Study: Arts’ sector key economic cog
The arts have a perception problem, cultural leaders say, and it’s a problem they want to fix.
It’s time to “change the conversation” from how arts groups take public money to recognizing what they give back through their economic power, said Sandy Shaughnessy, director of the Florida Division of Cultural Affairs.
The arts sector “provides jobs, generates government revenue and is a cornerstone of Florida’s vital tourism industry,” she said at a presentation this week at Orlando’s Dr. Phillips Center for the Performing Arts.
“Arts and culture mean business,” she said. “We are a business.”
Cultural leaders have a powerful new tool to spread that message — and they will likely need it as major donors divert funds from arts groups to natural-disaster relief efforts in the wake of hurricanes Harvey, Irma and Maria.
A study titled Arts & Economic Prosperity found that nonprofit arts and culture organizations annually generate nearly $400 million in economic activity across Central Florida.
That’s a dramatic increase since the last survey, in 2012, when the arts’ local economic impact was measured at $264 million.
Results of the new survey, commissioned by Americans for the Arts and released this summer, also showed the local cultural sector supported the equivalent of 13,764 fulltime jobs — up from 8,966 jobs in 2012 — and generated $39.9 million in government revenue.
Americans for the Arts is a national cultural advocacy organization. Its study — the fifth since 1994 — defined Central Florida as Brevard, Lake, Orange, Osceola, Polk, Seminole and Volusia counties. It employed the wellregarded economic analysis called input-output.
“Public and private support of an industry that generates hundreds of millions of dollars in annual economic activity makes financial sense,” said Flora Maria Garcia, president of United Arts of Central Florida. “Arts & Economic Prosperity 5 confirms that ‘art works.’”
United Arts coordinated Central Florida’s participation in the national study, which looked at 341 regions, incorporating every state and the District of Columbia. The regions ranged from rural towns of 1,500 residents to metropolitan areas with populations greater than 4 million. Data was gathered from 14,439 nonprofit organizations and 212,691 people attending arts events. For-profit endeavors such as Broadway theaters were not included.
On a national level, Arts & Economic Prosperity 5 determined the arts create $166.3 billion in economic activity and support 4.6 million jobs.
The study separates the impact of organizations and audience members to demonstrate the different types of economic activity generated. For example, in addition to paying staff members, cultural groups also buy paint for theatrical sets, hire caterers for art-gallery receptions and send costumes to be dry cleaned. In Central Florida, those costs add up to about $202.3 million being pumped into the economy by arts groups.
“This is a creative city and a creative economy,” Garcia said.
Meanwhile, Central Florida’s 6.79 million arts patrons in 2015, the year the data was gathered, spent much more than the price of admission to a museum, concert, gallery or play. Audience members shelled out $197.6 million on top of their tickets — an average of $30.06 per event. When attending a cultural activity, many reported also dining in restaurants, paying for parking, buying souvenirs and hiring baby sitters.
The study then takes into consideration how the baby sitter might spend her money on groceries, while the restaurant server uses his paycheck to have his pet groomed — in other words, how the money generated by the arts ripples through the entire region.
“Nonprofit arts and culture organizations of all sizes add breadth and depth to our community, enhancing both quality of life and, clearly, the economy as well,” said Trudy Wild, who led United Arts’ participation in the study.
Wednesday’s forum at the downtown Orlando arts center was presented by Florida’s Department of State and United Arts to help cultural organizations strengthen their case when they seek donations.
Understandably in the wake of three deadly hurricanes, fundraising by cultural organizations is likely to be more difficult in the months ahead, Garcia said.
“The focus of donors is now toward health and human services,” said Garcia, who observed a similar shift after Hurricane Katrina hit Louisiana in 2005. “For those with capital campaigns, it’s going to be challenging.”
David Schillhammer, executive director of Enzian theater in Maitland, said in a panel discussion that his organization already is experiencing such challenges. The independent, art-house cinema is trying to raise $6.5 million for an expansion.
“There’s so much competition for dollars out there,” he said.
Officials agreed that the study results, distributed at the forum, would help explain to elected officials why investing in the arts makes good business sense.
“No longer do community leaders need to feel that a choice must be made between arts funding and economic growth,” wrote Robert L. Lynch, president of Americans for the Arts, in the study’s introduction. “Arts & Economic Prosperity 5 proves that they can choose both.”