Americans for the Arts, a national advocacy and research organization for the arts, has recently released its sixth report on Arts & Economic Prosperity (AEP6) – the largest and most inclusive study of its kind — and despite the challenges facing the arts and culture industry today, the results are impressive. Arts and cultural activity in 373 diverse communities and regions representing all 50 states, Washington, DC, and Puerto Rico were included in this multi-year study.
Nationally, the nonprofit arts and culture sector generated $151.7 billion of economic activity in 2022 — $73.3 billion in spending by arts and culture organizations and an additional $78.4 billion in event-related expenditures by their audiences. The industry supported over 2.6 million jobs, provided $101 billion in personal income to residents, and generated $29.1 billion in tax revenue to local, state, and federal governments.
“Mayors understand the connection between the arts industry and city revenues,” said Reno, Nevada Mayor Hillary Schieve. “Arts activity creates thousands of direct and indirect jobs and generates billions in government and business revenues. The arts also make our cities destinations for tourists, help attract and retain businesses, and play an important role in the economic revitalization of cities and the vibrancy of our neighborhoods.”
Indeed, 80 percent of attendees to arts and culture events agreed that “the event they were attending inspires a sense of pride in the neighborhood or community,” and 86 percent responded that they “would feel a great sense of loss if this activity or venue were no longer available.”
Besides this sense of community pride, AEP6 highlights the fact that when people attend arts and cultural events, they also dine out at restaurants, pay for parking or transportation, enjoy dessert or a drink after the show and return home to pay for child or pet care. Attendees at arts events spend an average of $38.46 per person with local merchants beyond the cost of admission.
Other findings of this report include:
· Nonprofit arts and culture organizations are local businesses. They employ people locally, purchase goods and services from nearby businesses, and engage in the marketing and promotion of their cities and regions. They provide rewarding employment for more than artists, curators, and musicians. They also employ marketers, accountants, security officers, engineers, and an array of occupations spanning many industries.
· Arts and culture organizations strengthen the visitor economy. One third of event attendees travel from outside the county in which the activity takes place, and they spend an average of $60.57 – twice the amount of their local counterparts.
· Arts and culture spark creativity and innovation. “Creativity” is among the top five applied skills sought by business leaders according to The Conference Board’s Ready to Innovate Report – with 72 percent of business leaders saying creativity is of “high importance” when hiring.
“The AEP6 report underscores what businesses across the nation have witnessed – that investments in arts and culture not only enhance the quality of life, but also stimulate economic development,” said Paul Washington, Executive Director, Environmental, Social and Governance Center, The Conference Board. “By supporting the arts, companies attract and retain talent and create an environment where creativity, business, and communities thrive.”
Also noted in the study is the fact that according to the U.S. Bureau of Economic Analysis, the nation’s arts and entertainment sector (nonprofit and commercial) is a $1.02 trillion industry that supports 4.9 million jobs and is 4.4 percent of the nation’s economy – larger than sectors such as construction, transportation, and agriculture.
Whether it’s the nonprofit arts and culture industry or the larger commercial arts and entertainment sector, many Americans owe their livelihood and quality of life to a vibrant and sustainable group of individuals, businesses and organizations that make up our nation’s cultural economy. Americans for the Arts provides a vital service to the nation by tracking and reporting on this economic data on a periodic basis, and this latest report shares a trove of information that should help policymakers, nonprofit arts workers, and business leaders advocate for continuing support and recognition for this critical economic sector in a challenging environment.
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