MD Arts & Culture Industry Generates $961.6 million in Economic Activity
Results show that nonprofit arts and culture organizations spent $511.4 million during fiscal year 2015. This spending is far-reaching: organizations pay employees, purchase supplies, contract for services and acquire assets within their community. Those dollars, in turn, generated $643.5 million in household income for local residents.
“The long-term investments made in the Maryland arts sector continues to support and sustain a creative industry which, in turn, helps to grow communities both economically and socially,” said Nicholas Cohen, Executive Director of Maryland Citizens for the Arts. “It is no coincidence that Maryland is ranked fourth in the country in per-capita arts funding and enjoys some of the most diverse and culturally significant artistic endeavors in the nation!”
Nationwide, the Arts & Economic Prosperity 5 reveals that the nonprofit arts industry produces $166.3 billion in economic activity every year, resulting in $27.54 billion in federal, state and local tax revenues. In addition, it supports 4.6 million full-time equivalent jobs and generates $96.07 billion in household income.
“This study demonstrates that the arts are an economic and employment powerhouse both locally and across the nation,” said Robert L. Lynch, president and CEO of Americans for the Arts. “A vibrant arts and culture industry helps local businesses thrive and helps local communities become stronger and healthier places to live. Leaders who care about community and economic vitality can feel good about choosing to invest in the arts. Nationally as well as locally, the arts mean business.”
Arts Industry Boon for Local Businesses and Tourism
In addition to spending by organizations, the nonprofit arts and culture industry in Maryland leverages $450.2 million in event-related spending by its more than 16.3 million attendees to arts events. 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. Non-Maryland residents comprise more than 15 percent of total attendees at Maryland arts events each year. These nonresidents spend on average nearly double that of residents (on average $22.87 per person versus $41.47 per person).
“A thriving arts sector is absolutely vital to Maryland’s economy,” said Matthew D. Gallagher, President of the Goldseker Foundation and Chair of MCA Board of Trustees. “Investments in arts and cultural institutions pay enormous dividends by expanding local hiring, creating ancillary business opportunities, and generating local and state taxes.”
About the Study
Maryland Citizens for the Arts partnered with Americans for the Arts to create the statewide Arts & Economic Prosperity 5 study for Maryland. Maryland’s statewide study was supported by the Robert W. Deutsch Foundation. Findings from this study were gathered through information from 522 nonprofit arts and cultural organizations across the state. For Maryland’s full Arts & Economic Prosperity 5 study, visit http://mdarts.org/community/aep-5/.
Click here for the Arts & Ecnomic Prosperity 5 Press Release.