🤖 AI Summary
This study evaluates the impact of a newly developed cultural and tourism project on local tourism demand and economic outcomes, using the Sensoria experiential museum in Holzminden, Germany, as a case study. It pioneers an integrated approach combining causal inference with demand-side economic analysis by employing a difference-in-differences methodology to identify the additional overnight visitors attributable to the museum’s opening. A sectoral expenditure conversion model is then applied to quantify both direct and indirect economic effects. Findings indicate that in its inaugural year, the project generated 4,691 additional overnight stays and approximately €560,000 in total turnover, with direct and indirect contributions amounting to €230,000 and €210,000, respectively. This work thus offers a methodological innovation and empirical evidence for assessing the short-term economic impacts of cultural and tourism investments.
📝 Abstract
This research note investigates the impact of the experience museum Sensoria, opened in September 2024 in Holzminden, Germany, on local tourism demand and related direct and indirect effects. To this end, the study employs a novel approach by combining causal inference and demand-side economic analysis. A difference-in-differences approach is employed to quantify the number of additional guest overnight stays in the treatment city; the results are converted into industry-specific expenditures, from which the direct and indirect effects of Sensoria are determined. A positive and significant impact which corresponds to 4,691 additional overnight stays can be detected in the first year of operation of the new tourist attraction, resulting in an additional gross turnover of approximately 0.56 million EUR across the hospitality and retail industries and other services. The direct effects and indirect effects amount to approximately 0.23 and 0.21 million EUR, respectively. However, long-term effects cannot (yet) be determined. Additionally, positive effects from small and large events in the cities studied can be demonstrated. This brief study demonstrates that combining the two approaches mentioned holds promise, yet requires a more in-depth analysis, for which suggestions are also discussed regarding how it could be conducted.