The Tourism Development and Property Market in Historical Area- Evidence of Tainan City

The property markets in a traditional cultural city are difficult to develop by market mechanism. It is important to make a balance between urban development and tradition conservation in a fast growing cultural city. Tainan City located in the southern part of Taiwan is the earliest developed district. There are affluent cultural assets around the city and are meaningful for all residents. And we would like to take a clear look at the effects of all the cultural assets, especially regarding to tourism resources and utilization value. This research tries to evaluate the urban development with cultural assets in Tainan City in terms of tourism development procedure. In order to find the external effects of the tourism development and local property markets vitalization in historical area, the factor and discrimant analysis methods are applied with a questionnaire survey from the tourists and neighboring residents near these cultural assets. All the results will be took into considerations and referred as the policy for cultural assets development and local property market vitalization in historical area. We further try to measure the value of cultural asset tourism development integrated with the consumer surplus function. In order to compare with the existing property market development we introduce the hedonic model to estimate the effects of the cultural assets on the property market price. Comparing these research findings, we can investigate the situations where Tainan City has acted as a cultural city and the way ahead considering the tourism development and local property market policy implications.