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Arts & Economic Prosperity

AEP6 logo

2022-2023 Arts & Economic Prosperity Study Overview

From May 2022 - April 2023, the City of Tacoma's Office of Arts & Cultural Vitality is  participating in a national study called Arts & Economic Prosperity 6. The study is conducted approximately every five years to gauge the economic impact (on employment, government revenue, and household income) of spending by nonprofit arts and culture organizations and the event-related spending by their audiences. Find out more about the current study here. 

 

Tacoma participated in the same study in 2006, 2011, and 2016. Find out more and read the results of those previous studies below.

2016 Arts & Economic Prosperity Study Overview AEP5 logo

In 2016, the City of Tacoma's Office of Arts & Cultural Vitality participated in a national study called Arts & Economic Prosperity 5. The study documented the economic impact that nonprofit arts and culture organizations, and their audiences, have on the economy, both locally and nationally.

 

About the Study

This study was conducted by Americans for the Arts to document the economic impact of the nonprofit arts and culture industry in 341 communities and regions (113 cities, 115 counties, 81 multicity or multicounty regions, 10 states, and 12 individual arts districts)—representing all 50 U.S. states and the District of Columbia. The diverse communities range in population (1,500 to more than 4 million) and type (small rural to large urban). Project economists from the Georgia Institute of Technology customized an input-output analysis model for each participating region to provide specific and localized data on four measures of economic impact: full-time equivalent jobs, household income, and local and state government revenue. These localized models allow for the uniqueness of each local economy to be reflected in the findings.

 

Americans for the Arts partnered with 250 local, regional, and statewide organizations that represent the 341 study regions (30 partners included multiple study regions as part of their participation). Data was gathered from 14,439 organizations and 212,691 audience spending surveys and project economist customized input-output models for each and every study region to ensure reliable and actionable localized results.

 

To complete this customized analysis for the City of Tacoma, the City of Tacoma’s Office of Arts & Cultural Vitality joined the study as one of the 250 partners. In the City of Tacoma, 66 of the 118 eligible nonprofit arts and cultural organizations participated in this study. In addition, a total of 1,124 valid audience-intercept surveys were collected from attendees to nonprofit arts and cultural performances, events, and exhibitions during 2016.

 

National Study Results

America's nonprofit arts and culture industry generates $166.3 billion in economic activity every year - $63.8 billion in spending by organizations and an additional $102.5 billion in event-related spending by audiences (not including cost of event admission). The national impact of this activity is significant, supporting 4.6 million jobs and generating $27.5 billion in government revenue. 

AEP 5 full National study results (PDF)
AEP 5 summary of National study results (PDF)

Economic Impact of the Nonprofit Arts and Culture Industry Nationwide

(expenditures by both organizations and audiences)

Total Expenditures 

$166.3 billion

Full-Time Equivalent Jobs

4.6 million

Resident Household Income

$96.07 billion

Government Revenue

$27.5 billion

 

Tacoma Study Results

The nonprofit arts and culture sector is a significant industry in the City of Tacoma—one that generates $137.2 million in total economic activity. This spending—$74.6 million by nonprofit arts and cultural organizations and an additional $62.6 million in event-related spending by their audiences (not including cost of event admission)—supports 3,656 full-time equivalent jobs, generates $86 million in household income to local residents, and delivers $14 million in local and state government revenue. This economic impact study sends a strong signal that when we support the arts, we not only enhance our quality of life, but we also invest in the City of Tacoma’s economic well-being.

AEP 5 full Tacoma study results (PDF)
AEP 5 summary of Tacoma study results (PDF)

Economic Impact of the Nonprofit Arts and Culture Industry in Tacoma 

(expenditures by both organizations and audiences)

Total Expenditures  $137.2 million
Full-Time Equivalent Jobs Supported 3,656 
Resident Household Income $86.04 million
Local Government Revenue $5.98 million
State Government Revenue $7.98 million

                                                                             
This study also tracked the event-related spending by audience members. Of the 2,703,154 nonprofit arts and culture audience members in 2015 (this number was reported by the 66 organizations who participated in the study), 72.6% reside within Pierce County and 27.4% reside outside Pierce County. Furthermore, audience surveys reveal that non-local attendees spend an average of 53% more than their local counterparts. 

 

Event-Related Arts and Culture Audience Spending in Tacoma by Residents of Pierce County

(expenditures do not include cost of event admission)

 

Resident Attendees  1,962,490
Percent of Total Attendees 72.6%
Per Person Spending Average $20.23
Total Spending $39,701,173

                                                                     

Event-Related Arts and Culture Audience Spending in Tacoma by Non-Residents of Pierce County

(expenditures do not include cost of event admission)

 

Non-Resident Attendees  740,664
Percent of Total Attendees 27.4%
Per Person Spending Average $30.87
Total Spending $22,864,298

 

Frequently Asked Questions

What do all these figures mean?
Communities that invest in the arts reap the additional benefits of jobs, economic growth, and a quality of life that positions those communities to compete in our 21st century creative economy.

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).

What are the Tacoma findings based on?
Tacoma's study results are based solely on actual survey data collected, not on fiscal projections. In the City of Tacoma, 66 of the 118 total eligible nonprofit arts and culture organizations identified by the City of Tacoma's Office of Arts & Cultural Vitality responded to the survey - a response rate of 55.9%. Figures given in the study results are based solely on the information provided by these 66 organizations. Data was also collected from 1,124 event attendees during 2016 through an audience-intercept methodology. The 66 nonprofit arts and culture organizations that responded to the detailed organizational survey reported that the aggregate attendance to their events was 2.7 million.

How was the survey data analyzed?
To derive the most reliable economic impact data, input-output analysis was used by project economists from the Georgia Institute of Technology to measure the impact of expenditures by nonprofit arts and cultural organizations and their audiences. This highly-regarded type of economic analysis has been the basis for two Nobel Prizes in economics. The models are systems of mathematical equations that combine statistical methods and economic theory in an area of study called econometrics. The analysis traces how many times a dollar is respent within the local economy before it leaves the community, and it quantifies the economic impact of each of those rounds of spending. Project economists customized an input-output model for each of the 341 participating study regions based on the local dollar flow among 533 finely detailed industries within its economy. This was accomplished by using detailed data on employment, incomes, and government revenues provided by the U.S. Department of Commerce (County Business Patterns, the Regional Economic Information System, and the Survey of State and Local Finance), state and local tax data (e.g., sales taxes, lodging tax, property taxes, income tax, and miscellaneous local option taxes), and the survey data collected from the responding arts and cultural organizations and their audiences.

 

AEP IV logo

2011 AEP IV Study

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

 

National Study Results

AEP IV full National study results (PDF) 
AEP IV summary of National study results (PDF)

Tacoma Study Results

AEP IV full Tacoma study results (PDF)
AEP IV summary of Tacoma study results (PDF)

AEP III logo

2006 AEP III Study

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

 

National Study Results

AEP III full National study results (PDF) 

Tacoma Study Results

AEP III full Tacoma study results (PDF)
AEP III summary of Tacoma study results (PDF)