In July 1994, McKinsey & Company undertook a study for Tate assessing the potential economic impact of the then proposed Tate Gallery of Modern Art at Bankside. To mark the first anniversary of Tate Modern, McKinsey re-evaluated the impact of gallery in the light of the actual figures for the first year.
In only one year Tate Modern has become the third most visited tourist attraction in Britain and the anchor attraction on the South Bank, drawing attention and people to a previously undiscovered and undeveloped area.
The economic impact on this area has significantly exceeded expectations.
- The estimated economic benefit of Tate Modern is around £100 million, of which £50 - £70 million is specific to Southwark (the projected figure in 1994 was £50 million overall and between £16 to £35 million for Southwark).
- Approximately 3,000 jobs have been created in London, of which about just over half are specific to the Southwark area. (the projection in 1994 was in the region of 1,500)
- Tate Modern itself has created 467 jobs in addition to 283 during the construction phases. Currently 30% of those employed at Tate Modern come from the local area.
- The number of hotel and catering businesses in the local area has increased by 23% from 1997 - 2000. This has led to an estimated 1800 new hotel and catering jobs in the Southwark area.
- Property prices and commercial investment levels are increasing faster in Southwark than London averages.
- Commercial development in Southwark has outpaced the London average. As has the increase in the number of new businesses.
- Tate Modern has been one of the major factors in the regeneration of the South Bank and Bankside. 26 % of people questioned in a recent MORI poll associated the area with the gallery.