Limerick City of Culture 2014 Economic Impact Assessment

Limerick National City of Culture 2014 Economic Impact Assessment April 2015

Limerick City of Culture Review | May 2015

Contents

Section

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Page

Executive summary

4

Introduction

8

Strategic context

12

Limerick 2014: Programme Overview

16

Assessment of Economic Benefits

23

2

Executive summary

Limerick City of Culture Review | May 2015

Executive summary

The first designation of Irish National City of Culture (NCoC) was awarded to Limerick, based on the need from Limerick in developing a new focus and sense of the city in the context of the amalgamation of the City and County Councils in 2014, the on-going regeneration projects and to address social and perceptual difficulties experienced over previous decades. As the inaugural NCoC, Limerick set ambitious targets for its NCoC Programme in 2014. It was envisaged that the Programme would not only promote Limerick as a cultural centre, improve its image, perception and support social inclusion but would also boost the region's economic recovery.

Following a year long programme of events, it is now important to understand what impact hosting the NCoC title has had on Limerick.

The last year brought some significant changes for Limerick and Ireland, including the amalgamation of the City and County Councils and further progression of the public service reform plan with the Irish economy becoming the fastest growing economy in the EU. Naturally, as a result of the economic uplift growth has been experienced by various business sectors across the country.

In this context, it is necessary to assess what role the Limerick NCoC Programme played and how the year of events contributed to the economic recovery of Limerick.

Limerick NCoC 2014 Programme The Programme of events ran throughout the year and was aimed at showcasing Limerick as a vibrant city with a rich cultural community. The figure below is an illustration of the key elements of the 2014 Programme.

A number of events were of international significance (EVA International, Ireland’s Bienniel).

Over 3,000 events as part of 156 projects

Scale

Royal De Luxe Giant’s Journey (Granny's visit) attracted the largest audience ever assembled in Limerick for a single event – 230,000 People.

International dimension

Social inclusion

Impact

Events in many art forms were located in a variety of situations from the street, to the domestic home, to abandoned buildings and specially constructed stages in unique one off productions

Almost 50 events included international cultural participants.

The majority of events targeted all audiences. There were events designed specifically for children (Children's Festival & Hub) and intergenerational audience (Are You Dancing).

Over 70% of events were supported by 318 active volunteers.

Cultural vibrancy

Audience & Accessibility

Total estimated audience of over 1.8m people Almost 50% of the events were offered free of charge

Spatial use Events raised public awareness of unknown venues in the city (Culture factory) and refreshed the recreational and potential value of these venues (People's Park).

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Limerick City of Culture Review | May 2015

Executive summary

The total direct cost of the NCoC year to the Limerick NCoC Ltd. was €10.9m. It was funded through contributions from Government as well as income from ticket sales and sponsorships. In addition to these costs, over €1.1m event specific expenditure was not covered by Limerick NCoC Ltd. but by expenditure and other funding including in-kind and grants brought to the process by the various cultural practitioners and production companies. Separately, over €700,000 in-kind support, not included in the accounts, was generated mainly in the areas of media sponsorship, transport and accommodation.

Assessment of the impacts Typically, the main aim of cultural and sporting events is to improve societal parameters, including social inclusion, cultural awareness, communication, image and perception and other areas, rather than to generate monetary benefits.

A large scale cultural programme however also results in an increased number of visitors to the city, individual venues and cultural attraction. As a result, an investment in the cultural sector, together with expenditure by additional local, national and international visitors creates additional benefits that would not otherwise occur.

There are three key groups of benefits assessed in the report: • Direct benefits - including box office sales, revenue generated by the audience; • Indirect and induced benefits - arising as a result of an increase in activity in the cultural sector; and • Other benefits - including employment, transportation and hospitality.

In addition, to better reflect the impact the Programme had on Limerick, a survey was carried out to gather feedback from the business community.

Business community feedback

Ticket sales •

•

Total estimated ticket sales generated over €1.2m in revenue distributed between various artists and the Limerick NCoC. Over 70% of ticketed events - highest ticket price was below €25.

Indirect and induced economy wide benefits In total, €12m was invested into the Cultural Services Sector during the Limerick NCoC 2014 Programme, this generated a minimum €13.4m benefit to the regional and national economy, including €1.4m indirect and induced benefits.

This excludes income generated by related industries (e.g. hospitality, food & drink) as a result of an increase in tourist expenditure.

Additional audience expenditure Almost €30m was spent by people attending LNCoC events.

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•

•

Hotels Over €560k was generated by hotels during the LNCoC key events' periods.

•

Other benefits • • •

• Higher occupancy rates compared to regional or national levels.

Highest regional decrease in unemployment. • Noticeable increase in passenger flows on Irish Rail and Bus Éireann services.

Media coverage Limerick City of Culture generated a total of 4,887 press and broadcast articles during the period 01 January – 31 December 2014 that resulted in €13,731,812 cumulative Advertising Value (AVE).

•

15% of the business community provided sponsorship support and circa 12% helped organise one or more events.

37% of the business community experienced an increase in revenues and brand recognition, while 29% noticed an increase in customer numbers.

Almost 60% of the business community felt that activity levels in 2015 are higher than they were prior to Limerick NCoC. Limerick NCoC had a different impact on various sectors with the professional services sector experiencing little or no impact.

On average 86% felt Limerick NCoC had a positive impact on image/perception, future confidence, business activity and social inclusion.

85% of the business community strongly support Limerick's European City of Culture 2020 bid.

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Limerick City of Culture Review | May 2015

Executive summary and conclusions

Economic benefits generated Based on the assessment of the data available at the time of writing this report we estimated that almost €44m was generated as a result of a €12m LNCoC Programme. The €7.5m Government investment attracted €4.5m additional funding to support implementation of the €12m programme.

These results suggest that: • For every €1 invested by the Government, €0.6 was contributed by other stakeholders; • For every €1 invested by the Government, €5.9 was generated in various benefits; and • For every €1 spent on the Programme, €3.6 was generated in benefits.

Direct, indirect and induced impacts Over €13.4m generated in the economy Application of an Input/Output analysis to the total investment made into the LNCoC Programme suggests that an additional €1.2m was generated by various supporting industries and over €260k returned to the economy as a result of an associated increase in households’ income.

Audience impact Almost €30m was spent by people attending LNCoC events Total audience of the LNCoC events exceeded 1.8m people. Naturally, additional expenditure on accommodation, food and drink, and other items was created.

Despite the fact that majority of the audience were assumed to be local residents and lower end estimated had to be used, the analysis suggests that in the region of €23m expenditure was created by local residents, whilst additional €6.5m was spent by those visiting the City.

Hotel occupancy Over €560k generated during a high occupancy periods related to LNCoC flagship events An analysis of the monthly occupancy rates suggests that a direct correlation between LNCoC flagship events, such Granny’s Visit and hotel occupancy rates existed.

Extrapolating the additional occupancy, in the 4 months of key events alone, results in over €560k associated incremental income to the Limerick hotels.

Limerick City of Culture generated a total of 4,887 press and broadcast articles during the period 01 January – 31 December 2014 resulting in a cumulative Advertising Value of €13,731,812.

When comparing the results of this assessment to the results of an Economic Impact Assessment Study 2013, it is essential to take into account significant differences in the methodologies used. This includes the limited number of data items that can be directly compared, including the number of additional visitors to the region.

The following two key observations can be made following this comparison: • The actual audience of 1.8m from the 2014 Programme was in excess of the expected number of 920,000 people.

• Additional expenditure generated by the visitors was expected to be in the region of €17m which is below the €30m estimated in this study. The difference can be attributed to the fact that the 2013 study emphasised additional visitors to the region and their incremental expenditure, while this study focuses on the expenditure generated by the LNCOC audience and emphasises the role of local residents.

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Limerick City of Culture Review | May 2015

Executive summary and conclusions

Future direction Following the successful implementation of an ambitious Limerick NCoC 2014 Programme it is now vital to use the momentum and ensure the benefits generated are sustained.

It was emphasised by various stakeholders that the Programme provided a great opportunity for Limerick citizens, of diverse backgrounds and social standing, to come together and celebrate a cultural programme over 12 months. The continuation of various cultural activities and community involvement was indicated as an important factor in generating a long-term effect on Limerick.

Limerick was given a great opportunity to enjoy a vibrant Programme of events and is now looking to further develop its cultural focus and is preparing a bid to host the European Capital of Culture title in 2020. The year provided invaluable experience to Limerick NCoC management team and other stakeholders involved in organising and managing over 3,000 events. This experience and knowledge will be brought to bear by Limerick's team in their bid for the European title.

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7

Introduction

Limerick City of Culture Review | May 2015

Introduction "Limerick, the Mid-West Region and Ireland have been treated to a successful, enjoyable and culturally enlightening year as a consequence of our year as City of Culture" - Limerick CEO Conn Murray

Background to the report In January 2015, Grant Thornton was commissioned by Limerick NCoC to carry out an economic impact assessment of the Limerick City of Culture 2014 programme (the Programme).

Limerick was designated Ireland’s first NCoC for 2014. The City of Culture year provided Limerick with an opportunity to “bring artists, arts organisations, local authorities and civic groups, working in the city, together through the design of a calendar of events that showcases what the city has to offer in arts and cultural expression”. For Limerick this was an ambitious event that played an important part in the city’s overall economic regeneration. The programme ran throughout 2014 and featured over 3,000 events across over 156 different projects for various audiences across the city.

It is now important to assess what impact the NCoC has had on Limerick City. Further, as 2014 was the first year of the NCoC initiative, an assessment of the economic impact will help provide an understanding of the benefits and any potentially adverse effects associated with the national initiative.

Scope and objective of our review The primary objective of this review is to assess the economic impacts derived from Limerick hosting the NCoC title in 2014.

As part of this it is necessary to articulate and quantify how the programme of events and activities held in 2014, as part of the Limerick NCoC year, contributed to Limerick's economy. The three key indicators used to assess the economic impact include: 1. additional benefits generated within the region as a result of an investment in the cultural sector;

2. changes in the level of business activity and business perception; and 3. unemployment rates and other.

The first indicator is influenced directly by the Programme, whilst it is anticipated that the Programme would have an indirect impact on the latter two.

Study Limitations There are a number of factors that limit the analysis carried out as part of this study, mainly attributed to the proximity of the event under review and the subsequent dearth of certain statistical data to facilitate the analysis. All Programme related data was provided by the LNCoC team and was not subject to an audit by the Grant Thornton team.

In addition, the Central Statistics Office (CSO) does not prepare regional Input/Output tables for Ireland. As such national multipliers were used to estimate total investment spill over effects. As a result, the estimate of economic benefits generated are considered to be at the lower end of the scale. Regional multipliers used for similar studies in the UK can be as high as 2.5.

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Limerick City of Culture Review | May 2015

Introduction

Approach & methodology for the review Grant Thornton's independent economic impact assessment methodology is designed to assist clients in assessing the impact various events, investments and decisions could have.

We adopted a four staged approach to meet the specific requirements of the Limerick NCoC review. The stages were as follows:

1. Project Planning As a first step in the process, Grant Thornton conducted a meeting with key personnel, for the purposes of: • confirming the scope and boundaries of the assignment; • ensuring full agreement and comprehension by all parties of the outputs of the exercise; • agreeing the list of information to be obtained and the methods for delivery of same; and • confirming the timeline and liaison arrangements.

1. Project Planning

4. Report Preparation

Economic impact assessment

2. Focused data gathering & consultations

2. Focussed data gathering & consultations This phase involved Grant Thornton: • reviewing publicly available information; • conducting a detailed review of the requested documentation; • completing a series of meetings with the key stakeholders identified by the management team; and • carrying out a survey of businesses in Limerick.

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[last 2 months of client's 3. Analysis year]

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Limerick City of Culture Review | May 2015

Introduction

Approach & methodology for the review cont'd 3. Analysis Having conducted the activities outlined in phase 2, Grant Thornton analysed the findings, in terms of: • reviewing the strategic context; • providing a high level overview of the Programme; • carrying out an economic impact assessment – analysed the impact the actual programme had on the region using national Input-Output tables; and • analysing the results of the survey.

4. Reporting The key deliverable is this report setting out the findings of our analysis. A draft report was first prepared and feedback from the management team was received and considered before a final version of the report was created.

Report structure The report consists of the following sections: • the executive summary section - provides a brief summary of the report; • the introduction section - explains the context for this review and provides a description of the approach and methodology used; • the strategic context section - sets out the key factors that shaped the Limerick NCoC year, summarises the findings of the economic impact assessment carried out prior to the 2014 programme and provides an overview of the European City of Culture 2020 initiative; • the programme review section - provides an overview of the actual programme delivered; and • the economic impact assessment section - sets out the results of an assessment of the economic benefits derived from the Programme.

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Strategic context

Limerick City of Culture Review | May 2015

Strategic Context

Overview The first stage in the preparation of a review of the economic impact is to understand the broader strategic context in which the Limerick City of Culture operated. It is critical that a review of this nature takes into account key events, trends as well as any economic changes that have occurred in the wider economic context.

Context overview The figure below provides a snapshot of the key macroeconomic factors that shaped the Limerick City of Culture year.

•

With the unveiling of the 2014 Budget, the expected GDP growth rate for Ireland was forecast at 2%.

However, the Irish economy has improved at a significantly higher rate than was expected, with the latest ESRI figures stating 5% GDP growth for the year. By November 2014, standardised unemployment levels had fallen to 10.7% (the 37th consecutive monthly decline) this had resulted in a boost to consumer spending, income tax receipts and VAT and excise duty returns among other items. Consequently, Ireland was deemed the fastest growing economy in Europe in 2014.

•

Following a stronger than expected performance in 2014, Davy stockbrokers revised it's 2015 and 2016 projections in February this year (2015) to 3.7% and 3.4% respectively – implying that Ireland's GDP growth will reach its 2007 pre-recession peak in 2015.

•

Limerick City and County Councils were amalgamated as part of the Local Government Reform Plan. This was the largest reform in the history of Limerick's local government and is expected to generate significant savings and long-terms benefits. The successful delivery and support of an ambitious project like the NCoC increased confidence and built public trust in the new governance structure.

•

Limerick 2030: the Economic and Spatial Plan, provides a roadmap for Limerick to implement some ambitious changes in the economic, spatial and marketing areas. The €250m Plan is set to promote a positive image of Limerick to attract investors, businesses, support local communities and create confidence in the city's sustainability. The Plan includes an extensive transformation of the cityscape, a new marketing strategy and an economic strategy focused on capturing knowledge based spheres.

•

The average unemployment rate in Ireland for 2014 was 11.3% down from 13.1% in 2013.

•

Limerick is one of the largest cities in Ireland with a population of almost 200k people in the city and county.

25% of the population is under 18 years of age and 12% were aged 65 and over at the time of 2011 CSO Census.

•

The most recent data from CSO suggests that the number of overseas visitors to Ireland in the fist quarter of 2015 increased by 14% when compared to the same period last year. In 2014 the number of visitors increased by 8.9%.

•

The tourism and hospitality sector plays an important role in Limerick's economy. The latest available regional data indicates that in 2013, 420,000 international tourists visited the region, an increase of over 7% compared to 2012. These visits generated €135m in revenue, an increase of over 16%. Domestic visits increased by 8% over the same period.

•

The European Capital of Culture initiative was first launched in 1983. Since inception, 50 cities in Europe have hosted the title, including Dublin in 1991 and Cork in 2005. The title of the European Capital of Culture brings many cultural, economical and social benefits to the host city.

•

Ireland will host the title in 2020. Limerick, along with Dublin, Galway, Kilkenny, Waterford and Wexford (South East) are currently in the process of preparing bids.

Economic growth

Merger of the City and County Councils Limerick 2030

Social context

Tourism

European Capital of Culture

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Limerick City of Culture Review | May 2015

Strategic Context

Summary of Grant Thornton's 2014 report Prior to the launch of the NCoC initiative in 2014, Grant Thornton was commissioned to undertake an economic impact assessment of the potential costs and benefits to the Limerick Region. This report provided a Cost-Benefit analysis of the potential economic and socio-economic impacts and costs of the initiative for the City. Summary findings are presented below.

Strategic context • Recovering GDP; • Limerick in an important phase of economic development; • Merger of City & County Councils; • Limerick 2030: Economic and spatial plan; • Hotel occupancy offers scope for additional visitors; • Perception issues of Limerick City; • International cities of culture show positive improvements to economy and perception of a city

Management and Governance • Significant work done; • Special Purpose Vehicle Company established; • Diverse and qualified Board of Directors; • Project is being supported by a number of partners; • Extensive programme of events established; • Active volunteer programme; • Clear strategy of social inclusion; • Intended to have a title sponsor.

Economic benefits Economy: • €17.3 million additional tourist spend in 2014 alone; • over €102 million additional tourist spend over a period of 5 years; • €4.2 million additional exchequer receipts in 2014; • 601 new jobs in 2014; • significant social welfare savings • total net benefit exceeds €91million.

Tourism: • 920,000 total audience of the City of Culture events; • over 72,000 additional visitors to Limerick in 2014 alone; • 390,000 additional tourists over a period of 5 years.

Socio-economic benefits Cultural access & participation

Image & perception • • • • •

Rebranding of the city; Improve perception; Dispel negative myths; Showcase cultural side of the city; Improve local perception & retain talent.

• • • • • •

Increased competitiveness; Increased tourism; Legacy; Increased audience; Promotion of cultural industries; Increased innovation.

Cultural Vibrancy & Sustainability • • • • • • • • •

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Increased involvement of community; Public funding used in a redistributive way; Increased involvement of youth; Cultural diversity; Volunteering; Increased community cohesion; Learning and active citizenship opportunities; Overall well-being of the community & its residents; Stakeholder forum.

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Limerick City of Culture Review | May 2015

Strategic Context “Hosting the European Capital of Culture is a fantastic opportunity for Ireland to showcase its wonderful culture and boost tourism" - The Minister for Arts, Heritage and the Gaeltacht, Heather Humphreys TD

Limerick: En route to European Capital of Culture 2020 In July 2012, the European Commission announced that Ireland would host the European Capital of Culture (ECoC) title in 2020. Both Dublin and Cork have been designated as ECoC in 1991 and 2005 respectively, and Galway, Louth, Waterford and Wexford City as well as Limerick have since announced its intention to bid for the 2020 award.

Hosting a large scale, 12 month long programme of events like the NCoC, gave Limerick invaluable experience and expertise. Over the last year, Limerick had not only learned how to organise over 3,000 events including international acts, but how to manage all the aspects of the programme, provide supporting infrastructure, ensure safety, market the programme and attract new visitors. This experience provides the City with an advantage when submitting its bid for the European Capital for Culture title.

In January 2015, Limerick City Council announced the formation of a team to prepare the bid for the designation of European Capital of Culture 2020.

The team is led by the director of Limerick NCoC Mike Fitzpatrick.

Conclusion Despite the fact that 2014 was a year of some major changes, including amalgamation of local authorities and further progression of the public service reform plan, the Irish economy has turned a corner and is now the fastest growing economy in Europe.

In 2014, Limerick was presented with a unique opportunity to showcase its cultural heritage and attract national and international attention to the vibrant city through hosting the inaugural NCoC title. This provided Limerick with some invaluable experience and greater credentials that could act as an advantage when bidding for the European Capital of Culture 2020 title.

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Limerick 2014: Programme Overview

Limerick City of Culture Review | May 2015

Limerick 2014: Programme Review

Overview In this section we provide an overview of the Limerick NCoC Programme, including its aim, mission and vision, management and organisation, financial planning, the programme of events and staffing. The aim of this section is to support a better understanding of the scope of the programme and how it evolved throughout 2014.

NCoC The NCoC initiative is an ambitious project that is expected to deliver considerable economic and socio-economic benefits to the city during and after the programme of events.

Limerick City of Culture 2014 As an inaugural NCoC, Limerick was given a difficult task of setting a high standard for the future designated cities to follow. The aim, mission and vision for the Limerick City of Culture initiative 2014 were as follows:

Vision is to create a vibrant city, widely recognised cultural centre, where arts, culture and sport are placed at the centre of economic, social and physical regeneration in a way which inspires, empowers and elevates those who live, work and visit the city

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Aim to deliver a programme of cultural events and engagement in a city for one year with longer-term positive impacts

Mission to provide cultural access for all within the City and its hinterland and to creatively connect with the outside world

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Limerick City of Culture Review | May 2015

Limerick 2014: Programme Review

Limerick NCoC 2014: Facts and Figures

Scale

Geographical Reach

Cultural vibrancy

Over 3,000 events as part of 156 projects.

Events across various locations, including Limerick, Kilmallock, Kilfinane, Kilbehenny, Askeaton, Knicker, Castletroy.

Events across over 16 different art forms, including circus, film and opera.

Audience

Social inclusion

International dimension

Total estimated audience of over 1.8m people

Majority of events targeted all audiences.

There were events designed specifically for children (Children's Festival & Hub) and inter-generational audience (Are you dancing).

Almost 50 events had international artists involved.

A number of events had international agendas (Cuisle International Poetry Festival).

Accessibility

Community involvement

Spatial use

Almost 50% of the events were free of charge

Over 70% of events were supported by 318 active volunteers.

Events were used to raise public awareness of certain venues in the city (Culture factory) and refresh the recreational value of these venues (People's Park).

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Limerick City of Culture Review | May 2015

Limerick 2014: Programme Review

Programme overview The Limerick NCoC Programme ran throughout 2014 and included 156 projects resulting in over 3,000 exhibitions/performances which focused on areas such as theatre, history, visual arts, circus, sport, architecture, literature, music, film, dance, opera, food, fashion, street arts and other areas. Included in the Programme were international (11), commissioning (13), legacy (13), "made in Limerick" (109) and other events (10). In addition to the events planned as part of the Programme, over 80 additional events around the city benefited from the support provided by the Limerick NCoC. The Programme brought attention to unusual venues in the city and highlighted their potential value. Subsequently, the old Dell building (The Culture Factory) used as a venue during 2014 has been purchased by Limerick City Council as a potential film production location. The Council has also acquired the Cleeves Kerry Group Site for a reported â‚Ź3.5m. This space was used as the main exhibition venue for EVA International in 2014.

The 2014 events aimed at attracting a diverse audience with most of the events targeting all age groups. There were two events designed specifically for children and 32 events targeting the adult audience. To ensure wider outreach and accessibility, almost 50% of all the events were free of charge.

The total audience that attended the Limerick NCoC events was in excess of 1.8m people.

Staff and volunteering The ambitious project required significant human resources to support the Programme, as a whole, and each event individually. In addition to the core Limerick NCoC management and operational team, Limerick, Irish and international artistic communities, provided invaluable support to the events. On average 35 people were supporting each event, with a maximum of 267 people involved in the Royal De Luxe show.

International artists participated in over 50 events.

Volunteering was an important part of the Limerick NCoC engagement with the community. Over the course of the Programme almost 70% of events had been supported by volunteers. Some events had more than 100 people volunteering, including 300 volunteers at the Special Olympics opening ceremony and 137 people at the Royal De Luxe show.

According to the official Volunteer Ireland report, volunteering applications were received from 11 different counties, 7 different countries and from 32 nationalities. There were 318 active volunteers, the majority of which were under 35 years old.

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Limerick City of Culture Review | May 2015

Limerick 2014: Programme Review

Organisation and Management The LCoC Board of Directors is a multidisciplinary team of inspired people who brought extensive experience and a background in cultural and sporting areas, local government, and other diverse sectors. The Board was the main decision making body responsible for ensuring that the programme was delivered on time, within the budget and achieved the targets and values envisaged at the outset.

The composition of the Board and the core management team went through a series of changes in late 2013 – early 2014. The new appointments were made by the Board and a decision to expand the artistic community contribution to the programme was made. Mike Fitzpatrick was appointed an interim Director and later a Director of the Limerick City of Culture.

To support the delivery of the programme and efficiently mange the available funding, a special purpose vehicle was set up – Limerick NCoC 2014. The only shareholder of the company was the Limerick City and County Council.

The company will cease operation after all post event activities are completed in 2015. This arrangement was selected as the best practice approach following the experience of various European Capitals of Culture.

Financial planning In this section we review how the resources available to the LCoC were distributed and the main sources of income and expenditure categories compared to the original budget.

Budget The NCoC budget of €10.6m was approved by the Board in January 2014.

The budget was reviewed and updated in April, June and September 2014 to reflect changes to the programme expenditure and income. The final budget review in September 2014 was €10.9m, €230k higher than the original budget of January 2014.

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Limerick City of Culture Review | May 2015

Limerick 2014: Programme Review

Financial planning cont'd.

Income

Figure 1 Limerick NCoC 2014 Income Sources

LCoC received income of €10.9m in 2014 to fund the delivery of the LCoC programme. There were five key sources of income, including:

Events box office 7%

• the Department of Arts Heritage and Gaeltacht (The Department); • Social Funding; • Sponsorships;

LA Contribution 9%

Donations & social Funding 4%

• Limerick City and County Council (LA) sponsorship; and • Event box office and event related income.

Sponsorship 11% Government Grants 69%

The breakdown of income and income sources is illustrated in Figure 1 across.

Government Grants were the major source of income for the Limerick NCoC programme. The actual income received from the Department was €7.5m, €1.5m higher than originally expected.

Figure 2 Limerick NCoC 2014 Expenditure by Category Wages & Salaries 8%

Sponsorships, donations and social funding played an important role in funding the programme, accounting for 15% of the total income received.

The significant level of this income source highlights the level of interest and support from the private sector for the Limerick NCoC programme.

Expenditure The actual expenditure reported in December 2014 was €10.9m.

Expenditure breakdown by category is illustrated in Figure 2 across.

Promotion & marketing / Administration 6% Programme Spend 86%

• Total programme spend accounted for 86% of the total expenditure. It included expenditure on the international programme, commissioning, legacy and made in Limerick events as well as venue and general project operations costs. Other costs accounted for only 14% of the total spend; • Salaries and wages expenditure was only 8% of the total expenditure; • Promotion, marketing and general administrative expenditure was 6% of the total expenditure for the year and was lower than originally envisaged as individual events carried out marketing exercises at the expense of their grants. Most of the €720k in-kind support received was related to this expenditure category.

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Limerick City of Culture Review | May 2015

Limerick 2014: Programme Review

In-kind support In-kind support played an important role in the successful delivery of the project. Events' expenditure data suggests that the total cost of the 156 projects was in excess of €9.4m.

Over €720k was contributed in the form of in-kind support received primarily from marketing and advertising agencies. This support facilitated a reduction in the total marketing expenditure incurred.

In addition, over €1.1m additional event related costs were covered by the artists, ticket sales, and other contributions that were attributable directly to specific events.

Conclusion The Limerick NCoC Programme was an ambitious project that aimed to transform Limerick into a cultural hub for Ireland, improving the overall image and perception of the city whilst facilitating economic growth.

A rich programme included 156 projects with over 3,000 events that took place in the Limerick Region and other locations. The Programme provided an opportunity to Limerick's residents and visitors of different age and backgrounds to enjoy and get involved in a variety of cultural events across 16 different art forms.

The total cost of the Programme was over €12m, including €720k in-kind marketing and advertising expenditure and €1.1m extra event related costs covered by various stakeholders. The Programme was funded mainly by the Government. Significant support was also received from the business community and public in the from of sponsorships, donations, in-kind support and volunteering.

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Assessment of Economic Benefits

Limerick City of Culture Review | May 2015

Assessment of economic benefits

Overview This section of the report provides a more in-depth assessment of the 2014 Programme and focuses on the economic benefits to the Limerick Region from hosting the NCoC 2014.

To assess the indirect and economy wide impact of expenditure on the 2014 Programme, we used an Input-Output model widely used to carry out economic impact assessments of changes in specific areas of the wider economy.

In addition, given the nature of the Programme and its ultimate aim of developing the cultural image of the Limerick region, many benefits are not directly quantifiable. To capture the impact of the Programme on these areas a survey of Limerick businesses was carried out with support from the Limerick Chamber of Commerce.

Direct benefits Direct benefits refer to immediate inflow of economic resources as a result of an increase in activity.

The following direct benefits were generated by the Limerick NCoC Programme: • Ticket sales revenue and audience expenditure; and

"It has been widely acknowledged that the year of events has been a major success, which I saw for myself when I visited the city in October"- The Minister for Arts, Heritage and the Gaeltacht, Heather Humphreys, 17 December 2014.

• Increase in tourist numbers and related expenditure.

Box office sales The programme, that included over 3,000 events as part of 156 projects aimed at bringing the Limerick, Irish and international tourists and community together to celebrate art and cultural vibrancy. The Programme did not aim to generate financial gain and almost half of the events were free of charge.

Events that sold tickets provided a significant number of complimentary and free tickets. Paid for ticket prices varied between €5 and €175 with over 70% of events having the highest ticket price below €25.

Total estimated ticket sales generated over €1.2m of revenue from 91,000 issued tickets, distributed between various artists and the Limerick NCoC.

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Limerick City of Culture Review | May 2015

Assessment of economic benefits

Audience impact The impact of the audience that attended events as part of the LNCoC Programme is reflected in the additional expenditure by these people on food and drinks, accommodation, transport and other miscellaneous items.

Naturally, the expenditure level may have varied significantly between local people attending an event and those who travelled to Limerick either from other parts of Ireland or overseas.

The total audience was in the region of 1.8 million people. Given the number of events that ran simultaneously, we assume that an average visitor attended 3 events. On this basis, the total number of people who attended LNCoC events would be in the region of 600,000.

This estimate is considered to be prudent, provided that over 230,000 people visited Limerick to attend the Granny's Visit weekend alone. In addition, many events, staged as part of the LNCoC programme, did not record attendances as they took place in public places such as parks and city streets and did not charge a fee. In addition, the data available suggests that in excess of 91,000 tickets were sold to attend paid-for events.

Fáilte Ireland (2011) suggest that domestic day-trippers spend on average €45 per person, whilst domestic and overseas staying holidaymakers spend €68 and €78 per person per day respectively.

The LNCoC Programme, whilst having a significant international dimension, primarily focused in developing culture in the region and facilitating local community engagement and social inclusion. Based on this and additional feedback received from stakeholders we therefore assume that circa. 85% of the visitors or 510,000 people were from the local area.

The table below provides an overview of the additional expenditure breakdown by the visitor type based on the assumptions as stated above.

Number of visitors Domestic day-trippers Domestic and overseas Total expenditure

Spend per visitor

Key assumptions made: •

Total audience of 1.8 million people

•

Every person attending LNCoC events attended at least 3 events

•

Number of people who attended LNCoC events was 600,000 people;

•

85% of people were local residents;

•

Expenditure per local resident €45;

•

Expenditure per domestic/overseas daytripper €73; and

•

Overnight trips are ignored.

Total spend

510,000

€45

€22,950,000

90,000

€73

€6,570,000 €29,520,000

For the purpose of this study, overnight trips are ignored.

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Limerick City of Culture Review | May 2015

Assessment of economic benefits

Audience impact cont'd While it may be argued that some of the expenditure generated by the domestic and overseas holidaymakers was not incremental as tourists attended the events as part of their trip regardless of the LNCoC Programme, it is assumed that LNCoC had an impact on the length of stay and overall expenditure level and therefore additional expenditure is included in the analysis.

Using prudent estimates to carry out the above analysis, based on recorded audience numbers, it could be assumed that almost â‚Ź30m additional expenditure was generated by LNCoC events' visitors.

Š 2015 Grant Thornton Ireland. All rights reserved.

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Limerick City of Culture Review | May 2015

Assessment of economic benefits

Additional tourists One of the key objectives of the Limerick NCoC year was not only to bring additional national and international tourists to the city but to bring local communities together and facilitate social inclusion and encourage participation in cultural events.

There are generally three visitor categories impacted by large cultural events - additional local audiences, additional domestic audiences and overseas tourists. Whist on the previous pages analysis of additional expenditure generated was provided, estimating an incremental increase in the number of tourists related to the LNCoC would require up to date tourist data.

At the time of writing this report, however, there was no data available on the number of tourists that visited the Limerick Region in 2014. Our analysis of tourist numbers, therefore is focused on stakeholder feedback and public opinion regarding the impact of the programme on the attractiveness of the region to tourists.

Our review of stakeholders' feedback and consultations indicates there was a noticeable increase in the number of people visiting Limerick.

"Tourism plays a vital role in supporting the economic health for Limerick"- Limerick Chamber of Commerce

"LNCoC 2014 led to a significant increase in our figures – both in terms of numbers of performances and people attending events. We had a 50% increase in the number of shows and a 43% increase in ticket sales. This proved to be a great boost for our business as so many new customers got to know the venue, " – Louise Donlon, Lime Tree Theatre.

Other evidence, such as statistics from Irish Rail on the number of passengers travelling to Limerick for the week of the Granny's visit, suggests that there was 1,000 more passengers travelling to Limerick, during the first weekend of September, compared to the same period in 2013.

Notwithstanding the lack of statistical data available therefore, it appears, based on public and stakeholder's opinion and feedback, that there was a significant increase in the number of visitors to the city, both domestic and overseas.

Further details on the public perception of the impact of the LNCoC Programme is included in the Business Community feedback section.

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Limerick City of Culture Review | May 2015

Assessment of economic benefits

Indirect and economy wide benefits: Input-output model The CSO publishes Supply and Use and Input-Output (I/O) Tables (2011 last available) that illustrate interdependences between identified 58 industries in Ireland. Information provided in these tables facilitates development of I/O multipliers that can be used to assess economic impacts from an activity.

Multipliers I/O analysis is based on the interaction between economic sectors, that assumes, that an increase in activity in one sector leads to an increase in activity in other related sectors.

There are two types of I/O multipliers that are used in this assessment: • Type I multipliers – measure direct and indirect impact of an increase in activity level. Indirect impact refers to an increase in an activity level of supporting/related industries as a result of an increase in demand from an industry under review.

• Type II multipliers – in addition to measuring direct and indirect impacts, Type II multiplies measure induced impacts. Induced impacts are a result of an increased consumption that arises due to additional income and employment created through indirect impact of an increase in activity level.

Type I and Type II output indicators are used for the purpose of measuring the impact of €10.9m expenditure on the Programme. The CSO provides Type I output multipliers, Type II multiplies are based on Grant Thornton estimates.

For the purpose of this assessment it is assumed that €10.9m was invested in Cultural and Sporting Services (NACE Rev. 2 90-92 as included in the National I/O Tables).

Limitations of I/O analysis • I/O analysis is focused solely on economic impacts; • Estimation and use of average earnings/employment are multiplied in the model and increase uncertainty; • I/O tables and multipliers reflect the structure of the economy at a certain point in time; • The model does not eliminate costs of intermediary product from a final output; • Many jobs in the Cultural and Sporting Services sector are part-time or are based on volunteering; • Impact on a regional level is considered higher, therefore the use of National I/O multipliers and tables would result in lower end estimates of the impact.

*This methodology does not take into account benefits generated in the economy as a result of additional visitors attracted as a result of an investment in Cultural and sporting activities. It focuses exclusively on industry related impacts.

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Limerick City of Culture Review | May 2015

Assessment of economic benefits

Indirect and economy wide benefits: Input-output model cont'd Economy-wide indirect and induced impacts Using available national I/O tables and multipliers we estimated economy wide benefits generated from an additional €12m spend in the Cultural Services Sector as a result of the Limerick NCoC Programme.

The results of analysis suggest that additional indirect benefits generated by the investment were circa €1.2m. These benefits were allocated to sectors supporting the Cultural Services Sector, including mainly security and business support, real estate, electricity and gas supply, professional services.

Additional induced benefits were almost €264k and were allocated across similar sectors. Some benefits were also allocated to retail, food and beverage sectors.

In total, €12m was invested into the Cultural Services Sector during the Limerick NCoC 2014 Programme generated at least €13.4m benefit to the national economy, including €1.4m indirect and induced benefits.

Indirect impact – benefits derived by backward-linked

Table 2 I/O analysis of economy wide impacts Direct, in-kind and extra expenditure Total spend Type I Output multiplier Indirect benefits Type II Output multiplier Induced benefits Total direct, indirect and induced benefits

€12,000,000 1.101 €1,212,000 1.123 €264,000

industries (e.g. suppliers) due to an increase in demand from the analysed sector.

Induced impact – benefits that arise as a result of additional consumption generated through increase in income due to indirect impacts (e.g. suppliers receive income that they subsequently spend).

€13,476,000

The multipliers used in the analysis are based on national I/O tables 2011 due to unavailability of regional tables. At a regional level spill over effects are generally accepted to be higher, therefore the estimates provided in the analysis can be considered to be the minimum level of economic benefit generated. In comparison, regional I/O multipliers used in the UK studies are as high as 2.5.

In addition to facilitating business activity and generating additional value across supporting sectors, over €5m of programme spend related to payments made to various Irish suppliers and service providers to ensure Programme delivery.

In addition to these economic benefits generated as a result of an investment into the Cultural Sector and additional expenditure generated by event audience, as a result of a rich cultural offering, the LNCoC Programme had an impact on other areas of business activity that are discussed further in this section.

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Limerick City of Culture Review | May 2015

Assessment of economic benefits

Hospitality sector An increase in the number of visitors to the city has a direct impact on the tourism and hospitality sector. In addition to the additional revenues generated by the industry, an increase in tourist numbers is expected to result in a increase in the hotel occupancy rate.

Failte Ireland Preliminary Hotel Review 2014, indicates that the national room occupancy increased for the third consecutive year to reach 64%, an increase of 5% compared to 2013. Shannon experienced an increase of 5% in 2014, which is in line with the national average increase.

The occupancy level for Limerick hotels increased from just above 53% in 2012 to 59.34% in 2013 and 63.7% in 2014, an increase of circa 7% in 2014. Occupancy levels in Limerick therefore increased at a higher pace compared to the Shannon Region and national average. This difference can be partially attributed to a slight decrease in the number of hotel rooms supplied in Limerick from 2,180 in 2013 to 2,144 in 2014.

However, a more detailed review of the monthly occupancy rates suggest that some correlation exists between LNCoC flagship events and hotel occupancy rates. Figure 3 opposite demonstrates rates in Limerick for 2013 and 2014.

The greater increase in excess of 10% occurred in the months of January, April, May and September and this corresponded with some flagship events of the Programme.

In these four months alone over €560k* was generated as a direct result of almost 7,500 incremental increase in the number of bed nights as a result of people staying in Limerick hotels to attend the key events. This represents additional hotel income after excluding an impact of the room supply decrease and removing a national average growth rate of 5%.

Figure 3 Limerick Hotels' occupancy rate 2013-2014 90% 80% 70% 60%

National annual Average

50% 40% 30% 20% Jan

Feb

Mar

Apr

May

Jun

Jul

2013

2014

Aug

Sep

Oct

Nov

Dec

Flagship events •

Eva International – April 2014;

•

Riverfest – May 2014;

•

Royal De Luxe – September 2014;

*Average room cost in Limerick €76, Irish Times, 3 March 2015.

© 2015 Grant Thornton Ireland. All rights reserved.

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Limerick City of Culture Review | May 2015

Assessment of economic benefits

Other impacts In addition to the areas discussed in detail above, there are other various indicators that suggest a positive impact delivered by the Limerick NCoC. Unemployment

In 2014, the number of people on the live register in the State and Mid West region declined by 37,882 (10%) and 3,782 (11%) respectively. Figure 4 opposite illustrates that since H2 2011 the Mid-West region has seen a higher decrease in the number of persons on the live register compared to the rest of the country (this is apart from H2013 when the South West region had a larger decrease).

10%

Figure 4 Unemployment rate changes 2010H2-2014H2

5% % growth/decline

Following the global recession the Mid-West region experienced an above the national average increase in the number of people on the live register. The unemployment level in the Mid-West region began to improve in 2011 and the unemployment decrease rate continues to be above the national average.

0% (5)% (10)% (15)% 2010H2

2011H2 State Dublin

2012H2 Midland Mid-West

2013H2

2014H2

West South-East

Whilst is not possible to establish the exact impact the Programme had on the unemployment rate in Limerick, an increase in visitors to the city required additional resources primarily in the food and beverage, hospitality and other service sectors, therefore a link could be assumed.

Transportation services

Transportation services saw an increase in the level of business activity that could also be attributed to the increased number of visitors to Limerick in 2014.

• Irish Rail - for the week of the Granny’s visit there were 6,280 passenger journeys into Limerick compared with 5,330 in 2013 and 5,030 in 2012.

• Bus Éireann - helped carry some of the 230,000 visitors (exact numbers are unavailable) for the Royal De Luxe Giant Granny event; • Shannon Airport - saw unprecedented growth in the number of passengers in 2014. The number of people arriving at the airport increased by over 73,000. The majority of this growth is attributed to the new routes that opened in 2014.

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Limerick City of Culture Review | May 2015

Assessment of economic benefits Business community feedback The impact of a cultural event of a large scale is often difficult to quantify. To further understand the impact of the Limerick NCoC year on Limerick we carried out a survey of Limerick's business community. The survey was supported by the Limerick Chamber of Commerce.

The following pages provide a summary of the key findings of the survey.

Respondents profile

Figure 5 Respondents by business sector

• In total 46 responses were received;

Other 25%

• Respondents' businesses were from various sectors;

• Majority of respondents' businesses are located in Limerick.

Education 7%

Retail 20%

Accomodation 14% Professional Services 34%

Involvement in the Limerick NCoC programme • Over 45% of respondents did not participate in the organisation of the Programme; • 13% of respondents provided sponsorship to the Programme; • 12% of businesses participated in the organisation of one or more events.

Helped organise an event 8.7%

Helped organise multiple events 4.3%

Provided supplies/sold services to the organisers 13.0%

Provided sponsorship

13.0%

Was not involved in the Programme

45.7%

Other

15.2%

Conclusion Responses received appear to represent various business sectors across Limerick City, including businesses that would be directly or closely involved in the Culture and Tourism sector and businesses that have little or no relation to the sector under review.

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Limerick City of Culture Review | May 2015

Assessment of economic benefits

Impact on business activity • 41% of respondents saw an increase in revenue; • 35% of respondents saw an increase in customer numbers;

Figure 6 Impact on the business Revenue 9% 13%

28%

46%

54%

54%

4%

2%

28%

• 41% of businesses felt their brand recognition improved in 2014;

Continuation of activity levels • Almost 60% of respondents felt that activity levels in 2015 are higher than they were prior to the 2014 Programme;

Decrease

No impact

Slight increase

Significant increase

N/A

Figure 7 Activity levels Significantly higher than before City of Culture (i.e. 2013)

10%

Fell back to prior to City of Culture years

31%

• However, 31% of businesses believe the level of business activity fell back to prior to Limerick NCoC year levels.

49% Slightly higher than before City of Culture (i.e. 2013)

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Recognition (brand) 4% 13%

28%

• Some businesses indicated that they hired additional temporary/permanent staff to support an increase in customer numbers;

• Across the three factors examined, on average 51% of respondents did not feel any impact from the Limerick NCoC year on their business. The majority of these businesses are in the professional services sector.

Customer numbers 9% 7%

10%

Lower than prior to City of Culture years (i.e. 2013)

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Limerick City of Culture Review | May 2015

Assessment of economic benefits Conclusion Most respondents in retail, accommodation and education sectors felt some positive increase across the three factors reviewed and suggested that the activity levels in 2015 improved compared to previous years.

The results of the business activity review questions suggest that the 2014 Programme had a different impact on various sectors.

Whilst professional services sector respondents indicated that there had been little or no impact on their revenue, customer numbers or brand recognition, with no major change to the business activity levels in 2015.

Impact on Limerick Figure 8 Geographical reach of impact

• Over 60% of respondents believe that the impact of the Limerick NCoC Project went beyond just Limerick City and County;

4.3%

• 91% of respondents felt the Programme had a positive impact on the image and perception of Limerick;

Only Limerick City Centre

23.9%

• 91% of respondents believe the Programme improved future confidence in Limerick;

Limerick City only Limerick City and County

60.9%

• 85% of businesses suggested that the Programme had a positive impact on general business activity levels;

10.9%

Beyond Limerick City and County

• 80% of survey participants indicated that Limerick NCoC events had a positive impact on the levels of social inclusion in Limerick.

• 87% of respondents highly support Limerick's bid for the European Capital of Culture 2020.

Figure 9 Impact on Limerick

Figure 10 Limerick 2020 Support

Positive impact

87.0%

37% 80%

39%

65%

Somewhat positive impact No impact

48%

2.2%

0.0%

Don't support

Not sure

4.3%

6.5%

Somewhat Highly support Other (please support specify)

11% 7%

41% Somewhat negative impact

26% 7%

13%

Image/Perception Future confidence Business activity

20%

Negative impact

Social inclusion

Despite some difference in opinion on the impact of the Programme on individual sectors, the survey respondents felt that overall the Programme had a positive impact that reached beyond the Limerick region.

The majority of respondents indicated a positive change in the image and perception of the city, an increase in the level of business activity and social inclusion as well as an overall improvement in the level of future confidence. Responses demonstrated a high level of support for Limerick's bid for the European Capital of Culture 2020 title.

It was further emphasised by the respondents that going forward they would like to see the continuation of such activities as it brings the Limerick community together. © 2015 Grant Thornton Ireland. All rights reserved.

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