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Philadelphia—The regional non-profit cultural sector is a tremendous asset to the local economy. Cultural organizations and their audiences in Greater Philadelphia spend $1.3 Billion annually, according to the Greater Philadelphia Cultural Alliance’s report released today, Arts, Culture, & Economic Prosperity in Greater Philadelphia. The report documents 40,000 jobs generated by the economic activity of the cultural sector and $158 million in taxes returned to state and local communities.
This report, a follow up to the Cultural Alliance’s Portfolio report from last year, goes one step beyond that study, which focused specifically on organizational spending. Arts, Culture & Economic Prosperity takes into account both organizational and audience spending.
Compiling data from 177 cultural organizations and 2,324 audience surveys, Arts, Culture, & Economic Prosperity in Greater Philadelphia captures the economic activity generated by the region’s nonprofit cultural sector including the creation of jobs, household and government income, money spent on meals, lodging and other activities related to cultural activity, and the return on public dollars invested in cultural organizations. The report also demonstrates that the general public strongly supports the sector, and participates in a variety of ways.
To download a copy of the report and review additional information, please visit www.philaculture.org.
“This study provides valuable information that quantifies the impact arts and culture have on our regional economy,” said Peggy Amsterdam, Cultural Alliance President. “Taken together with our earlier reports, Arts, Culture, & Economic Prosperity in Greater Philadelphia provides policymakers, cultural leaders, and arts supporters with a clear picture of the many ways the arts contribute to greater Philadelphia.”
Highlights of the Prosperity Report include
$1.3 Billion Dollars in total direct expenditures by organizations and audiences. The nonprofit arts and culture sector of Southeastern Pennsylvania is a powerful economic engine, generating $1.3 billion in annual expenditures, including $645 million in direct expenditures by cultural organizations and $691 million in direct expenditures by audiences.
40,000 jobs. That $1.3 billion generates 40,000 jobs, including 21,000 jobs from direct expenditures by organizations & audiences and 19,000 jobs from the indirect effect of that spending as dollars ripple through the economy of Southeastern Pennsylvania.
$158 million in total state and local taxes. The spending of the cultural sector generates $158.5 million in state and local taxes including $74.1 million in local taxes and $84.4 million in state taxes. Additionally, each $1 invested by local governments returns $5 in local tax revenue and each $1 invested by state government returns $2.50 in state tax revenue.
Specific implications of the Prosperity Report are that
Arts and Culture in Greater Philadelphia is a sound investment. The 40,000 jobs generated by the cultural sector represent 10 jobs for every 1000 residents of the region. In regions similar to ours, the average is 4 jobs per thousand.
Regional residents support arts and culture, and believe in its value. Local resident attendance is 10% higher than the national average and 83% of regional residents attended an arts and cultural event last year. Additionally, 88% of attendees surveyed voted in 2004.
These results demand a direct role for arts and culture in public policy at the local and regional levels. Given the importance of arts and culture to the region’s economy, development, and quality of life, the industry must be integrally connected to broader issues and planning efforts.
“These results clearly demonstrate the need for a direct role for arts and culture in future public policy,” Peggy Amsterdam added. “We are working for the establishment of a cabinet level office of Cultural Affairs in the City of Philadelphia and cultural advisory councils in the neighboring suburban counties.”
The study reveals that the nonprofit arts industry is also important for tourism. Over 5 million non-residents spent $361 million, which is equivalent to $67.12 per non-resident spent on even related activities including lodging and dining.
Over 13 million residents spent $329 million on event related spending. While residents spent less per event ($25.08), they make up a larger proportion of audiences than the national average (71% vs. 61%).
In total, 18 million residents and non-residents spent $691 million in event related spending including $184 million in lodging and $250 million in dining.
These local results were compiled as part of Arts & Economic Prosperity III, the most comprehensive economic impact study of the nonprofit arts and culture industry ever conducted in the United States. The national study, compiled by Americans for the Arts, looked at 156 communities and regions (116 cities and counties, 35 multi-county regions, and 5 states) including Greater Philadelphia.
“This study is a myth buster,” said Robert L. Lynch, president and CEO of Americans for the Arts. “Most Americans understand that the arts improve our quality of life. This study demonstrates that the arts are an industry that stimulates the economy in cities and towns across the country. A vibrant arts and culture industry helps local businesses thrive.”
(For more information on the national study please visit www.AmericansForTheArts.org/EconomicImpact.)
The findings of the local report will be officially released this evening at the Cultural Alliance’s Annual Meeting. Over 650 supporters and leaders of the cultural sector are scheduled to attend, including both mayoral candidates for Philadelphia, Michael Nutter (D) and Al Taubenberger (R), who will answer questions submitted by attendees.
Tom Scannapieco, sponsor of the report and developer of the ultimate luxury building in Philadelphia, 1706 Rittenhouse Square Street condominium, will also be making a special announcement at the event regarding a new offer for the cultural community.
“The Prosperity Report confirms the value of the arts to the Philadelphia community, both socially and economically,” said Peggy Amsterdam, President of the Greater Philadelphia Cultural Alliance. “Money invested in the arts is just that, a smart investment that generates a positive return for both the cultural sector and the region itself. “
The findings in this report would not have been possible without the work of our partner organizations: the Americans for the Arts, the Pennsylvania Cultural Data Project, Drexel University Arts Administration Graduate Program, and the Metropolitan Philadelphia Indicators Project.
This publication was made possible by the William Penn Foundation. This publication was supported in part by the Pennsylvania Council on the Arts, a state agency funded by the Commonwealth of Pennsylvania and the National Endowment for the Arts, a federal agency.
Design, printing, and distribution of Arts, Culture, & Economic Prosperity in Greater Philadelphia was generously underwritten by 1706 Rittenhouse Square Associates.
The publication and information about it, including the methodology behind the findings, are available online at www.philaculture.org
The Greater Philadelphia Cultural Alliance is a leadership organization of over 350 nonprofit arts and cultural institutions located primarily in the five counties of southeastern Pennsylvania. Its mission is to lead the effort to increase awareness of, participation in and support for arts and culture in the Greater Philadelphia region.
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