Study Affirms Nonprofit Arts Industry as Economic Powerhouse in the Region

HOUSTON, Sept. 25, 2012 /PRNewswire/ -- Americans for the Arts, in partnership with Houston Arts Alliance (HAA), today revealed that the nonprofit arts and culture industry generates $977.7 million in annual economic activity in the 10-county region of the Greater Houston Area. It supports 29,118 full-time equivalent jobs and generates $130.4 million in local and state government revenues, according to the Arts & Economic Prosperity IV national economic impact study, released today at the Greater Houston Partnership's The Business of the Arts Luncheon. The most comprehensive economic impact study of the nonprofit arts and culture industry in the United States, Arts & Economic Prosperity IV was conducted by Americans for the Arts, the nation's leading nonprofit organization for advancing the arts and arts education.

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According to the study, nonprofit arts and culture organizations in the Greater Houston Area spent $414.6 million during fiscal year 2010. This spending is far-reaching: organizations pay employees, purchase supplies, contract for services and acquire assets within their community. Those dollars, in turn, generated $702.9 million in household income for local residents and $130.4 million in local and state government revenues.

"We all understand the intrinsic value of the arts," states City of Houston Mayor Annise Parker. "This study shows the economic power of the arts in creating jobs and attracting tourists. As the cornerstone of tourism and economic development, the arts are a good investment worthy of the City's continued commitment."

This study, conducted every five years, provides an important tool to measure the size and impact of the nonprofit arts and their audiences on the local community. For the first time in this study, HAA surveyed the 10-county region, the Greater Houston Partnership footprint, as well as Houston and Harris County, which has been surveyed in past studies. The comparison of the 2005 study with the latest findings in Harris County reveal a 39% increase in nonprofit arts economic activity.

"As we extend the service reach of HAA through programs such as Artshound.com and power2give.com to the 10-county region," says HAA CEO Jonathon Glus, "it is important to benchmark the growth and impact of nonprofit arts throughout the region, one of the fastest growing areas in the country. Similarly, our recent Creative Economy of Houston study measured the overall impact of the for-profit and nonprofit arts across the 10-county region, showing a $9.1 billion impact with more than 146,000 employees. Taken together, the studies validate each other in proving the arts and culture industry as an economic powerhouse.

"Furthermore, it is astounding to consider that, during the worst economic downturn the country has experienced since the Great Depression, this study, conducted in 2010, showed a 39% increase in Harris County over 2005," stated Mr. Glus. "This in itself demonstrates the resilience of the arts in Houston and the power of arts audiences."

Nationally, the Arts & Economic Prosperity IV study reveals that the nonprofit arts industry produced $135.2 billion in economic activity during 2010. This spending—$61.1 billion by nonprofit arts and culture organizations plus an additional $74.1 billion by their audiences—supported 4.1 million full-time equivalent jobs and generated $22.3 billion in federal, state and local tax revenues.

President and CEO of Americans for the Arts Robert L. Lynch discussed the Arts & Economic Prosperity IV study as the keynote speaker during the Greater Houston Partnership's The Business of the Arts Luncheon today. "This study shines a much-needed light on the vital role the arts play in stimulating and sustaining economic development," says Robert L. Lynch, president and CEO of Americans for the Arts. "Contrary to popular belief, the arts are a bustling industry that supports a plethora of diverse jobs, generates significant revenues for local businesses and to federal, state and local governments and provides quality of life that positions communities to compete in our 21st century creative economy." 

Arts Industry Boon for Local Businesses

In addition to spending by organizations, the nonprofit arts and culture industry leverages $563.1 million in event-related spending by its audiences in the Greater Houston Area. As a result of attending a cultural event, attendees often eat dinner in local restaurants, pay for parking, buy gifts and souvenirs, and pay a babysitter. What's more, attendees from out of town often stay overnight in a local hotel.  In the Greater Houston Area, these dollars support 13,099 full-time equivalent jobs and generate $77.5 million in local and state government revenues.

Cultural Events Attract Tourists and Retain Local Dollars

In the Greater Houston Area, researchers estimated that 86.4 percent of the 16.2 million nonprofit arts attendees were residents; 13.6 percent were non-residents. Non-resident attendees spend an average of 77 percent more per person than local attendees ($31.49 vs. $55.81) as a result of their attendance to cultural events. As would be expected from a traveler, higher spending was typically found in the categories of lodging, meals, and transportation. When a community attracts cultural tourists, it harnesses significant economic rewards.

Certainly, the Greater Houston Area's nonprofit arts and culture sector provides attractions that draw visitors to the community. In fact, 46.9 percent of all non-resident survey respondents reported that the primary reason for their trip was "specifically to attend this arts/cultural event." Furthermore, 43.2 percent of the Greater Houston Area's resident cultural attendees reported that they would have traveled to a different community in order to attend a similar cultural experience, while 52.8 percent of the Greater Houston Area's non-resident cultural attendees reported the same.

These figures demonstrate the economic impact of the nonprofit arts and culture in the purest sense. If a community does not provide a variety of artistic and cultural experiences, it will fail to attract the new dollars of cultural tourists. It will also lose the discretionary spending of its local residents who will travel elsewhere to experience the arts.

For study details, visit houstonartsalliance.com.

The Arts & Economic Prosperity IV study was conducted by Americans for the Arts and supported by The Ruth Lilly Fund of Americans for the Arts. Americans for the Arts' local, regional, and statewide project partners contributed both time and financial support to the study. The full text of the national statistical report is available at www.AmericansForTheArts.org/EconomicImpact.

Houston Arts Alliance (HAA) is a nonprofit agency established by the City of Houston to advance the arts on its behalf. HAA distributes grants to more than 220 nonprofit arts organizations and individual artists each year. In addition, HAA invests in and nurtures Houston's thriving creative community by commissioning the work of artists for public spaces, managing the city's civic art collection, showcasing Houston's rich folklife traditions, cultivating business volunteers and empowering arts organizations to become sustainable and reach new audiences. Visit www.houstonartsalliance.com for more information. For information on all events, visit HAA's online resource at www.artshound.com.

SOURCE Houston Arts Alliance