In recent years, there has emerged an international phenomenon of employing cultural capital such as art objects, museums and cultural heritage as effective means of expanding economic influence or as a potent force to invigorate a city. The most illustrious example is the Guggenheim Museum in Bilbao, Spain and the benefits that it has brought to the city of Bilbao. From the perspective of cultural economics, this paper endeavors to investigate the economic value and revitalization effects of the construction and opening of the Guggenheim Museum Bilbao. The urban revitalization of Bilbao, the operational features of the Guggenheim Foundation and the current performance of the institution itself shall be included in this discourse and analysis. This study will provide an important reference for museums and institutions of a similar nature in Taiwan and stimulate new thinking in terms of museum operations and management and related city planning.