Cities in the Experience Economy

This article addresses the opportunities of cities, big and small, in the experience economy. It proposes an understanding of “experience economy”, which encompasses not only entertainment and culture, but also services and places. To territorial development, the most interesting kind of experience consumption is the one co-located with its production. It is interesting because it invites people to stay and spend their money, either as residents or as tourists. Art and culture is known to cluster, and in big cities, the variety of the experience offer is an attraction in itself. Nevertheless, small cities embark on experience-based strategies, for example, related to events and branding. The article develops a theoretical framework that unfolds the territorial aspects of the experience economy. It does so in a comparative perspective, with a view to earlier (and coexisting paradigms), namely the industrial and the knowledge economy. Based on literature review it analyses the location patterns, the role of globalization, the changing governance forms and the mobility patterns, the latter being of utmost importance to the development of experience-based activities on the global market.