By James Tibbets, Pendletonian Times
PENDLETON, Oregon – The Arts and Economic Prosperity 6 Study is a study of the economic and social impact of the nonprofit arts and culture industry. In Pendleton during fiscal year 2022, the arts and culture industry generated $14.7 million in economic activity. $7.7 million of this was spent by arts and culture organizations and additionally, $7 million was spent on event-related expenditures by consumers. This activity supported 161 jobs, paid residents $5.9 million in personal income and generated $1.9 million in tax revenue to local, state and federal governments.
According to the AEP6 Study, nonprofit arts and culture organizations are businesses. They employ local people, buy supplies and services from other local businesses and engage in the marketing and promotion of their cities and regions. This creating, presenting and exhibiting of arts and culture has a positive economic impact and improves community well-being. In Pendleton, nonprofit arts and culture organizations spent an estimated $7.7 million which supported 79 jobs and generated $893,001 in local, state, and federal government revenue.
Arts and culture drives commerce to local businesses. When people attend an arts and culture event, they often make a day of it and dine at a restaurant, pay for parking or public transportation, have dessert after the event and return home to pay for child or pet care. In Pendleton, attendees spend an average of $33.50 per person, per event — beyond the cost of admission. This is vital income for local merchants.
Arts and culture strengthens the visitor economy, too! In Pendleton, 17.1% of attendees at arts and culture events are nonlocal visitors who traveled from outside Umatilla County. These visitors spend an average of $87.26 per person, per event. In addition, 70.6% of nonlocal attendees said that the primary reason for their visit was to attend the performance, event, exhibit, venue or facility where they were surveyed.
A vibrant arts and culture community keeps local residents and their dollars in the community. When attendees were asked what they would have done if the event had not been available, 36.6% of attendees who live in Umatilla County said that they would have “traveled to a different community to attend a similar” event.
Arts and culture organizations contribute to community pride in Pendleton:
- 92.3% of arts and culture attendees agree that the activity or venue where they were surveyed is “inspiring a sense of pride in this neighborhood or community.”
- 91.6% agree that “I would feel a great sense of loss if this activity or venue were no longer available.”
- 85.8% agree that the venue or facility where they were surveyed is “an important pillar for me within my community.
Arts and Culture During the Pandemic
AEP6 was conducted in 2022-23, when the nation was still recovering from the COVID-19 pandemic. By all accounts, the arts and culture industry was one of the most devastated economic sectors. According to the United States Bureau of Economic Analysis, “in year one of the COVID-19 pandemic, few areas of the U.S. economy were harder hit than the performing arts: performing arts presenters and companies joined oil drilling[,] exploration and air transportation as the steepest-declining areas of the U.S. economy in 2020. After adjusting for inflation, the value added by performing arts presenters (including festivals) fell by nearly 73% between 2019 and 2020.”
In many areas, communities enacted restrictions on public gatherings and travel, which put limits on attendance and the ability of performers to work together onstage. 99% of producing and presenting organizations canceled events during the pandemic with many closing for entire seasons. An estimated 557 million ticketed admissions were lost.
In 2020, 63% of artists experienced unemployment and 95% lost creative income. 37% were unable to afford food at some point during the pandemic. 58% did not visit a medical professional because they were unable to pay.
Arts and culture organizations showed pliability by moving to virtual and online experiences, outdoor performances, drive-in events and other ways to maintain audience engagement.
The Economic Impact of Volunteers
Arts volunteers have an enormous impact on their community — their time and expertise helps arts and culture organizations function as a viable industry. In 2022, 3,024 volunteers donated 92,873 volunteer hours to the 15 arts and culture organizations from Pendleton that participated in AEP6. This represents an estimated dollar value of $3 million. According to Independent Sector, the value of the average volunteer hour in Oregon is $32.37. Volunteers include unpaid professional staff, artistic volunteers, clerical volunteers and service volunteers.
The 15 organizations that AEP6 studied in Pendleton reported an average of 201.6 volunteers contributing an average of 30.7 hours each for a total of 6,192 hours per organization during 2022.
Average Spending by Attendees
The average attendee to a nonprofit arts and culture event in Pendleton spent $33.50 per person, per event, not including the cost of admission or food and beverage purchased at the event. 82.9% of the 208,750 nonprofit arts and culture event attendees were residents of Pendleton and 17.1% were nonresidents.
Nonlocal attendees spent an average of 290% more than locals, or $87.26 vs. $22.39, as a result of their attending a nonprofit arts and culture event in Pendleton. Nonlocal attendees generally spend more on lodging, meals and transportation than local attendees.
Arts and Culture Drives Tourism
70.6% of nonlocal attendees reported that the reason for their visit to Pendleton was “specifically to attend the performance, exhibit or facility” where they were surveyed. 45.6% of nonlocal attendees said that they “would have traveled to a different community to attend a similar” arts and culture event. 42.6% of the nonlocal attendees in Pendleton said that it was the first time that they had ever attended the specific event or venue where they were surveyed.
The Arts and Economic Prosperity 6 Study: The Economic & Social Impact Study of Nonprofit Arts & Culture Organizations & Their Audiences in [the] City of Pendleton was prepared by Americans for the Arts in collaboration with the Pendleton Development Commission.