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The Economic Impacts of Arts & Culture
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Direct and Induced Impacts
Arts and culture in the Central Okanagan directly creates 1,592 jobs (1,198 full-time equivalent jobs), with a direct GDP impact of $37.3 million. Adding the induced impact of arts and culture on employment through the spending and respending of wages and salaries paid to cultural workers, and to workers in other supporting sectors,1 the cultural economy accounts for 2,368 total jobs (1,896 full-time equivalent jobs), and a total GDP impact of $67.1 million.
The cultural economy is comprised of two components: the non-profit, and the for-profit. The non-profit component accounts for $10.4 million in direct GDP impact, or about 28 percent. Non-profit arts education contributes 13 percent of direct GDP, followed by cultural facilities (9.3 percent), performing arts, events and festivals (5 percent), and societies and associations (less than 1 percent). Tables 1, 2 and 3 (below), illustrate the direct and induced economic impacts of arts and culture.
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TABLE 1
DIRECT AND INDUCED ECONOMIC IMPACTS OF ARTS AND CULTURE
(FISCAL YEAR 1995-96)
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| Type of Impact |
Direct
Impact
|
Induced
Impact
|
Total
Impact
|
| Employment |
1,592
|
776
|
2,368
|
| (Full-time equivalents) |
(1,198)
|
(698)
|
(1,896)
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| Gross Domestic Product ($) |
37,298,000
|
29,838,000
|
67,136,000
|
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TABLE 2
EMPLOYMENT: DIRECT AND INDUCED IMPACT OF ARTS AND CULTURE
(FISCAL YEAR 1995-96)
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| Sector |
Direct Job Impact
|
Induced Job Impact
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Total Job Impact
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Full-Time Equivalents
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| Art Galleries & Dealers |
64
|
39
|
103
|
89
|
| Arts Instruction & Education |
255
|
180
|
435
|
356
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| Commercial Arts |
147
|
81
|
228
|
191
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| Performing Arts |
77
|
38
|
115
|
87
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| Visual Arts |
114
|
44
|
158
|
128
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| Literary Arts |
8
|
-
|
8
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5
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| Events & Festivals |
88
|
10
|
98
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32
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| Cultural Facilities |
158
|
72
|
230
|
182
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| Service & Material Providers |
666
|
307
|
973
|
810
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| Societies & Associations |
15
|
5
|
20
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16
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| Total |
1,592
|
776
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2,368
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1,896
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TABLE 3
GROSS DOMESTIC PRODUCT
DIRECT AND INDUCED IMPACT OF ARTS AND CULTURE
(FISCAL YEAR 1995-96)
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| Sector |
Direct Impact ($)
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Induced Impact ($)
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Total Impact ($)
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| Art Galleries & Dealers |
1,867,000
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1,494,000
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3,361,000
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| Arts Instruction & Education |
8,656,000
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6,924,000
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15,581,000
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| Commercial Arts |
3,880,000
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3,104,000
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6,984,000
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| Performing Arts |
1,816,000
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1,453,000
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3,269,000
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| Visual Arts |
2,125,000
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1,700,000
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3,825,000
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| Literary Arts |
N/A
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N/A
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N/A
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| Events & Festivals |
473,000
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378,000
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851,000
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| Cultural Facilities |
3,470,000
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2,776,000
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6,246,000
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| Service & Material Providers |
14,771,000
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11,817,000
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26,588,000
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| Societies & Associations |
240,000
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192,000
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432,000
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| Total |
37,298,000
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29,838,000
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67,136,000
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1 The induced impact of arts and culture on employment was calculated on the basis of 26 jobs in BC per $ million of (induced) GDP, as reported by Statistics Canada.
Impact of the Non-Profit Performing Arts
Non-profit performing arts groups rely on public funding and business support, along with donations and fundraising, to supplement earned revenues. Public funding is especially important to performing arts groups, often being the difference between a group's survival and demise. As such, public funding of the performing arts, in addition to securing the purchase of a public good on behalf of the community, helps to ensure the performing arts' contribution to the economy.
Table 4 (below) illustrates revenue sources and revenue levels for the region's non-profit performing arts groups and festivals. It is worth noting that, in fiscal year 1995-96, only 20 percent of revenues was derived from public sources.
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TABLE 4
REVENUES OF NON-PROFIT PERFORMING ARTS GROUPS AND FESTIVALS
(FISCAL YEAR 1995-96, AS PER SAMPLE INFORMATION ONLY)
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| Sector |
Earned Revenues*
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Donations & Fundraising
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Public Funding+
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Business Support++
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| Non-Profit Performing Arts Groups & Festivals |
$547,000 (42%)
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$347,000 (27%)
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$258,000 (20%)
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$144,000 (11%)
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* Includes admissions and memberships. +Includes funding from all government agendas. ++Includes estimated value of donations-in-kind.
Table 5 (below) analyzes the impact on the economy of non-arts groups and festivals that receive public funding.
The economy's total GDP impact from publicly funded groups and festivals is $2,127,000. Public funding for these groups and festivals is $258,000. When the relationship between public funding and total GDP impact is expressed as a cost benefit ratio, the economy enjoys $7.24 in GDP impact for each dollar of public support. In addition to this GDP impact, attendance at events and festivals also creates significant peripheral impacts.
TABLE 5
COST-BENEFIT ANALYSIS OF PUBLIC FUNDING
OF THE NON-PROFIT PERFORMING ARTS
(FISCAL YEAR 1995-96, AS PER SAMPLE INFORMATION ONLY)
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| Sector |
Public
Funding
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Total GDP
Impact
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Cost-Benefit Ratio*
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| Non-Profit Performing Arts Groups & Festivals |
$258,000
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$2,127,000
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1: 7.24
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* Cost-Benefit Ratio: Total GDP impact less public support, divided by public support.
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