The transformation of historic buildings in hotel accommodation it allows their conservation and stimulates local economic activity, according to a study carried out by a researcher from the Complutense University of Madrid.
In his study published in Regional sciences and urban economics (1), Alberto Hidalgoalso a researcher at the IMT Alti Sudi School in Lucca (Italy), he sheds light on the economic and social effects of the conversion of listed buildings into hotels in Madrid from 2001 to 2010.
“The opening of new hotels in urban areas is not just good news for travellers; constitutes an incentive for local businesses and job creation, signaling a significant economic revival driven by the hotel sector”.
In quantitative terms, on average 8 new structures are created per hotel in the city, structures that provide services and complement those offered by hotels.
In particular, these establishments mainly correspond to the catering and trade sector, managed mainly by companies, with greater financial capacity to cover the rent of the premises compared to autonomous businesses.
Impacts on the local community
The research combines the analysis of data on urban development and the observation of specific cases of regeneration in Madrid in the period from 2000 to 2010, in particular in cases where they were transformed into tourist accommodation.
Hotel projects and their impact on the local community were monitored, through the analysis of their affect on the local economy or rental prices, providing a solid basis for understanding the effects of tourism on urban regeneration.
The conversion of listed or historic buildings into accommodation facilities constitutes an “essential bridge between conservation of the past and adaptation to the future”
The conversion of protected or historic buildings into accommodation facilities constitutes an ”essential bridge between the conservation of the past and adaptation to the future”,explains Hidalgo,adding that “hoteliers,aware of the additional value that guests are willing to pay for the unique experiance of staying in a building rich in historythey are more willing to make the investments necessary for its renovation”.
Review of negative impacts
this study demonstrates that converting historic buildings into hotels can contribute to their preservation and stimulate economic growth in the surrounding areas.
“However, it is critical to recognize that such transformations could negatively affect the real estate and rental market if they are not managed carefully,” warns Hidalgo.
For this reason, the UCM researcher recommends continuous monitoring of urban tourism development to maximize benefits such as the revitalization of abandoned properties and the promotion of employment and local economic activity, while minimizing negative impacts, including possibility of tourist overload in some areas which could displace residents and reduce the tourist attractiveness of the area due to a more uniform and saturated offer of services.
“This study invites us to consider the future of tourism and urban development, highlighting the importance of balancing growth with the preservation of community character and the well-being of local residents,” concludes Hidalgo.
- (1) “Your room is ready: Tourism and urban rebirth”. Regional sciences and urban economics.
How do local communities typically respond to the conversion of historic sites into commercial accommodations?
Interview between Time.news Editor and Alberto Hidalgo, Expert in Historic Building Change
Editor: Good day, Alberto. Thank you for joining us today to discuss your engaging research on the transformation of historic buildings into hotel accommodations. your study published in Regional Sciences and Urban Economics presents some compelling findings. Could you start by telling our readers what inspired you to explore this topic?
Alberto Hidalgo: Thank you for having me. My inspiration for this research came from observing how cities around the world grapple with the challenge of preserving their ancient heritage while also needing to adapt to modern economic demands. The conversion of historic buildings into hotels seems to be a win-win solution that can both conserve these landmarks and stimulate local economies.
Editor: That’s a great outlook. In your study, you mention the dual benefit of conservation and economic stimulation. Can you elaborate on how transforming historic buildings into hotels achieves these goals?
Alberto Hidalgo: Certainly! When historic buildings are repurposed as hotels, it breathes new life into them, often leading to their preservation and maintenance which might otherwise be neglected. This transformation can attract tourism, generating revenue not just for the hotels themselves but also for local businesses such as restaurants, shops, and cultural landmarks. It creates a ripple effect that invigorates the local economy.
Editor: Engaging! Could you share some examples of cities or countries were you’ve seen this transformation prove especially accomplished?
Alberto Hidalgo: Definitely. Cities like Rome and Barcelona have seen remarkable success in this area. In Rome, for instance, several historic villas and palazzos have been turned into boutique hotels, providing guests with a unique cultural experience while also preserving the architecture. Similarly, Barcelona has embraced the adaptive reuse of its historic edifices, increasing both tourist footfall and local revenues.
Editor: That sounds promising. Though, are there any challenges that come with this process? How do communities typically respond to transforming their historic sites into commercial accommodations?
Alberto Hidalgo: Yes, there are challenges.Some community members might potentially be concerned about the commercialization of historic spaces, fearing that it could lead to a loss of authenticity or increase in local prices. Additionally, there can be regulatory hurdles related to the preservation of building integrity. Successful transformations usually involve active community engagement to address concerns, ensuring that the process respects both the historical importance and the needs of the local population.
Editor: Engaging the community seems crucial. In your opinion, what role dose government policy play in facilitating or hindering these transformations?
Alberto Hidalgo: Government policy is vital. Supportive policies can incentivize the repurposing of historic structures, such as tax breaks for developers who agree to preserve certain elements. on the other hand, overly stringent regulations can deter investment. A balanced approach that encourages sustainable development while safeguarding historical integrity tends to yield the best outcomes.
Editor: Speaking of sustainability,how does the transformation of historic buildings into hotels fit into the broader conversation about sustainable tourism and urban development?
Alberto Hidalgo: Its very relevant. By revitalizing existing structures, we conserve materials and reduce the carbon footprint associated with new construction. Moreover, historic hotels often enhance the attractiveness of a destination, leading to longer stays and a greater appreciation for local culture, which align with the principles of sustainable tourism. It’s about creating environments that are economically viable while also respecting and enhancing the cultural heritage.
Editor: Thank you, alberto. This discussion highlights the multifaceted benefits of converting historic buildings into hotels—not just for the economy but for cultural preservation as well. Do you have any closing thoughts, perhaps on where you see this trend heading in the future?
Alberto Hidalgo: I believe we will see an increase in such transformations, particularly as cities seek innovative ways to manage their heritage in the face of urban pressures. The combination of tourism, local economic development, and cultural conservation will likely become a cornerstone of urban planning strategies. It’s an exciting time for cities and their historical treasures.
Editor: It certainly is, Alberto. Thank you so much for your insights today—it’s been a pleasure discussing this important topic with you.
Alberto Hidalgo: Thank you for having me! It’s been a pleasure to share my research and thoughts with your audience.