Basic Report

The purpose of this study is to provide a guideline for demand analysis in the feasibility study for the investment in cultural facilities by local governments. Demand analysis for cultural facilities requires a rigorous and consistent appraisal to investigate the actual demand in the region. This becomes more important since the current government plans to expand public investment in social overhead capital which is particularly related to every day life of local residents. However, there is lack of methodological guidance specified for the project by local governments in the existing guide for feasibility analysis.
   Therefore, this study examines the issues related to the demand analysis for cultual facilities, in particular using gravity model which is commonly applied in the Preliminary Reasibility Study by PIMAC(Public Investment Management Center) and the Feasibility Study on local government projects by LIMAC(Local Investment Management Center). A typical example of cultural facilities invested by local governments is concert hall or library. Thus this study looks into the theoretical aspects of demand and supply for these two types of facilities and reviews previous feasibility studies in an attempt to identify the distinctive features of each facility which needs to be considered in the process of demand analysis. Finally, this study takes an empirical approach to evaluate the performance of gravity model using various hypotheses on reference site, impact area and distance or size sensitivity in the model. The analyses aim at identifying the best model which produces the smallest difference from the actual number of visitors of each type of facilities.