THE ARTS MEAN BUSINESS:
Measuring the Local Economic Impact
of the Nonprofit Arts and Culture Industry

Zon Eastes
former Executive Director, Bainbridge Island Arts & Humanities Council

Those four words are being trumpeted throughout the country, calling attention to recent findings that attest to the energetic and vital economic role that culture plays in American communities. According to a recent study, the arts are about economic vitality and growth. Long gone are the days when one would hear the call “art for art’s sake,” or even “art matters.”

The arts? Yes, and on Bainbridge, that includes this community’s notions of culture - our vibrant arts and humanities activities.

In 2006, with financial support from the City, the Bainbridge Island Arts & Humanities Council and twenty-four Bainbridge Island cultural agencies participated in a year-long study under the auspices of Americans for the Arts, a national arts advocacy agency. The results of this study were published this past July [2007], and they reveal compelling new evidence about the impact of Island cultural activity on the local economy.

Think for a moment about the recent production of Oklahoma! by Ovation! Musical Theatre Bainbridge. Over 2,100 people bought tickets for the show. We can guess that at least some of those ticket buyers also bought a dinner in a downtown restaurant, or hired a babysitter for the evening.

Each of those transactions puts money into the Bainbridge Island economy. Each is an example of how the audience for cultural activities supports the local economy.

Now, think for another moment about actually producing Oklahoma! So that audiences might enjoy the three-week run of performances: paint must be bought to prepare the stage, fabric purchased to create costumes, programs printed, actors and crew fed . . . . Most likely, many of the show’s necessary goods and services were purchased on Bainbridge.

Again, each of those transactions put money into the Bainbridge Island economy. One can follow along the path rather like a board game: the stage designer for Ovation! buys paint at the local paint store. The owner of the local paint store pays its workers a fair wage using some of those original “paint” dollars. One of those wage earners then shops at Town & Country Market. A T&C employee stops by a Winslow Way gallery and purchases a piece of art. Or perhaps buys a ticket to Oklahoma! On and on it goes.

This most recent Arts and Economic Prosperity study gives particular focus to Bainbridge Island’s culture industry and the impact that nonprofit organizations as well as audiences produce on the local economy.

For instance, did you know that cultural activity on Bainbridge Island is an $8.66 million dollar industry—one that supports 195 full-time equivalent jobs throughout the community and generates $734,000 in local and state government revenue?

Fact: The arts and humanities contribute significantly to the economic well-being of our community. The arts mean business.

The impact of spending by nonprofit arts and humanities organizations is far reaching: Each pays employees, purchase supplies and services, and acquires assets within the community. Twenty-five Island nonprofit arts and humanities organizations reported a total of $4.88 million in spending in 2005. Much of this spending cycles right back into the local economy.

Unlike most other industries, the nonprofit arts and culture sector leverages significant event-related spending by its audiences. On Bainbridge, we know that these twenty-five organizations leveraged $3.78 million in event-related spending that pumps vital revenue into local restaurants, lodging establishments, and retail stores.

We also now know that, apart from the cost of a ticket, the average Bainbridge Islander who attends a cultural event spends an average of $19.51 in additional event-related local spending. Off-Islanders, attracted to Bainbridge to attend that same cultural event, spend more than twice that amount: $47.96 per person per event (excluding the cost of admission).

(continued in next column)

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Arts & Economic Prosperity III

The Economic Impact of Nonprofit Arts and Culture Organizations and Their Audiences in Bainbridge Island, WA

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(continued from previous column)

Fact: When our community attracts cultural tourists, it harnesses significant economic rewards. The arts mean business.

Through this study, we’ve learned that audiences at Island cultural events, on average, are 63% local and 37% non-local. Whether serving the local community or out-of-town visitors, a vibrant arts and culture industry helps local businesses thrive. And along the way, local jobs are created.

We now know that cultural activity generates tax dollars that support public services. In 2005, arts-related revenue returned $325,000 to the City of Bainbridge Island in the form of tax dollars. That represents a dollar for dollar return on the City’s investment through the Cultural Element for 2005. Likewise, this same activity returned $409,000 to the State: a seven to one return on the State’s investment. Decision makers have long recognized that arts and culture contribute significantly to the quality of life for a community.

Fact: Local decision makers can depend upon a financial return for every dollar they invest in the arts and humanities. The arts mean business.

The cultural sector is a growth industry that will return an even greater community dividend in the future. Nationally, the nonprofit arts and culture industry grew 24 percent, from $134 billion to $166.2 billion between 2000 and 2005.

Fact: The culture industry is an economically sound investment. It attracts audiences, spurs business development, supports jobs, and generates government revenue. The arts mean business.

The Arts and Economic Prosperity study (AEP III), the third undertaken by Americans for the Arts, was part of an ongoing study of the economic impact of the nonprofit cultural sector conducted by Americans for the Arts, the nation’s leading nonprofit organization for advancing the arts in America. Bainbridge Island was one of 156 communities and regions to participate. The Bainbridge Island Arts & Humanities Council coordinated the local study, with financial support from the City of Bainbridge Island. The local study would not have been possible without the participation of the following local cultural organizations: Bainbridge Arts and Crafts, Bainbridge Chorale, Bainbridge Island Historical Society, Bainbridge Island Japanese American Community, Bainbridge Island Metro Park and Recreation District, Bainbridge Music and Arts, Bainbridge Public Library/Field’s End, Bainbridge Island Senior Community Center, Bainbridge Island Studio Tour, Bainbridge Island Youth Orchestra, Bainbridge Performing Arts, Bainbridge Orchestra, Bloedel Reserve, First Sundays at the Commons, Helpline House, Island Music Guild, Island Theatre, IslandWood, Kids Discovery Museum, Music Community Resources, Ovation! Musical Theatre Bainbridge, Science Fiction Writing Cooperative, Seabold Second Saturday, Soundscape Players, West Sound Contradance Coalition.

The entire AEPIII Report on the economic impact of nonprofit arts and culture organizations and their audiences on Bainbridge Island can be accessed at the BIAHC website, www.artshum.org. If you would like to learn more about Americans for the Arts, visit www.artsusa.org.

BIAHC intends to share this study’s findings with a number of audiences: the Community Relations Council, the City Council, all participating cultural agencies, civic organizations, and the media. If you’d like to talk with BIAHC about the study, please phone 206.842.7901 or email admin@artshum.org.

"Bainbridge Island acknowledged the dynamic role that arts and culture play in our community when a Cultural Element was made part of the City's Comprehensive Plan in 1998. Arts organizations contribute to our lives both tangibly and intangibly. As this report shows, in addition to exercising our imaginations and enhancing our interactions, the arts sustain our community economically. Clearly, the arts are a wise investment."
Darlene Kordonowy
Mayor, City of Bainbridge Island

We know the arts as sources of beauty and inspiration for our community. Now, thanks to the Arts and Economic Prosperity Survey, we know that they also have a positive, measurable impact on our local economy. We appreciate this wonderful convergence both as residents and business owners.
Susan Taylor and Barbara Tolliver
Owners, The Traveler

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