Arts and Economics

Most of us appreciate the intrinsic benefits of the arts - their beauty and vision; how they inspire, soothe, provoke, and connect us. But there exists a common misconception that communities support arts and culture at the expense of economic development. The fact is that communities who support the arts are investing in an industry which is the cornerstone of tourism: an industry that supports jobs and generates government revenue. There is no better indicator of the spiritual health of a city, its neighborhoods, and the larger region than the state of art. The arts deepen our understanding of the human spirit, extend our capacity to comprehend the lives of others and allow us to imagine a more humane world through their diversity of feeling, their variety of form, their multiplicity of inspiration.

A common theory of community growth is that an area must export  goods and services if it is to prosper economically. The theory is called economic base theory, and it depends on dividing the economy into two sectors: the export sector and the local sector. Exporters such as automobile manufacturers, hotels and department stores, obtain income from customers outside of the community. This "export income" then enters the local economy in the form of salaries, purchase of materials, dividends etc.

As communities compete for a tourist's dollar, arts and culture have proven to be magnets for travelers and their money. Local businesses are able to grow because travelers extend the length of their trips to attend cultural events. Nonprofit arts and culture organizations pay their employees, purchase supplies, contract for services, and acquire assets from within their communities. Arts and culture organizations - businesses in their own right, leverage additional event-related spending by their audiences that pump vital revenue into restaurants, hotels, retail stores, and other local businesses. When patrons attend a performing arts event, they may park their car in a toll garage and purchase dinner at a restaurant. Valuable commerce is generated for local merchants. Spending by nonprofit arts and culture organizations provides rewarding employment for more than just artists, curators and musicians. It also directly supports builders, plumbers, accountants, printers and an array of occupations spanning many industries.