Economic Development: The Public Benefit
Current
Research
"A strong arts and cultural sector is vital to the future
of New England's economic growth and competitiveness."
--The Creative Economy Initiative
A New England Council Report, June 2000
Arts
& Economic Prosperity: The Economic Impact of Nonprofit
Arts Organizations and their Audiences
Americans for the Arts, (c) 2002
In
this expansive attempt to measure the national economic impact of
non-profit arts organizations, data was collected in 91 communities
across the country (including Gloucester, New Bedford, and Worcester)
over several years. Detailed data from 3,000 nonprofit arts organizations
from a diverse range of communities was collected under the direction
of economists from the Georgia Institute of Technology.
Key findings:
America's
nonprofit arts industry generates $134 billion in economic
activity every year: $53.2 billion in spending by arts organizations
and $80.8 billion in event-related spending by audiences.
- This activity translates into 4.85 million full-time equivalent
jobs and $89.4 billion in household income.
- $6.6 billion
in local tax revenues, $7.3 billion in state tax revenues,
and $10.5 billion in federal income tax revenues -- a total of
$24.4 billion -- is raised.
- Event-related spending by audiences
reflects an average of $22.87 per person for hotels, restaurants,
parking, souvenirs, refreshments, and other similar costs,
with tourists spending nearly twice as much as local attendees
($38.05 compared to $21.75)
- Travelers who include cultural
events on their trip travel longer, are more likely to shop,
and overall, spend more than other U.S. travelers ($631 per
person for cultural tourists vs. $457 for all tourists)
Creative
Economy Initiative: The Role of the Arts and Culture in New
England's Economic Competitiveness
The New England Council, (c) 2000
This landmark report defines arts and culture as
an industry cluster in much the same way that other clusters
are viewed. The report concludes that the Creative Economy-made
up of both nonprofit and commercial organizations, as well
as a significant population of individuals engaged in or trained
in artistic or cultural fields-is an essential force in maintaining
the region's economic competitiveness in the 21st century.
Key findings:
The Creative Economy is a fundamental component
of the region's economy that demands increased focus, consideration,
and investment by business leaders and government.
- The creative
cluster supports nearly 245,000 jobs in New England-nearly as many as the computer equipment cluster, and more than the
software and healthcare technology clusters combined.
- Workers trained in specific cultural and artistic skills drive the success of leading industries, including software development, telecommunications, and new media industries.
- The creative
cluster and its workforce have many of the professional qualities
needed to compete in the New Economy, such as creativity and
initiative, design and technical skills, advanced conceptualizing,
and the ability to respond to rapid change.
- Geographic concentration
of creative workers, creative businesses, and cultural organizations enhance a community's quality of life-key to attracting and
retaining businesses, employees, and visitors-and inspires downtown revitalization in both big cities and small towns.
New
England's Creative Economy: The Non-Profit Sector, 2002
New England Foundation for the Arts, (c) 2005
This study examines the financial status of New England's
non-profit cultural organizations between 1996 and 2002, along
with a breakdown of estimates for total spending, income,
net assets, admissions, employment and taxes by state.
Key findings:
The study dramatically
demonstrates the cultural industry's potential for building
the region's economic competitiveness.
- The total economic impact (spending from out-of-state
income sources) of New England's cultural non-profits was
$6.6 billion.
- Non-profit cultural organizations contributed $146 million
in federal payroll taxes and $10.8 million in state sales
taxes.
- More
than half of the non-profit cultural sector revenue during
the period of study was earned income.
- In Massachusetts alone, cultural non-profits provided
nearly 40,000 jobs, collected and/or paid $6.6 million in
state sales taxes, and had a total economic impact of nearly
$4.2 billion.
Cultural Economic Development Projects: Impact
Studies
Center for Policy Analysis, University of Massachusetts
Dartmouth, 2002-2003 The University of Massachusetts
Dartmouth Center for Policy Analysis conducted independent
research to measure the economic impact of three separate
projects funded through the Massachusetts Cultural Council's Cultural
Economic Development Initiative from 2000-2003. While each
of the three projects were quite different, each was successful
in using increased participation in cultural activity to spur
local and regional economic activity.
Key findings:
The local
programs funded by the MCC stimulated economic activity, including
new job creation, new business development, and additional
sales at both cultural and non-cultural business.
- Launched with an MCC grant of $11,500, Campus Provincetown's
total economic impact was nearly $600,000 -- approximately
$51 dollars generated for every state dollar spent in grant
money. (See
this study.)
- Boston Cyberarts 2003 generated a regional economic impact
of over $2.5 million and created over 32 full-time equivalent
jobs, including many in the hospitality and professional
services industries. (See
this study.)
- AHA! New Bedford had an economic impact of over $200,000
in 2001-2002, generated on nights with almost no economic
activity in downtown New Bedford previously. (See
this study.)
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© Massachusetts Cultural Council 2008
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