Crowding-in and (temporary) crowding-out in Venice. The effect of cultural events on residents

Abstract

Cultural events are endorsed in urban cultural policy for their economic role in supporting the tourism industry and their social role in strengthening community cohesion. Nevertheless, conflicts can arise between these two objectives, especially in cities already experiencing massive tourism regardless of the staging of major events. Taking Venice as a case study, we investigate the effects that different types of cultural events have on the relationship between residents and tourists in a crowding-in/temporary crowding-out dynamic. We implement a structural equation model using a unique dataset that records the daily number of residents, tourists, day visitors and commuters in the city. Results show evidence of both a crowding-in and temporary crowding-out effect during major cultural events, whereas such effects are not present for cultural events associated with local traditions. The paper highlights how these dynamics can impact the economy and the management of tourism destinations during cultural events.