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Arts & Economic Prosperity

 

Arts & Economic Prosperity 6 study logo

2022-2023 Arts & Economic Prosperity 6 Study

From May 2022 - July 2023, the City of Tacoma's Arts & Cultural Vitality Division participated in a national study called Arts & Economic Prosperity 6. The study documented the economic and social benefits that nonprofit arts and culture organizations, and their audiences, have both locally and nationally.

 

About the Study

This study was conducted by Americans for the Arts in 373 diverse communities and regions across the country, including Tacoma, representing all 50 states and Puerto Rico. The communities range in population (4,000 to 4 million) and type (small rural to large urban). Data for the study came from surveys of nonprofit arts and culture organizations as well as surveys of their audiences.

 

For additional information including summaries for the 373 communities, an online calculator, and a description of the project methodology, visit www.AEP6.AmericansForTheArts.org.

 

National Study Results

In 2022, America's nonprofit arts and culture industry generated $151.7 billion in economic activity - that's $73.3 billion in spending by organizations, which leveraged an additional $78.4 billion in event-related spending by audiences. The impact of this activity is significant, supporting 2.6 million jobs, generating $29.1 billion in tax revenue, and providing $101 billion in personal income to residents. 

 

AEP6 full National study results (PDF)
AEP6 summary of National study results (PDF)

Economic Impact of Nonprofit Arts and Culture Industry Nationally

(expenditures by both organizations and audiences)

Total Direct Expenditures $151,675,522,000

Jobs Supported

2,574,000

Household Income Paid to Residents

$101,010,025,000

Total Tax Revenue

$29,106,767,000

 

  

Tacoma Study Results

In 2022, Tacoma's nonprofit arts and culture industry generated $163 million in economic activity - that's $87.1 million in spending by nonprofit arts and cultural organizations, which leveraged an additional $75.9 million in event-related spending by their audiences. The impact of this activity is significant in Tacoma, supporting 2,065 jobs, generating $28.7 million in tax revenue, and providing $87.2 million in personal income to local residents.

AEP6 full Tacoma study results (PDF)
AEP6 summary of Tacoma study results (PDF)

Economic Impact of Nonprofit Arts and Culture Industry in Tacoma

(expenditures by both organizations and audiences)

Total Direct Expenditures $162,971,067
Jobs Supported 2,056 
Household Income Paid to Residents $87,193,482
Local Tax Revenue $5,183,574
State Tax Revenue $6,492,751
Federal Tax Revenue $17,017,817

                                                                             
This study also tracked the event-related spending by audience members. Of the 2,230,790 nonprofit arts and culture audience members in 2022 (this number was reported by the 88 organizations who participated in the study), 80.4% reside within Pierce County and 19.6% reside outside Pierce County. Furthermore, audience surveys reveal that non-local attendees spend an average of 55% more than their local counterparts. 

  

Event-Related Spending by Arts and Culture Audiences

(expenditures do not include cost of event admission)

  Local Attendees Non-Local Attendees All Attendees

Total Attendance to In-Person Events

1,793,555 437,235 2,230,790
Percentage of Total Attendance 80.4% 19.6% 100%
Average Per Person, Per Event Expenditure $30.70 $47.63 $34.02
Total Event-Related Expenditures $55,062,138 $20,825,503 $75,887,641

                                                                     

This study also includes measures of social impact. Surveys completed by individual attendees in the Tacoma demonstrate an appreciation for how arts and culture impacts the development and well-being of the community and its residents.

 

Social Impact Statements Percentage of Audience Agreement with Statement
“This venue or facility is an important pillar for me within my community.” 77.1%
“I would feel a great sense of loss if this activity or venue were no longer available.” 86.7%
“This activity or venue is inspiring a sense of pride in this neighborhood or community.” 89.2%
“My attendance is my way of ensuring that this activity or venue is preserved for future generations” 87.3%

 

Frequently Asked Questions

What is the data for Nonprofit Arts and Culture Organizations based on?
Nationally, detailed information was collected from 16,399 nonprofit arts and culture organizations about their FY2022 expenditures, event attendance, in-kind contributions, and volunteerism. In the City of Tacoma, 88 of the 132 total eligible nonprofit arts and culture organizations identified provided the financial and attendance information required for the study analysis—an overall participation rate of 66.7%.The study results are based solely on the survey data collected. No estimates have been made to account for non-respondents. Therefore, the less-than-100 percent response rates suggest an understatement of the economic impact findings.
What is the data for Nonprofit Arts and Culture Audiences based on?
Audience-intercept surveying was conducted to measure event-related spending by audiences while attending arts and culture events. Nationally, a total of 224,677 attendees completed the survey. The randomly selected respondents provided itemized expenditure data on attendance-related activities, socioeconomic information, ZIP code of primary residence, and four social impact questions. Data was collected from May 2022 through June 2023 at a broad range of both paid and free events. In the City of Tacoma, a total of 923 valid audience-intercept surveys were collected from attendees to nonprofit arts and culture events.
How was the survey data analyzed?
AEP6 study uses IMPLAN for its economic analysis. IMPLAN is short for “IMpact analysis for PLANning.” It is a widely used economic modeling and impact analysis tool. 

AEP6 uses the IMPLAN platform to create customized models for each of the 373 study regions, including Tacoma. Input-output models calculate the interdependencies between various sectors or industries within a region. This analysis traces how many times a dollar is respent within the local economy before it leaks out, and it quantifies the economic impact of each round of spending. This form of economic analysis is well suited for AEP studies because it can be customized specifically to each participating community, region, or state. To complete this analysis for the City of Tacoma, the researchers used the IMPLAN platform to build a customized input-output model based on the unique economic and industrial characteristics of Pierce County. What do all these figures mean?
The Arts & Economic Prosperity 6 study delivers a clear and welcome message: when communities invest in arts and culture, they are not doing so at the expense of community and economic development. Rather, they are investing in an industry that stimulates the economy, supports local jobs, and contributes to building healthy, vibrant, and livable communities. 

Investment in the nonprofit arts and culture industry builds the communities where people want to live, work, and play. When we prioritize diverse cultural expressions and traditions, it nurtures social connections, promotes community pride and identity, and boosts tourism by providing the authentic experiences that draw visitors to Tacoma. 

A vibrant nonprofit arts and culture community not only keeps residents and their discretionary spending close to home, but it also attracts visitors who spend money and help local businesses thrive. When we support the arts, we are investing in both Tacoma’s economic and community well-being.

What makes the economic impact of the arts unique?
What makes the economic impact of arts and culture organizations unique is that, unlike most other industries, they introduce large amounts of related spending (such as meals, ground transportation, and souvenirs) by their audiences. All of these expenditures have a positive and measurable impact on the economy.

Who was included in this study?
This study focuses on the economic impact of nonprofit arts and culture organizations and event-related spending by their audiences. Not included in this study are spending by individual artists and the for-profit arts and culture sector (such as for-profit galleries, Broadway, and the motion picture industry).
How do the findings from this study compare to previous studies?
Even though Tacoma participated in the Arts & Economic Prosperity study in 2006, 2011, and 2016 (find out more and read the results of those previous studies below), study-to-study comparisons are not advised. This is because, in 2022, the study expanded the inclusion criteria to include arts and culture, implemented a new data collection methodology, added social impact questions, and moved the economic impact modeling to the IMPLAN platform. On top of that, the COVID-19 pandemic occurred, a recession followed, audiences decreased, attendance habits changed, the arts and hospitality industries suffered profound job losses, and billions of dollars were distributed to the arts and culture sector from federal pandemic relief funding such as the CARES Act.

2016 AEP5 Study

Arts & Economic Prosperity 5 study logo

 

In 2016, the City of Tacoma's Arts & Cultural Vitality Division participated in Arts & Economic Prosperity 5 study. The results of this study were released in June 2017.  

 

National Study Results

 

AEP5 full National study results (PDF) 
AEP5 summary of National study results (PDF)

Tacoma Study Results

 

AEP5 full Tacoma study results (PDF)
AEP5 summary of Tacoma study results (PDF)

2011 AEP4 Study

Arts & Economic Prosperity 4 study logo

 

In 2011, the City of Tacoma's Arts & Cultural Vitality Division participated in Arts & Economic Prosperity 4 study. The results of this study were released in June 2012.  

 

National Study Results

 

AEP4 full National study results (PDF) 
AEP4 summary of National study results (PDF)

Tacoma Study Results

 

AEP4 full Tacoma study results (PDF)
AEP4 summary of Tacoma study results (PDF)

2006 AEP3 Study

Arts & Economic Prosperity 3 study logo

In 2006, the City of Tacoma's Arts & Cultural Vitality Division participated in Arts & Economic Prosperity 3 study. The results of this study were released in June 2007.  

 

National Study Results

AEP3 full National study results (PDF)

Tacoma Study Results

AEP3 full Tacoma study results (PDF)
AEP3 summary of Tacoma study results (PDF)


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