The role of culture in shaping tourism demand: evidence from panel data analysis of European living labs

The aim of this paper is to examine the role of culture in driving tourism demand across 35 local units within six European living labs. While prior research often relies on UNESCO World Heritage Sites as the sole proxy for culture, this study broadens the scope to include nationally protected sites, intangible cultural heritage, cultural infrastructure, cultural enterprises, and three cultural governance indices: policy support, institutional presence, and strategic planning. Based on dynamic panel data from 2007 to 2019, the findings reveal that cultural resources and the number of cultural enterprises have a positive effect on tourism demand, while cultural infrastructure produces mixed results. Stimulating culture through cultural businesses and government expenditure also supports tourism demand. Furthermore, all three cultural governance indices demonstrate positive and significant impacts. The results of our research indicate that successful cultural tourism development relies not only on cultural assets but also on their effective governance and management. In this context, the living lab model serves as a valuable collaborative platform for developing integrated, sustainable, and inclusive cultural tourism strategies in small-scale EU regions.