During 2006, the United Arts Council of Raleigh and Wake County, Greater Raleigh Chamber of Commerce and Greater Raleigh Convention and Visitors Bureau sponsored an economic impact study in conjunction with Americans for the Arts of Wake County's nonprofit arts and culture organizations and their audiences. The Wake study was compiled as part of the most comprehensive economic impact study of the nonprofit arts and culture industry ever conducted in the United States that surveyed 156 communities and regions nationally.

"Wake County's nonprofit and culture industry is not only a thriving economic engine, but it's also an industry with lots of available headroom," said Sheldon Fox, United Arts Council Board Chair and Investment Manager of KDI Capital Partners. "There is much room for growth, and as the industry grows it will not only make our community a more desirable place to live, but will reap even more economic benefits." 

"The event-related spending is impressive, and arts and culture is a magnet for attracting people from both inside and outside the community -- people who spend money," added Harvey Schmitt, President of the Greater Raleigh Chamber of Commerce. "When we increase our investment in arts and culture, we are supporting an industry that supports jobs, generates government revenue, is a cornerstone of economic development and drives a creativity-based economy."

"The arts are an important part of Wake County's $1.3 billion visitor industry as the events and programming at the study's 32 participating organizations and many more are demand generators that produce significant spending at hotels, restaurants and retail establishments throughout the area," said Dr. Betsy Bennett, a board member of the Greater Raleigh Convention and Visitors Bureau and director of the N.C. Museum of Natural Sciences. "Recent blockbusters like Monet and Titanic were tremendous events on many fronts. And the quality and diversity of our arts and cultures and their venues are assisting in the new convention center sales and marketing efforts as well."

Among the primary findings of the study:

"Wake's nonprofit arts and culture industry generates $105.76 million in local economic activity*
 "This figure represents $43.74 million in direct spending by the industry and $62.03 million in event-related spending by their audiences.

"Wake's nonprofit arts and culture industry employs 3,983 full time equivalents, making it the 10th largest employer in the County (between Rex Healthcare and WakeMed). It was the County's 20th largest employer from a similar study of the industry in 2000.

" The industry generates $64.33 million in household income to local residents.
"The industry delivers $10.05 million in local and state government revenue.
"Total annual attendance at arts and culture events was 2.57 million.  That figure is more than three full seasons of Carolina Hurricanes hockey sellouts at the RBC Center (136 games) or six full seasons of North Carolina State football sellouts at Carter-Finley Stadium (43 games).

"Visitors accounted for 32 percent of the total annual attendance and generated 35 percent more spending than Wake County residents per event.

"The average per person event-related spending by all arts and culture event attendees in Wake County (excluding the price of event admission) is $24.15.

"Evidently, we like to eat:  the average per person event-related spending on refreshments during and meals before and after arts and culture events was $14.71, higher than the national median for the study.

"In 2005, 6,112 arts volunteers donated 182,759 hours to Wake's nonprofit arts and culture organizations, with an estimated value of $3.3 million.  While not a direct factor in economic impact, these volunteers clearly help these organizations function as a viable industry.

*The data was collected from 32 Wake County arts and culture organizations, with budgets ranging from zero to $11.68 million. Not included in this study: spending by individual artists and the for-profit arts and culture sector (e.g., Broadway shows or the motion picture industry).

Nationally, according to Americans for the Arts report, the nonprofit arts industry generates 5.7 million jobs and $166.2 billion in total economic activity every year, resulting in $29.6 billion in federal, state, and local government revenues.  The $166.2 billion total includes $63.1 billion in spending by arts organizations and $103.1 billion in event-related spending by their audiences.  The total economic activity has a significant national impact, generating the following:

"       5.7 million full-time equivalent jobs
"       $104.2 billion in resident household income
"       $7.9 billion in local government tax revenues
"       $9.1 billion in state government tax revenues
"       $12.6 billion in federal government tax revenues

"This study is a myth buster," said Robert L. Lynch, president and CEO of Americans for the Arts. "Most Americans understand that the arts improve our quality of life. This study demonstrates that the arts are an industry that stimulates the economy in cities and towns across the country. A vibrant arts and culture industry helps local businesses thrive."

The nation's nonprofit arts and culture industry has grown steadily since the first analysis by Americans for the Arts in 1992, expanding at a rate greater than inflation. Between the second study conducted in 2000 and 2005, spending by organizations and their audiences grew 24 percent, from $134 billion to $166.2 billion in total economic activity.

The Arts & Economic Prosperity III study shows that nonprofits arts support more jobs than accountants and auditors, public safety officers, and even lawyers, and just slightly fewer than elementary school teachers. Spending by nonprofit arts and culture organizations provide rewarding employment for more than just artists, curators, and musicians but they also directly support builders, plumbers, accountants, printers, and an array of occupations.

In addition, the study reveals that the nonprofit arts industry is the cornerstone of tourism. The $103.1 billion in event-related spending by arts audiences reflects an average of $27.79 per person in spending for hotels, restaurants, parking, souvenirs, refreshments, or other similar costs -- with non-local attendees spending twice as much as local attendees ($40.19 vs. $19.53). When a community attracts cultural visitors, it harnesses significant economic rewards.