The Fragile Promise of Culture-Led Development: Lessons from Holon

Abstract

This study examines the dynamics of culture-led urban development, focusing on the role of museums and cultural institutions in urban transformation through the case study of Holon, Israel. Reliance on public funding and political support for cultural initiatives exposed this strategy’s fragility. Political transitions and budget reductions highlight the vulnerabilities of cultural institutions to shifting priorities and economic pressures. This study critically examines the interplay between cultural policy, urban branding, and community engagement, exploring how these dynamics contribute to urban renewal and the challenges that jeopardize its sustainability. Drawing on theoretical frameworks of cultural capital and place branding, the research explores how cultural investments can strengthen and destabilize cities’ socioeconomic and symbolic fabric. The study highlights the dual potential and fragility of culture-driven urban regeneration through a mixed-methods approach combining archival research, interviews, and field observations. By analyzing Holon’s trajectory, this research offers valuable insights into the potential and risks of leveraging culture for urban regeneration, emphasizing the need for resilient governance structures and diversified funding strategies to ensure the longevity of culture-led urban development.

1. Introduction

1.1. Background on Culture and Urban Development

In early December 2024, news about Holon’s museums received extensive coverage in the most widely circulated Israeli newspapers: “Holon—Four museums face closure” [1], “Cultural institutions in Holon are under threat of closure. Concerns for the future of Mediatec” [2], “Holon is no longer Children’s City? The city’s cultural institutions are in danger of closing” [3], and “Say Goodbye: The City of Holon is Closing Museums and Youth Movements” [4]. The news became real. In January 2025, Holon Municipality decided to drastically cut or reset the budget [5] of its renowned museums, while putting an end to an era in a city that for many years had based its urban growth on culture.

Using the city of Holon as a case study, this research examines the potential roles of cultural institutions, particularly museums, in urban development as well as the challenges and vulnerabilities they face. Within that frame, it wishes to explore the conditions under which culture-led urban development can be sustained over time. While much research focuses on successful cultural flagships, less is known about how these initiatives fare under shifting political and economic conditions, especially in medium-sized cities outside of global cultural capitals.

Culture is often leveraged as a transformative force in urban development, influencing spatial, social, and economic change. While international examples such as Lille and Liverpool showcase long-term strategic investments [6,7], Israeli cities have tended to adopt localized and personality-driven models of cultural growth.

However, the reliance on culture as a driver of urban renewal is not without challenges. Scholars have noted that such strategies are often dependent on political leadership, stable funding, and long-term vision [6,7]. In their absence, cultural investments may become unsustainable or politically vulnerable.

1.2. Overview of Holon as a Case Study

Holon, a midsized city in central Israel, provides a compelling case study for examining the role of culture in urban development. Historically overshadowed by its proximity to Tel Aviv, Holon faced a negative public image and a lack of distinctive identity. During the 1980s, the expression HOBATIS was common in the Hebrew language (slang), an acronym for Holon—Bat Yam—a disdain and underestimation of the residents of these cities and a description of condemnation for a person devoid of cultural manners, barbaric, who does not know how to behave in society. Today it is rare [8,9]. In the 1990s, municipal leadership initiated a strategic cultural transformation, rebranding Holon as the “City of Children” and later as the “City of Design.” This involved significant investments in cultural infrastructure, including the establishment of new museums such as the Design Museum Holon and the Children’s Museum, alongside innovative public art projects like the Story Gardens [10].

Holon’s experience can offer valuable insights into the interplay between cultural policy, urban branding, and community engagement. Over two decades, Holon’s cultural initiatives redefined its urban identity, attracting regional and national recognition while fostering local pride. However, recent political changes and reductions in cultural budgets have exposed the fragility of this transformation, raising questions about the sustainability of culture-driven urban renewal.

This paper examines Holon’s transformation into a cultural hub as a lens to explore the potential and fragility of culture-driven urban development. It asks what challenges and opportunities are associated with urban development strategies that are heavily reliant on public culture and museums. By analyzing the city’s development strategies, funding models, and the impact of political changes, the study aims to contribute to broader discussions on sustainable urban development and the role of culture in shaping cities’ futures. To this end, the study addresses the following research question: How do cultural institutions, particularly museums, contribute to urban development and identity formation in midsized cities, and what structural vulnerabilities limit the sustainability of such culture-led strategies?

The following sections outline the theoretical and analytical framework guiding the study followed by the methodological approach and an in-depth analysis of Holon’s cultural development trajectory.

2. Theoretical and Analytical Framework

The present study examines the interplay between culture and urban development with a particular focus on how cultural investments, especially in museums, public art, and festivals, serve as catalysts for spatial transformation, collective identity formation, and symbolic rebranding. To analyze this dynamic, the study draws on a composite analytical framework that combines three intersecting theoretical perspectives: cultural capital, place branding, and governance and resilience. This integrative approach provides the conceptual foundation for interpreting Holon’s cultural trajectory and assessing both its achievements and its structural vulnerabilities. Bourdieu’s theory of cultural capital highlights how symbolic assets such as museums generate identity and cohesion [11]. Anholt’s place branding theory guides the analysis of Holon’s strategic self-representation [12]. Insights from the governance and resilience literature—particularly Rodin’s [13] and Ponzini & Rossi’s [14] contributions—shed light on institutional stability and policy fragility. Together, these approaches form the analytical lens through which the case of Holon is interpreted.

Culture has long been recognized as a transformative force in urban development, shaping the physical, social, and economic dimensions of cities [15,16]. In the contemporary urban landscape, cultural initiatives, including museums, public art, and festivals, are increasingly deployed as tools to rebrand cities, attract tourism, and foster community cohesion. Scholars such as Charles Landry [15] and David Throsby [16] have emphasized the role of culture in creating vibrant urban spaces, enhancing residents’ quality of life, and driving economic growth. This culture-led urban development approach has been applied globally, with notable examples in cities like Lille, France, which leveraged cultural events for regional revitalization [7]; Liverpool, UK, during its tenure as the European Capital of Culture [6]; and in London, UK, and New York [17]. These cases demonstrate the potential of cultural investments to redefine urban identities and stimulate long-term development.

The subsequent analysis of Holon applies this tripartite framework across three dimensions: cultural capital is used to examine how museums function as symbolic assets that shape urban identity; place branding captures how cultural investments are leveraged for external image-making and spatial narratives; and governance and resilience are used to assess the municipal structures and political continuity that support or hinder the sustainability of culture-led strategies. This framework provides the conceptual lens through which the case is interpreted in the findings and discussion sections.

3. Theoretical Context: Culture, Urban Policy, and Museums

This section outlines the broader theoretical and conceptual foundations of culture-led urban development, focusing on the global discourse surrounding cultural policy, symbolic regeneration, and the role of museums in urban transformation. It provides a general overview of key perspectives and debates in the field, including both the promises and limitations of culture-driven development strategies. These foundations serve to contextualize the more specific analytical framework adopted in this study presented in the previous section.

3.1. Culture-Led Urban Development

Culture-led urban development emphasizes the role of cultural assets in fostering urban regeneration and economic growth. This approach is fundamentally grounded in Pierre Bourdieu’s concept of cultural capital [11,18], which explains how non-economic resources can serve as pivotal drivers of urban revitalization. Bourdieu’s framework illuminates how cultural investments create opportunities for social mobility while fostering community identity and cohesion through institutions, public art, and cultural festivals.

Charles Landry’s The Creative City [15] and David Throsby’s Economics and Culture [16] establish the foundational understanding of how leveraging cultural resources encourages innovation and renewal, particularly in post-industrial urban settings. Throsby’s work is particularly significant in articulating the dual contributions of cultural investments to economic capital and social cohesion, positioning them as pillars of sustainable urban development. Following this, Trine Bille [19] argues that cultural institutions, particularly museums, are significant drivers of urban growth but are highly dependent on public policy and sustainable economic models.

The role of political leadership and governance in cultural development has gained increasing attention. Ponzini and Rossi [14] examine how entrepreneurial mayors leverage cultural policies to drive urban renaissance, highlighting the crucial role of political leadership in successful cultural regeneration. Their analysis reveals how network politics and leadership strategies influence the implementation and success of creative city initiatives. This perspective is enhanced by Judith Rodin’s work on governance resilience [13], which emphasizes the importance of institutional frameworks that can withstand political transitions and economic pressures.

Richard Florida’s Creative Class theory [20] underscores how cities that invest in culture and creativity are better positioned to compete in a globalized economy, emphasizing the interconnectedness of cultural, economic, and social dimensions. Hristova et al. [17] found that neighborhoods with higher cultural capital experienced greater economic growth. However, Grodach [21] offers a critical reassessment of the creative city approach, highlighting the need to move beyond simplistic economic growth models toward a more nuanced understanding of cultural development’s role in urban sustainability.

3.2. Museums as Catalysts for Urban Transformation

Museums serve as powerful anchor institutions in urban transformation, functioning as both physical landmarks and symbols of cultural identity. Kirshenblatt-Gimblett provides a fundamental theoretical framework for understanding this transformative role, arguing that museums make destinations and make destinations out of destinations [22]. Her concept of “heritage production” illuminates how museums do not simply preserve or display culture, but actively produce it through their operations and presence [22].

In a joint report published in 2018 by the OECD and ICOM, while stressing the potential of museums, various strategies were proposed for local governments to integrate them into urban development efforts and enhance their impact. The report advocates for a long-term and consistent approach to collaboration with museums, supporting preservation, conservation, and research as core functions and considering strategies such as resource pooling to enhance museum capacities [23]. This active role of museums extends beyond traditional cultural preservation to become catalysts for economic and social revitalization [24,25]. The prominent Guggenheim Museum in Bilbao demonstrated the transformative power of flagship museums, reshaping not only the city’s economy but also its global image through effective place branding [12,26]. Sharon Zukin’s The Cultures of Cities [27] highlighted how museums contribute to the “symbolic economy,” constructing narratives that align cities with creativity and innovation. This aligns with Kirshenblatt-Gimblett’s [22] observation that museums perform the cultural value they display, actively producing rather than merely representing cultural significance. Museums act as public spaces, fostering dialogue and community engagement [28]. These institutions generate direct economic benefits through tourism and employment while fostering symbolic value by enhancing community pride and identity. Miles and Paddison [29] examine how cultural institutions like museums have become central to urban regeneration strategies.

During the Coronavirus Pandemic, the contribution of museums to the wellbeing of city dwellers was also noted, as they extended their missions and outreach to audiences far beyond their closed doors [30].

3.3. Risks and Fragility in Culture-Driven Development

Despite their potential, culture-driven urban development projects face multiple challenges and inherent fragilities. These vulnerabilities stem from various sources: financial dependencies, political dynamics, social impacts, and evaluation complexities. Franco Bianchini and Michael Parkinson examine these challenges in depth, observing that cultural policies are particularly susceptible to changes in political leadership and economic circumstances [31]. They specifically warn that the achievements of cultural planning can be rapidly undermined by political changes or economic recession, particularly when cultural initiatives are heavily dependent on public funding and political support [31] (p. 14).

The political dimension of these risks has become increasingly apparent. Ponzini and Rossi provide a critical analysis of how political leadership shapes cultural initiatives, noting that the entrepreneurial mayor’s charismatic leadership and networking capacity are key assets in the construction of the “creative city” [14] (p. 1040). They further argue that the success of creative city strategies depends largely on the mayor’s ability to build and maintain policy networks and coalitions of interest around specific urban development projects [14]. This emphasis on individual leadership creates inherent vulnerabilities in cultural development strategies.

The challenge of measuring and evaluating cultural impacts presents another significant risk [31]. Miles and Paddison [29] warn against over-reliance on cultural projects without adequate consideration of broader urban development contexts.

Social sustainability presents another critical risk factor. Montgomery [32] argues that without careful consideration of social equity, cultural regeneration projects can harm the communities they intend to serve. Taylor and Luter [24] emphasize the importance of long-term planning in ensuring the stability of anchor institutions. Pratt stresses that museums must balance their cultural mission with economic imperatives [33], while Florida [20] underscores the need for integrated strategies to navigate economic fluctuations and evolving public priorities.

These various risks highlight the importance of developing more robust and holistic approaches to cultural development, requiring

• Sophisticated evaluation frameworks that capture both quantitative and qualitative impacts;
• Governance structures that ensure project continuity beyond political cycles;
• Funding models that reduce dependency on single sources;
• Social impact assessments that protect community interests;
• Integration of cultural initiatives with broader urban development strategies.

In summary, the literature reviewed in this section provides a broad conceptual backdrop for understanding how cultural institutions—particularly museums—have been positioned as tools of urban transformation, identity formation, and city branding. While these insights are global in scope, they help frame the interpretive lens through which Holon’s cultural strategy can be assessed. The following sections examine how these frameworks manifest in Holon’s case and identify ways in which the city’s experience reinforces, complicates, or challenges prevailing theoretical assumptions.

4. Methodology

This chapter outlines the methodological approach used to investigate the role of public culture in urban development with a focus on Holon as a case study. The methodological framework combines a case study approach with mixed-methods data collection, including archival research, surveys, semi-structured interviews, and field observations. This design provides a comprehensive understanding of Holon’s transformation through cultural initiatives and its implications for urban identity, branding, and community resilience.

4.1. Case Study Approach

The case study approach was selected to explore the complex and multifaceted role of culture in urban development. Case studies are particularly effective for analyzing phenomena within their real-life context and are well suited to urban studies, where dynamics of policy, culture, and community interact [34,35,36]. Holon was chosen for its distinct transformation from a city with a negative image to a recognized cultural hub in Israel driven by deliberate investments in cultural infrastructure, such as museums, festivals, and public art.

This approach is grounded in the tradition of urban cultural policy research, which highlights the importance of understanding localized cultural practices within broader socio-political and economic contexts [37,38]. Holon’s experience provides valuable insights into the potential of culture-driven urban renewal.

4.2. Data Collection Methods

The study employed multiple data collection methods to provide a holistic understanding of Holon’s cultural transformation. Firstly, it used archival research that involved the review of municipal documents, policy reports, strategic plans, and media coverage. Key sources included Holon Municipality’s “City Vision” documents [39,40], municipal budgets [5], and policy reports related to the city’s branding as the “Children’s City.” These documents provided insights into the strategic intent behind Holon’s cultural initiatives and their implementation over time. Secondary sources, such as dissertations and academic analyses of urban cultural policy, contextualize Holon’s experience within broader theoretical frameworks. Secondly, it used quantitative data that were derived from surveys conducted by the Holon Municipality [41,42] and resident surveys [10]. These surveys captured residents’ perceptions of cultural activities, their access to events, and their evaluation of Holon’s branding initiatives. The data provided measurable indicators of community engagement, urban identity, and public satisfaction. Thirdly, it analyzed answers to fourteen semi-structured interviews that were conducted with stakeholders, including municipal officials, cultural institution managers, and community representatives, between 2016 and 2018 [10]. The interviews explored motivations, challenges, and perceived impacts of Holon’s cultural initiatives. Fourthly, there were field visits to cultural sites, including Holon’s museums, Story Gardens, and festivals, to observe their physical and experiential characteristics. These visits helped evaluate how cultural infrastructure integrates into the urban environment and contributes to creating a sense of place [43].

4.3. Data Analysis

The data were analyzed according to themes related to cultural policy, urban branding, and community resilience. The analysis followed Braun and Clarke’s six-phase method [44] beginning with familiarization with the material through repeated readings of interview transcripts, municipal documents, and survey results. Coding was conducted manually and inductively, with initial codes emerging from the data rather than being pre-determined. These codes were grouped into broader categories, and then, refined into overarching themes such as “political vulnerability,” “anchor institutions,” and “cultural branding,” ensuring alignment with the study’s conceptual framework.

Triangulation was employed to enhance the validity of the findings by cross-validating themes across multiple data sources, including policy texts, public surveys, and stakeholder interviews. This strategy ensured analytical coherence and minimized potential bias stemming from reliance on any single type of data [44,45].

5. Holon’s Cultural Transformation

5.1. Historical Overview

The modern city of Holon was officially established in 1940 through the unification of five neighborhoods south of Tel Aviv, collectively known as the “Southern Neighborhoods.” These neighborhoods spanned an area of 16,000 dunams and were home to approximately 28,000 residents at the time of Holon’s incorporation. In 1950, Holon gained municipal status, marking a significant step in its urban development. During this period, Holon became a key destination for new immigrant families from Iraq, Poland, Romania, Egypt, Tunisia, and Syria, shaping its diverse demographic composition [46].

By the 1990s, Holon faced severe socioeconomic challenges. The city suffered from a deteriorating image and was often regarded as lacking cultural or economic vitality. This perception was highlighted in a 1994 municipal survey that exposed widespread dissatisfaction among residents regarding the city’s public image [47]. Recognizing the need for a transformative strategy, the municipality initiated a comprehensive urban renewal plan to address these challenges.

Key milestones of the 1990s included the following:

• 1994: A municipal survey identified negative perceptions of Holon’s image, prompting the city’s leadership to explore rebranding strategies [47].
• 1995: The publication of “Holon with a Vision,” a strategic document outlining goals for urban renewal, including cultural development and public engagement. This document was developed with input from residents, municipal officials, and external experts [40].
• 1995: Formation of a strategic committee tasked with guiding the city’s rebranding efforts. This committee included representatives from various sectors, including academia, journalism, and local government.
• 1995: The establishment of the Eye Level Center, the first cultural project aimed at promoting children’s engagement with art and education.
• 1996–2000: Establishment of the “Story Gardens” project began, transforming public parks into mini sculpture parks inspired by children’s literature (Figure 1 and Figure 2). This initiative involved extensive collaboration with some of the well-known Israeli artists and authors, creating unique landmarks across the city [48].

In 2013, Holon further refined its vision by publishing an updated “City Vision” document. This document emphasized the role of culture and leisure as essential components of urban life. It outlined plans to position Holon as a regional leader in cultural innovation while promoting accessibility and inclusivity for all demographic groups [39].

5.2. Establishment of Key Museums

In the early 1990s, two small museums dealing with local history were already operating in Holon. These museums were not developed during the city transformation. Instead, to enhance the city’s identity and attract visitors, the city developed new institutions. The thematic focus of these museums reflected the city’s strategic branding as the “Children’s City” and a hub for cultural excellence. The timeline of their creation is as follows:

• 1995: The Eye Level Center for Children’s Art was inaugurated. This center aimed to provide accessible art education to children and families, aligning with Holon’s vision of fostering creativity and cultural engagement among young residents.
• 2001: The Holon Children’s Museum opened, introducing innovative interactive exhibits designed to inspire curiosity and learning. The museum quickly gained national recognition as a premier destination for educational activities.
• 2001: The Center for Digital Art was established. This institution became a hub for exploring the intersection of technology and creativity, featuring experimental media and digital installations.
• 2001: The Puppet Theater Center and Museum began operations. This center, dedicated to the art of puppetry, offered workshops, performances, and exhibitions, solidifying its role as a unique cultural asset in Holon.
• 2007: The Israeli Cartoon Museum was inaugurated. This museum focused on preserving and celebrating the history of comics in Israel, providing a space for exhibitions and educational programs on graphic storytelling.
• 2010: The Holon Design Museum was established as part of the Meditech cultural complex (Figure 3). Designed by architect Ron Arad, the museum’s striking architectural design and groundbreaking exhibits positioned it as a local landmark as well as a leading international center for design research and innovation [46].

The development of the new museums was the cornerstone of Holon’s cultural transformation. They involved substantial municipal investment and careful planning with a high public profile and unique topics, branded as of national and even international importance [10] (pp. 112–144).

For instance, well-known figures were chosen to manage these new museums [10] (p. 129). The Children’s Museum and the Design Museum received extensive financial support and were heavily marketed to audiences beyond Holon, emphasizing their national and international significance [10] (p. 130).

Within a short while after their establishment, these institutions became key drivers of Holon’s urban renewal, attracting diverse audiences and fostering a sense of pride among residents [10] (p. 201). The establishment of these museums marked a significant phase in Holon’s transformation, demonstrating a commitment to integrating cultural development into its broader urban strategy.

5.3. Cultural Branding and Its Impact on Urban Renewal

Holon’s cultural branding strategy emerged as a deliberate effort to redefine its urban identity and address the socioeconomic challenges it faced during the 1990s. By aligning cultural initiatives with urban renewal goals, the city aimed to position itself as a center of creativity and innovation. The following key projects illustrate the breadth and depth of Holon’s cultural branding efforts:

• 1996–2000: The “Story Gardens” initiative transformed existing and new public parks into literary-themed spaces. Sculptures inspired by popular children’s books were commissioned from Israeli artists, turning these gardens into attractions for both residents and domestic tourists. The municipality produced an urban map of the gardens and organized guided tours to promote them [48].
• 2000s: Holon’s festivals became prominent tools for cultural branding. Events such as the Adalayda Purim parade, Puppet Theater Festival, and Sounds of Childhood Festival reinforced Holon’s identity as the “Children’s City.” These festivals not only attracted visitors but also encouraged community participation, fostering a sense of pride and ownership among residents.
• 2001–2010: The establishment of thematic museums, including the Children’s Museum, Design Museum, and Israeli Cartoon Museum was central to Holon’s branding. These institutions were marketed as symbols of creativity and innovation, drawing national and international attention.
• 2010: The introduction of the Meditech complex, housing the Design Museum and other cultural facilities, further solidified Holon’s reputation as a hub for design and cultural excellence. The municipality emphasized the complex’s role in hosting international exhibitions and fostering creative research [46].

Holon’s branding efforts extended to its visual identity as well, as it adopted a new logo. The old logo, created in 1946, depicts a sycamore tree growing from sand dunes on which the city’s houses also grow. Above them is a blue frame that outlines the sky and a narrow water tower. The frame bears the inscription “Nevertheless and Despite Everything,” symbolizing the difficulties in establishing the city. The city’s name is written below the symbol in Hebrew, English, and Arabic (Figure 4). The new logo, from 2012, includes the Hebrew word “Holon,” with each letter in a different color symbolizing buildings and art projects in the city such as the Design Museum and the Children’s Museum. Above the symbol appears a miniature version of the old city symbol, and below it is written “Holon. The Children’s City” (Figure 5). This branding was prominently displayed across the city and in promotional materials, reinforcing Holon’s cultural narrative.

The impact of these initiatives was evident in resident surveys conducted by the municipality. Between 2009 and 2011, there was a 4% improvement in residents’ perceptions of Holon’s image. By 2019, nearly half of the surveyed residents recognized the city’s distinct character, with 32.5% citing its cultural activities as defining features [10] (pp. 105–106).

In 2010, Aizencang-Kane explained that the branding process allowed the city to shape the perception of the place, increase its appeal, create a shared vision, and strengthen local awareness. The local leadership succeeded in giving the city a unique identity and restoring the city’s image in the eyes of its residents. These, together with the cultural enterprises established in the city, were means that allowed the municipality to mobilize resources for the development of the city and earned it the support of the residents and their approval of the way the city was managed [47].

Along with success came criticism regarding the allocation of resources. Some residents expressed dissatisfaction with the focus on children-centric initiatives. City residents stated that they are “fed up with this thing… culture–culture–culture” [10] (p. 106). A young city resident, who wished not to reveal her name, said:

“It sucks! Sucks. Holon is branded as a city for children; it may be more suitable for bourgeois strata from the middle-upper class, but somehow, the young people fall through the cracks. Students and young couples are just falling through the cracks. There are not enough places to go out in Holon, certainly not at a level that would justify staying in the city in the evenings and on Fridays and Saturdays”.

[10] (p.107)

As years went by, the reliance on municipal budgets for cultural projects made them vulnerable to political and financial shifts, as will be discussed next.

Holon’s experience underscores the transformative potential of cultural branding in urban renewal. By leveraging culture as a strategic tool, the city not only improved its image but also fostered a stronger sense of community among its residents. However, sustaining these gains required ongoing investment, inclusive policies, and adaptability to changing circumstances.

5.4. Changes in Cultural Attitude and Budget Investments

Holon’s culture budget investments can be divided into three distinct periods, reflecting shifts in municipal leadership and political priorities.

The Era of Expansion (1993–2011): From 1993 to 2020, under the leadership of Mayor Moti Sasson, Holon experienced a period of significant cultural investment. Sasson’s tenure was characterized by a strategic focus on urban renewal through cultural development, with budgets steadily increasing to support flagship projects. Between 2008 and 2013, the city invested heavily in its cultural infrastructure, reaching a peak total budget of NIS 16 million in 2011 (USD 4.3 million). This enabled the expansion of museums, such as the Design Museum and Children’s Museum, as well as the launch of community-oriented initiatives like the Story Gardens [46,48]. However, by 2012, reductions began to appear as municipal funds were redirected to other priorities.

Pendulum Swing (2012–2020): From 2012 to 2016, the cultural budget stabilized at an average of NIS 14.65 million (USD 3.97 million) annually, maintaining support for existing institutions but limiting new initiatives.

At the same time, the mayor’s attitudes toward cultural institutions had begun to change. Although there was no significant budget reduction, tension developed between the municipal administration and the directors of the cultural institutions. It manifested in requests to change the museum content, management methods, employees, and more. According to the Israeli Museums Law 1983, a museum’s management has discretion as well as the obligation to act in the best interest of the collections. In 2015–2016, several prestigious figures of the management team that founded the museums resigned and left [49,50]. Even so, the institutions continued to operate in a steady state until 2021, with almost no budgetary or administrative changes [51].

The Decline and Transition (2021–2023): The years 2021 to 2023 marked a transitional phase for Holon’s cultural investments. While Sasson continued as mayor, the municipal budget faced increasing constraints due to economic challenges. Cultural funding declined further to NIS 13.8 million (USD 3.74 million) in 2022, resulting in scaled-back programming and operational challenges for key institutions. This period underscored the vulnerability of Holon’s cultural projects to financial pressures, as institutions like the Design Museum struggled to sustain their activities amid reduced funding [52].

The Shift in Leadership (2024 Onward): In 2024, Holon’s political landscape changed dramatically with the election of Mayor Shay Keinan, who introduced a new policy agenda that deprioritized cultural investments. In 2025 the cultural budget saw a sharp decline to NIS 2.8 million (USD 0.76 million), marking the lowest point in decades. Keinan’s administration redirected funds toward other municipal projects, signaling a departure from Sasson’s emphasis on cultural renewal. This reduction had significant implications for the city’s flagship museums, which faced operational cutbacks and reduced public programming. Analysts have linked these changes to Keinan’s broader economic and urban policies, which shifted focus away from cultural identity as a driver of urban development [4]. In mid-January 2024, Keinan appointed a new CEO for the municipal company of Meditech responsible for the Meditech Culture Complex, the Design Museum, the Cartoon and Comics Museum, the Digital Art Center, and more. The appointment sparked great public outrage, as the person appointed was a controversial figure, and in addition, did not meet the terms of the tender for the position. At the same time, the Meditech began canceling activities on Saturdays. The Digital Art Center staff was ordered not to plan additional activities. At the end of the month, the chief curator of the Design Museum and the Cartoon and Comic Museum announced her resignation [52]. In February, the Puppet Theater Center and Museum was shut down [53].

The graphs in Figure 6 and Figure 7 illustrate the fluctuations in the total museum budget over two decades, highlighting critical political transitions and their impact on cultural funding. While Figure 6 shows election years and the total museum budget, Figure 7 underscores the individual budget of each of the museums. It shows that four museums were granted only a small portion of the total allocation invested in city cultural initiatives. Hence, their budget cut had only a minor effect on the city budget. At the same time, this cut had a significant negative effect on the city’s image, reputation, and cultural capital.

The trajectory of Holon’s cultural budget illustrates the critical role of political leadership in shaping urban priorities. While Sasson’s long tenure fostered a cultural renaissance, the shift under Keinan raises questions about the sustainability of Holon’s cultural legacy without consistent financial and strategic support.

6. Discussion

This section analyzes the empirical findings through established theoretical lenses, highlighting the dynamic interplay between cultural capital, urban branding, institutional frameworks, and governance in the context of Holon’s urban transformation.

6.1. Cultural Capital and Urban Transformation

Enrichment of Cultural Capital: The findings align with Pierre Bourdieu’s concept of cultural capital in a contemporary urban context. The city’s cultural initiatives demonstrate how relatively low financial investment (between 0.41% in 2004 and 1.8% in 2011) in thematic museums and theme play gardens can provide intangible social benefits. By prioritizing community engagement and resident satisfaction, Holon reframed cultural capital as a dynamic and participatory process. This finding broadens the theoretical scope of cultural capital, emphasizing its potential to address urban inequality and foster inclusive growth.

Branding and Governance in Urban Development: Holon’s transformation offers a valuable lens through which Simon Anholt’s place branding theory can be critically examined. While the city’s branding as the “Children’s City” and “The City of Design” successfully redefined its identity, the study highlights significant vulnerabilities. The dependence on political leadership to provide the budget for continuity, as illustrated by shifts in priorities under different administrations, exposes a fragility in governance structures. Holon’s case underscores the necessity of embedding cultural branding within resilient institutions.

6.2. Anchor Institutions and Creative Ecosystems

The Role of Anchor Institutions: The Design Museum and other flagship cultural projects validate Judith Rodin’s framework on anchor institutions as central to urban regeneration. These institutions not only attract visitors but also anchor economic activity and reinforce local identity. The findings suggest that Holon’s museums functioned for a period as bridges between cultural expression and economic sustainability, underscoring the dual role of anchor institutions in promoting both symbolic and practical dimensions of urban renewal.

However, analyzing OECD and ICOM 2018 recommendations in our case provides additional frames to understand the challenge of sustainability [23].

Table 1. Main OECD and ICOM 2018 recommendations and their implementation in Holon.

Recommendation Category	Local Governments Strategic	Holon’s Actions
Leverage the power of museums for local economic development.	Integrate museums into the local tourism development strategy.	Done
	Link museums and the business community to develop new goods and services.	Not done
Build on the role of museums for urban regeneration and community development.	Integrate museums and their surroundings in urban planning and design.	Done
	Consider museums as a space for public debates and community meetings.	Not done
	Leverage museums as anchors in creative districts.	Not done
Catalyze cultural awareness and creative societies.	Recognize the role of museums in education and training of young people as well as adults.	Done
	Work with museums to build resources and capacities to take a broader approach to the visitor experience.	Done
	Support a balance between meeting the needs of local audiences and tourists.	Done
Promote museums as spaces for inclusion, health, and wellbeing.	Maximize the contribution of museums to social welfare through data, partnerships, and resources.	Not done
	Consider the role of museums in providing pathways to employment.	Not done
	Integrate museums into broader approaches to improving wellbeing.	Done
Mainstream the role of museums in local development.	Take a long-term and holistic approach to working with museums.	Not done
	Support preservation, conservation, and research as core functions of museums.	Not done

presents the main recommendations of the report and the actions that were taken by the city.

The table highlights that although Holon answered many of the suggestions, there were critical aspects that were not addressed. First, no link was created between the museums and the business community. Second, museums did not reach out to integrate with the general public either as a place for community gatherings or as a source for enriching social welfare and providing employment. Third, they did not trigger other localities in the region to follow suit. These omissions have contributed to limitations in the long-term sustainability of Holon’s cultural development.

6.3. Risks and Challenges

In the introduction to the book A Cabinet of Curiosities: Inquiries into Museums and Their Prospects, Stephan Weil claims that

“No matter how strenuously members of the museum community may insist on their own objectivity, the fact is that the thrust of every museum is ultimately shaped by the dominant authority under which it operates. When a new government undertakes to reshape the society over which it presides, museums are no more exempt from the totality of such a process than are institutions of any other kind”.

[54] (p. XIII)

The case of Holon museums provides empirical support for this claim in several aspects that will be explored next.

Dependence on Public Funding: Most museums are part of the non-profit sector and depend on government funding. Museums are expected to generate about 30% of their income independently, by attracting visitors, and receive the rest as public support [55]. In the case of Holon, although the number of visitors was high and consequently increasing, most of the time, they were dependent on municipal funding at a very high rate [5]. This heavy reliance creates structural vulnerabilities. Economic downturns and political shifts, such as the transition from Sasson to Keinan, underscore the precariousness of this funding model.

Political Vulnerabilities: Political leadership played a decisive role in shaping the trajectory of Holon’s cultural policies. The stark contrast between Sasson’s emphasis on cultural investment and Keinan’s budgetary reallocation illustrates how political priorities can disrupt cultural strategies. These dynamics point to the need for governance mechanisms that protect cultural institutions against political fluctuations and ensure continuity.

Institutional Fragility: The fragility of Holon’s cultural institutions emerges as a central concern. Reduced funding has already led to diminished programming and lower visitor engagement, threatening the sustainability of flagship projects such as the Design Museum. This highlights the importance of developing robust institutional frameworks and diversifying funding sources to mitigate operational risks.

Balance Between Local and Global Objectives: The research identifies a tension between Holon’s global branding aspirations and its local responsibilities. While initiatives like the Design Museum attract international recognition, they must also address local community needs to maintain relevance and inclusiveness. Striking a balance between these objectives is essential to ensure that cultural investments remain inclusive, sustainable, and aligned with the diverse needs of stakeholders.

6.4. Contributions and Theoretical Implications

The case of Holon contributes to the broader discourse on culture-led urban development by refining, and in some respects, challenging prevailing theoretical assumptions. Scholars such as Throsby [16] and Landry [15] have emphasized the transformative power of cultural institutions in driving economic renewal, fostering social cohesion, and enhancing symbolic value. Anholt’s [12] theory of place branding similarly highlights the strategic use of cultural assets to shape city identity and attract external recognition.

While these frameworks offer valuable insights, they often downplay the institutional and political conditions necessary to sustain such transformations over time. Holon’s experience demonstrates that cultural strategies, however innovative, are not self-sustaining. Their success depends on governance continuity, municipal prioritization, and long-term political commitment. These factors, frequently taken for granted or treated as background conditions in the literature, emerged in this study as central variables shaping the effectiveness and longevity of cultural initiatives.

A key theoretical implication of this analysis is the need to integrate governance resilience more explicitly into models of culture-driven urban regeneration. By foregrounding the role of political stability in enabling sustained cultural investment, the study extends the analytical utility of cultural capital and place branding, particularly in the context of midsized cities with limited institutional resources.

7. Conclusions

There are many reasons and indicators that may explain city development and growth. In the current study, following a road paved by scholars, we offered the cultural perspective while focusing on museums. Holon’s experience offers valuable insights into the interplay between cultural policy, urban branding, and community engagement, making it an ideal case study.

The study showed that at the turn of the century, Holon suffered from a bad image and negative resident migration. For almost 15 years, the city has received extensive positive coverage, both nationally and internationally, due to its cultural institutions and activities. The moves to strengthen cultural activities and investment in branding have brought the city both economic and cultural capital. It moved up in the socioeconomic index and benefited from population growth. Starting in 2011, the investments in culture were reduced, and severe managerial issues repeatedly plagued cultural institutions. Since 2015, no new artistic institutions have been opened except for one Story Garden. Holon did not move up anymore in the socioeconomic index, and its population almost did not grow [56].

The Holon study validates the existing theories in culture-based urban development presented at the beginning of this article. Holon has shown how investing in culture can improve a city’s socioeconomic status and influence community identity. Its case demonstrates that cultural institutions are aesthetic objects and active mechanisms in creating social and economic value. It has also shown that museums can be engines of urban development. Holon has succeeded in attracting tourism investment and strengthening a sense of community through institutions such as the Design Museum.

Holon has been rebranded as the “Children’s City” and the “City of Design,” a strategy that has strengthened its image among local and international audiences. However, relying solely on this branding made it vulnerable to policy changes. In addition, institutional weakness and dependence on municipal funding have led to crises when political support has shifted. Even if Holon has implemented the idea of creativity as a driving force for urban development, it has not sufficiently developed a comprehensive creative ecosystem that includes collaboration between museums, businesses, and education. The study highlights how culture-based development is vulnerable to political and economic shocks, similar to theories that emphasize the fragility of government investments without diversification of sources.

At the beginning of the article, we presented questions regarding how culture can promote urban development, the main challenges in culture-based development, and the sustainability of the model. The case of Holon shows how cultural institutions can change an urban image, attract visitors, and create a sense of community pride. In doing so, the study addresses its central research question, demonstrating both the transformative potential of cultural institutions in shaping urban identity and the structural vulnerabilities, especially political dependency and financial fragility, that threaten the sustainability of such development models in midsized cities.

The development of museums and story gardens in Holon significantly improved the city’s public image and attracted new populations. However, the gap between branding strategies and local needs generated tensions between the municipal administration and residents. Moreover, the cultural institutions’ heavy reliance on public funding made them vulnerable to political shifts, leading to their closure when municipal leadership changed.

This case highlights the importance of creating diverse and resilient funding structures for cultural institutions, including governmental, philanthropic, and independent sources. Partnerships with private businesses and academic institutions can enhance the financial stability of museums and reinforce their long-term sustainability. Cultural policy must therefore move beyond short-term branding tactics and recognize culture as a core component of urban infrastructure.

This article offers practical insights for policymakers and cultural managers by stressing the need for stable, long-term strategies that safeguard cultural institutions against political and economic volatility. It advocates for the integration of culture into comprehensive urban planning, sustained community engagement, and the development of alternative income models—such as commercial initiatives and public–private collaborations—that strengthen the connection with audiences and ensure cultural sustainability.

The case of Holon exemplifies both the transformative potential of cultural institutions in urban development and the risks inherent in their dependence on fluctuating public support. It underscores the necessity of multi-sector cooperation, diversified funding, and consistent recognition of culture’s economic, social, and symbolic value to the urban fabric.

This study began by asking how cultural institutions contribute to urban development and identity formation in midsized cities and what structural vulnerabilities limit the sustainability of such strategies. Through the case of Holon, it has demonstrated that while investments in cultural capital and strategic place branding can powerfully reshape urban narratives, their long-term success is conditioned by factors often underexamined in the literature—namely, governance continuity and municipal stability. Recognizing these conditions is not only important for advancing theoretical models but also essential for practitioners and policymakers designing culture-driven urban initiatives. Future research may further explore how different governance models mediate the sustainability of cultural strategies across diverse urban contexts.