The idea that preservation of urban heritage can contribute to economic development has more and more gained support over the last decade. It is now generally accepted in Northern countries, and in Southern countries the idea is starting to gain foothold.

In a very direct way the act of preserving built heritage will contribute to economic development through job creation as it is labour intensive. In the United States one million dollar spent on new construction creates 36.1 jobs, one million dollar spent on restoration/renovation creates 40 jobs. In Norway heritage rehabilitation creates 16.5% more jobs than new construction. (see resource Donovan Rypkema).

However, urban heritage is not only the built heritage; it is also about customs, traditions and identity. And if urban heritage is preserved in an integrated way, integrated in modern life and integrated as part of the living environment, there are more far-reaching benefits. This approach of urban heritage preservation is often also referred to as urban revitalisation, urban rehabilitation, urban regeneration or urban renewal (the latter two have in the past been associated with relentless replacement of the old by new construction, but in general now implies integrated urban preservation). Preservation of urban heritage in this way can contribute to attractive and unique cities, which are more likely to attract tourism and other kinds of investment than cities with less pronounced identity. Besides this, an attractive city with its own distinctive identity also has positive impact on the social development of a city. People can identify themselves to the place they live in, which contributes to sense of belonging. 

In many cities in developing countries but also in cities in developed countries that have seen enormous urban sprawl, the inner city area at present is an area left out of urban development. It is an area inhabited by lower income people, where living conditions are far from ideal. Rehabilitation of these inner city areas will improve their living conditions, and small scale business development will increase employment opportunities for these people. Integrated preservation in such areas can contribute greatly to social cohesion, which in turn has its impact on economic development.

The resources below deal with the subject of urban heritage preservation as tool for economic development and are selected to cover different regions and countries and approach the subject from different angles in order to provide a complete image on how urban heritage can play a role as economic engine.