You are here

Arts and Culture Overview

Economic Impact of Arts-Related Creative Enterprises

In Western North Carolina, the arts provide jobs, attract visitors, create products, influence consumer spending, and build community vitality. One way to assess the health of the region's arts-related "creative economy" is with a diagnostic tool known as the Creative Vitality Index (CVI). In the CVI, an area’s creative economy is defined as including for-profit and nonprofit arts-related creative enterprises and the key support and service activities that sustain them.

In the accompanying table, the CVI scores for Western North Carolina are compared with state and national averages, which are each set to a benchmark index score of 1.00. For example, compared to the state average, the CVI score for Art Gallery and Individual Artist Sales in Western North Carolina is 1.417, meaning that sales in Western North Carolina are 41.7% higher than in the state as a whole (on a per capita basis).

Compared to the state average, Western North Carolina’s strongest indicators were the revenues of arts-related nonprofit organizations and sales by art galleries and individual artists. Compared to the national average, the region’s strongest indicators were jobs in creative occupations, the revenues of arts-related nonprofit organizations, and book and record store sales. In 2011, total jobs in the creative sector of Western North Carolina were 14,233 (see Creative Occupations for breakdown), total industry sales were $126,304,000, and arts nonprofit revenues totaled $71,844,852.

Arts Organizations are those with a primary mission to pursue or support artistic endeavors. Examples include performing groups, art museums, and art studios.

Arts-Active Organizations are non-arts organizations providing arts activity.

Creative Vitality Index Indicators, 2011


Description

Western North Carolina*
Index Value**
(compared to state)
Index Value**
(compared to nation)
Population 1,118,419    
Industry Data      
Photography Store Sales $1,058,000 0.541 0.255
Music Store Sales $8,253,000 1.032 0.777
Book and Record Store Sales $22,424,000 1.093 0.787
Art Gallery and Individual Artist Sales $76,226,000 1.417 0.561
Performing Artist Participation $18,343,000 1.001 0.331
Non-Profit Data      
Arts Organization Revenue $39,652,255 1.518 0.811
Arts-Active Organization Revenue $32,192,597 1.413 0.543
Occupation Data      
Total Jobs 14,233 1.034 0.832
Total CVI **   1.113 0.684

* Data are available for 23 counties: Alleghany, Ashe, Avery, Buncombe, Burke, Caldwell, Cherokee, Clay, Graham, Haywood, Henderson, Jackson, Macon, Madison, McDowell, Mitchell, Polk, Rutherford, Swain, Transylvania, Watauga, Wilkes, and Yancey.

** The CVI score of Western North Carolina is compared to a score of 1.00, which represents the state or national average.

 

Economic Impact of Nonprofit Arts and Culture Organizations

Another assessment of the economic impact of the arts on the region’s economic prosperity can be found in Arts & Prosperity IV, a national study conducted by Americans for the Arts – a national nonprofit organization dedicated to advancing the arts and arts education – to document the economic impact of the nonprofit arts and culture industry in 182 communities and regions in the United States. The accompanying tables detail findings from the Arts & Prosperity IV study showing the 2010 economic impact of nonprofit arts and culture organizations and their audiences in 23 of the Mountain Resources Commission (MRC) counties (study findings include all MRC counties except Alexander, Cleveland, Surry, and Yadkin).

Direct Economic Activity Arts and Culture Organizations + Arts and Culture Audiences = Total Industry Expenditures
Total Industry Expenditures $79,333,828   $60,702,118   $140,035,946

Spending by Arts and Culture Organizations and Their Audiences Supports Jobs and Generates Government Revenue

Total Economic Impact of Expenditures
(Direct & Indirect Impacts Combined)
Economic Impact of Organizations + Economic Impact of Audiences = Total Economic Impact
Full-Time Equivalent (FTE) Jobs Supported 2,942   1,713   4,655
Household Income Paid to Residents $65,281,000   $42,568,000   $107,849,000
Revenue Generated to Local Government $2,095,000   $4,233,000   $6,328,000
Revenue Generated to State Government $2,472,000   $3,811,000   $6,283,000

Event-Related Spending by Arts and Culture Audiences Totaled $60.7 million (excluding the cost of admission)

Attendance to Arts and Culture Events Resident* Attendees   Non-Resident* Attendees   All Cultural Audiences
Total Attendance to Arts and Culture Events 682,405   293,854   976,259
Percentage of Total Attendance 69.9%   30.1%   100%
Average Event-Related Spending per Person $16.66   $58.90   $29.59
Total Event-Related Expenditures $35,332,738   $35,369,380   $60,702,118

Nonprofit Arts and Culture Event Attendees Spend an Average of $29.59 per person (excluding the cost of admission)

Category of Event-Related Expenditure Resident* Attendees   Non-Resident* Attendees   All Cultural Audiences
Meals and refreshments $9.82   $19.11   $12.64
Souvenirs and gifts $2.55   $7.96   $4.18
Ground transportation $1.66   $7.22   $3.55
Overnight lodging (one night only) $0.73   $19.35   $6.49
Other/miscellaneous $1.90   $5.26   $2.93
Average Event-Related Spending per Person $16.66   $58.90   $29.59

* For the purpose of the analysis, residents are attendees who live within the counties of Alleghany, Ashe, Avery, Buncombe, Burke, Caldwell, Cherokee, Clay, Graham, Haywood, Henderson, Jackson, Macon, Madison, McDowell, Mitchell, Polk, Rutherford, Swain, Transylvania, Watauga, Wilkes, and Yancey. Non-residents live outside the region.

References

WESTAF. 2011. Creative Vitality Index. Courtesy of North Carolina Arts Council, https://cvi.westaf.org.

Arts & Economic Prosperity IV: The Economic Impact of Nonprofit Arts and Culture Organizations and Their Audiences in the State of North Carolina. For more information about this study or about other cultural initiatives in the State of North Carolina, visit the North Carolina Arts Council’s website at www.ncarts.org. Copyright 2012 by Americans for the Arts (www.AmericansForTheArts.org).