TALLAHASSEE, FL – Secretary of State Glenda E. Hood announced today the results of a new statewide economic impact study which documents that Florida’s arts and cultural industry is one of the fastest growing in the state. Released by the Florida Cultural Alliance, The Economic Impact of Florida’s Arts and Cultural Industry reports that the annual statewide economic impact of the arts and culture has grown from $1.7 billion in 1997 to over $2.9 billion creating 28,302 full-time equivalent jobs.

“The results of this study prove that when Florida government invests in the arts it both enhances the quality of life in our communities and helps to build a diversified economy, ensuring our state’s long-term economic health,” said Secretary Hood.

Sherron Long, President of the Florida Cultural Alliance states, “Throughout Florida, arts and cultural resources are major components in helping revitalize communities, reform schools, attract tourists, improve student achievement, relocate and retain businesses, create jobs, improve our quality of life and diversify and strengthen our state’s economy.”

Written by Dr. William Stronge, Professor of Economics at Florida Atlantic University, The Economic Impact of Florida’s Arts and Cultural Industry has been conducted in four-year spans since 1989 with support from the Division of Cultural Affairs, National Endowment for the Arts, and members of the Florida Cultural Alliance. Based on data from fiscal year 2000-2001, it provides information on the economic impact of 2,914 non-profit cultural organizations and the cultural programs of 57 Florida colleges and universities. Among the organizations studied were performing arts organizations, museums, galleries, science museums, zoos, festivals, service and support organizations, presenting organizations, and cultural councils. Among the results of the study are:

• Direct Spending by Arts and Cultural Organizations Has Increased
  
  Florida arts and cultural organizations, which constitute a small fraction of the state’s entire arts and entertainment industry, expended $1.2 billion in FY 2001. The impact of this spending is far reaching and results in a much larger impact on the state’s overall economy once ripple or multiplier effects are taken into account. Arts organizations pay their employees, purchase supplies, contract for services, and acquire assets within their communities. These actions, in turn, support local jobs, create household income, and generate revenues. When these multiplier effects are included, the Florida arts and cultural industry created $2.9 billion of gross state product in 2001, resulting in $877.8 million in income and 28,302 full-time jobs.
  
•  Arts and Cultural Industry is a Growth Industry
  
  The findings in the report document that the arts and cultural industry is a tremendous growth industry. The arts and cultural sector of Florida’s economy grew strongly in the most recent four-year study period with direct spending rising from $0.7 billion in 1997 to $1.2 billion in 2001. As the arts and cultural sector of the Florida economy has expanded since 1989, its total economic impact has grown accordingly. Both direct and total spending of the organizations is estimated to have tripled during a 12-year period. In fact, the arts and cultural sector of the economy grew significantly more rapidly than did the state’s economy as a whole. During this same time period, the Florida economy (as measured by Gross State Product) has only doubled, proving that the arts and cultural industry is indeed a leading sector of the state’s economy.
  
•  The Arts and Cultural Industry Creates Jobs
  
  In addition to the economic impact created through direct spending, the non-profit arts and cultural industry have a tremendous impact through the creation of jobs. The industry is labor-intensive and relies on employees such as performers, artists, administrators, stagehands, designers, and technicians, to name just a few. The number of full-time equivalent jobs supported by the arts and culture nearly doubled in the 12-year period increasing from 14,832 in 1989 to 28,302 in 2001. These full-time equivalent job figures do not take into account the large numbers of part-time workers ($147.5 million spent on part-time, contracted jobs) or volunteers this industry supports.
  
•  Attendance at Cultural Events is Substantial
  
  Audience participation is significant because attendance at arts and cultural events generates related commerce for local businesses such as hotels, restaurants and shops. The economic impact study found that attendance at programs and events of non-profit cultural organizations exceeded 400 million in 2001. The largest attendees were at events or programs offered by performing arts organizations (192.7 million), followed by events and programs of presenting organizations (96.3 million) and service/support organizations (70.3 million). Refer to chart for a breakdown of attendance figures by organizations type.
  
•   The Impact on Cultural Tourism is Impressive
  Tourism drives Florida’s economy, and the state’s thriving cultural scene attracts visitors from all over the world. The arts have proven to be a major draw for travelers and their money; and, as a result, local businesses grow and prosper because travelers extend the length of their trips to attend arts and cultural events. The study documents an estimated $7 million out-of-state tourists came to Florida in 2001 and visited cultural facilities or attended cultural events. The average cultural tourist spent $588.30 on their trip. As a result, the direct spending of cultural tourists amounted to $4.5 billion. The total impact of these expenditures on the state’s economy amounted to $9.3 billion, creating 103,713 jobs and incomes (primarily payrolls) of $2.6 billion.
  
• Division of Cultural Affairs’ Grants Programs Play a Key Role
  
  The programs of the Florida Department of State, Division of Cultural Affairs provide the infrastructure necessary for arts and cultural resources to thrive and make our communities economically healthy. As the official state arts agency, the Division’s chief role is to award and administer grants that help support arts and cultural programming throughout the state. State support helps provide greater access for children, adults, and visitors of our state to the many diversified arts and cultural offerings. It also plays a vital role in maintaining the administrative and artistic health of Florida’s arts and cultural organizations. Grant programs are designed to support a wide variety of cultural activities including performances and exhibits, arts education, and the construction of cultural facilities. The agency’s reach extends across the state, from heavily populated counties to the most rural areas. Since its inception, the Division of Cultural Affairs, with support from the Florida Legislature, has invested over $400 million in the arts in Florida. As a result of this investment, the arts and cultural industry contributes greatly to the state’s economy.

The complete, detailed study includes much more detail including the analysis of the spending and income of arts and cultural organizations and regional breakdowns. For more information about the study, contact:

Florida Cultural Alliance
Post Office Box 2131
West Palm Beach, FL 33402
E-mail: FLCULALL@aol.com
Website: www.flca.net

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