Transcript The Economics of the Arts Perception: The arts… • are dependent on government and business support. • are a drain on budgets. • appeal to.

The Economics of the Arts
Perception: The arts…
• are dependent on government and business
support.
• are a drain on budgets.
• appeal to few people.
• provide “starving artist” wages.
The Economics of the Arts
Reality: The arts….
•
•
•
•
are an important economic engine.
provide excellent return on investment.
provide competitive wages
produce both tangible and intangible results.
The Proof?
• Over 40 local and regional studies.
• Comprehensive national study by Americans for the Arts entitled
“Arts and Economic Prosperity”.
Arts & Economic Prosperity
The Economic Impact of Nonprofit Arts Organizations and Their Audiences
The Most Comprehensive Study of Its Kind
 Data collected from 3,000 nonprofit arts organizations
and 40,000 arts event attendees
 91 participating communities
 varying in population from 4,000 to 3,000,000
 geographically diverse from Anchorage to Miami
 ranging in size from small rural to large urban
 Econometric input/output models built by project
economists for each community
The Nonprofit Arts are a $134 Billion Industry
Total Economic Impact of the Nonprofit Arts Industry
(Includes both organization and audience expenditures)
Total Expenditures
$134.0 billion
Full-Time Equivalent Jobs
4.85 million
Resident Household Income
$89.4 billion
Local Government Revenue
$6.6 billion
State Government Revenue
$7.3 billion
Federal Income Tax Revenue
$10.5 billion
The Nonprofit Arts are a Growth Industry
Impact of Nonprofit Arts Organizations
Total Economic Impact of Nonprofit Arts Organizations
(Excludes event-related spending by arts audiences)
Total Expenditures
$53.2 billion
Full-Time Equivalent Jobs
2.09 million
Resident Household Income
$47.4 billion
Local Government Revenue
$2.4 billion
State Government Revenue
$3.0 billion
Federal Income Tax Revenue
$5.6 billion
Industry Comparisons
Percentage of U.S. Workforce During 2000
1.2
0.9
0.6
1.10
0.78
0.67
0.3
0.47
0.42
0.41
0.40
0.32
0.0
Nonprofit Arts
Organizations
Elementary
School
Teachers
Accountants/
Auditors
Lawyers
Police Officers
Physicians/
Surgeons
Computer
Programmers
Farming,
Fishing, and
Forestry
0.18
0.04
Firefighters
Professional
Athletes
Impact of Spending by Arts Audiences
Total Economic Impact of Nonprofit Arts Audiences
(Excludes expenditures by nonprofit arts organizations)
Total Expenditures
$80.8 billion
Full-Time Equivalent Jobs
2.76 million
Resident Household Income
$42.0 billion
Local Government Revenue
$4.2 billion
State Government Revenue
$4.3 billion
Federal Income Tax Revenue
$4.9 billion
Attendees Spend $22.87 Per Person Per Event
USC Campus
When we have a symphony, jazz, or opera
performance on campus….
• University club restaurant serves twice as many
dinners as a non-concert night
• University parking services see an increase in paid
parking attendance
• 1 in 10 audience members visit the university
bookstore prior to the concert.
The arts can be tourist attractions:
Out-of-Towners Spend More
Event-Related Spending by Arts Audiences
Local vs. Non-Local
$45
$30
$38.05
$21.75
$15
$0
Local
Audiences
Non-Local
Audiences
Bottom line:
The Arts Mean Business…
…while adding to the quality of
life in a community.
“Understanding and acknowledging the incredible economic
impact of the nonprofit arts, we must always remember the
fundamental value of the arts. They foster beauty, creativity,
originality, and vitality. The arts inspire us, sooth us, provoke
us, involve us, and connect us . . . but they also create jobs and
contribute to the economy.”
-- Robert L. Lynch
President & CEO, Americans for the Arts
“What’s good for the arts is good for the economy. The mayors
of cities with strong economies tell us that the arts have helped
their communities thrive. Federal support for our nation’s
cultural organizations is sound public policy.”
-- Representative Louise M. Slaughter, 2002
United States House of Representatives, and
Chair, Congressional Arts Caucus
“Nonprofit arts organizations in the United States support
millions of jobs and generate billions in government revenue.
We now know this is only part of the story. Arts audiences
pump an additional $80 billion in event-related spending to
local businesses each year.”
-- Mayor Bart Peterson, Indianapolis, and
Chair, Arts, Parks, Entertainment & Sports Committee
United States Conference of Mayors
“Cultural activities attract tourists and spur the creation of
ancillary facilities such as restaurants, hotels, and the services
needed to support them. Cultural facilities and events enhance
property values, tax resources, and overall profitability for
communities. In doing so, the arts become a direct contributor
to urban and rural revitalization.”
-- National Governors Association
“The Role of the Arts in Economic Development,” 2001
“As chairman of the Oklahoma Chamber of Commerce, I have
visited almost every city and town in the state. There is a
visible difference in places with an active cultural community.
I see people looking for places to park, stores staying open late,
and restaurants packed with customers. The business day is
extended and the cash registers are ringing.”
-- Ken Fergeson
Chairman & CEO, NBanC, and
President-Elect, Americans Bankers Association
“Our involvement in funding the arts has shown what an
important role the arts play in the quality of the community.
We also have seen how the arts are central to the economic
growth and vitality of communities around the world. This
study adds to the prior research and we hope it will be a tool
that can continue to build the case that investing in the arts is
good policy and good business.”
-- Mary Beth Salerno
President, American Express Foundation
Arts & Economic Prosperity was conducted by Americans
for the Arts, the nation’s leading nonprofit organization
for advancing the arts in America. With a 40-year record
of service, it is dedicated to representing and serving local
communities and creating opportunities for every
American to participate in and appreciate all forms of the
arts.