Author: Richman, Roger

Publication Year: 1976

Media Type: Report

Summary:

Abstract:

Part 1. The Metropolitan Arts Congress was created in 1976 in recognition of the
           arts' essential regionalism. The economic survey of The Arts in Tidewater that
           was conducted by the Center for Urban and Regional Research of Old
           Dominion University, under the direction of Dr. Roger Richman, is the first such
           systematic study of the subject that has ever been undertaken.

Part 2. Economic Impacts of the Arts: All findings are from data collected or estimated
           for either calendar 1976, or fiscal 1977.

 Industrywide impacts:

The annual measurable impact of the arts on Tidewater's economy including direct and indirect spending effects is estimated to be $7,821,000. Direct local spending of the region's arts organizations is estimated to be $3,595,000. Approximately 60% of this expenditure, $2,344,000 was made by the region's nonprofit arts organizations.

Indirect spending within the region induced by the expenditures of the arts industry is estimated to be $2,876,000.

More than $750,000 is spent annually by arts patrons in the course of attending arts events. Most of these expenditures occur in area restaurants, and on other ancillary services (e.g., parking, baby-sitters, taxis). The indirect spending induced by this expenditure is an estimated $600,000. The total annual impact of spending by arts patrons on ancillary services is estimated to be $1,350,000.

The region's arts industry employs 345 Tidewater residents, including 206 in full-time positions.

Over $1,500,000 is annually spent on admission tickets to the performing arts in Tidewater. This expenditure results in at least $90,000 annually in direct income to Tidewater municipalities as proceeds from a 6% tax on admissions to entertainment events. A reported 8% of the audience of the nonprofit performing arts were non-Tidewater residents (tourists or other visitors). If this percentage is applied to the total performing arts industry in the region, an estimated $120,000 would be spent on admission tickets by non-residents.

Tidewater's outdoor art shows and festivals support the tourist industry and provide strong visitor attraction. A special study of the 1977 Boardwalk Art Show indicated that 37% of attendees were not Tidewater residents, and that many attendees, including many non-residents, came just to see the show. Most respondents who were not Tidewater residents indicated they spent over $100/day while in the region.

 Real estate spillover effects:

Capital investments in arts facilities often have a positive effect on real estate values of surrounding properties. There are numerous examples around the country of public or private investments in arts facilities acting as a seed to repopulate older neighborhoods and reinvigorate downtown areas. Just such seed investments are currently underway in several Tidewater municipalities. The positive spillover effects of upgrading neighborhoods and commercial areas can be quite dramatic.

 Regional competition effects:

Studies have shown that the presence of an established cultural life in a region is often a major factor influencing the movements of key executive personnel, and even the movements of corporate headquarters. With its established and developing arts institutions Tidewater's competitive advantage as a home for new corporations is improving, and its ability to attract and retain executive personnel with a sophisticated urban image is growing.

 Non-profit sector impacts:

Total expenditures of the surveyed nonprofit arts organizations were $2,344,000 in 1976. Estimated total economic impact of the nonprofit arts sector is $4,219,000. An estimated $1,406,400 was spent on payrolls by the nonprofit institutions. This equaled 60% of their expenditures. The nonprofit sector employs 221 Tidewater residents, 138 in full-time positions. An estimated $937,000 (40% of total expenditures) is spent on goods and services by the nonprofit arts organizations.

Reported attendance at Tidewater's nonprofit arts institutions was approximately 532,000 persons in 1976. Of this total, 93,249 persons paid admission fees. The average ticket price was $4.50, and the reported total admissions fees paid was an estimated $430,000.

Total paid enrollment in educational services provided by Tidewater's nonprofit arts institutions (not including college programs) was 2,436 persons. The average fee paid was $46. Total estimated fees paid for nonprofit educational services were $234,726 in 1976.

The surveyed nonprofit organizations reported that 2,917 volunteers contributed 182,629 man hours in 1976. Conservatively valued at the minimum wage of $2.30 per hour, Tidewater's volunteers contributed $420,000 worth of time to these organizations.

CONTENTS
Introduction to the technical study.
List of tables.
Summary of findings.

1. Economic impact of the arts:

On calculating economic impacts.
Direct impacts.
Indirect impacts.
Multiplier effects on expenditures.
Arts patron spending on ancillary services.
Regional competition effects.
Real estate spillover effects.

2. Offerings and operations of the nonprofit arts sector:

Offerings and attendance.
Governance.
Staff.
Facilities.

3. Financial characteristics of the nonprofit sector:

Income and expenditure analysis.
Income and expenditure by area of offering.
The earnings gap.
Trends in budgets and the earnings gap.
Municipal funding of the arts.

Appendix:
     1. Tables: Financial characteristics of the nonprofit arts organizations.
     2. The primary survey of Tidewater Arts organizations.
     3. Survey of the Boardwalk Art Show.

 

 

 

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Arts & Intersections:

Categories: Economic Impact