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THE ARTS MEAN BUSINESS:
Measuring the Local Economic Impact
of the Nonprofit Arts and Culture Industry
Zon Eastes
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, and with financial support from the City, the Bainbridge
Island Arts & Humanities Council and twenty-four Bainbridge
Island culture 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,
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 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
Download PDF >>
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% are 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 culture 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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