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Economic study reveals the impact of the arts on the business community

Most professionals outside the world of art will concede that art has its place in the world. Beauty soothes the soul, challenges the intellect and stirs the human spirit. In abstract, this can only be a good thing for society.

Many of these people would even go so far as to say they are art lovers and supporters. They see the personal benefits of the existence of the arts in their lives. Sometimes they find an evening at a concert or attending a gallery exhibit also provides professional benefits such as entertaining clients and networking with other like-minded individuals.

However, a recent study conducted by the Center for Business and Economic Research at the University of Kentucky reveals that art's importance to all Kentuckians – especially the business person – goes beyond even these obvious benefits.

First of all, $77.4 million in earnings is generated each year by working artists, arts organizations and employees of performing arts centers.

"The arts employ a lot of people. Every time we have a concert there are 90 people on stage that we have to pay, and those are all local people, with the exception of our guest artists," said Jeff Sperry, executive director of the Lexington Philharmonic. "In addition, we have people working behind the scenes on the program and stage and people working in the office. At least 70 percent of our budget is spent on personnel."

Lexington Children's Theatre Producing Director Larry Snipes agrees that the employees of arts organizations have a significant impact on the local economy.

"The majority of our budget is spent on people," he said, estimating that the amount exceeds a quarter of a million dollars.

But jobs are only the beginning of the arts contribution to the community.

Arts events also give a boost to tourism, hospitality and retail industries that totals more than $41.5 million in economic impact and 2,400 full-time jobs, according to the study.

"The community benefits from a large amount of indirect spending related to Philharmonic events," Sperry said. "When I stand in the lobby before a concert, I talk to many people who have made an evening of it – hiring a babysitter, going to dinner or out afterward."

While everyone knows that Kentuckians support basketball programs from high school through college, they also support their arts organizations.

The average Kentucky household spent over $100 attending arts performances and events last year. Nearly 1,270,000 people attended events at performing arts centers in Kentucky in 1996. One-third of all Kentucky households donated money, 12 percent donated time and 12 percent made in-kind donations to Kentucky arts organizations. The average donation was $48.73 per household. The total value of money, time and in-kind donations was $139.8 million in the last year.

In addition to the already stated benefits of supporting Kentucky's arts organizations, most of the money spent on Kentucky arts organizations stays in Kentucky, often in the very community that generated it. This creates a ripple effect of jobs and income throughout the state from restaurants to specialty stores.

"Most of the money we take in we turn around and spend locally, whether it is on people, materials or services," Snipes said. "We have a fairly significant impact on this county's economy."

That impact has increased dramatically while LCT undergoes a $3 million renovation project that again generates local income in the form of jobs, goods and services. The project repercussions will continue long after it is complete, because LCT's new home will allow the arts organization to increase the amount and variety of services offered to the community, setting the whole chain reaction off once more.

And the impact of the arts does not end there. According to the study, the arts are a significant factor in luring large businesses to Kentucky communities, especially metropolitan areas. just as good schools, low crime and an amenable climate can add to an area's quality of life, so does a vibrant and diverse arts environment.

"This is good news," said Gerri Combs, executive director of the Kentucky Arts Council. "It's empirical evidence of what we thought was true all along. The arts in Kentucky have more than just an impressive economic impact. This study indicates in terms of real dollars the value of the arts to the people of our state, and their local communities."

"It is a quality of life issue," Snipes said. "We offer programs that improve education for children and enjoyment for people of all ages. We make the community a better place for everyone."

Deanna Mascle is a staff writer for The Lane Report.

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