In 1991, the Basque Government suggested to the Solomon R. Guggenheim Foundation that it would fund a Guggenheim museum to be built in Bilbao's decrepit port area, once the city's main source of income. The Solomon R. Guggenheim Foundation chose Frank Gehry as the architect, and its director, Thomas Krens, encouraged Gehry to design something daring and innovative. The Sydney Opera House was given to Gehry as an example of the kind of impact that the stakeholders were looking for in Bilbao. [Ed: High expectations.]

Gehry, although initially intimidated by the Opera House example, was up to the challenge, both creatively and technically. When the titanium-clad museum opened to the public in 1997, it was immediately hailed as one of the world's most spectacular buildings in the style of Deconstructivism (although Gehry does not associate himself with that architectural movement), a masterpiece of the 20th century. Architect Philip Johnson described it as "the greatest building of our time”, while critic Calvin Tomkins, in The New Yorker, characterised it as "a fantastic dream ship of undulating form in a cloak of titanium”, its brilliantly reflective panels also reminiscent of fish scales. Herbert Muschamp praised its "mercurial brilliance" in The New York Times Magazine, and The Independent called the museum "an astonishing architectural feat”.

As alluded to above, the Bilbao Effect did not demonstrate anything radically new. Indeed, Sydney, with its Opera House, had demonstrated the value of a transformative landmark, and as recently as 2023, a report from Deloitte Access Economics titled “Valuing 50 years of Australia’s Icon”, calculated that its social value had increased to A$11.4 billion – almost four times the value of the land and building (A$3 billion), with a per annum contribution to the state economy of A$1.2 billion, including A$824 million from tourism alone.

The success of the Guggenheim Museum in Bilbao has inspired other cities to pursue similar projects in hopes of replicating the economic and cultural benefits. Notable examples include the development of cultural districts and the construction of signature buildings designed by renowned architects, e.g. the Elbphilharmonie concert hall in Hamburg, the Pompidou Metz in France and even The Shard in London.

MONA – Museum of Old and New Art – in Hobart is another example, although not a typical one. Although transformational for both the City of Hobart and the State of Tasmania in a Bilbao’esque way, its star power has as much to do with the singular vision of its founder David Walsh and its curatorial point of view, as it does with the architectural exceptionalism of its subterranean spaces.

Finally, the Bilbao effect has its critics given its potential to exacerbate socioeconomic disparities and gentrification, as large-scale developments may displace vulnerable populations and widen the gap between the rich and the poor. Some critics also argue that the Bilbao Effect places too much emphasis on tourism as a means of economic development, creating an over-reliance on tourist revenue, making cities vulnerable to economic downturns or changes in travel trends.
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References

wikipedia.org/wiki/Guggenheim_Museum_Bilbao
theguardian.com/artanddesign/2017/oct/01/bilbao-effect-frank-gehry-guggenheim-global-craze
futurearchi.io/en/bilbao-effect
sydneyoperahouse.com/about-us/how-we-work/governance-policies-and-corporate-information/deloitte-report

Images

1. Guggenheim Museum, Bilbao. Photo credit: Naotake Murayama via Flickr
2. Aerial view of the Guggenheim Museum, Bilbao. Photo credit: Mikel Arrazola
3. Architect Frank Gehry. Credit: Amanda Demme for New York Magazine
4. Sydney Opera House from above. Photo credit: James Morgan
5. Commemorative coin celebrating the 50th birthday of the Sydney Opera House
6. The Shard in London. Architect: Renzo Piano
7. Underground at MONA in Hobart