The importance of assessing the economic and social value of cultural heritage: the Colosseum

Purpose In this paper, we emphasize how the preservation of cultural assets contributes to improving local economic conditions and generating for the society. As a case study, we examine, analyze, and quantify the economic and social value of the Colosseum. Design/methodology/approach We analyzed and computed the main economic contribution of the Colosseum related to its direct use, an estimate of its indirect use value. In addition to this, we explored and provided an estimate of the non-use value related to the non-commercial aspects of the Colosseum. Findings Considering both its direct operation and induced tourism, we estimated that the direct use of the Colosseum generates about 1.4 EUR/bn a year in value added to the Italian economy (GDP contribution). In addition to the direct use value, we developed a hedonic pricing model to estimate the Colosseum’s indirect use value for residents is about 0.4 EUR/bn. Using a contingent valuation method, we estimated the total existence value of the Colosseum at an asset value of 76 EUR/bn. Originality/value We propose a broader economic analysis able to quantify the material and immaterial values related to an iconic cultural heritage asset estimating different dimensions of its value. The estimated value cover and quantify a crucial cultural heritage aspect and it aims to support the definition of policies regarding the sustainable use of cultural heritage itself and its constituent assets by both local and non-local tourists, as well as to facilitate conservation and restoration initiatives. Therefore, this paper has the potential to provide valuable analysis and estimation that can be integrated into the formulation of more holistic cultural heritage management strategies.