Mayor’s foreword 5Executive summary 7Introduction 17 1 Maintaining London’s position 33as a world city for culture




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1.5 Promotion, tourism, marketing and inward investmentIn light of the current economic pressures facing the UK and London, it is more important than ever for the capital to promote itself to investors, businesses and tourists around the world. This is emphasised in the Mayor’s Economic Development Strategy, which states that, ‘The Mayor will work with partners to strengthen the promotion of London as a global leader’. As indicated, London has a strong reputation as a commercial centre, but the current economic crisis means a greater need to promote the capital’s attractiveness to foreign businesses and investors. There is also a need to rebalance the perception of London’s strengths and emphasise its economic diversity, reminding the world that London excels in many ways, not only in the nancial services, but also across a range of sectors – including of course, the creative and cultural industries.Culture can be a powerful tool to reach out to both established and emerging markets, and help businesses cultivate relations with investors abroad. London’s creative sector is already highly internationalised – for instance, two thirds of the ten largest multi-national advertising agencies have their European headquarters in London, while three quarters of those UK design agencies that have overseas clients are based in London21. There is considerable potential in harnessing this reputation, both to help London’s creative businesses to further develop overseas markets, but also for culture to contribute towards the wider promotion of London. The 2012 Olympics and Paralympics also presents London with a unique opportunity to reach out to new audiences and sell its attractions to the rest of the UK and abroad – both to visitors and businesses. It has been estimated that approximately one million people will visit the stadium during the Olympic and Paralympic Games, over four billion people will be watching on television, and that many millions of people from around Britain and the world will visit the capital.CASE STUDY: Film London Production Finance MarketTaking place in association with the BFI London Film Festival, the Production Finance Market means that the LFF is not only a showcase for the latest lms, but also helps to ensure that the lm festivals of the future will have a stream of high-quality British and international lms to premiere. Established by Film London in 2007, the Production Finance Market has already become an important xture in the lm industry’s calendar. The only event of its kind in the UK, the PFM is dedicated to initiating and fostering new nancial relationships, and ensuring that fresh investment can come into the sector. Over two-days, an intensive programme of workshops, events and receptions are hosted to enable networking and face-to-face meetings between lm producers and nanciers, from the UK and overseas. In 2008, almost 150 lm projects were presented, with a total value in excess of one billion US dollars. Through the development of partnerships with Rome International Film Festival and Melbourne International Film Festival, the PFM is continuing to expand internationally. In 2009 the PFM received investment from MEDIA ofce in Brussels, allowing it to signicantly increase opportunities for European producers and nanciers, providing EU lm professionals with improved access to lm markets. The strategy also aims to increase co-production deals between UK and Europe and strengthen the position of the PFM within the international lm calendar as a truly global market.The independent lm nancing landscape is constantly changing and the PFM adapts to reflect this. In view of the economic downturn it is even more vital for nanciers to have access to quality lm product and therefore more important than ever that Film London, through the PFM and its other activities, continues to bring together talented producers and investors, to maintain London’s position as a key international marketplace for lm production.www.lmlondon.org.ukCulture and tourismThere is a strong link between London’s cultural sector and visitor economy. Throughout the world, London is renowned for its cultural institutions, the range and quality of its offer, and its capacity for nurturing new talent and innovation. Since the advent of mass international tourism in the second half of the twentieth century, from the ‘Swinging Sixties’ to Britpop, London has captured the imagination of successive generations around the world. The table below shows in more detail how London compares to other world cities in terms of its visitors, and also suggests, although this would require a further breakdown of the gures, that many of London’s cultural attractions have signicant attendance from visitors, either from overseas or the rest of the UK.As well as international visitors, London’s visitor economy benets from day visitors, who are thought in particular to be signicant consumers of cultural activities. A survey by the LDA estimates that there were 181 million leisure day trips taken to London in 2007, some 96 million of which were by those living elsewhere in the UK, and that their total expenditure was £12.2bn22.It has been long recognised that there is a particularly close relationship between tourism and London’s cultural sector, with London’s museums and galleries attracting millions of international visitors – the British Museum alone, for instance, estimates that it has ve million such visitors each year. Nor is it by any means solely the national institutions and subsidised sector that are responsible for this. London’s West End theatre has long been a major asset in this regard, with international audiences from around the world, especially North America. Similarly, London’s famous live music venues attract audiences, especially young audiences, from across the UK and beyond eager to see both established international artists as well as emerging talent. Despite the connection, it is not something that London government has always made the most of. For instance, research has shown that one in ten of all decisions around holiday destinations are based in part on lm23. Yet up until now relatively little has been done to develop the ‘lm tourism’ offer in London or to assess in any detail what its potential value might be, despite the abundance of well-known and much loved screen moments set against the backdrop of London’s iconic locations across the entire London region. The Promote London CouncilIn order to address some of these opportunities more strategically the Mayor has established the Promote London Council (PLC), which has senior representatives from all of London’s promotional agencies as well as industry gures, including those from the creative sector. Chaired by the Mayor himself, and closely linked to the Mayor’s Economic Development Strategy, the PLC will provide leadership and focus on how the capital can be promoted. Although many of the agencies represented on the PLC allocate funds, its work will be less about more promotional funding so much as funding better and more smartly, so that campaigns are as joined-up, efcient and as impactful as possible.The PLC is concerned not just with tourism, but also with how London can more broadly position itself in relation to the rest of the world, and develop an over-arching brand and offer that can attract businesses, investors, tourists and students. Any attempt to brand London and develop its economic story must reflect the breadth of the city’s talent base and the richness of its offer, and should have London’s cultural and creative sector at its heart. Such positioning of London means taking full advantage of major international showcasing opportunities as and when they arise. For instance, the capital has been presented as a cultural, business and tourist destination at Shanghai Expo 2010. London’s interactive exhibition encourages people to consider how sustainable design and development can create an even better city in the future in line with the Expo theme of ‘Better City, Better Life’. Visitors have the chance to explore London’s history, share in the excitement of the city as it is today and see how key events such as the 2012 Olympic and Paralympic Games will help shape London in the future. In addition, working with the PLC and cultural agencies, the Mayor provides, where the economic case can be made, support for London’s creative industries events and festivals. Such high-prole international promotion is vital for many of London’s creative businesses and, events like London Fashion Week, London Festival of Architecture and London Design Festival bring not only overseas clients and buyers, but also a wider global focus to London. As well as boosting inward investment to London’s economy, these events are also an important part of the UK industry calendar and London’s cultural life, and recent efforts to make these events more publicly accessible are to be endorsed.Policy Action 1.5 Through the Promote London Council and in partnership with public agencies and sector partners, London’s cultural sector is being promoted to markets across the world, both for the sector itself, but also in the context of the wider economic benets that the sector generates for London as a whole. 1.6 Creative business supportMany of the successful creative businesses in the capital are a consequence of their entrepreneurial and managerial expertise as well as creative and technical abilities. Unfortunately, this is not the case for all. All too often a highly talented enterprise lacks the knowledge and expertise in areas such as nance, management and marketing that are necessary for sustained growth. In the case of the creative industries, there are also more specic issues, such as understanding and defending intellectual property, which will be critical to commercial success. In line with the government’s recent ‘business support simplication’ process, the Mayor is working to ensure that support for London’s businesses is of high quality and readily accessible and that the current government support gateway, Business Link, provides a suitable offer for London’s creative enterprises. Business Link is available to anyone running a small to medium sized enterprise, or looking to start one up. It provides practical information and guidance at no cost, and also connects businesses to more expert assistance. In specifying, selecting and performance managing the delivery partner for Business Link from 2010 onwards, the support provided to this important part of London’s economy must be effective for the sector.In certain cases, however, generic business support will only be of limited value. For a creative business to get real value from a support agency, then it needs the kind of in-depth support and understanding of the sector it operates in, including the value chain it sits in, market opportunities, and competitive pressures. More specic service providers and programmes, such as Own-It, the Centre for Fashion Enterprise, and the Film Passport Programme, have therefore provided London’s creative businesses with more bespoke and intensive business skills and advice. While there are known to be government concerns around the proliferation of such services and possible confusion in the marketplace, it is important that successful and valuable projects are not lost to the detriment of the sector, and that the quality and relevance of the support offered small creative businesses and start-ups remains.Policy Action 1.6 Ensure that support for London’s creative businesses and professionals is relevant and high quality. This will include targeted provision where appropriate, but also ensuring that mainstream services, such as Business Link for London, are effective for what is a major sector of London’s economy. 2. Widening the reach to excellence 2.1 Provision across LondonLondon is renowned for its national and international cultural riches, but it is equally important that the city’s inhabitants have access to high quality local cultural services. For many Londoners, it is not the national museums or West End theatres that are their primary source of cultural provision, but rather the venues and services that are on offer locally, often through the support of the local authority. In this regard, there is scope for considerable improvement. It is telling that in a survey undertaken by the GLA, 78 per cent of Londoners think that the quality of London’s cultural venues and events is high, and only six per cent regard it as low. However, there is a signicant drop off in perceived quality at the local level, with 39 per cent regarding it as high and an almost equal number (36 per cent) believing the quality to be low. The abundance of cultural institutions, museums and heritage sites is by no means a city-wide phenomenon, and while London is home to 285 of Arts Council England’s regularly funded organisations, Westminster, Camden, Tower Hamlets and Islington are home to more than 30 each, while there are several boroughs with either one or none at all. The same is true of other types of cultural provision, including independent cinemas. London has 105 cinemas and more than 500 cinema screens, but two boroughs – Waltham Forest and Lewisham, both with populations in excess of 200,000 and therefore comparable to many English towns – do not have a single cinema. Similarly, the impressive agglomeration of commercial theatres to be found in the West End is in stark contrast to the rest of London where, notwithstanding a small number of independent and publicly funded theatres, in many boroughs there is little in the way of commercial theatre. There is a similarly uneven distribution of London’s creative businesses and levels of employment. This should not come as a surprise – it has been observed for many years and in many regions that creative businesses tend to agglomerate together in this manner in creative clusters of concentrated economic activity. In the case of London, these clusters would appear to be particularly strong in the West End and inner east areas.These differences in the level of cultural provision, funding and sector activity are at least partly reflected in terms of audience numbers and cultural engagement. The table below gives the 2009 National Indicator (NI)11 data for all of the London boroughs. NI11 attempts to measure the proportion of the adult population who have attended or participated in the arts at least three times in the past 12 months, and has become the standard measure of cultural engagement across the UK.Outer London Of particular concern to the Mayor are the issues and challenges facing those who live and work in the ‘outer-London’ boroughs24. It is recognised that the ‘outer-London borough’ label is not always a helpful one – outer London does not exist as a sub-regional concept, and many boroughs actually have the kinds of spatial and social characteristics that are normally associated with both outer and inner London. Nevertheless, there do seem to be distinct challenges around recognition, audience development and resources shared by cultural professionals working in the designated outer-London boroughs that are noticeably prevalent, and warrant particular attention.While public participation in cultural activity in London has grown over the last decade many Londoners, particularly those from outer boroughs, still do not visit or enjoy the city’s myriad of cultural venues. The most recent survey25 showed that 45 per cent of residents in outer London engaged three or more times a year in the arts compared with 54 per cent of those in inner London boroughs. There are many complex reasons for this – the comparative age, income, and mobility of residents in inner and outer London. An important driver of engagement is inevitably the distribution of cultural venues across the city. The map in Section 2.2 shows how densely cultural venues are concentrated in the city centre, as one might expect. There is an average of around 140 facilities in each inner London borough compared with 100 in each outer London borough. This disparity is mirrored, to some extent, in the pattern of regional funding. For example, in the nancial year 2008/09, Arts Council England’s Grants for the Arts programme allocated more than 80 per cent of its funding to individuals and organisations based in the inner London boroughs26. Two thirds of Heritage Lottery Funding goes to inner London boroughs. It is important to appreciate that such headline gures hide a complex reality. An organisation may receive funding in one particular borough, but may be involved in community outreach and educational activities throughout other parts of the capital, including outer London. Also, both Arts Council England and the Heritage Lottery Fund have made a strong commitment in recent years to working across London and this is reflected in how they assess funding proposals for their grants. It will take time for such efforts to pay dividends.At face value, the disparity in funding at the regional level is also matched at the local. On average, inner London councils spend £69 per head on culture, compared to £54 in the outer London boroughs – a difference of more than 20 per cent. This is signicant, for without funding and support at a more localised level for arts organisations it is that much more difcult to attract regional and national support and persuade funders that projects are nancially sustainable. However, it should be recognised that outer boroughs invest more in other services, such as outdoor spaces, parks, and local music services, than inner London boroughs27. Therefore, the patterns of investment vary and it is important for funding agencies to recognise the efforts local boroughs make to provide cultural services that respond to their particular circumstances. Policy Action 2.1 The Mayor is working with and encouraging cultural institutions, local authorities and strategic funding bodies in their efforts to ensure that high-quality cultural provision is expanded and enhanced across the entire London region.
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