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"The Arts: A Driving Force in Brainerd Lakes Economy"
An Arts Economic Impact Study
03/08/2006
The Arts: A Driving Force in
Minnesota’s Economy
With Local Report: The Arts: A Driving Force in the Brainerd Lakes
Area’s Economy
STATEWIDE RESEARCH HIGHLIGHTS:
Arts and culture organizations surveyed: 1584
Audience economic impact: $352,681,956
Organization economic impact $485,845,713
Total economic impact $838,527,669
Jobs supported by the arts in Minnesota: 22,095
Every region of the state had over $1 million in economic impact, no
matter how rural.
The Seven County Metro’s nonprofit arts industry is 2 1/2 times larger
than similar population centers studied such as Houston, TX, Miami-Dade, FL, and
St. Louis, MO.
The return on investment in government revenue is $11 to $1
Non-resident tourist attendees spend $44.82 per person per event,
much more than locals who spend $21.57.
The Arts: A Driving Force in The Brainerd Lakes Area’s Economy:
LOCAL RESEARCH HIGHLIGHTS:
The Brainerd Lakes Area:
Cass, Crow Wing, Morrison, Todd, and Wadena counties
Arts and culture organizations surveyed: 38
Audience economic impact:
$335,026
Organization economic impact
$685,425
Total economic impact:
$1,020,451
A new study released today as part of Arts Advocacy Day at the
Capitol reveals that Minnesota’s nonprofit arts and culture industry is a
driving force in Minnesota’s economy, with $838.5 million in annual
economic impact that supports 22,095 full-time jobs and generates over
$94 million in state and local government revenues. The report also shows
that Minnesotans are enthusiastic consumers of arts and culture: total audience
participation in the state was 14,487,592 million participants.
In The Brainerd Lakes Area, the research found a $1 million nonprofit
arts and culture industry that supports 35 full time jobs and generates
$109,000 in state and local government revenue. Total audience
participation in The Brainerd Lakes Area was 18,470 attendees.
"Five Wings is excited about the study findings for the arts in the region; the
economic impact of over a million dollars will grab anyone's attention!,” said
Mark Turner, Executive Director of the Five Wings Arts Council.
"The arts are an important part of our communities that are often overlooked as
a part of an economic development strategy,” said Nancy Straw, President of the
West Central Initiative Fund. “We are pleased to see the economic contribution
of the arts measured and quantified in this report."
The study, which analyzes the data by geographic region of the state, is the
first comprehensive economic impact study of the arts and culture ever conducted
in Minnesota. The message of the report, The Arts: A Driving Force in
Minnesota’s Economy, is simple: the nonprofit arts are an
important industry throughout the state contributing to Minnesota’s bottom line
and helping to create vibrant local economies. The statewide report is
accompanied by eleven regional reports demonstrating that the excellence, scope,
and diversity of cultural activity in every corner of the state and in Minnesota
as a whole goes beyond contributing to Minnesota’s quality of life. The arts and
culture industry also makes a significant contribution to the entire state’s
economy.
“We’re delighted to have data demonstrating the dramatic contribution that
Minnesota’s robust arts and culture industry is having throughout the state,”
stated Sheila Smith, Executive Director of Minnesota Citizens for the Arts.
“Coupled with increased recognition of the importance of creative communities to
staying competitive in the changing global marketplace, the data demonstrate
what arts groups and their supporters have been saying for a long time: the arts
have a crucial role to play in Minnesota’s future economic growth. For a very
small investment by the state of Minnesota, the arts and culture industry can be
leveraged to create jobs, to revitalize communities, and to educate our children
while helping to drive Minnesota’s economy.”
The regional results of the study will be discussed at a meeting at 6:00 p.m. on
March 28 at The Five Wings Arts Council Conference Room, 200 First Street NE, in
Staples.
“The study results show what many of us have known all along, that the arts are
not only important to quality of life but more people come here because of the
access to studio and performing arts in the area,” said Frank Moe, Minnesota
State Representative.
EXECUTIVE SUMMARY AND KEY FINDINGS
A Conservative Estimate
The study looks exclusively at Minnesota’s non-profit arts
and culture industry and quantifies data only for the reporting organizations
(428 out of 1584 organizations surveyed). Had more organizations responded, the
numbers would have been even greater.
In addition, for profit arts (like movies or Broadway), schools, and individual
artists were excluded from the research. Adding data from the for-profit arts
and culture sector and individual artists would add billions of dollars to
complete the picture of the full economic impact of Minnesota’s creative
industries. For instance, a 2005 look at the state’s (primarily for-profit)
creative industries by Americans for the Arts (www.artsusa.org) found
that 10,427 arts-related businesses employed 58,308 Minnesotans, and a
2001 CODA (www.codacraft.org) study found that the more than 4,800
fine craft artists in the state generate $228 million in annual economic
impact. Further studies into the economic impact of individual artists are
planned.
JOBS, JOBS, JOBS
According to the study, just under one percent of all of
the jobs in Minnesota are in the non-profit creative industries, from designers
to curators, electricians to administrators, and musicians to touring artists.
Participating organizations reported that they employ 13,211 paid staff.
An additional 8,884 jobs are supported by related organization and
audience spending. Overall, this study finds 22,095 jobs supported by the
arts and culture industry.
The number of jobs supported by these non-profit arts organizations dwarfs the
jobs created by other important Minnesota industries such as mining (5,207),
highway, street and bridge construction (5,538), veterinary services (4,894),
dentists (14,271) and spectator sports (11,164), according to figures from the
U.S. Census 2003 County Business Patterns, NAICS. (http://www.census.gov/epcd/cbp/view/cbpview.htm).
According to a 2001 report by the National Governor’s Association Center for
Best Practices, (www.nga.org/portal/site/nga) “If states intend to
build their economies on the jobs of the future and improve rural
communities…they must cultivate a creative workforce and attract arts-based
businesses.” Minnesota’s high number of jobs in the creative industries are
coveted by other states working to increase their numbers of knowledge workers
and cultural creatives, which are so important to fueling the economic expansion
in the New Economy.
A more recent report by the National Governor’s Association report asserted,
“Investment in the arts may be among the most innovative workforce development
tools at the disposal of state governments.”
"Throughout McKnight's history of arts funding, we've consistently seen the
great value the arts bring to the quality of our communities. The arts can play
a central role in regional economic growth and vitality; investing in them is
both good policy and good business," said Peg Birk,
McKnight Foundation Interim President.
CULTURAL TOURISM A DRAW IN MINNESOTA
The arts are Minnesota’s draw for both national and international
tourism. The study found that 12 percent of Minnesota’s arts and culture
audiences come from outside of the state, spending an average of
$44.82 per person at each arts event, capturing a total of $77,465,531 in
new audience spending for Minnesota’s economy. In addition, the 88
percent of non-profit arts and culture audiences which are made up of
Minnesotans are spending an average of $21.57 per person per event,
for total in-state audience spending of $275,216,424, capturing the
dollars of local citizens who are spending their arts money locally rather than
leaving the state.
Minnesota is especially attractive to families with children who are interested
in educational and fun hands-on activities. Cultural tourism is the fastest
growing segment of the tourism industry, up 13 percent between 1996 and 2002,
according to the Travel Industry Association of America. (www.tia.org/index.html)
Cultural travelers also spend more money - $631 vs. $457, and stay longer – one
to three more nights, than other travelers. They are hungry to have authentic
and interesting experiences at the places they visit. On average, they schedule
five cultural activities per trip.
"In the last five days, visitors to the Prairie Renaissance Cultural Center on
Main Street in Morris have come from Brainerd, Milwaukee, Albuquerque, and
Abuja, Nigeria. These visitors aren’t on Main Street running a quick errand in
one store; they’re taking their time in a town that is not known as a tourist
mecca. After leaving our gallery, they might stop at the antique and gift store
across the street, check out the local foods at our co-op food store, and then
grab lunch at the non-profit coffeehouse down the street,” said Athena
Kildegaard, Director of the Prairie Renaissance Cultural Alliance in Morris.
In The Brainerd Lakes Area, 83% of the region’s arts and culture attendees are
residents – the highest in the state. Resident attendees spent $16.31 per person
per event, excluding the cost of the ticket. Non-resident attendees spent much
more: $27.29 per person per event. The survey’s audience figures show that the
region has a high potential for using its arts and culture resources to increase
tourism revenue by making the region more attractive to a broader range of
visitors. But it also shows that the region is doing very well in providing
attractive arts and culture opportunities to its own residents, who are spending
money locally rather than going outside of the region for arts activities.
"Our community is more than three hours from the Twin Cities and over an hour
from any larger community like Brainerd or Little Falls that might host an
artistic concert. The people of our community tend to invest their time and
efforts closer to home and gratefully support our local artistic efforts,” said
Joyce Manning, Chorale Director of the Northern Lights Chorale in Sebeka.
STATE AND LOCAL GOVERNMENT REVENUES: OVER $94 MILLION
Cultural workers are taxpayers too. The study found
$21,053,000 in local government revenues and $73,094,000 in state
government revenues, for a total of $94 million in total government
revenues from non-profit arts and culture. The non-profit arts and culture
industry sparks jobs and activities that produce more jobs, plus state and local
revenue and taxes. In the community of Lanesboro, for example, the Commonweal
Theater Company is the community’s largest private employer. In addition, its
employees live in the community and contribute to its development by being
involved in the schools, volunteering on various boards, and even serving on the
Lanesboro City Council.
State and local government revenues from the non-profit arts in The Brainerd
Lakes Area totaled $109,000 million in 2004.
"Arts organizations play an important role in building and sustaining economic
vibrancy in our local communities,” said Congressman James Oberstar. “They
provide meaningful employment, spend money locally, generate revenue, and are a
cornerstone of tourism and economic development. Investing in the arts is good
policy and good business."
STATE INVESTMENT IN THE ARTS PAYS DIVIDENDS
The return on legislative state arts funding is dynamic.
Minnesota invests in the arts primarily via grants from the Minnesota State Arts
Board and Regional Arts Councils. (www.arts.state.mn.us/racs/index.htm).
Each legislative dollar invested in the Minnesota State Arts Board and Regional
Arts Councils is matched by local dollars. With over $94 million returned
in state and local government revenue for the $8.5 million the state invests in
grants to the non-profit arts, there is a return on investment to the state
of nearly $11 for every state dollar invested.
VOLUNTEERS ADD VALUE
The arts draw upon an altruistic component of our communities
that rarely exist in any other industry. The arts potentially provide the
largest non-reimbursed workforce in the state with each of 44,544 arts
volunteers giving an average of 43 hours per year. Nearly one in
every 115 Minnesotans volunteered their time, talent and energy as board
members, ushers, docents or in other ways. Assigning a dollar value to these
services based on estimates from the Independent Sector (www.independentsector.org/pubs_cart.htm)
the financial value of this work is an impressive $34 million plus per year.
In The Brainerd Lakes Area, the research found 471 volunteers in the region
donating a total of 26,484 hours per year to local non-profit arts and culture
organizations.
AUDIENCE DEMOGRAPHICS
Demographic information was also collected from arts and culture
attendees. We find that the state’s 14.5 million annual attendees are from all
age ranges, and all education levels:
- 13% are under age 34, and 41% are between the ages of 35 and 54
- 21% of audiences had a high school degree or less education
- As for household income, and this goes against common wisdom, 47% reported an
annual household income of under $60,000, while only 18% of audiences studied
reported an annual household income of over $100,000 per year.
Participation in the arts and culture appears to be a middle class pursuit in
Minnesota.
In the Brainerd Lakes Area, the numbers were slightly different: 8% were under
age 34, 68% between the ages of 35 and 54, 26% had a high school degree or less
education, and 44% reported a household income of under $60,000 per year.
REPORTING ECONOMIC IMPACTS
The Arts: A Driving Force in Minnesota’s Economy,
the most comprehensive statewide economic impact study of the nonprofit arts and
culture industry ever conducted in Minnesota, was funded primarily by The
McKnight Foundation, and was conducted by Americans for the Arts, Minnesota
Citizens for the Arts, and the Forum of Regional Arts Councils of Minnesota. The
report includes eleven regional studies and one statewide report that provides
an aggregate view of arts economic activity across Minnesota from rural
communities, to small towns and urban areas of the state.
The study surveyed nonprofit arts and culture organizations, including theaters,
museums, galleries, historic sites and societies, local arts councils,
festivals, dance companies, literary groups, public art projects, folklife and
humanities organizations from every corner of the state. Organizations were
surveyed about their 2004 budgets, and the audience surveys were conducted in
all regions of the state between February and October 2005. The final reports
relied on 6889 completed audience surveys and 428 budget surveys filled out by
the organizations.
As Leon Heath, Northwest Regional Development Commission Executive Director,
said, “Art and Culture is a growth sector in the economy of Northwest Minnesota
and a critical part of the economic infrastructure. Arts creates high paying
jobs and the most desirable product offerings for local retailers; and there is
a growing understanding that attracting and keeping a high quality work force is
directly tied to the availability of high quality cultural and artistic
opportunities.”
Copies of all twelve reports are available for downloading from MCA’s website,
www.mtn.org/mca.
About the Five Wings Arts Council:
The Five Wings Arts Council is a
nonprofit organization dedicated to encourage and support the vitality of the
arts. The FWAC provides grants to community organizations, schools, and
individual artists in the region in addition to workshops and technical
assistance. Five Wings serves the counties of Cass, Crow Wing, Morrison, Todd,
and Wadena in central Minnesota.
***END***
For More Information Contact:
Five Wings Arts Council
200 1st St. NE
Tel: 218-894-5485
FAX: 218-894-3045
Internet:
mturner@ncscmn.org
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