Author: Americans for the Arts

Publication Year: 2003

Media Type: Report

Summary:

Arts & Economic Prosperity is our second study of the nonprofit arts and culture industry’s impact on the nation’s economy. It is based on surveys of 3,000 nonprofit arts organizations and more than 40,000 attendees at arts events in 91 cities in 33 states, plus the District of Columbia. In the report, we estimate that the nonprofit arts industry generated $134 billion in 2000—$53.2 billion in spending by arts organizations and $80.9 billion in spending by audiences, which supported 4.9 million jobs. This economic impact study sends a strong signal to communities that when they support the arts, they not only enhance the quality of community life but also invest in their economic well-being.

Abstract:

The Arts & Economic Prosperity study documents in unprecedented scope and detail the key role played by the nonprofit arts industry in strengthening our nation's economy. It dramatically alters the perception that the arts are luxuries—worth supporting in prosperous times but hard to justify when the economy is struggling. At a time when governments at all levels are making tough budget choices, this study sends an important message—that support for the arts does not come at the expense of economic development.

Highlights of the findings are as follows:

• The $53.2 billion represents a 45 percent increase (from $36.8 billion) since 1992, when Americans for the Arts last studied spending by arts organizations.
• The $80.8 billion in event-related spending by arts audiences reflects an average of $22.87 per person in spending for hotels, restaurants, parking, souvenirs, refreshments, or other similar costs-with non-local attendees spending nearly twice as much as local attendees ($38.05 compared to $21.75).

The $134 billion in total economic activity has a significant national impact, generating the following:

• 4.85 million full-time equivalent jobs
• $89.4 billion in household income
• $6.6 billion in local government tax revenues
• $7.3 billion in state government tax revenues
• $10.5 billion in federal income tax revenues

Arts & Intersections:

Categories: Economic Impact