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Throughout Appalachia and across the United States, rural communities are seeking to provide opportunities for economic growth on par with their cultural opportunities and quality of life. Recent authors such as Richard Florida, (Rise of the Creative Class), have chronicled the success of communities whose workforce of architects, writers, musicians, painters, craftspeople, dancers, sculptors, and designers have been elevated by their contributions to their local economies.

Arts and Culture is Worth Billions of Dollars to the U.S. Economy

The impact of cultural arts on communities was established by the 2001 study, Art and Economic Prosperity^[1] that concluded that America's non-profit arts industry generated $134 billion in economic activity every year, including $53.2 billion in spending by arts organizations, and an additional $80.8 billion in event-related spending by arts audiences. Non-profit arts grew from $36.8 billion in 1992 to $53.2 billion in 2000—a 45 percent increase.

More significant was the economic impact of event-related spending by non-profit arts audiences. Attendance at arts events generates related business for hotels, restaurants, parking garages, and more. According to the study, attendees at a range of arts events spent an average of $22.87 per session, not including the price of admission. This spending nationally totaled $80.8 billion of revenue for local merchants and their communities.

Asheville, North Carolina: An Example of One Community Benefiting from the Arts

Asheville, North Carolina was one of ninety cities that participated in the survey. Results indicated that the non-profit arts organizations in Asheville supported 2,100 full time jobs, generated $5.6 million in local and state revenue, and spent $14.7 million per year. In addition, arts audiences leveraged $43.3 million, a contribution totaling $61 million to Asheville's economy.

The Arts Sector Includes For-profits and Creative Workers

In addition to the direct economic contribution of the non-profit arts sector, a study by the New England Council^[2] has broadened the definition of arts sector to include the creative cluster of for-profit businesses, the creative workforce, and the creative community where the quality of life is directly connected to a high concentration of creative workers and industries.

Cultural Tourism Influences Traditional Economies

One of the creative economy's major influences on traditional economies is the growth of cultural tourism, described as "travel directed toward experiencing the arts, heritage, and special character of place." Cultural tourism goes beyond attracting new visitors—it attracts "high-value" visitors that stay longer, spend more, and return often.

How many high-value visitors are there and what do they spend? According to a 1998 Travel Industry Association of America (TIA) study, 92.4 million U.S. adult travelers annually included a cultural, arts, heritage, or historic activity while on a one-way trip over 50 miles. Ninety-four percent of visitors using HandMade In America's craft trail guides purchased crafts, and 71 percent spent more than $100 during their visit. A survey of these studio sites, shops, galleries, and historic venues indicated a 78 percent increase in sales, with an average increase of 28 percent.

Despite Economic Data to Support it, Skepticism Remains About the Strength and Validity of the Creative Economy

Although current economic data indicate the growth and presence of a creative economy, skepticism about its strength and validity remain. This skepticism was noted in a study, "The Arts and Culture as an Element of Economic Development Policy: An Integral View," by the National Governors Association Center for Best Practices. A systemic approach to the development of a "creative" economy and a need to understand its influences on daily behavior is lacking. Several of these influences include:

The sale of goods and services to residents through media (film and television), direct production (theatre and music industry) and tourism.
Direct input into the design and content of manufactured products such as furniture, automotive, and household products.
Influence on quality of life as a part of community or required amenities that influence the choice of residential locations.

2002 Conference in Asheville, North Carolina, Addressed the Potential of Creative Economies

More than 300 people gathered in Asheville, North Carolina, in April 2002 to attend the conference, "Building Creative Economies: The Arts, Entrepreneurship, and Sustainable Development in Appalachia." The conference was intended to increase the recognition of the arts as a factor in economic development, encourage more entrepreneurial activities by artists and art organizations, and increase their access to economic development funding.

Recommendations for the Arts to be Considered an Integral Part of the Economy

Several recommendations from the conference point to a need for the arts to be considered an important and integral part of every community's economy.

Recommendations include:

Integrating the arts into community economic development plans
Engaging artists in planning
Providing technical assistance
Stimulating cultural tourism

Complete conference findings (PDF)

In addition, governmental and education systems need to establish stronger support systems for the arts that include arts incubators, apprenticeships, design centers, and educational training that includes business and marketing skills and performance skills.

With this support, arts and culture can continue to add value to the nation's economy.

This article was contributed by Becky Anderson of Handmade In America, located in Asheville, North Carolina.

Footnotes

^[1] Study conducted by the by the national non-profit Americans for the Arts.

^[2] "The Creative Economy Initiative: the Role of the Arts and Culture in New England's Economic Competitiveness," conducted by the New England Council.