The future of the global trade system faces more risk and uncertainty than at any time since it was created after World War II. The World Trade Organization (WTO) has not completed a new round of global trade liberalization in two decades. If multilateralism is in crisis, this will also have consequences on further developments in international cultural tourism. This chapter critically reviews the definition of ‘cultural tourism’ and examines the empirical literature on its determinants and impacts. This is done with reference to efficiency, price and income, along with education, as variables that can be located in the mainstream neoclassical approach. Income effects are mixed and education has the problem that it may be conflated with other preference-changing effects that are difficult to proxy in other variables. The need for better data and more comprehensive models that take account of social effects and uncertainty in a more behavioural way is emphasized.
This chapter briefly reviews the definition of theatre and its institutional setting, then critically explores evidence on the various demand determinants of theatre by reviewing the previous aggregate demand and individual participation studies. While ticket price, income and education are found to be significant determinants of demand for theatre, we also discuss evidence on other demand factors, such as objective and subjective quality characteristics, past/future attendance and admission prices, as well as other socio-economic and demographic characteristics of individuals, such as occupation status, age and gender. There is still no agreement in the literature as to what the relevant substitutes or complements for theatre should be and how the digital supply could affect theatre attendance. Interestingly, the size of the market does not play a crucial role in theatre demand. Recent findings also suggest that utility of attending a particular type of play will be jointly determined by both the type of theatrical performance and the consumer’s characteristics. The chapter discusses the production, cost and productive efficiency of theatres. It also explores how public subsidies affect both the repertoire choices and theatre efficiency. Moreover, a short case study on German public theatres is presented that examines how the organizational form of the public theatrical firm affects theatre management behaviour and outcomes.