Study shows the arts are good for Northeast Wisconsin economy
Americans for the Arts announced recently the results of the most comprehensive economic impact study of the nonprofit arts and culture industry ever conducted in the United States. Entitled Arts & Economic Prosperity III, the report reveals that the nonprofit arts industry generates $166.2 billion in economic activity every year, resulting in $29.6 billion in federal, state and local tax revenues nationally.
Locally, the arts and culture industry in the Fox Valley Region (including Calumet, Outagamie and Winnebago counties here referred to as Northeast Wisconsin) generates $28.63 million in economic activity. This spending supports 1,040 full-time equivalent jobs, generates $20.3 million in household income to local residents and delivers $3.06 million in local and state government revenue. This economic impact study sends a strong signal that when the public supports the arts, not only is the quality of life enhanced, but it’s an investment in Northeast Wisconsin’s economic well-being. Click here to download a PDF of the summary of the study.
Northeast Wisconsin is one of 156 communities that participated in Arts & Economic Prosperity III, the most comprehensive study of its kind ever conducted. It documents the economic impact of the nonprofit arts and culture industry in 116 cities and counties, 35 multi-county regions and five states — representing all 50 states and the District of Columbia. The diverse study regions range in population (4,000 to 3 million) and type (rural to urban). Researchers collected detailed expenditure and attendance data from 6,080 nonprofit arts and culture organizations and 94,478 of their attendees to measure total industry spending. Data were collected from 32 nonprofit arts and culture organizations in Northeast Wisconsin, including the Fox Cities Performing Arts Center. Each provided detailed budget information about more than 40 expenditure categories for fiscal year 2005 (e.g., labor, payments to local and non-local artists, operations, materials, facilities and asset acquisition) as well as their total attendance figures. The following tables demonstrate the direct and total impacts of this spending. Project economists customized input/output analysis models to calculate specific and reliable findings for each study region.
This study focuses solely on the economic impact of nonprofit arts and culture organizations and event-related spending by their audiences. Not included in this study are spending by individual artists and the for-profit arts and culture sector (e.g., Broadway or the motion picture industry).
The total economic activity has a significant local impact, generating the following:
- 1,040 full-time equivalent jobs
- Over $20.3 million in resident household income
- Over $1.2 million in local government revenues
- Over $1.8 million in state government revenues
“This study is a myth buster,” said Robert L. Lynch, president and CEO of Americans for the Arts. “Most Americans understand that the arts improve our quality of life. This study demonstrates that the arts are an industry that stimulates the economy in cities and towns across the country. A vibrant arts and culture industry helps local businesses thrive.”
In addition, the study reveals that the nonprofit arts industry is a cornerstone of tourism. The $9.44 million in event-related spending by arts audiences reflects an average of $22.22 per person in spending for hotels, restaurants, parking, souvenirs, refreshments or other similar costs — with non-local attendees spending twice as much as local attendees ($36.08 vs. $14.73). When a community attracts cultural tourists, it harnesses significant economic rewards.
“The findings of this study are encouraging and exciting for our region and demonstrate that the arts have a positive economic value in our community,” said Jerry Murphy, executive director of New North, Inc. upon hearing the study results. “Of course the most lasting value of the arts is how they enhance and enrich the quality of life of people in Northeast Wisconsin. The strength of the arts in our region helps make Northeast Wisconsin a place people and businesses want to make their home.”
To derive the national estimates, the 116 city and county study participants — multi-regions and states are excluded from this analysis — were first stratified into six population groups and an economic impact average was calculated for each group. Second, the nation’s largest 12,662 cities were assigned to one of the six groups based on their population as supplied by the U.S. Census Bureau. Third, each city was assigned the economic impact average for its population group. Finally, the values of the cities were added together to determine the national economic impact findings. The two largest U.S. cities, New York and Los Angeles, each with more than $1 billion in organizational expenditures, were excluded from this study to avoid inflating the national estimates. In addition, Laguna Beach, CA, and Teton County, WY, were removed when calculating the national estimates due to their comparably high levels of economic activity in their population category.
The Arts & Economic Prosperity III study was conducted by Americans for the Arts and supported by the Paul G. Allen Family Foundation, the John D. and Catherine T. MacArthur Foundation and The Ruth Lilly Fund of Americans for the Arts. Americans for the Arts’ local and statewide project partners contributed both time and financial support to the study. The full text of the report is available at AmericansForTheArts.org/EconomicImpact.
Americans for the Arts is the leading nonprofit organization for advancing the arts in America. With offices in Washington, D.C., and New York City, it has a record of more than 45 years of service. Americans for the Arts is dedicated to representing and serving local communities and creating opportunities for every American to participate in and appreciate all forms of the arts. Additional information is available at AmercansForTheArts.org.