Research on economic value of NI’s Historic Environment

A study of the economic value of Northern Ireland’s Historic Environment shows that it generates up to c.10,000 jobs and has an output of £532m output pa (all including tourism), and highlights the ‘significant potential’ for development in the sector.

Carried out on behalf of the Department of the Environment for Northern Ireland (DOENI), the study’s quantitative analysis identifies that:

· The historic environment is a major contributor to the Northern Ireland economy, creating and sustaining circa 5,400 Full Time Equivalent jobs – this figure reflects both direct and indirect jobs and ‘out of state’ visitor expenditure only;
· The historic environment generates circa £287 million of output per annum and £135 million of GVA (Gross Value Added) each year – these figures reflect both direct and indirect expenditure and ‘out of state’ visitor expenditure only;
· The construction sector generates a broadly similar impact to that produced by ‘out of state’ visitors in relation to the historic environment in NI. This is consistent with the findings of recent research undertaken in Scotland. However, a similar study completed in Wales indicated that the construction sector was of greater importance in terms of impact;
· When the impact of domestic tourism is included, the NI historic environment generates circa £532 million of output per annum, creates/sustains a total of circa 10,000 Full Time Equivalent jobs and generates circa £250 million of GVA each year;
· The GVA produced by the NI historic environment (including domestic tourism) is equivalent to 11% of the Northern Ireland construction sector and 33% of the Information and Communication sector;
· Each £1 invested by the public sector generates some £3-4 spend by the private sector1; and
· Although its contribution to the local economy is significant, the historic environment in Northern Ireland produces a significantly lower level of output, employment and GVA than that of its neighbouring jurisdictions, when assessed on a per capita basis. This suggests that there is significant potential to further develop the historic environment sector in NI.

DOENI writes:
Our historic environment enhances our sense of well-being and provides a setting for a great variety of local activities. It represents significant past investment in physical, natural and intellectual resources and making the best use of it makes good economic, environmental and social sense.

At the Historic Environment Strategic Forum meeting on 12 May 2010, it was agreed by stakeholders that an Economic Sub Group should be formed to investigate whether a report could be undertaken on the Economic Impact of Northern Ireland’s Historic Environment. The Sub Group, chaired by the Director of Built Heritage, was created in September 2010, and consisted of representatives from the Northern Ireland Environment Agency (NIEA), Northern Ireland Tourist Board, Department of Social Development, Historic Monuments Council, National Trust, Heritage Lottery Fund and an Economist from DCAL.

Ministerial approval was given on 3 March 2011 to appoint a consultant to produce a report to determine the true value of Northern Ireland’s historic environment to its economic and social well being.

DOENI Article: LINK

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