Arts & Economic Prosperity 6, an Americans for the Arts’ economic and social impact study of the nation’s non-profit arts and culture industry, has been released and it shows good news for how Tacoma’s arts and culture industry is a driver for our economy and community.
The largest and most inclusive study of its kind, AEP6 sends a strong signal that when we support the arts, we are investing in both economic and community well-being. The study provides detailed findings on 373 regions from across all 50 states and Puerto Rico ranging in population from 4,000 to 4 million and representing rural, suburban, and large urban communities. The study reveals that in 2022 overall, nonprofit arts and culture organizations and their audiences generated $151.7 billion in economic activity – $73.3 billion in spending by the organizations, which leveraged an additional $78.4 billion in event-related spending by their audiences.
The impact of this economic activity is far reaching, supporting 2.6 million jobs, generating $29.1 billion in tax revenue, and providing $101 billion in personal income to residents. The impact of this activity supports 2.6 million jobs, generating $29.1 billion in tax revenue, and providing $101 billion in personal income to residents.
In Tacoma, total spending by arts and culture organizations came in at $87,083,426, with $75,887,641 in total spending by arts audiences and $162, 971,067 in total spending by the entire non-profit arts and culture industry. Local tax revenue yielded $5,183,574, state tax revenue at $6,492,751 and federal tax revenue at $17,017,817. In total, attendance to in-person events came in at 2,230,790 with local attendees at 1,793,555 and non-local attendees at 437,235.
Audience surveys revealed that non-local attended spent an average of 55 percent more than their local counterparts. Average per-person, per-event expenditure for local attendees was $30.70 and $47.63 for non-local. Event related expenditures for local attendees was $55,062,138; $20,825,502 for non-local; for a total of $75,887,641 last year.
With its 30-year legacy, Americans for the Arts conducts this study every five years collecting data from more than 200,000 participants, giving civic building organizations like the Tacoma-Pierce County Chamber important data on investing in the creative economy and creative entrepreneurs and the more than 2,000 jobs provided locally.
“The local impact is real money and it is real jobs – good, family sustaining jobs and opportunities for our local small business communities,” Andrea Reay, president and CEO of the Tacoma-Pierce County Chamber, told the City of Tacoma’s “Tacoma Report.”
“As an artist and creative entrepreneur, you are a small business. When we’re looking at that collective economic impact, we’re looking at supporting our local families within the creative economy. It’s huge.”
Our local arts and cultural organizations are key in attracting people outside of Tacoma and Pierce County to come here for events and programs which includes spending money here. These are significant monetary contributions across industries and businesses, from entertainment venues like the Tacoma Dome to nearby restaurants and retail shops that benefit from the influx of people looking to spend their money on things to do and experience in Tacoma.
“The unique impact is that it’s not just a self-contained industry specific investment. It’s really something that is quite expansive,” Reay said. “It’s great to go the Taylor Swift concert at the Dome but you’re also going out to dinner, shopping at a local business, paying transportation costs… That investment is attraction from outside which is huge and we’re also retaining that local spending too. It’s about retaining local spending and local dollars and attracting new investment and spending as well. It’s an opportunity for us to showcase our amazing community to people who maybe wouldn’t ordinarily come.”
Tacoma participated in the Arts & Economic Prosperity study in 2006, 2011 and 2016 but study-to-study comparisons are not advised. This is because in 2022, the study expanded the inclusion criteria to include arts and culture, implemented new data collection methodology, and added social impact questions. In addition, the COVID-19 pandemic occurred, a recession followed, audiences decreased, attendance habits changed, the arts and hospitality industry suffered profound job losses, and billions of dollars through the CARES Act were distributed to the arts and culture sector as federal pandemic relief funding.
Reay said intentional efforts to lift up Tacoma’s arts and culture will continue through efforts like the Spaceworks Tacoma program, a joint initiative with the Chamber and City of Tacoma that has graduated more than 300 creative entrepreneurs since classes began in 2013.
“We work so collaboratively with each other and the more we can connect and support the work that we’re all doing, the better the outcomes,” she said. “Thank you to all the creative entrepreneurs in the arts and cultural organizations within the city of Tacoma that are doing this good, hard work every day to create a vibrant, thriving, equitable economic ecosystems.”