

2.2.4 Income

Tourism embodies all purchases of goods and services by travelers, which most
often includes expenditures made on transportation, lodging, meals, and
attractions/entertainment. Direct spending by domestic and international
travelers in the United States totaled nearly $519 billion in 1999, which is almost
a five percent increase from 1998 and equal to over five percent of the gross
domestic product. Additionally, this travel generated approximately $87 billion in
federal, state, and local government tax revenue for the year
(http:llwww.tia.orglpress/fastfacts1 .strn).

Tourists introduce outside money into a community, adding new rather than
recycled dollars to the local economy. It is not just the initial investment made by

tourists/consumers that is of importance, the number of times that same
investment is re-spent within the host community is of greater importance. This
is called the multiplier amount or effect. For instance, money spent by tourists at
a hotel contributes to the salaries of the hotel staff, which they used to purchase
groceries for their families, an employee of the grocery store takes a portion of
his wages to pay the plumber for his services, and the cycle continues. The
original money spent by the tourist progresses through the local economy
generating more economic activity than the amount initially spent. The more
often the dollar “turns over” in a year, the higher the multiplier. Thus, the higher
the multiplier, the better economic effect on the community. The extent of the
tourism multiplier varies by location. On a national scale, it is likely to be
between two and four. Meaning, a dollar spent on tourism will increase the US
gross national product by somewhere between two and four dollars (Edgell 1999,
18).

1990 - 1999 billions

 

Year Traveler Traveler Spending
in US in US

1999 .6 18.6

1998 .0 1.3

1997 .6 .9

1996 1

1995 .4

1994 .1

1993 4 . 1.3

1992 .0 $54. 7

1991 1 .5

1990 .7 7

Table 2. Travel Indusz Association of America, US traveler spending
(htm:IMww.tia.orglpressIIastfact32.stm).

2.2.5 Comparative advantage

Comparative advantage is the economic theory that locations, be it countries,
states, regions, counties, or cities, will produce and export the goods and
services in which they possess an advantage in terms of land, labor, natural
resources, technology, or other factors. Comparative advantage is also
applicable in tourism. As identified earlier, a destination’s pmduct(s) are its
features and attractions - favorable climates, sandy beaches, scenic landscapes,
historic monuments, shopping and entertainment, outdoor activities, etc. A city
becomes a travel destination when it uses these features to attract consumers.
Some locations are more likely to become destinations than others. For
instance, tourism is an annual $2 billion industry in the Florida Keys because of
the natural beauty and warm climate. The Keys have an advantage over Duluth,
Minnesota, when it comes to attracting the sunseeking tourist. Cities with a
profusion of historic buildings and artifacts like Charleston, South Carolina, or,

later profiled in this report, New Orleans, Louisiana, prevail with the heritage
tourist over relatively “new” cities like Las Vegas or suburban areas.

2.3 Economics of Historic Preservation and Tourism

Due to the fact that cities’ economic bases shifted in the 19803, attitudes toward
the tourism industry somewhat followed suit. Tourism became acknowledged as
a means for temporarily or chronically depressed cities to recapture some
economic prosperity in a growth industry while revitalizing for current and future
residents. In the United States, the strategy to capture the tourist market was
almost formulaic. Cities constructed convention centers, ostentatious hotels,
festival marketplaces, domed stadiums, aquariums, and redeveloped waterfronts,
quite often with public money and considerable tax breaks to private investors, in
an effort to spruce up the aesthetics and attract attention. In the past few years,
the trend has continued to include casinos and creative ways to legalize gaming
in certain areas. City after city has used this perceived tourism generating
template, often with marginal success.

In many large cities around the United States, historic preservation
has been central to an overall economic development strategy. A
few years ago, economic development professionals around the
country were asked to name cities with the most successful
economic development efforts. Of the 20 cities most often cited, 15
were among the cities with the greatest amount of historic
rehabilitation activity nationally. On the other hand, of those large
cities that have had the least success in attracting and maintaining
investment and jobs over the last 20 years, most also have dismal
records in historic preservation (Rypkema 1994, 16).

Cities, and to some respect mainstream America, are now realizing what
advocates have been declaring for years - that historic preservation does make
good economic sense and is one of the more successful revitalization strategies.
In terms of tourism, the popularity of contrived environments and manufactured
amusements of places such as Disney World or Las Vegas does not interest all
demographics. tourists do not always want to be humored or amused.
Instead they often seek immersion in the daily, ordinary, authentic life of a culture
or place that is not their own” (Judd and Fainstein 1999, 7). Enter urban tourism
via historic preservation. In addition to drawing residents and businesses,
“historic resources are among the strongest community assets for attracfing
visitors“ (Rypkema 1994, 77). Although long-standing with travelers in Europe,
heritage tourism to urban destinations is a relatively new concept in the United
States. Most cities have a stock of buildings with varying degrees of historic
architectural integrity; these buildings are a part of a city’s charm, ambiance, and
overall attraction. “Among cities with no particular recreational appeal, those that
have substantially preserved their past continue to enjoy tourism. Those that

10

haven’t receive no tourism at all. It is as simple as that“ (Arthur Frommer,
Preservation Forum quoted in Rypkema 1994, 80).

2.4 Urban Attraction

US cities grew in size and status during the early 20‘“ century. They became
centers of cultural life for the American population in terms of education, art,
architecture, history, and commerce. “Tourists were attracted to urban places,
for only there could modern life be seen in its most abundant flowering. In the
cities, fads and fashions bloomed. Cities were vast gardens of visual delight”
(Jakle 1985, 245).

This notion is applicable to the urban tourists of today as cities, despite the
patterns of suburban growth, still remain the centers of cultural life offering
amenities and experiences not available in suburbs or rural areas. Many cities
have incorporated tourism into their downtown revitalization plans with the
construction of sports stadiums, convention centers, hotels, aquariums, and
casinos all competing for a share of the tourists’ dollar and contributing to the
individual city’s tourism industry and level of appeal. Amidst the amenities and
experiences contrived by formal means (i.e. professional sports, art museums,
eclectic restaurants), there exists a non-quantifiable sense created by cities’
intangibles that includes the interaction of people, their relationships to the built
and natural environments, and the overall feeling of urbanity not present in
typical suburban strip mall and parking lot landscapes. This non-quantifiable
sense is enhanced by the presence of history evident in the built environment. It
is the quality of the built environment that distinguishes one urban place from the
next.

The inherited built environment of historical architecture and urban
morphology, associations with historical events and personalities
and the accumulations of cultural artifacts and associations with
artistic achievements and individuals are the raw material from
which the... city is created. It is our contention that these historic
resources are the single most important primary attraction for
tourists and thus... cities are the world’s most important tourism
resorts (Ashworth and Tunbridge 1990, 59).

Tourists visit places that are unique and interesting. A city becomes a
destination when it has something to offer, an exceptional feature exclusive to
that location. This statement validates the argument for historic preservation as
a tourist attraction. Preservation assures character and sense of place. “The
more a community comes to resemble Anyplace, USA, the less reason there will
be to visit” (Ed McMahon, past president of Scenic America quoted in National
Trust 1993, 33). People travel to get away from Anyplace, historic preservation
certifies that the tourist destination will be Someplace.

11

When analyzing the activities participated in by US resident travelers, shopping
being the number one tourist activity, most are typically associated with or
commonly found in large cities. As shown in Figure 1, historic and/or museum
activities are participated in by 15 percent of all tourists (1997/98). In 1998, US
resident travel approached 1.3 billion person trips; 15 percent of this figure is just
under 200 million. In domestic tourism alone, approximately 200 million travelers
are seeking a historical experience or are considered heritage tourists
(http:l/www.tia.org/press/fastfacts3.stm).

Activities Participated In By 0.5. Resident Travel-rs, 199743
('5 d Paws-True)

11%
m "x

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4 A A L A L
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0% 5% 10% 15% 20$ 25% 309. 3%

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Figure 1. Activities participated in by travelers (http:/lwww.tia.orglpresslfastfact33.stm).

2.5 Traveler Motivations

In a simple phrase, the allure of tourism is the opportunity to see something
different. “Travel is part of the American psyche” (http://www.tia.orglpress/
fastfacts3.stm). Motivations behind travel are related to the demand for travel,
the segment of the population that has the interest in and ability to travel - the
tourists. As stated earlier, this paper focuses not on the tourists, but on the
destinations. However, it is worthwhile to explain the mentality of average tourist
in order to determine how a city can capitalize on their interests. Without getting
into specific scientific reasoning and terminology, people travel to experience
change. Leisure tourists seek distraction from the pedestrian experiences of
everyday life and receive some sort of personal validation and shared
understanding from their travels. “They want to feel that they have visited the

12

famous places. After they have visited these places their life has become valid
and put in contact with world history” (Law 1993, 13).

2.5.1 The heritage tourist

“Heritage tourism has been one of the most traditional motivations for leisure
travel; for centuries people have visited sites of special historic interest...” (Judd
and Fainstein 1999, 65). The relatively recent emergence of heritage tourism
within the travel industry is attributed to the decline of the passive tourist, those
content to lie on the beach for days. Travelers are seeking experiences that are
distinctive, not homogenized or manufactured amusement. “Today’s tourists
travel to experience a new region they have heard of, to educate their children,
and to visit cultural events and historical sites” (Partners for Livable Communities
1997,12)

In 1997, the Travel Industry Association of America (TIA) complied a profile of
travelers who participate in historic and cultural activities. This profile was based
on a national TravelScope Survey for the travel year 1996. The statistics
presented in this report are the results and findings from that survey. Over 50
million tourists included a historic place or museum on their travel itineraries in
1996. Of these 50 million plus tourists, ten million indicated that their interest in
history and historical places was the primary reason for their trip; over 20 million
said that this interest served as a secondary reason for their travel. Heritage
tourists spend almost five nights on a trip, in a hotel, motel, or bed and breakfast,
versus three nights, the mean for all travelers. On the average, heritage
travelers spend neariy $615 per trip, compared to $425 per trip for all other
travelers (TIA 1997, 5 and 12). In addition, heritage tourists are inclined to spend
over $250 per trip, with 20 percent spending over $1000 per trip, as shown in
Figure 2.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Spending on Trip
35%
30% _
25961- t---
20% ._- l...i- IAII travelers
IHistoric

15% ‘“ i“ ”‘7 - - EINon-historic
°’” ““ “‘ ‘—
,,,-_ , . I: II

Lessthan $100— 3250- 3500- $750- srooo+

$100 $250 $500 $750 moo

 

 

 

Figure 2. Historic travelers’ spending amounts in comparison to all travelers — TravelSc0pe
Survey (TIA 1997,66).

13

For the most part, the heritage tourist is upscale, affluent, well-educated, and
well-traveled, a highly desired type of visitor. The average age is 48 years with
32 percent over the age of 55. Heritage tourists are more likely to be retired and
less likely to have children under the age of 18 living at home as compared to US
travelers-at-large. Nearly 80 percent of heritage tourists attended college, with a
54 percent graduation rate. The median annual household income is $43,503,
compared to $41,455 for all travelers (TIA 1997, 72-73).

2.6 Local Non-Economic Benefits

The social, cultural, and economic impacts of tourism are all closely related.
Economic benefits are usually the principal reason for developing tourism. From
these economic benefits stem the promise of new jobs and income, new
business investment opportunities, increased government revenues, improved
infrastructure and services, and a larger market for local products. Beyond these
economic benefits therein lies non-economic, sociocultural advantages that also
directly contribute to the improved quality of life.

Tourism gives economic justification for historic preservation initiatives and, quite
often, subsidizes the preservation undertakings. Other than economics, there is
a social value placed on preserving history and cultural heritage that is related to
community pride and local sense of identity. Historic preservation creates a bond
between a community and its citizens. Maintaining a unique sense of place or
identity is fundamentally important to local residents and essential to a
community’s position as a tourist destination. Some or all of an area’s unique
heritage and character may be lost, through general modernization, without
tourism providing support for its conservation.

Tourists frequent museums, theaters, and other facilities and activities, which are
also utilized by the local inhabitants. These cultural amenities would not
necessarily be available without the advent of tourism. Heritage tourism
enhances local community esteem, providing the opportunity for greater
understanding of history and better communication among people of diverse
backgrounds. Thus, tourism becomes an educational experience for bofli
residents and visitors. This education transcends all levels and can be used to
enrich a broad range of disciplines and subject matters. By integrating the
economic and non-economic benefits of heritage tourism, an improved quality of
life can be achieved for the host community allowing a fair profit for the industry
while protecting the built environment and heritage for continuous future use and
educafion.

14

CASE STUDY: NEW ORLEANS
Chapter 3 '

3. CASE STUDY: NEW ORLEANS

 

“A unique tourist space also exists in New Orleans, whose French Quarter, Mardi
Gras, and sin industry have never been successfully mimicked” (Judd and
Fainstein 1999, 39). New Orleans embodies all that is meant by sense of place
and community character. There is no other US city with its genuine qualities.

The purpose of this case study is to profile a major US city with a stock of
architecturally significant historic buildings and a relative dependence on tourism
to illustrate how a city’s heritage and preservation efforts impact its tourism
business and local economic development. New Orleans was selected because
it met these criteria, exemplified a strong connection between its built
environment and local culture, incorporated history into everyday life, possessed
an everyday life interesting enough to attract visitors, and, above all, the City’s
notorious reputation, unique vernacular, and unconventional customs intrigued
the author. This section contains a brief description of New Orleans, its heritage,
its tourism business and tourist base, and a summary of personal interviews.
Interviews were conducted by the author with two professionals working with the
City’s historic preservation efforts and travel industry.

3.1 Description

 

Figure 3. New Orieans, denoted with star, in a regional context (htth/wwwmapquestcom).

15

New Orleans is a city of 199 square miles located in southern Louisiana on the
banks of the Mississippi River, near the Gulf of Mexico. The City occupies all of
Orleans Parish; a Louisiana parish is the equivalent of a county. In which case,
Orleans Parish is New Orleans. As the State’s most populated parish with 11
percent of its residents, Orieans Parish had a 1999 population of 464,718, a
decrease from the 1990 population of 496,938 (New Orleans Convention and
Visitors Bureau). This decreasing trend is expected to continue; since 1990, the
City has lost an average of 6400 people per year (City of New Orleans 1999).
However, areas of the City, such as the French Quarter, have experienced an
increase in permanent residents within the past few years (Esolen 2000).

 

 

 

 

 

 

 

 

 

 

 

 

 

2004 Growth Growth
1990 1999 Forecast 1990-99 1999-04
Population 496,938 464,718 447,227 -6.5% -3.8%
Households 187,662 182,964 178,735 -2.5% -2.3%
Ave. HH size 2.54
Table 3. Population report for Orleans Parish (New Orieans Metropolitan Convention and Visitors
Bureau).

Louisiana is one of the poorest states in the country. In 1995, 21 percent of the
population was living in poverty (http:l/www.census.gov). Although the New
Orleans metropolitan area has prospered, many areas of New Orleans proper
reflect the statewide economic distress. Approximately 64 percent of Orieans
Parish residents are African-American. The median age is just over 34 years.
More than half of the residents have the educational attainment of a high school
diploma or less; 27 percent has a bachelor’s degree or higher. The median
household income was $24,142 in 1999, lower than the State median income of
$27,265, and lower than the national median income of $38,885 (New Orleans
Metropolitan Convention and Visitors Bureau; http://www.census.gov).

3.2

History and Sense of Place

 

"'Axi

Figure 4. St. Louis Cathedral in Jackson
Square, built in 1789 and rebuiltin1849,isone
of the most photographed churches in the
world (http:llwwaaimagescom).

Figure 5. French Quarter bed and breakfast
(http:l/www.laimages.com).

16

New Orleans is a city of Spanish and French Catholic descent. Its inhabitants,
culture, traditions, and architecture continue to uphold this deep-rooted Old
World heritage. New Orleans is described as more European than any other
American city. Nicknames such as “the Crescent City,” describing the pattern of
growth along the Mississippi River, and “the Big Easy,” depicting the gentle and
relaxed pace of life dating back to early days of jazz, assist in the visualization of
the New Orleans sensation. Famous for Cajun and Creole cuisine, jazz
musicians, churches, cemeteries, voodoo, festive nightlife, and unparalleled
annual special events (i.e. Mardi Gras), New Orleans’ distinctive atmosphere and
identity provides an unconventional lifestyle for its residents and a unique
experience for tourists.

In 1936, New Orleans became the second
American city to enact a historic preservation
ordinance (Beaumont 1996, 19). Listed on the
National Register of Historic Places, the \fieux
Carre, commonly known as the French Quarter,
is the City’s original downtown and its most
notable tourist attraction. This ten-block square
boasts a mosaic of history, architecture, and
tradition reflective of New Orleans’ French and
Spanish ancestry. Buildings in the Vieux Carre
display extraordinary French colonial, but
predominately Spanish architecture. Several
fires in the late 17005 destroyed a majority of
the French colonial structures. The
preservation of this district’s unique buildings
.. and ornate ironwork is the appeal for the
Figure 6_ Example of Creole heritage tourist, creating a large revenue source

architecture featuring the ubiquitous for a city with few industrial alternatives.
Vieux Cane bdcony and ironwork
(http:llvwvaaimagescom).

 

New Orleans has suffered over the last decade from the “bust" in
the oil and gas industry, but there is always the hope and possibility
that a “bust" might be followed by another “boom.” However, once
the physical manifestations of New Orleans’ cultural and
architectural heritage - its historic buildings - are lost, no future
“boom” from that irreplaceable asset will ever be possible... To
lose [historic buildings] through design or neglect would constitute a
fiscally irresponsible waste of New Orleans’ most valuable
economic resource (An Evaluation of Revitalization Opportunities
and Economic Development Strategies for the Lower Garden
District, quoted in Rypkema 1994, 17).

17

3.3 Heritage Meets Tourism

New Orleans initially preserved its architectural heritage for the sentimental
benefit of its own residents. As a response to these locally initiated efforts, the
City slowly evolved into a heritage tourism destination. Building on the tourist
appeal of the French Quarter, in which 86 percent of all New Orleans” travelers
visit (1998), and other historic points of interest, downtown New Orleans added
typical large city tourist attractions — a stadium, convention center, aquarium,
first-class hotels, and a casino (Esolen 2000). These relatively new amenities
assisted in the City’s revitalization efforts and have increased New Orleans’
tourist base to include business, trade, and industry conventioneers. Infamous
annual events like Mardi Gras and the Jazz and Heritage Festival have attracted
both national and international attention for the City, making it one of the top
three US urban destinations, as ranked by travel intermediaries (Dimanche and
Lepetic 1999, 19). By capitalizing on existing assets and historic significance, its
most valuable economic resources, and using them as an impetus for further
revitalization, New Orleans achieved a comparative advantage over other urban
tourism destinations, both domestic and foreign. The preservation potential
masterpiece that is New Orleans gives justification to the City’s unofficial
designation as “America’s most interesting city.“

The city of New Orleans has enjoyed the steady growth in its tourism industry
throughout the 19903. Tourism jobs comprise 16 percent of the City’s total
employment, an increase from seven percent in 1989 (Dimanche and Lepetic
1999, 20). New Orleans attracts a large number of business, trade, and industry
conventions on a year-round basis, but is also a popular destination for heritage
tourists seeking the unusual American history experience. More or less
indicative of the typical heritage tourist’s profile, the average New Orleans tourist
is just over 43 years, married, white, living in a household with two people (no
children at home), college graduate, employed full time in a managerial or
professional position, with an annual income of $65,000 (Esolen).

 

State tax Local tax
Expenditures Payroll Employment receipts receipts
Parish (in millions) (in millions) (in thousands) (in millions) (In millions)

 

 

Orieans $3,486.53 $868.48 60.74 $133.23 $86.97
Jefferson $765.45 $158.72 9.64 $32.24 $15.38

Table 4. Economic impact of travel on the two most common Louisiana parish tourist
destinations (Foley 1999, 8).

 

 

 

 

 

 

 

 

 

More than 90 percent of all international travelers to Louisiana visit New Orleans
(Taylor and Dimanche 1999, 2). In 1998, domestic tourists spent approximately
$7.3 billion throughout the State. The traveler expenditures generated nearly
$1.6 billion in payroll, over 104,000 jobs, and $495 million in state and local
taxes. Louisiana’s tourism is concentrated in essentially one geographic region,
the New Orleans metropolitan area. The metro area received over 60 percent of

18

the State’s tourists who spent $4.5 billion and created 72,000 jobs (Foley 1999,
7). Table 4 illustrates the economic impact of domestic tourism on Orleans
Parish to its nearest competitor, neighboring Jefferson Parish.

Nine percent of New Orleans’ 1998 tourists
attended Mardi Gras festivities and spending
during the season was $841 million, a $40
million increase from 1997 (Esolen 2000;
McLain 1999, 10). Since 1827, Mardi Gras,
with the French translation meaning “Fat
Tuesday,” has been celebrated on the streets
of New Orleans, especially in the historic
Vieux Carre. The Mardi Gras season
commences on the twelfth day after
Christmas, January 6, and continues until Fat
Tuesday, the day before Ash Wednesday,
the beginning of the Catholic Lenten period
of 40 days of fast before Easter. The entire
season is a carnival, which translated from
Latin means carnis or flesh. From the
religious origins of Mardi Gras, the carnival is
the feast of the flesh before the fast;
traditionally, meat is not consumed during the
40 days of Lent. Over the years, Mardi Gras
has been marketed and commercialized into
an illustrious event that is the City’s claim to Figure 7_ Mardi Gras festivities on
fame. Although Mardi Gras is celebrated in Bourbon Street in the French Quarter
other cities within and outside of Louisiana, (htIpI/MWW-lainaQOS-MI-

the authentic carnival is synonymous with

New Orleans and is an attraction for tourists.

 

“Tourists’ intentions to visit a destination such as New Orleans are influenced by
their perceptions of their knowledge of that destination” (Dimanchen and Lepetic
1999, 20). New Orleans’ reputation as a liberal, risqué, somewhat dangerous
party town with unorthodox traditions, on some level, has mass tourist appeal,
especially with the morbidly curious traveling demographic. Upholding this image
is crucial to maintaining the City’s position as an urban destination.

3.4 Interview Discussions

On January 6, 2000, coincidentally the first day of the Mardi Gras season, the
author traveled to New Orleans to get a tourist’s perspective and sense of the Big
Easy. In addition to general sightseeing, concentrated mostly in the French
Quarter, the author met with two professionals involved with the use of New
Orleans' history and image for tourism and economic development. After some
preliminary online research conducted prior to the New Orleans trip, the author

19

contacted six organizations and requested personal or telephone interviews for
the development of this paper. Interviews are a critical foundation for the
methodology of this report; they are necessary to gain a greater perspective of
New Orleans’ heritage tourism and economic development from those who work
with these issues on a daily basis and are well versed in the City’s dynamics.

Organizations contacted included the city of New Orleans, the Chamber of
Commerce, the Convention and Visitors Bureau, historic preservation advocates,
and two private tourism marketing and economic development agencies. Of
these six initial contacts, two unrelated organizations responded favorably - the
Preservation Resource Center and New Orleans Tourism Marketing Corporation.
Since the site visit in early January, the author has had several conversations
with the Research Department of the New Orleans Metropolitan Convention and
Visitors Bureau and the University of New Orleans College of Business
Administration regarding the economic impacts of tourism on the City.

The summary description for each intenriew is written from the perspective of the
interviewee. Like all things New Orleans, the interviews were informal in
structure and information was revealed through casual conversation. However,
when opportunity presented itself to ask a direct question, very similar, if not
identical, questions were asked of each organization. In some cases, conflicting
responses were given. The concluding paragraph of this sub-section is the
author’s perceptions of each organization’s position in the realm of New Orleans
tourism, historic preservation, and economic development efforts.

3.4.1 Preservation Resource Center

The Preservation Resource Center is a private, non-profit membership
organization with a mission “to promote the preservation of New Orleans' historic
architecture by expanding the constituency that understands the economic,
cultural and aesthetic importance of historic preservation, and by involving
citizens in preservation projects and services that enhance living in New Orleans’
(http:l/www.prcno.org).

The Executive Director of Preservation Resource Center was interviewed on
January 7. In this interview, the Executive Director indicated that there is not a
general understanding of the relationship between historic preservation and
tourism in New Orleans. Initial grassroot preservation efforts 30 to 40 years ago
sparked some tourism interest and in the late 19705, the City recognized its
appeal as a travel destination. At that time, City officials began taking proactive
steps towards attracting tourists, but historic preservation was not at the forefront
of discussion. With tourism as a conscious effort by the City and associated
travel intermediaries, the focus became capturing conventions and special
events such as college football bowl games and the Superbowl. Much to the
detriment of dilapidated, but historic and restorable, neighborhoods and
buildings.

20

In terms of the relationship between tourism and preservation, the City does not
capitalize on resources and outreach provided by the proximate universities or
receive proper assistance and guidance from the Louisiana State Historic
Preservation Office (SHPO). The responsibility of tourism is delegated to
organizations like the Convention and Visitors Bureau and marketing agencies.
These organizations put a majority of their emphasis on the marketing and
promotional aspects of tourism in New Orleans. The economic development
aspect is secondary and historic preservation, at best, is tertiary. In short, the
correlation among the image created by the historic architectural resources of
New Orleans, the type of tourists the City receives, and the economic benefits
and opportunifies prompted by tourism is not fully recognized or understood by
city planners, tourism marketers, or even the general public. They do not realize
that the true New Orleans experience cannot be achieved without the presence,
and hence preservation, of the New Orleans built environment. Only a few make
the connection and those few shoulder the burden of promoting the possibilities
and benefits of the preservation/tourism/economic development dynamic.

3. 4. 2 New Orleans Tourism Marketing Corporation

The New Orleans Tourism Marketing Corporation provides funding and support
for various entities involved with tourism throughout the metropolitan area in an
effort to market the City as a desirable destination, attract trade shows and
conventions, and develop programs that assist private businesses and non-profit
organizations with economic development strategies based on tourism.

On January 7, the former Executive Vice President was interviewed. In this
interview, the former Executive Vice President conveyed a comprehensive view
of urban and heritage tourism in the City. Recognizing that New Orleans’ tourism
is fundamentally based on history, the relatively new attractions, including the
stadium, convention center, new hotels, and the casino, only support and
enhance the New Orleans experience. These new additions do not encroach on
the City’s most famous historic areas, like the French Quarter, because they are
outside of such districts. When approached by a national retailer, the city of New
Orleans is very meticulous with regard to the aesthetics of its commercial areas.
Corporate architecture is not permitted and signage is restricted. Any type of big-
box retailer or theme restaurant wanting to locate in the City’s most prominent,
populated, and famous areas must adjust their designs to fit an existing building
and all rehabilitation must comply with the local historic district’s standards. This
is to ensure that a historic structure in a district is not demolished to allow for a
typical suburban-style building with a surrounding parking lot. New Orleans is
aware that its built environment maintains its position in the tourism industry.

Tourism evolved incrementally in New Orleans during the early 1970s as a result

of the decline in the oil and gas industry. A series of public policy decisions,
building on the established New Orleans mystique and ambiance, pronounced

21

tourism as the new industry of choice. Soon after, the Superdome, home of the
New Orleans Saints, was constructed along with a few luxury hotels. In the
1980s, the convention center and additional hotels were built and an aggressive
marketing campaign commenced that concentrated on capturing trade shows
and industry conventions. New Orleans, itself, already had a “hook” with brand
awareness and mass appeal. The addition of the convention center, meeting
facilities, and supporting amenities (hotels, restaurants, proximity to a major
airport) positioned New Orleans as an attractive venue for large conventions.
Consistently each year, the City is within the top five choice convention cities.

Tourism is critical to New Orleans’ economy. New Orleans’ image is critical to its
tourism appeal. Preservation of historic structures and entire districts is critical to
its image. All of these components relate to each other and feed into the New
Orleans experience. This experience hinges on the protection and sustentation
of the City’s inordinate culture and heritage, including its architecture, religions,
local color, music, food, and overall ambiance. New Orleans is as much of a
state of mind as it is a place. Its reputation as a relaxed yet excited City with a
year-round festive atmosphere allows those who visit to drop their inhibitions and
assimilate with the unconventional. The New Orleans experience cannot be re-
created or manufactured anywhere else, “not even by Walt Disney, even though
he has tried.”

3.4.3 Summary of the New Orleans experience

During these two interviews, the author was presented with two aspects of
tourism in the city of New Orleans. One each understanding and recognizing the
responsibility of the other, but each with a separate purpose and agenda. The
New Orleans Tourism Marketing Corporation is well aware of the role
preservation plays in attracting tourists and understands the need to preserve the
built environment in order to maintain the New Orleans experience for visitors.
The Preservation Resource Center acknowledges the need to market and
advertise the New Orleans product and the economic importance of the City’s
ability to attract large events such as conventions and the Superbowl.

Any problems or miscommunications between these two organizations, and most
likely with others involved with the City’s tourism, economic development, and
preservation, is common in other cities and carries over into other industries.
The Preservation Resource Center’s claim that too much emphasis and
excessive resources are placed on and within marketing is an issue faced by
most travel destinations that have a high dependence on tourism and host an
influx of visitors. As stated earlier in this paper, the job description of a marketer
and the role of the marketing agency are much more defined with a narrowed
scope of responsibilities than that of a preservationist, who must take into
consideration social and non-economic factors. In New Orleans, the tourism
marketers bring in mass quantities of tourists, point them in the direction of
attractions, and hope that they spend money — everything else pertaining to

visitor behavior or local economic development is outside the scope. The
Preservation Resource Center has the responsibility of preserving for immediate
tourist consumption as well as for the residing present and future populations,
always assuring an improved quality of life.

It is established and documented that tourism is an integral part of the New
Orleans economy. The City has the ability to attract all types of tourists - urban,
heritage, conventioneers, and other. Even the tourist who does not exhibit an
obvious interest in history and heritage cannot deny the importance of the New
Orleans built environment in the full attainment of the New Orleans experience.
This case study is used to support the purpose of this paper and affirm the
hypothesis. The personal interviews are incorporated to support the validity of
the case study.

Unquestionably, no other US city is like New Orleans. When venturing into the
economic development strategy of tourism, the City used its history, mystique,
and unique characteristics to generate various types of tourist interest - namely
conventions and special events. Any city can build a stadium, aquarium,
convention center, or casino like the facilities found in New Orleans. However,
no city can duplicate the New Orleans experience. This experience
encompasses, in the non-quantifiable sense, culture, heritage, atmosphere, and
Mardi Gras. All of which convene in the historic and distinctive built environment.
Building upon its existing resources, the City devised a plan for tourism. New
Orleans is a classic example of a city that capitalizes on its unique existing
assets to promote and encourage the development of a growth industry for the
benefit of the local economy, quality of life for the residing population, and the
educational contributions to all types of visitors and tourists.

23

GENERAL FINDINGS
Chapter 4

4. GENERAL FINDINGS

 

To review, the twofold purpose of this paper is (1) to determine how the
partnering of historic preservation and tourism can become a viable and
significant contributor to a community’s local economic development and (2) to
determine what qualities enhance a city’s position as an urban tourist destination.
From this purpose, the twofold hypothesis is derived:

1. Successfully implemented heritage tourism, defined as tourism where
indigenous resources are merged to promote history and conservation, has
the ability to generate economic prosperity, development opportunities, and
improve the quality of life for its host community.

2. Historic preservation maintains a community’s character, identity, and sense
of place, qualities that are necessary to attract visitors in the establishment of
an urban tourist destination.

With over one billion people traveling in the United States and spending over
$500 billion, the travel industry cannot be ignored. Tourism is the third largest
industry, the second largest employer, and the largest services export. Its effects
on the US economy are significant and growth in this industry is expected to
continue. A strong correlation exists among historic preservation, tourism, and
prevailing economic development strategies. Successfully implemented heritage
tourism, defined as tourism where indigenous resources are merged to promote
history and conservation, has the ability to generate economic prosperity,
development opportunities, and improve the quality of life for its host community.

0 The tourism experience is an export with the same economic relevance as
manufactured goods.

. Tourists introduce new money into a local economy, which is re-spent
prompting additional economic activity.

0 Domestic and international travelers in the United States in 1999 spent neariy
$519 billion, generating approximately $87 billion in federal, state, and local
government tax revenue.

. Tourism generated a total of 16.9 million jobs in 1998 with an employment
growth forecast well into the 21at century.

0 Tourism presents flexible and diversified employment opportunities from
entry-level to executive.

0 Tourism reduced the 1998 national unemployment rate from ten percent to
4.5 percent.

24

0 Heritage tourists are more likely, than all other travelers, to be affluent and
retired with no dependent children, leaving more discretionary money and
time for travel and other leisure activities.

0 Heritage tourists spend an average of $615 per trip, compared to an average
of $425 per trip by all other travelers

0 Heritage tourists stay an average of five nights on a trip, compared to three
nights per trip for all other travelers.

Below the surface-level economic benefits are the non-economic, sociocultural
benefits that contribute to the improved quality of life. Tourism, specifically
heritage tourism, can encourage and finance historic preservation efforts, which,
in turn will restore local community pride and identification. The merging of
tourism and preservation demonstrates the importance of heritage and cultural
resources to a community’s economic and social well-being. The built
environment and the preservation of historic resources are critical to a
community’s sense of place. With the basis of traveler motivation being to
experience something different, unique attractions become an integral part of a
destination’s ability to bring in tourists. Historic preservation maintains a
community’s character, identity, and sense of place, qualities that are necessary
to attract visitors in the establishment of an urban tourist destination.

0 Historic preservation assures community individuality.
Historic resources are strong community assets for attracting tourists.
A profusion of historic and cultural resources is concentrated in large cities
and urban environments.

. Historic and/or museum activities are participated in by 15 percent of all
tourists.

- Over 50 million tourists included a visit to a historic place or museum on their
travel itineraries in 1996.

0 Urban destinations with distinctive histories and preserved built environments,
like New Orleans, receive an influx of heritage tourists making tourism a
significant component of their local economies.

Through the case study of New Orleans, it is evident that the City relies on
tourism for the above listed economic rationale. Its built environment, heritage,
and distinct sense of place provide the foundation for the City’s tourism industry
and its ability to attract visitors. Without these characteristics, travel to New
Orleans would not be as abundant. Therefore, the preservation of the City’s
historical and cultural resources is not only consequential to the sentimental and
social quality of life aspects for the residing population, but for the quality of life in
terms of local economic development and prosperity.

Tourism by way of historic preservation is a local economic development

opportunity. All three are inter-related, with consideration given to additional
factors not covered in this report.

25

 

Historic Preservation -) Tourism -> Economic Development Opportunity

 

 

The fundamental premise of heritage tourism is to save the heritage, share it with
visitors, and reap the economic benefits of the industry. Along the same lines of
the “build it and they will come” theory that is subscribed to by many cities in their
revitalization efforts, preservationists are quick to announce their modified
version of this theory “if you don’t destroy it, they will come.” In the ever-
changing global, national, and local economies, communities must perpetually
search for new economic development opportunities in the interest of the
constituencies in which they represent. Urban and heritage tourism presents
cities with the ability to embrace future industry alternatives and economic
possibilities without disregarding the past.

26

WW,
Chapter 5

 

5. CONCLUSION

 

Tourism is not the solution to all economic problems. It is merely a tool in the
toolkit of economic development strategies. The first priority of any community is
the welfare of its own inhabitants. Because tourism is not fully understood, quite
often communities are not prepared for a tourist invasion. By not taking the time
to discover what makes their community a destination, many cities scramble to
build or create attractions or amenities assumed to be desired by visitors. This
can cause some citizen animosity towards tourists and impair a city’s position as
a travel destination.

Now, the unfortunate trend is to mindlessly cater to tourism at the
expense of resident needs and a locality’s genuine character and
sense of place. The short-term gains will eventually be lost as,
over the long term, residents depart. Local residents and the life
and economy they create is what gives a place the appeal to draw
tourists in the first place (Gratz and Mintz 1998, 258).

Historic preservation maintains community character, attractive to potential
visitors and inhabitants. Benefits from preservation efforts are both economical
and sentimental. The preservation of historic resources rarely receives
objections by local residents. The use of historic preservation to encourage
tourism is a technique agreeable to most any community as these activities
contribute to local pride and sense of identity while generating economic
prosperity throughout. Therefore, when venturing into an aggressive, possibly
controversial, economic development strategy, a technique that provides
financial rewards along with an improved quality of life is ideal. As with any
economic development strategy, it is critical to first meet the needs of the
residing population. Tourists are transient and tourism is cyclical, but residents
are permanent and the foundation for the local economy. Historic preservation
allows a city to take part in the growth industry of tourism while protecting the
interests of the residing population.

5.1 Recommended Future Study

Many aspects of tourism and historic preservation have not been discussed in
this paper, as the scope has been limited to allow for completion within the
available time frame. Only economic benefits of tourism and the use of historic
preservation in the enhancement of an urban tourist destination have been
explored. Before fully capitalizing on its potential as a tourist destination, a
community must first devise and implement an effective tourism strategy that
comprehensively addresses and delegates responsibility, incorporating tourism

27

into all future economic and physical plans. Strategic planning for tourism is an
area in need of elaboration.

Responsibility and physical planning are two ambiguous factors in local tourism
development. As mentioned throughout this report, planners and municipalities
generally do not consider tourism to be a function of the city. “The development
of a detailed physical improvement plan for tourism is generally an afterthought
by local officials” (Blakely 1994, 161). Additional study within the topic of
heritage and urban tourism could further research the private and public sector
roles and responsibilities in the development and sustainability of a local tourism
strategy. Traditionally, the public sector, at the city level, provides the basic
infrastructure used by tourists. This infrastructure is a part of the tourism supply,
or destination characteristics, and includes transportation systems (including air
and water ports), lighting, water supply, waste and sewage disposal, police and
fire protection, etc. Local residents primarily use this infrastructure, but the
additional stress placed on it by tourists requires reinforcement and the
involvement of the municipal government in the local tourism industry. The
private sector tends to meet the travelers’ demands in terms of lodging, meals,
attractions, and entertainment. Further, destination marketing and promotion is
usually handled by the private sector.

A paradox of tourism is that the growth in demand will eventually inundate the
supply, destroying the critical balance between tourists and local human, cultural,
and natural resources. Consequently, the local resident animosity perpetuates.
The synergy of a public/private partnership for tourism development is a dynamic
worth investigation. With the public sector involved with the supply side and the
private sector involved with the demand, a partnership appears to be necessary
to assure leadership and appropriate resources are used to encourage
responsible and sustainable tourism and effective tourism planning. Additional
study could provide role clarity, advantageous to all vested parties to assure the
optimal economic and social outcomes that tourism can offer.

28

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