Yearning for timelessness while also enhancing the growth of a city, architecture can be a space to live in, a status symbol, or can development of the economy. Grown to evolve beyond merely aesthetics and monument building, it can attract both locals and visitors. The excellent architecture of a famous hotel can attract customers, which also increases the economic growth of the immediate vicinity. The implications of lousy architecture extend far beyond the building. A bad impression of an area because of one building can lower the economic growth of the entire area. A creative intervention in the urban landscape appealing to locals as well as tourists can help develop the region. If any development is taking place on a valuable piece of land, it carries with it the added potential of expanding the economic development of that region. The anticipated growth in an area can be a reliable marker for predicting upcoming trends or alterations in the regional economy.

Case of the Bilbao Effect, Spain

Economists have used the term ‘Bilbao Effect’ to illustrate how one museum impacted an entire town’s social and economic development. Built in 1997, today, it is one of the world’s most visited museums. The 100-million-dollar building drastically changed the Spanish town, which had high unemployment and poverty rates. An icon for Bilbao, it attracts thousands of visitors yearly with its marvel in design and aesthetics. Twenty-five years later, the Bilbao Effect continues to challenge assumptions about urban transformations through iconic architecture.

Designed by Frank Gehry, it metamorphosed Bilbao from a small town with traditional nondescript Basque buildings to a global icon with an annual footfall of 1.2 million visitors. In 1991, the ambitious idea of a museum transforming the industrial waterfront city was given the green light. This would change the perception of a city as a neglected  industrial area.

How architecture helps economic growth - Sheet1
Guggenheim during the evenings_ https://www.snaptrude.com/blog/the-bilbao-effect-how-the-design-of-a-museum-transformed-the-economy-of-the-city

However, the urban landscape of Bilbao did not transform as the result of one building. Instead, a domino effect took place, which changed the town forever. After its success, the city reached out to other famous architects. Norman Foster designed a whole subway line, Alvaro Siza designed a university building, and Santiago Calatrava set his mark with the pedestrian bridge Zubizuri located close to the museum. Soon hotels, shops, and restaurants followed to accommodate the tourists who flocked from all over to witness the transformed town. 

How architecture helps economic growth - Sheet2
Tourists coming to see the Guggenheim_ https://www.snaptrude.com/blog/the-bilbao-effect-how-the-design-of-a-museum-transformed-the-economy-of-the-city

A dying city put on the map

Nervous at first, Frank Gehry was under pressure to give this dying town the equivalent of the Sydney Opera House. His brilliance as an architect and designer comes through the success of this majestic structure made of titanium and stone at the edge of the Nervión River. It was the birth of the ‘Bilbao Effect’ trend. More than just a building or a museum, it is a piece of art that resembles a ship but also looks like it flips its tail like a jumping fish. Although it is not the first of its kind, it stands out starkly among its competitors. The Sydney Opera House, The Pompidou Centre in Paris, and other cities such as Glasgow and Frankfurt have all used iconic architecture to boost their tourism. But Bilbao’s ambitions were much higher.

A post-industrial wasteland built on dying shipbuilding and steel industries, it was deemed impossible for it to be revitalized. The other cities, such as Sydney, Paris, and Frankfurt, had an advantage of their already flourishing art and architecture.

A town people had all but given up on has become Spain’s most captivating destination for tourists and investors seeking new business opportunities. The museum generates close to €400 million every year for the local economy of Bilbao.

Travel Data

How architecture helps economic growth - Sheet
An Aerial View of Bilbao_ https://www.snaptrude.com/blog/the-bilbao-effect-how-the-design-of-a-museum-transformed-the-economy-of-the-city

Within the first three years, the museum saw 4 million visitors gaining €500 million in economic activity. In 2003, international tourists exceeded local visitors. It was estimated that the money spent by the tourists on hotels, restaurants, shops, and local transportation was close to €100 million in taxes. Moreover, the publicity it has received has exceeded all expectations. Through the 1999 James Bond film, Mariah Carey’s music video, Sweetheart, and a South Indian Film- Sivaji, it has gained international fame and traction. But the museum is more than just an icon on the horizon of Bilbao. It is the reason the economy of the town has recovered from its darkest days.

Conclusion

The Bilbao Effect is an immortal example of the power of architecture and design and its far-reaching implications. It is indeed a wonder how one building positively affected the economy and culture of a minor, obscure town. Serving as a reminder to architects worldwide, it symbolizes the power of one entity to bring about a drastic change beyond expectations. Although he only intended to be a small part of the city, Frank Gehry forever changed the face of Bilbao. 

Citations

The role of Architecture in Economic Development. Available at: https://imkarchitects.com/onlineblogs/the-role-of-architecture-in-economic-development.php

The Bilbao Effect: How Frank Gehry’s Guggenheim started a global craze (2017) The Guardian. Guardian News and Media. Available at: https://www.theguardian.com/artanddesign/2017/oct/01/bilbao-effect-frank-gehry-guggenheim-global-craze

Strategist, A.F.C. (2022) The Bilbao Effect : How the design of a museum transformed the economy of the city, Snaptrude. Available at: https://www.snaptrude.com/blog/the-bilbao-effect-how-the-design-of-a-museum-transformed-the-economy-of-the-city 

Image Citations

https://www.snaptrude.com/blog/the-bilbao-effect-how-the-design-of-a-museum-transformed-the-economy-of-the-city 

Author

Rethinking The Future (RTF) is a Global Platform for Architecture and Design. RTF through more than 100 countries around the world provides an interactive platform of highest standard acknowledging the projects among creative and influential industry professionals.