Evaluating the economic impact of cultural heritage: comparative analysis of the multiplier and the value chain approaches

Purpose In line with the European Commission's efforts to measure the impact of cultural heritage for evidence-based policy, this study examines the macroeconomic effects of cultural heritage, comparing the multiplier and value chain approaches. Design/methodology/approach The study contrasts the two methods across several dimensions: impact assessment nature and purpose, data requirements, identification of cross-industry linkages and the capture of direct, indirect and induced effects. These methods are applied to assess cultural heritage's macroeconomic impact in Slovenia. Findings The multiplier approach offers a comprehensive view of macroeconomic impacts by considering indirect and induced effects through intersectoral linkages but is limited by a narrow statistical categorization of cultural heritage. The value chain approach is easier to implement but lacks indicators for assessing the contribution of cultural heritage across the value chain. The economic impacts identified by the two methods differ significantly. Practical implications Clear distinction between the approaches is crucial for interpreting economic impact assessments accurately. Originality/value The study suggests that the multiplier and value chain approaches should be used complementarily, not as substitutes, to cover different macroeconomic effects.