Evaluating the economic impact of large cultural events: a case-study of Sibiu, European capital of culture 2007

Abstract

This article intends to describe and analyze the impact of a cultural mega-event on a specific city context in post-communist Romania. Our case-study of Sibiu European Capital of Culture 2007 shows that cultural events have not only undeniable cultural and social value, but also an important economic impact. The cultural event in Sibiu managed not only to enhance the city's image and to promote Romania worldwide, yet it largely helped local and regional economy by direct, indirect and induced economic effects. Our analysis shows that European Capital of Culture program had a noticeable impact on local tourism, infrastructure, and Sibiu municipality's budget. It largely helped to boost local economy, which was recovering after a decade of economic decline, and to turn the city into a major destination for foreign and national investments in Romania. The impact of the 2007 European Capital of Culture event on urban development explains why the nomination of Capital of Culture became so envied by numerous European cities.