THE ARTS MEAN BUSINESS:
Measuring the Local Economic Impact
of the Nonprofit Arts and Culture Industry

Zon Eastes
Executive Director, Bainbridge Island Arts & Humanities Council

Thosefour words are being trumpeted throughout the country, callingattention to recent findings that attest to the energetic and vital economic rolethat culture plays in American communities. According to a recentstudy, the arts are about economic vitality and growth. Long goneare the days when one would hear the call “Art for art’ssake,” or even “Art matters.”

Thearts? Yes, and on Bainbridge, that includes this community’snotions of culture - our vibrant arts and humanities activities.

In2006, and with financial support from the City, the BainbridgeIsland Arts & Humanities Council and twenty-four BainbridgeIsland culture agencies participated in a year-long study underthe auspices of Americans for the Arts, a national arts advocacyagency. The results of this study were published this past July,and they reveal compelling new evidence about the impact of Islandcultural activity on the local economy.

Thinkfor a moment about the recent production of Oklahoma!by Ovation! Musical Theatre Bainbridge. Over 2,100 people boughttickets for the show. We can guess that at least some of thoseticket buyers also bought a dinner in a downtown restaurant, orhired a babysitter for the evening.

Eachof those transactions puts money into the Bainbridge Island economy.Each is an example of how the audience for cultural activitiessupports the local economy.

Now,think for another moment about actually producing Oklahoma! Sothat audiences might enjoy the three-week run of performances: paint must be bought to prepare the stage, fabric purchased tocreate costumes, programs printed, actors and crew fed . . . .  Mostlikely, many of the show’s necessary goods and services werepurchased on Bainbridge.

Again,each of those transactions put money into the Bainbridge Islandeconomy. One can follow along the path rather like a board game:the stage designer for Ovation! buys paint at the local paint store.The owner of the local paint store pays its workers a fair wageusing some of those original “paint” dollars. One ofthose wage earners then shops at Town & Country Market. A T&Cemployee stops by Winslow Way gallery and purchases a piece ofart. Or perhaps buys a ticket to Oklahoma! On and on itgoes.
           
This mostrecent Arts and Economic Prosperity study gives particular focus to BainbridgeIsland’s culture industry and the impact that nonprofit organizationsas well as audiences produce on the local economy.
           
For instance,did you know that cultural activity on Bainbridge Island is an $8.66million dollar industry—one that supports 195 full-timeequivalent jobs throughout the community and generates $734,000in local and state government revenue?

Fact:The arts and humanities contribute significantly to the economicwell being of our community. The arts mean business.

Theimpact of spending by nonprofit arts and humanities organizationsis far reaching: Each pays employees, purchase supplies and services,and acquires assets within the community. Twenty-five Island nonprofitarts and humanities organizations reported a total of $4.88 million inspending in 2005. Much of this spending cycles right back intothe local economy.

Unlike most other industries, the nonprofit arts and culture sectorleverages significant event-related spending by its audiences.On Bainbridge, we know that these twenty-five organizations leveraged $3.78million in event-related spending that pumps vital revenueinto local restaurants, lodging establishments, and retail stores.

We also now know that, apart from the cost of a ticket, the averageBainbridge Islander who attends a cultural event spends an averageof $19.51 in additional event-related local spending.Off-Islanders, attracted to Bainbridge to attend that same culturalevent, spend more than twice that amount: $47.96 perperson per event (excluding the cost of admission).

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Arts& Economic Prosperity III

The Economic Impact of Nonprofit Arts and Culture Organizations andTheir Audiences in Bainbridge Island, WA

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continued from previous column...

Fact: When our community attracts cultural tourists,it harnesses significant economic rewards. The arts mean business.

Through this study, we’ve learned that audiences at Islandcultural events, on average, are 63% local and 37% are non-local.Whether serving the local community or out-of-town visitors, avibrant arts and culture industry helps local businesses thrive.And along the way, local jobs are created.

We now know that cultural activity generates tax dollars thatsupport public services. In 2005, arts-related revenue returned $325,000 tothe City of Bainbridge Island in the form of tax dollars. Thatrepresents a dollar for dollar return on the City’sinvestment through the Cultural Element for 2005. Likewise, thissame activity returned $409,000 to the State:a seven to one return on the State’s investment. Decisionmakers have long recognized that arts and culture contribute significantlyto the quality of life for a community.

Fact: Local decision makers can depend upon afinancial return for every dollar they invest in the arts and humanities. Thearts mean business.

The cultural sector is a growth industry thatwill return an even greater community dividend in the future. Nationally,the nonprofit arts and culture industry grew 24 percent, from $134billion to $166.2 billion between 2000 and 2005. 

Fact: The culture industry is an economicallysound investment. It attracts audiences, spurs business development,supports jobs, and generates government revenue. The arts meanbusiness.

The Arts and Economic Prosperity study (AEP III), the third undertakenby Americans for the Arts, was part of an ongoing study of theeconomic impact of the nonprofit cultural sector conducted by Americansfor the Arts, the nation’s leading nonprofit organizationfor advancing the arts in America. Bainbridge Island was one of156 communities and regions to participate. The Bainbridge IslandArts & Humanities Council coordinated the local study, withfinancial support from the City of Bainbridge Island. The localstudy would not have been possible without the participation ofthe following local cultural organizations: Bainbridge Artsand Crafts, Bainbridge Chorale, Bainbridge Island Historical Society,Bainbridge Island Japanese American Community, Bainbridge IslandMetro Park and Recreation District, Bainbridge Music and Arts,Bainbridge Public Library/Field’s End, Bainbridge IslandSenior Community Center, Bainbridge Island Studio Tour, BainbridgeIsland Youth Orchestra, Bainbridge Performing Arts, BainbridgeOrchestra, Bloedel Reserve, First Sundays at the Commons, HelplineHouse, Island Music Guild, Island Theatre, IslandWood, Kids DiscoveryMuseum, Music Community Resources, Ovation! Musical Theatre Bainbridge,Science Fiction Writing Cooperative, Seabold Second Saturday, SoundscapePlayers, West Sound Contradance Coalition.           

The entire AEPIII Report on the economic impact of nonprofitarts and culture organizations and their audiences on BainbridgeIsland can be accessed at the BIAHC website, www.artshum.org. Ifyou would like to learn more about Americans for the Arts, visitwww.artsusa.org.

BIAHC intends to share this study’s findings witha number of audiences: the Community Relations Council, the CityCouncil, all participating culture agencies, civic organizations,and the media. If you’d like to talk with BIAHC about thestudy, please phone 206.842.7901 or email admin@artshum.org

"Bainbridge Island acknowledged the dynamic rolethat arts and culture play in our community when a CulturalElement was made part of the City's Comprehensive Plan in 1998.Arts organizations contribute to our lives both tangibly andintangibly. As this report shows, in addition to exercisingour imaginations and enhancing our interactions, the arts sustainour community economically. Clearly, the arts are a wise investment."
Darlene Kordonowy
Mayor, City of Bainbridge Island

We know the arts as sources of beauty and inspirationfor our community. Now, thanks to the Arts and Economic ProsperitySurvey, we know that they also have a positive, measurableimpact on our local economy. We appreciate this wonderful convergenceboth as residents and business owners.
Susan Taylor and Barbara Tolliver
Owners, The Traveler

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