Arts Blog

New research shows arts and culture builds a stronger economy in Allegheny County


Economic impact: it’s not what I, or likely any lifelong arts practitioner, would point to as arts and culture’s primary value. First, I’d probably talk about the arts’ power as a tool for self-expression, self-exploration, and identity development. In turn, I’d share that making or consuming art connects us to each other and our communities, making us more civically engaged and less likely to other those who differ from us. I might share that arts education improves academic and social outcomes in our youth. Then, I might say: the arts also mean business.

Arts & Culture builds a stronger economy in Allegheny County. $1.26 billion in direct annual economic impact. $236 million in local, state, and federal annual tax income

But frankly, most conversations I’ve had about the profound benefits of the arts in the United States quickly evolve into conversations about funding and resources (and the fact that we need more of them). In the Commonwealth of Pennsylvania, which in fiscal year 2023 was 39th in the nation for per capita arts funding, there remains a disconnect between value produced and value received (in the form of dollars).

Despite low funding levels, PA arts and culture produce nearly $29 billion in annual economic impact commonwealth-wide, more than educational service, utility, and mining industries. And more than in neighboring states of New Jersey, Virginia, and Maryland.

$54 per person average in audience spending per event

Locally, thanks to the Allegheny Regional Asset District, the public funding support is stronger, but not everyone is feeling it — yet. Our 2022 Community Survey found that artists, on average, were more likely to earn incomes in the lowest brackets (and below the federal poverty line) compared to the average Allegheny County resident.

We also found that arts organizations, particularly performing arts, are still working to recover from the pandemic. And still, the arts bring tremendous value to our region. They tell stories that ignite curiosity and compassion for ourselves and our neighbors, bring people out of their homes and into their communities, inject dollars into local transportation and hospitality industries, support jobs, and invite people from outside of our region here to experience it all alongside us.

This is why the Arts Council is excited to publish the results from another year-long study of Allegheny County nonprofit arts and culture impact in partnership with Americans for the Arts: Arts and Economic Prosperity 6. While we work on publishing the full report in early 2024, here are a few examples of what we see in our AEP6 results:

Arts & Culture builds impact beyond just dollars. $13 million in attendance to arts and culture events. 89% agree an event they attended inspired "a sense of pride in this neighborhood or community"
  • Even though attendance is still down 21% from pre-COVID levels, the economic impact of the arts in Allegheny County continues to grow. Even still, annual arts attendance remains higher than attendance for all local professional sports teams combined.
  • The proportion of non-local attendees grew by 7.7% points from 2017-2023, and these non-local attendees are spending almost twice as much as ever before in local business with each visit.
  • According to audiences, there is strong agreement that arts inspire a sense of pride in Allegheny County neighborhoods and communities.

Economic impact is not the primary value of our industry, but we can catalyze our industry’s economic impact to talk about how every dollar invested into the arts fuel the things that matter: more beauty in our day-to-day lives, more stories getting told, and more folks who power the arts and culture economy being seen, valued, and fairly compensated for the impact they have on our society.

Stay tuned for more in 2024, and in the meantime, read more about this research and the 373 national partners involved on the AEP6 website.


Category

Cultural Policy