Phoenix’s arts and culture organizations generate over $400 million in economic activity annually, according to a new report released Tuesday.
The Arts and Economic Prosperity Report, a study of arts and community impact, released every five years by the national arts advocacy group Americans for the Arts was unveiled for Phoenix Tuesday morning at the Arizona Opera. For this report, the group studied 2015.
The report found that Phoenix’s not-for-profit arts and cultural organizations with the help of their audiences managed to contribute upwards $400 million for Phoenix’s economy.
“The level of economic activity that the arts contribute to this community is on a scale that people simply don’t understand,” President and CEO of the Phoenix Symphony Association Jim Ward said.
Additional speakers at the event included Mayor Greg Stanton and Randy Cohen, the Vice President of Research and Policy for the Americans for the Arts. A clear message Cohen wanted to deliver at this event is the need to change the story of nonprofit arts from “one of charity to one of business.”
The report is a conclusive study of the economic impact of not-for-profit arts and culture organizations and their audiences. Phoenix was one of 341 nationwide regions included in this study.
Nationally, the picture is looking just as good for the arts. According to the AEP5 report, the nonprofit organizations generated $166.3 billion nationally in 2015. This included $63.8 billion by the arts and culture organizations and $102.5 billion by their audiences.
In Phoenix, the city’s overall economic activity totaled $401.8 million. Of that, $164.6 million was spent by the nonprofit arts organizations, through paying their employees, purchasing supplies or services, etc., and $237.5 million in event related spending by audiences.
Audiences were a driving force in the report. Event-related spending made up more than half of the total spending for Phoenix alone. This type of spending is when people go out to eat before an event, pay for parking or spend the night in a hotel, which aids both the city’s economy and local businesses.
The AEP5 said nearly 7 million people attended arts and cultural events in 2015, with each person spending an average of $34.80.
The arts help drive tourism in Phoenix, with tourists as one in five attendees, according to Estrella Payton, the outreach program manager for the City of Phoenix Office of Arts and Culture. Visitors from outside of Maricopa county spent an average of 159 percent more than residents, an average of $68.80 per person, according to the report.
This spending on arts and culture events also fuels Phoenix’s economy by creating jobs and revenue for local and state government. According to the AEP5 report, investing in the nonprofit arts and culture organizations supports 12,815 full-time jobs. It also generates $285.5 million in household income to local residents and delivers $45.5 million to local and state revenue.
Despite the findings of arts and culture as a rising industry in Phoenix, some feel more could be done to support these local not-for-profit organizations. According to Jen Rogers, President and CEO of Phoenix Chorale, the bulk of revenue for these organizations comes from individuals. He said organizations need more corporate support.
“We’re all having to do more with less,” Rogers said.
By comparison, Rogers said, in Columbus, Ohio, arts and culture non-profit organizations received $13 million in corporate funding. In Phoenix, corporate funding is $6 million, less than half of that of Columbus’.
“Businesses in particular need to understand that an investment in the arts is not a charitable act.” Ward said. “It is a strategic decision that they are making for their own benefit for long term economic prosperity.”
Contact the reporter at dsauer2@asu.edu.
