The Economic Benefits of Investing in Cultural Tourism: Evidence from the Colonial City of Santo Domingo

Investing in cultural tourism yields substantial economic benefits, significantly boosting economic growth and household well-being while avoiding negative consequences such as reduced output, employment, and terms of trade. A study applying a novel framework to the UNESCO World Heritage Site, Colonial City of Santo Domingo, demonstrates that a hypothetical US$90 million investment in cultural tourism could generate these positive outcomes. The research integrates quantitative methodologies from environmental and tourism economics, highlighting that indirect and induced benefits often overlooked in traditional cost-benefit analyses can lead to substantial undervaluation of returns on investment. Conversely, disinvestment in cultural tourism was shown to have detrimental effects on the economy, underscoring the importance of sustained investment in preserving and promoting cultural heritage for sustainable development.

Banerjee, O., Velasco, M., Maisonnave, H., Beyene, L. M., & Henseler, M. (2017). The Economic Benefits of Investing in Cultural Tourism: Evidence from the Colonial City of Santo Domingo (, Ed.). Inter-American Development Bank. https://doi.org/10.18235/0001267