37
The Economic Impact of the City of Melbourne’s Investment in the Arts Analysis of Artists, Audiences and the General Public survey responses May 2017 Prepared for: City of Melbourne Prepared by: RMIT University’s Cultural Economics Group School of Economics, Finance and Markeng RMIT University Commissioned Research Report: Final Report To cite: Elkins, M., Coate, B., de Silva, A., & Ozmen, M., Boymal, J., (2016). Surveying the Economic Value of the City of Melbourne’s Arts Program. Melbourne: RMIT University.

The Economic Impact of the City of Melbourne’s Investment ... · City of Melbourne’s Investment ... Impact of the City of Melbourne’s Investment in the Arts. 4. 1.2 Scope of

Embed Size (px)

Citation preview

The Economic Impact of the City of Melbourne’s Investment in the Arts Analysis of Artists, Audiences and the General Public survey responses May 2017

Prepared for: City of Melbourne

Prepared by:RMIT University’s Cultural Economics GroupSchool of Economics, Finance and MarketingRMIT University

Commissioned Research Report: Final Report

To cite:Elkins, M., Coate, B., de Silva, A., & Ozmen, M., Boymal, J., (2016).Surveying the Economic Value of the City of Melbourne’s Arts Program.Melbourne: RMIT University.

leefar
Typewritten Text
ATTACHMENT 1
leefar
Typewritten Text
leefar
Typewritten Text

2The Economic Impact of the City of Melbourne’s Investment in the Arts

1 ExecutiveSummaryThepurposeofthisreportistoprovideanassessmentoftheeconomicimpactoftheCityofMelbourne’sinvestmentintheartsthroughitsArtsMelbourne1branch.

Anuniqueapproachtothisresearchwasundertakenwiththreedifferentstakeholdergroupsbeingsurveyedtounderstandtheeconomicimpact.Theywere:

• ArtistswhowererecipientsofCityofMelbournesupport(fundingand/orin-kind).• AudiencemembersattendingCityofMelbournefundedartseventsandperformances,including participantsatworkshopssuchasthoseofferedaspartofArtPlay.• MembersofthegeneralpublicwhohadnotdirectlyengagedinaCityofMelbourneartevent overthelasttwelvemonths.

Insightsgleanedfromthesestakeholdergroupsenabledabetterunderstandingofthefactorsdrivingsupply(artistsmakingart)anddemand(audiencesconsumingart)inMelbourne.TheresearchhighlightstheimpactoftheCityofMelbourne’ssupportingroleinthearts,whichcontributesbroadlytoMelbourne’sreputationasacreativecity.ItalsofindsthatfundingoftheartsbytheCityissupportedbythepublicatlarge.

Animportantfeatureofthesurveydesignwastheuseofamethodologyknownascontingentvaluation(CV).Thismethodallowedthestudyofnon-marketeconomicimpactplacedontheartsinMelbournebyaudiences,aswellasthenon-useeconomicimpactassociatedwiththeartsmoregenerallyamongstMelbourne’spublic(includingthosewhodonotattendCityofMelbournesupportedartsactivities).

1.1 KeyFindings

Induced effects of audience spending

• Averageexpenditurebyaudiencerespondentspertrip,inclusiveofticketandancillaryspending, was$39.• 70percentofaudiencerespondentsindicatedtheirprimaryreasontovisitMelbourneonthat daywastoattendtheartsactivity.• 80percentofaudiencerespondentsattendedfreeevents.

Impact on artists through City of Melbourne support (Option Impact)

• 94percentofartistssurveyedstatedtheirprojectwouldnothaveproceededwithoutthefunding andsupportfromtheCityofMelbourne.• 75percentofartistswereabletocreatenewworktoahigherstandard.

_________________________________ 1ReferencetotheCityofMelbourne’sartsactivitiesthroughoutthisreportisspecificallyreferringtoactivitiesandinitiativesmanagedbytheArtsMelbournebranch.Theseare:AnnualArtsGrantsProgram,ArtPlay,ArtsHouse,ArtsPrograms(ArtFuturesandFirstFridayDanceClub),CityGallery,CreativeSpaces,MusicalInstruments(FederationBellsandGrandOrgan),PublicArtMelbourne,andSignal.

3The Economic Impact of the City of Melbourne’s Investment in the Arts

Impact of future opportunities for artists created through City of Melbourne support (Quasi Option Impact)

• 70percentofcommissioned/programmedartistswereabletocollaboratewithotherartistsasa resultoftheopportunitiesarisingfromthesupportreceivedfromtheCityofMelbourne.• 60percentofartistsbasedatCreativeSpaceswereabletoexpandtheirprofessionalcontactsand network.• 58percentofcommissioned/programmedartistswereabletoexpandtheirprofessionalcontacts andnetwork.

Impact of knowing the arts will be preserved for future generations (Bequest Impact)

Inresponsetothestatement:“The arts in Melbourne, including our iconic venues and festivals, should be preserved for future generations to enjoy”

• 92percentofaudiencerespondentsagreedorstronglyagreed.• 68percentofgeneralpublicrespondentsagreedorstronglyagreed.

Willingness of people to pay to support the arts, even if not directly consuming arts (Existence Impact)

• Underahypotheticalscenarioitwasfoundthatthetypical(median)audiencerespondentwas willingtopay$37tomaintaintheCityofMelbourne’sartsprograminthefaceofa25per centfundinggap.• 66percentofaudiencemembersand30percentofthegeneralpublicsaidthattheywould volunteertosupporttheCityofMelbourneartsactivities.• TheaverageamountthegeneralpublicwaswillingtopaytosupporttheCityofMelbourne’sarts activitiesis$41annually.• AggregatedgeneralpublicwillingnesstopayacrossthestateofVictoriaisaround$140millionper annum.

Demonstrated impact of City of Melbourne arts investment being valued by others (Prestige Impact)

• 65percentofartistswentontoreceiveotherpaidartisticwork.• 45percentofartistswereabletoobtainfurtherfundingfromotherfundinginstitutions.

Inresponsetothestatement:“The arts are an essential part of Melbourne’s national and international profile”

• 91percentofaudiencerespondentsagreedorstronglyagreed.• 62percentofgeneralpublicrespondentsagreedorstronglyagreed.

Impact of the value attached to the intellectual and cultural capital of the arts (Education Impact)

Inresponsetothestatement:“Arts events and activities contribute to our cultural knowledge and education”• 88percentofaudiencerespondentsagreedorstronglyagreed.• 57percentofgeneralpublicrespondentsagreedorstronglyagreed.Inresponsetothestatement:“The arts fosters creative thinking and innovation which benefits our city”

• 88percentofaudiencerespondentsagreedorstronglyagreed.• 56percentofgeneralpublicrespondentsagreedorstronglyagreed.

4The Economic Impact of the City of Melbourne’s Investment in the Arts

1.2 ScopeoftheResearch

ThescopeofthisresearchincludedtheCityofMelbourne’svenues,activitiesandinitiativesmanagedbytheArtsMelbournebranch.Theseare:

• AnnualArtsGrantsProgram–Oneoffprojectfunding;• ArtPlay–Creativeworkshopandperformancespaceforchildrenandfamilies;• ArtsHouse–Presentsanddevelopsworkthatiscontemporary,experimentalandparticipatory;• ArtsPrograms–ArtFuturesconversationsandFirstFridayDanceClub’sfreecitydancelessons;• CityGallery–ShowcasingtheCityofMelbourne’sartandheritagecollection;• CreativeSpaces–Making,workingandcreatingspacesandstudiosforartists/creatives;• MusicalInstruments–FederationBellsandtheMelbourneTownHallGrandOrgan;• PublicArtMelbourne–Commissioningandfundingartinthepublicrealm;and• Signal–Workshopspaceforyoungpeopleaged13to25years.

TheTriennialArtsGrantProgram(TAGP)hasnotbeenincludedinthisresearchduetoitsidiosyncraticnatureandthetypeofactivitiesitfunds.TheTAGPisbettersuitedtoacasestudyapproachandisthereforebeyondthescopeofthisresearch.

1.3 SummaryandRecommendations

Asthisreportreveals,investmentbytheCityofMelbourneintheartsreturnstangibleeconomicbenefitstoboththelocalandbroadereconomy.ArtsvenuesandprogramsattractvisitorstotheCityandplayavitalroleunderpinningMelbourne’sreputationasacreativeandculturalcity. Asidefromeconomicbenefits,theimportanceofintangiblebenefitsfromtheartscannotbeignored.TheabilityoftheartstoenhancesocialandculturallifeforthosewhoencounterthemimprovesthelivesofMelbourneresidents,workersandvisitors.

Thebenefitsoftheartsextendbeyondthedomainofwhatcanbequantifiedandmeasured.Puttingamonetisedvaluationontheartswillonlycapturepartofthestory.ItwillunderstatetheplethoraofbenefitsthattheartsprovidetoMelbourne’ssocial,economicandculturallife.

WethereforerecommendtheCityofMelbourneconsiderstrategiestomarketandpromotetheeconomicbenefitsofitsinvestmentintheartswhilesimultaneouslyconveyingthesignificanceofthenon-economicbenefits.ItisalsoimportanttobearinmindthatwhileaneconomicimpactstudysuchasthisprovidesvaluableevidenceoftheimpactoftheinvestmentintotheartsbytheCityofMelbourneatapointintime,thisimpactisnotstatic.Giventhesubstantialinvestmentof$10,237,378in2016-17towardstheartsbytheCity,partofitsaccountabilitiesandinaccordancewithbestpracticeprogrammanagement,theCityshouldreplicatethisanalysiseverytwoyears,informedbydatafromtheannualdeploymentofthesurveysdevelopedforthepurposesofthecurrentanalysis2.

_________________________________2ArtsMelbournebudgetedinvestment(labour,materialsandservices,andmaintenance)in2016-17forthefollowingprograms:AnnualArtsGrantsProgram,ArtsHouse,ArtPlay,Signal,FirstFridayDanceClub,ArtFutures,MusicalInstruments,CityGallery(includingtheartandheritagecollection),PublicArtMelbourne,andCreativeSpaces.

5The Economic Impact of the City of Melbourne’s Investment in the Arts

TableofContents

1 ExecutiveSummary………………………………………………………………………………... 21.1 KeyFinding……………………………………………………………………………………....….... 21.2 ScopeoftheResearch………………………………………………………………………….... 31.3 SummaryandRecommendations………………………………………………………….... 42 Introduction……………………………………………………………………………………..…….. 62.1 DimensionsofCulturalImpact……………………………………………………………..... 62.2 SurveyMethodology..............……………………………………………………….…....... 83 CalculatingEconomicImpact…………………………………………………………………. 103.1 EvaluationBasedonMultiplerEstimates……………………………………………….. 103.1.1 FurtherEvidenceofInducedEffectsfromAudienceSurvey..……………........ 113.2 ContingentValuation-evaluationbasedonsurveyresponses…................ 133.2.1 OptionImpact……………………………………………………………………………................133.2.2 Quasi-OptionImpact……………………………………………………………………………….. 153.2.3 BequestValue……………………………………………………………………………………….. 173.2.4 ExistenceImpact……………………………………………………………………………………… 183.2.5 PrestigeImpact……………………………………………………………………………………….. 183.2.6 EducationImpact…………………………………………………………………………………….. 203.2.7 WillingnesstoPay…………………………………………………………………………………….213.2.8 Volunteerism…………………………………………………………………………………………… 234 ConclusionandRecommendations..…………………………………………………………234.1 SummaryoftheEconomicImpactAssessmentResults..………..…………………234.2 Recommendations……………………………………………………………………………………255 AbouttheReportAuthors........................................………………………………... 266 Appendix:RespondentProfiles…………………………………………………………………286.1 ArtistsSurveyRespondentCharacteristics……………………..........…………………286.2 AudienceSurveyRespondentCharacteristics............……………………………….296.3 GeneralPublicSurveyRespondentCharacteristics……………..…………………….327 References………………………………………………………………………………………………..35

6The Economic Impact of the City of Melbourne’s Investment in the Arts

2 IntroductionThisreportdemonstratestheeconomicimpactofinvestmentintheartsbyArtsMelbourne(TheCityofMelbourneArtsunit),takingintoaccounttheviewpointsofdifferentstakeholders.Italsooffersamoretraditionalvaluationbasedonmultipliersderivedfrominput-outputanalysis.Butratherthanrelyingsolelyonamultiplierapproachtoderiveanapproximationofeconomicimpact,RMITUniversityincorporatedcontingentvaluationmethods(CVM)byworkingalongsidetheCityofMelbournetodevelopthreesurveys:anartistsurvey,anaudiencesurveyandageneralpublicsurvey.

Contingentvaluationisatypeofstatedpreferencemodellingwhereby(viatheuseofcarefullydesignedsurveysthatelicitrespondents’willingnesstopay)itispossibletomeasuretheimpactofnon-marketgoodsandservices,suchasfreeorsubsidisedartseventsandperformances;andalsotomeasurethenon-useimpactthewiderpublicattachestothearts.Thebenefitofthisapproachasappliedinthisresearch,isthatitbecomespossibletoattributeamonetarymeasureofimpactassociatedwiththeartsactivitiesprovidedbyArtsMelbourne.

Thesurveysincludedaseriesofquestionsdesignedtoaidunderstandingaboutperceptionsofartsrelatedservices,fundingandfacilities.Thereisnodoubtthatquantifyingtheeconomicimpactofinvestmentintheartsisacomplextask.

Anothercomplicatingfactoristhatmeasurementoftenmayposeaprobleminitself.Forexample,attheCityofMelbourne,accesstoArtsMelbourneactivitiesisoftenfreetherebyprohibitingtheapplicationofmeasurementtechniquesthatrelyontransactionaldata.Thereisalsoaneedtoaccountforanddistinguishbetweenthedifferenttypesofeconomicimpact.Forinstance,clarityaroundunderlyingassumptionsusedincalculatinginducedeffectsisvitaltotheintegrityofresults.Acknowledgingthedifferenttypesofimpactensuresthatestimatesofimpactarecomprehensive,avoidingtheunderstatementofthebenefitsassociatedwithartsinvestment.

2.1 DimensionsofCulturalImpact

AsculturaleconomistDavidThrosbynotes:

At its most fundamental, value can be thought of as the worth, to an individual or a group, of a good, a service, an activity or an experience, with an implied possibility of a ranking of value (better to worse, or higher to lower value) according to given criteria. The process by which value is assigned to something is referred to as valuation or evaluation.(Throsby,2010:17)

Inthecontextofthisreport,evaluationoftheartsisundertakenthroughaneconomiclens,wherebyimpact(orvalueinthewordsofThrosby)isexpressedinmonetaryterms.Throsbydescribesnotionsofeconomicandculturalimpactas‘distinctconcepts’whichneedtobeseparatedinconsideringthevaluationofculturalgoodsandservicesintheeconomyandinsociety.InthissenseThrosbyhimselfacknowledgesthatthisideaofseparatingimpactcomponentsmightbeatoddswithconventionaleconomicwisdomanditsfocusonrevealedpreferencesastheultimatearbiterofvalueorimpact(Throsby,2001:31).Inacknowledgingtheinabilityofpriceandmonetarysignalstoreflectallaspectsofimpactthereisaneedtolook‘beyondprice’toappreciatethefullsetofbenefitsthattheartsandcultureprovide.

The idea of simply reducing the range of

benefits the arts provides to a simple dollar figure will

not adequately account for all the unobservable benefits derived from the presence of

a rich arts and

cultural heritage.

7The Economic Impact of the City of Melbourne’s Investment in the Arts

IntheresearchconductedbytheWarwickCommissiontomeasurethevalueofartsandculturetopeopleandsocietyinEngland,comprehensiveinsightintothedifferentapproachesthatmaybetakentomeasuringculturalimpactisprovided.Thisincludesnotingthebenefitsandlimitationsofthevariousapproaches.WhatisclearfromtheresearchundertakenbythiscommissiononbehalfofArtsCouncilEnglandisthatdifferentso-called‘varietiesofimpact’exist.Inacknowledgingthesplitbetweentheeconomicandtheculturalimpact,therecanbeadangerinfocusingononeoftheseaspects,tobecomereductionistandneglectthecontributionsoftheother.ThechallengethenintermsofbalancingthisdualitythatcharacteristicsculturalimpactissummarisedbytheWarwickCommissioninstatingthefollowingkeyquestion:

How can we capture, measure, quantify and qualify the value of the arts and culture in their cultural, social and economic dimensions to develop a more robust and comprehensive body of evidence in support of policy making?(ArtsCouncilEngland,2014)

ThesentimentoftheabovestatedquestionclearlyhasrelevancetothecurrentstudyinvestigatingtheeconomicimpactoftheartsinvestmentundertakenbyArtsMelbourne.Beforeoutliningtheapproachwehavetakentodefineimpactintermsofanumberofdifferentdimensions,itisworthwhiletoreflectuponculturalimpactcharacteristicsidentifiedbyThrosby(2001,28-29).Throsbyidentifiesthefollowingcharacteristicsthatinformunderstandingofculturalvalueorimpact:

• Aesthetic:Focusesonthepropertiesofbeauty,harmony,formandotheraestheticcharacteristicsof thework.Itneedstorecognisethatstyle,fashionandsociallyconstructednotionsofgood(and| bad)tastewillplayaroleinshapingthisformofimpact.• Spiritual:Thisimpactmightbeinterpretedinaformal,religiouscontext,suchthattheworkhas particularculturalsignificancetomembersofareligiousfaith,tribeorculturalgrouping,oritmay besecularlybased,referringtoinnerqualitiessharedbyallhumanbeings.Thissourceofimpactcan alsoprovidebenefitsintermsof‘understanding,enlightenmentandinsight’.• Social:Whenartisticandculturalformsconveyasenseofconnectionthatbringspeopletogether socialimpactiscreatedandmaycontributetoacomprehensionofthenatureofthesocietyin whichweliveandtoasenseofidentityandplace.• Historical:‘Animportantcomponentoftheculturalimpactofanartworkmaybeitshistorical connections:Howitreflectstheconditionsoflifeatthetimeitwascreated,andhowitilluminates thepresentbyprovidingasenseofcontinuitywiththepast’.• Symbolic:Oneoftheprincipalfunctionsoftheartisticformsisto‘existasrepositoriesand conveyorsofmeaning’whichindividualsextractfromthemastheyconsumethem.• Authenticity:Thisimpactreferstothefactthattheworkisthereal,originalanduniqueartwork whichitispresentedtobe.• Locational:Inhismorerecentwork,Throsbyhasputforwardthisadditionalfeatureofcultural impact,whichispresentwhen‘culturalsignificanceattachestothephysicalorgeographicallocation ofaheritageitem’.

TheapproachtakentomeasuretheimpactofArtsMelbourne’sinvestmentinartsisbasedoneightdimensionsofeconomicimpact.ThesearebrieflydescribedinTable1.

8The Economic Impact of the City of Melbourne’s Investment in the Arts

Impact DefinitionDirect Theimpactofartsandactivitiesrelatedtoartsthatcanbeconsumeddirectly.

Forexample,ArtsMelbournedirectlyfundsartistsandsomefundsarespentongoodsandservicesfromlocalsuppliers.

Indirect Theusebenefitstoartsprogramaudiencesandpatronsandthelocalecono-my.Forinstancerecreationalandleisurebenefitsandentertainmentactivities,aswellaseducation,inspirationandknowledgeassociatedwithartsprogramattendance.

Option Peoplewhodonotcurrentlyconsumeculturalofferingsmaywanttheoptionofbeingabletodosointhefuture.TheoptionimpactreflectsthewillingnesstopreservetheoptiontobecomeapatronandpartakeinanArtsMelbourne’sprograminthefutureevenwhentheydonotsocurrently(theimpactplacedontheprogrambypotentialaudiences).

Quasi-option Thisistheimpactassociatedwithdelayingadecisionaboutanirreversiblechoicewhenthereisuncertaintyaboutthepayoffsofthealternativechoices.Forexample,thismightrepresentaperson’simpact,placedonthepreservationofMelbourne’sculturalandarchitecturalspaces(against,say,high-risehousingre-developments).

Bequest Peoplederivesatisfactionfromknowingthatuniqueculturalresourceswillbepreservedforfuturegenerationstoenjoy.

Existence Theimpactunrelatedtoanyactualorpotentialuse,the‘intrinsicimpact’solelyderivedfromknowingthatartisticandculturalworkscontinuetoexist.

Prestige Peoplemayneitherusenorlikeaparticularculturalresource,buttheyderivebenefitfromknowingthatthisresourceischerishedbyothersoutsidetheircommunity.Insofarthatsuchprestigeaddsontoaculturaleventorinstitution’sexistenceimpact,itwouldappeardifficulttoclearlyseparatethetwo.

Educational Intellectualandculturalcapitalspilloversarecreatedbyculturalassetsandspending.Forexample,culturalprogramsmayfundworksofnon-fictionliter-aturethataddtotheCity’sbodyofknowledge,andalong-runningperformingartsfestivalmayfostergreatercreativityorcapacityforculturalevolution.

Table 1: The Eight Dimensions of Economic Impact

2.2 SurveyMethodology

Theaudiencesurveyyielded103useableresponsesetsfrom136surveys,makingthecompletionrate74percent.ThesurveywasopenfromJunetoAugust2016andwasadministeredbytheCityofMelbournewhocontactedpatronswhohadprovidedavalidemailaddress.ThesurveywasdesignedbytheprojectteamatRMITincollaborationwiththeCityofMelbourne.ThetargetpopulationofthesurveyincludedpatronsandattendeesofCityofMelbourneactivitiesandvenuessuchastheCityGallery,Signal,ArtPlay,ArtsHouseandFederationBells.Itshouldbenotedthataudiencestoeventsfundedviathetriennialpro-gramwerenottargetedaspartofthisparticularaudiencesurvey.

Theartistsurveyyielded65completedresponsesfrom136surveyattempts,makingthecompletionrate48percent.ThetargetpopulationcamefromartistswhohadreceivedfundingorsupportfromArtsMelbourne.Theartists’surveyfellunderthreedistinctcategories:annualartsgrantsrecipients,artistsleasingCreativeSpaces,andartistscommissionedorfundedforartsprograms.Theartistsurvey

9The Economic Impact of the City of Melbourne’s Investment in the Arts

ranfromJulytoAugust2016andwasdesignedbytheteamatRMITincollaborationwiththeCityofMel-bourne.TheCitywasalsoresponsiblefortheadministrationofthesurveytothetargetpopulation,whowereinvitedtoparticipateviaemail.

Thirdly,thegeneralpublicsurveywasconductedfrom11to15November2016.Itwassuccessfullycom-pletedby980respondentsfrom1,350attempts,tomakethecompletionratecloseto73percent.Thetar-getprofileforthegeneralpublicwasacrosstheGreaterMelbournearea,notjusttheCityofMelbourne.Assuch,thesurveytargetedthoseresidinginthepostalcodezonesof3000-3207;80percentofrespondentswerefromthisarea.Theagerangesoughtwasopentoadultsbetweentheagesof18to85,andthesurveydeliveredresponsesthatwereevenlydistributedbyageandgender.ThesurveywasdesignedbytheRMITprojectteam,althoughforthisstageoftheresearchthesurveywasadministeredbySSISurveySamplingusingadatabaseofsourcedrespondents.

Inconjunctionwiththesurveys,additionaldataforthemultiplieranalysiswassourcedfromtheAustralianBureauofStatistics(ABS).Inparticular,ABSdatafromtheBureau’sAustralianNationalAccountsinput-outputtablewasused.ThisdatawasthenusedtoderiveresultsbasedontheAustralianUrbanResearchInfrastructureNetworkEconomicImpact(Input-Output)AnalysisToolForRegionalInfrastructureInvestmentProjects(Burganetal.,2016).

10The Economic Impact of the City of Melbourne’s Investment in the Arts

3 CalculatingEconomicImpactThissectionhasbeenstructuredaccordingtotheeightdimensionsofeconomicimpactidentifiedearlierandsummarisesthedataresultsaccordingly.Itisnoted,inTable2,thatnoteverystakeholdergrouptargetedthroughthesurveyinginformseachdimension.

Table 2: Summary of impact type and data sources used to elicit valuation calculations

Impact Type Artists Audience General Public

Direct and Indirect

Option Y Y

Quasi Option Y Y

Bequest Y Y

Existence Y

Prestige Y Y Y

Education Y Y Y

Tobegintheeconomicevaluation,abriefbackgroundonmultiplierestimatesandtheirlimitationsisprovided.Thisisfollowedbykeyfindingsfromeachofthethreesurveys,responsesfromwhichareusedtogaugethesixremainingtypesofeconomicimpact.

3.1 EvaluationBasedonMultiplierEstimates

Economicimpactassessmentsofartsinvestmenttypicallyemployregionalinput-outputanalysestomeasuredirectandinducedimpactsonthelocaleconomy.Thisisasystemthatcombinesquantitativemethodsandeconomictheorytobuildsimplemodelsbasedonmathematicalequationstocalculateimpactspecifiedintermsofdirectandindirecteffects.Ithasbeenusedinmanystudiespreviouslytogaugetheimpactofindustriesatthemacrolevel(forexample:DavidsonanddeSilva,2013usethisapproachtoinvestigatetheimpactofcoal).Similarly,ithasbeenusedtoprovidearegionaleconomicanalysisrelatedtoartsinvestment,forexampleinthecaseofVictorianstategovernmentexpenditure(KPMG,2013)andalsoforArtMelbourne’sTriennialArtsGrantsPrograms(EssentialEconomics,2010).

Unliketheabovestudies,thisassessmentusessurveysastheprimarygeneratoroffindings.Aregionalinput-outputanalysisisonlypresentedheretoofferabenchmark(ormethodologyconsistency)againstassessmentsthatdoprimarilybasetheirfindingsonthetechnique.Inemployingregionalinput-outputanalysis,weofferacaveat:itisimportanttonotethatthemultiplierestimatesforimpactandemploymentpresentedbelowareconservativeintermsoftheirunderlyingassumptionsandhenceislikelytounderstatethefullbenefits.Assuch,theanalysispresentedmayoverstatethenetleakagesofartsspendingfromthelocaleconomy,andthereforeislikelytohaveunderstatedthetruelocaldirectandinducedimpactoftheCityofMelbourne’ssupportforthearts.Thisisanacknowledgedlimitationassociatedwiththesourcedatausedinconstructingregionalinput-outputtables3.

11The Economic Impact of the City of Melbourne’s Investment in the Arts

Withthisinmind,wecanstatethataccordingtotheregionalinput-outputmodelfortheCityofMelbourne,everydollaroflocalspendingintheartssector,includingspendingbytheCityofMelbourneinsupportofitsartsactivities,returnsanetcontributionof0.695dollars,oraround70cents,overandabove

theinitialspendingtothelocaleconomy.Thisiscalculatedastheimpactofadditionalnewoutputcreated,lessthecostofgoodsandservicesusedinproducingthe

output.Ofthisamount0.395dollars,oraround40cents,isadirectimpactofadollars’worthofspending,while0.300dollars,oraround30cents,isattributedtotheflow-onormultipliereffectsofadollar’sworthofartsspendinginthelocaleconomy.

Intermsoftheimpactofartsinvestmentonlocalemploymentaccordingtotheregionalinput-outputmodel,7.7jobsaregeneratedintheCityof

Melbourneforeveryonemilliondollarsspentintheartsandrecreationservicesindustrysector.It

isestimatedthat5.4ofthesejobsarecreateddirectlyintheartsandrecreationsector,whileanadditional2.3arecreatedthroughflow-onorinducedeffects.

Again,asaresultofoverstatingthenetleakagesofartsspendingfromthelocaleconomy,theanalysisintermsofemploymentcreationisalsoconservativeinthesensethattheestimateislikelytobeunderstated.

3.1.1FurtherEvidenceofInducedEffectsfromAudienceSurvey

Inadditiontotheinput-outputanalysisdescribedabove,resultsfromtheaudiencesurveyalsopointtoamultipliereffectinducedbyartsspendingthatdriveseconomicimpact.Basedonthe103completedaudiencesurveyresponses,itwasfoundthatthetypicalaudiencememberorvisitortoanArtsMelbournesupportedvenue,eventoractivityspentonaverage$26.81,ornearto$27,pereventaboveanycostofadmission.Thisadditionalexpenditureincludedspendingonthingslikemeals,refreshmentsandtransportation.Basedonaudiencesurveyresponses,itwasfoundthat:

• 73percentofrespondentspurchasedfoodorrefreshmentwithanaveragespendof$13.45.• 20percentofrespondentsmaderetailpurchasesspending$44.10perpersononaverage.• Totalaveragespendingpertripinclusiveofticketandancillaryspendingwas$38.93perperson.• 70percentofrespondentsindicatedtheirprimaryreasontovisitMelbourneonthatdaywasto attendtheartsactivity.• 80percentofrespondentsattendedfreeevents.

Thissnapshotofsomeoftherelevantfindingsfromtheaudiencesurveyprovidesevidenceofthenetincreaseinspendingorthemultipliereffectthattheartsgenerateasabenefittothelocaleconomy.ThisisimportantfromaneconomicstandpointsinceanyspendingundertakenbyaudiencesaspartofavisittotheCityofMelbournegeneratesaninflowintothelocaleconomythatmayotherwisehavenotoccurredtoboostoveralleconomicactivity.

EvidencefromthisstudyshowsthatwhentheCityofMelbournesupportsthearts,itgeneratesnotjustculturalandsocialimpact(measuredviadifferentindicatorsandmetricsnotconsideredwithinthebriefofthisreport),italsoclearlygeneratesimportanteconomicimpactsthatboostthelocaleconomyandcontributetojobcreation._________________________________3ABS’sArtsandRecreationServicesDivision,fromwhichthemultiplierestimatesarederived,isaconflationofthefollowing:• liveperformances,eventsorexhibits(e.g.artists,musicians,writers,performersandvenueoperators)• sportingorrecreationalactivities(e.g.sportsvenues,gyms,sportsclubs,amusementparks,horseracing)• thepreservationandexhibitionofhistorical,culturaloreducationalobjects(e.g.museums,zoos,botanicalgardens)• gamblingactivities(e.g.casino,onlinegamblingandlotteryoperators).

...the typical attendee spent approximately $27 per event, on top of any cost of admission…

12The Economic Impact of the City of Melbourne’s Investment in the Arts

13The Economic Impact of the City of Melbourne’s Investment in the Arts

3.2 ContingentValuation–evaluationbasedonsurveyresponses

Measuringtheextentofeconomicimpactassociatedwithartsinvestmentdemandsacontingentvaluationapproach.Thisisadifferentapproachtotheconventionalinput-outputanalysislimitedtothedirectandinducedeffectsoutlinedintheprevioussection.

InanattempttomeasurecontingentvalueasevidenceofimpactforArtsMelbourne,surveysfortargetstakeholdercohortsweredeveloped-audiences,artists,andthegeneralpublic.

Todevelopthesesurveys,backgroundinformationfromtheleadersofArtsMelbournewasgatheredandprinciplesofbestpractice,basedonaninternationalreviewofrelevantliterature,identified.Importantly,severalcasestudieswereidentifiedandcriticallyassessed,includingLondon(BOPConsulting2013),Montreal(2009)andSingapore(2013).PreviousrelevantcommissionedreportsbytheCityofMelbourne,includingworkbyEssentialEconomics(2013)aroundtheTriennialArtsGrantProgram(TAGP),werealsoconsidered.

Indevelopingthesurveytoolsitwasparticularlyimportanttobeawareofthedifferentprogramtypes.TheCityofMelbourne’sinvestmentintheartstakesmanyforms,makingthetasktodevelopaunifiedsurveytoolcomplicated.ThiswasakeyreasonwhyfundingallocatedviatheTAGPwasexcludedfromtheresearchdesign.

Twounderlyingprincipleswereadheredtoaddressprogramtypedifferences:

1. SurveyquestionsmustreflectthediversityoftheCityofMelbourne’sartsactivities2. Thequalityofthesurveyresponseshouldbeashighaspossible.

Theaudienceandgeneralpublicsurveysweredesignedtoelicitthewillingness-to-pay(WTP)forprogramsprovidedbyArtsMelbourne.Thiscontingentvaluationapproachisparticularlyusefulforpublicgoodslikeartsprogramswhichareoftenfreeorsubsidisedforaudiencestoattend(O’Brien2010).BycapturingtheWTPvalues,aneconomicfigureforthebroaderculturalandsocialimpactcontributedbyartsprograms,aboveandbeyondthemoretraditionaldirectandindirectimpactspreviouslyaddressed,wasestimated.EstimatesthatincorporatecontingentvaluationreflectamoreholisticassessmentofeconomicimpactassociatedwithartsinvestmentbyArtsMelbourne.

Thesurveyinformation,havingbeencollectedandanalysedattheindividuallevel,wasweightedandscaledtoenablecalculationsfortheTotalEconomicImpactassociatedwiththeArtsMelbourneprogram.

3.2.1 OptionImpact

Optionimpactisthevalueanindividualplacesonhavingtheopportunitytoaccesstheartsinthepresentandthefuture.Foraudiencesandthepublicatlarge,thisisinrelationtotheabilitytoconsumethearts.Forartistsandcreatives,optionvaluereferstotheopportunitiestoproduceandcreatebothnowandinthefuture.

Fromaproductionperspective,optionimpactisvitalaswithoutartistswehavenoart.Asanextensionofthis,itcanbearguedthatwithoutavibrantsenseoftheartsourcityisimpoverishedandfailstorealiseitspotential.Bysupportingartistsandcreatingcareerpathsthatallowourartiststhetimeandspacetohonecreativepractice,itisnotonlyartistswhobenefitbutalsothebroadercommunity.OurartistsplayakeyroletothecontinualdevelopmentandongoingsustainabilityofMelbourne’sreputationasacreativecity.

14The Economic Impact of the City of Melbourne’s Investment in the Arts

Theopportunitytoconsumearteventsinthefuturethenrequiresacommitmenttodevelopworkthatwouldnothavebeenabletoberealisedwithoutthesupportoffundingbodies. Akeystatisticemergingfromtheartistsurveyisthat94.4percentstatethattheirworkwouldnothaveproceededwithoutthefundingorsupportfromArtsMelbourne.Thisprovidesevidencetosupporttheoptionimpactassociatedwithfundingallocatedtoartists.However,thesupportprovidedbyArtsMelbournedidnotcompletelycoverthecostsofthevariousprojectsundertakenbyartists,with45.1percentofartistscontributingtheirownfundstotheprojectWhile30percentwereabletodevotealltheirtimetocreativework,onaverageartistssupportedspent16hoursaweekengagedinnon-creativeworktosupportthemselvesfinancially.

OneexampleofthewaythattheCityofMelbourne’sfundingisabletoencourageartists’developmentcanbeevidencedbythefollowingcomment:

“Almost everything I have done since (receiving support from City of Melbourne) has occurred as a result of this opportunity. I have been commissioned to make new works, I have toured my work extensively, I have been the recipient of an Australia Council Theatre Fellowship, I have secured an on-going part-time position as a leading artist in a small arts organisation. My career was genuinely transformed by this opportunity, which fortunately came at a time when I was ready in my artistic practice to make the most of it.”

Artistrespondent

Chart1providesasummaryoffindingsfromtheartistsurveythatidentifiedthemechanismsthathelptheartistshonetheircraftandcontinuetobeabletopracticeinthefuture.Manyoftheseelementsrelatetonetworkingeffectsthataidinconsolidatingreputationandstandingasanartist.

…Just over 94 per cent of artists surveyed stated the project would not have proceeded without the funding provided by the City of Melbourne…

15The Economic Impact of the City of Melbourne’s Investment in the Arts

Chart 1: Artists’ professional development outcomes defined by grant recipients, Creative Spaces tenants and commissioned/programmed artists and performers.

Source:CityofMelbourneArtistSurvey(2016)Source:CityofMelbourneArtistSurvey(2016)

Ofthe71artistssurveyed:

• 53indicatedtheywereabletogeneratenewworktohigherstandard.• 51agreedthefundingallowedthemtodevelopworkthattheywouldnothaveotherwisebeen ableto.• 39foundthefundingvalidatedtheirstandingasanartist.• 37foundthatthefundingmeantthatotherartists,mediaorganisations,producersandpresenters tooktheirworkmoreseriously.• 37foundthefundingimprovedthestatusoftheprojectorwork.• 31experiencedasignificantskillsimprovement.

Toderiveoptionimpactforthegeneralpublicbasedaroundpresentandfutureabilitytoaccessthearts,respondentswerescreenedonthebasistheyhadnotparticipatedorattendedArtsMelbourneactivitiesoreventsoverthelast12months.Despiterespondents’non-attendance,30percentwerewillingtopaytosupporttheartsprograms.ThisindicatesamoderateinterestinwillingnessfromresidentsacrossGreaterMelbournetosupporttheartsevenifnotconsumingtheseprogramscurrently.

3.2.2 Quasi-OptionImpact

Thequasi-optionimpactiswheretheabilitytohavefutureopportunitiestoconsumetheartsdependsuponthecurrentprovisionandstateofthearts.Identifyingthistypeofimpactthatisassociatedwithpreservingtheartssothattheycanbeaccessedbythepublicinthefutureisanimportantconsiderationthatneedstobeaccountedforinaholisticapproachtomeasuringtheeconomicimpactofthearts. Itisimportanttobearinmindthatthequalityandtypeofartsavailableinthefutureareafunctionofartiststhemselvesandtheopportunitiestheycanexpect.Forthisreason,indiscussingquasi-optionimpact,focusisgiventobothartistsaswellasthegeneralpublic.

Intermsofartists,theopportunitiesthatarecreatedduetoformalandinformalmechanismsthatconnectartists,theiragents,institutionsandaudiencesarevital.InseekingtounderstandhowArtsMelbournecansupporttheserelationshipstonotjustcontinuebuttoflourish,itisnecessaryto

16The Economic Impact of the City of Melbourne’s Investment in the Arts

understandartists’professionalgrowth.Thiswillhaveimplicationsfortheartavailableinthecommunitythatpeoplehavetheopportunitytoconsume(ornot)inthefuture.Thisimpactmayalsobeviewedastheimpactofadditionalinformationaboutgoodssubjecttoirreversiblechanges.

Indicativeofthesentimentsreflectedbyartistsprovidingwrittencommentsfromtheartistsurveyistheviewthat:

“The support the City of Melbourne provides to artists through adventurous productions, sets the City apart from many other local governments. Whilst this survey has focused on economic benefit, it’s the cultural benefits stemming from the City’s backing of artists and producers such as Arts House which have an impact that will resonate way into the future.”

Artistrespondent

Chart2providesasummaryoffindingsfromtheartistsurveythatidentifiedthenetworkingopportunitiesidentifiedasvitaltosupportcareerdevelopmentandtheproductionofartintothefuture.Itisofinteresttocomparefindingsacrossdifferenttypesofartistsreceivingsupport.Fromthesurvey,itisfoundthattenantsofCreativeSpacesandcommissioned/programmedartistsfeelbetternetworkingopportunitiesarisecomparedtograntrecipients.

Chart 2: Artists networking outcomes defined by grant recipients, creative space recipients and commissioned artists and performers.

Source:CityofMelbourneArtistSurvey(2016)

Theartistssurveydataonnetworkingoutcomesfindsthat:

• 70percentofcommissioned/programmedartistswereabletocollaboratewithotherartistsasa resultoftheopportunitiesarisingfromthefunding.• 64percentofcommissioned/programmedartistswereabletogeneratefuturework.• 28percentoftenantsatCreativeSpaceswereabletogeneratefuturework.

17The Economic Impact of the City of Melbourne’s Investment in the Arts

• 60percentoftenantsatCreativeSpaceswereabletoexpandtheirprofessionalcontactsand network.• 58percentofcommissioned/programmedartistswereabletoexpandtheirprofessionalcontacts andnetwork.

Toidentifythisnon-usequasi-optionimpact,thegeneralpublicwereaskedwhethertheyagreedornotwiththefollowingstatementaccordingtoasevenpointscale:

“The City of Melbourne has a vital responsibility to support the arts and culture to benefit Melbourne more broadly”

• 60percentofthegeneralpublicagreedwiththestatement.

3.2.3 BequestValue

Bequestimpactderivesfromknowingtheartsandculturewillbepreservedforfuturegenerationstoenjoy.Individualsbenefitfromthesatisfactionofknowingthatuniqueculturalresourceswillbepreservedforfuturegenerationstoenjoy.

Respondentsfromboththeaudienceandgeneralpublicsurveyswereaskedtorankthestatementonascalefromzerotoseven(stronglydisagreetostronglyagree):

“The arts in Melbourne, including our iconic venues and festivals, should be preserved for future generations to enjoy”.

Resultsfromthisquestionwere:

• Audiencerespondentsoverwhelminglysupportedthisstatement:itwasthehighestranked responsewith96.2percentagreeingwiththisproposition.• Allbutoneaudiencerespondentscoredthisstatementeightorhigher.• Thegeneralpublicalsorankedthisstatementthehighestwith65.15percentagreeing.

Withbothaudiencesandthegeneralpublicoverwhelminglysupportingthepreservationoficonicvenuesandfestivalsforfuturegenerations,thereisstrongevidenceofapreferencewithinthecommunityforpreservingMelbourne’sarts.

18The Economic Impact of the City of Melbourne’s Investment in the Arts

3.2.4 ExistenceImpact

Existenceimpactisderivedfromknowingtheartsexistandaresupportedeveniftheyarenotdirectlyconsumedbyanindividual.Forinstance,peoplemayappreciateandvaluethepresenceofajazzconcertintheirneighborhoodpark,thoughtheythemselvesdonotattendit.Thesenseofknowingtheartsexistandsupportedprovidesitsownsenseofsatisfactionandevidenceofacultivatedcommunitythatindividualsmayaccessiftheysowish.

Existenceimpactiscloselytiedwiththewillingnesstopayandtheresultsofthisarepresentedinsection3.2.7.

3.2.5 PrestigeImpact

Prestigeimpactisthesatisfactionanindividualgainsfromknowingthattheartsarecherishedandappreciatedbyothersoutsidetheircommunity.Inasense,theenviablepositionMelbourneoccupiesasAustralia’screativecapitalislinkedtotheprestigeimpactassociatedwiththevibrantartsandculturescenethatthecityisrenownedforaroundtheworld.

Intermsofthesurveyapproach,artists,audiencesandthegeneralpublicwereallaskedquestionsdesignedtomeasureprestigeimpact.Firstly,theartistsurveyexaminedhowtheworkfundedwasabletofacilitateartistsreachingbeyondthescopeoftheinitialfundedproject,andgenerateworkthatwasbothrecognisedandconsumedbeyondthisscope.

Artistsgrowanddevelopthroughouttheircareers.Theymaywinprizes,receivegrantsandreachnewaudiencesthroughexcitingnewopportunitieswhichinturncansustaintheircareer.FundingfromtheCityofMelbournecanfacilitatethis.Chart5presentssomeofthefindingsfromtheartistsurveyaroundhowCityofMelbournesupportfacilitatedartiststoexpandtheirimpactandreach.

Chart 5: Reach outcomes for artist survey by grant recipients, Creative Spaces tenants and commissioned/programmed artists.

Source:CityofMelbourneArtistSurvey(2016)

TheresultsidentifyhowsupportfromtheCityofMelbourneenabledartiststoestablishawiderdistributionoftheirworktolocationsbeyondthereachofMelbourneandbeyondtheirinitialscope.

19The Economic Impact of the City of Melbourne’s Investment in the Arts

Forthecommissioned/programmedartists:

• 64.5percentwentontoachieveotherpaidartisticworkfromtheirengagement.• 45percentwerealsoabletoobtainfurtherfundingfromadditionalfundinginstitutions.

ForCreativeSpacestenants:

• 36percentofartistsgeneratedfurtherfundingfromotherorganisations.

Significantly,forartistsgenerally,theprestigeimpactofthefundedworkhasexpandedtheirreachwith:

• 4percentofartiststouringregionally.• 27percentofartiststouringnationally.• 8percentofartiststouringinternationally.

AsthefollowingstatementfromatenantofasubsidisedCreativeSpacereveals,thebenefitofsupportbytheCityofMelbournehasbeenvitaltothedevelopmentofartists’creativepractice.

“The opportunity to develop my work in a studio at River Studio for 3 years was invaluable. The affordability of the space meant I could develop work much larger than I could have realised elsewhere and it marked a time of rethinking in my practice that led to significant developments in my work. These developments have since led to many new opportunities in Singapore where I currently live. I also built up a strong network of peers that continues to support me and my practice.”

Artistrespondent

SupportfromArtsMelbournealsofundsartiststocreatenewworks:thelifebloodofnewartsinnovation.Sincereceivingfunding:

• over20percentofartistswereabletopublishorpresenttheirnewworkelsewhere;• 32percentofartistswereabletoselltheirwork;and• afurther20percentoftheseartistshadworkselectedforexhibitioninamajorgallery.

Theseopportunitiesareoftencalled“claimtofame.”SomeofthepaidopportunitiesthatCityofMelbournesupportedartistshave/willenjoyinclude:

• WorksperformedattheDublinTheatreFestival2017• WorksperformedattheBrightonTheatreFestival(UK)2017• WorksperformedatCanadianStageToronto2017• WorksperformedatthePushFestivalVancouver2018• InclusionofworksintheMelbourneInternationalArtsFestival2016• WorksincludedintheMobileStatesnationaltour• Workthatwentontonationalandinternationaltouring,includingtheSydneyFestival2016• Workincludedinthe2015DanceMassivefestivalprogram• WorktouredtosevencitiesinaEuropeantourin2016• WorktouredtoSouthAmericainSeptember-November2016• Worksusedascasestudiesinacademicpractice-basedresearchatprestigiousuniversities• AdaptionofworkforABCradio

PrizesandawardsachievedbyartistsasaresultofCityofMelbournefunding/supportprovidesfurtherevidenceofprestigeimpact.Recognitioncontributestothebuildingofanartist’sreputation.Ultimately,higherprofilereputationsgrowtheeconomicmultiplierandacknowledgetheimpactoftheartist’sworkbeyondthecommunity.

20The Economic Impact of the City of Melbourne’s Investment in the Arts

Toassessthegeneralpublicandtheaudiences’assessmentoftheprestigeimpactoftheartsfortheCityofMelbourne,respondentswereaskedwhethertheyagreedwiththefollowingthestatementonasevenpointscale:

“The arts are an essential part of Melbourne’s national and international profile”:

Fromthisquestionitwasfoundthat:

• 91.3percentofaudiencerespondentsagreedorstronglyagreedwiththisstatement.• 61.8percentofthegeneralpublicagreedorstronglyagreedwiththisstatement.

Thisstatementwasthesecondhighestscoringamongsimilarstatementsintheaudienceandgeneralpublicsurveys.ItindicatesthatthereiswidespreadbeliefthattheartssceneinMelbournemakesasubstantialcontributiontotheperceptionoftheCity’snationalandinternationalprestige.Thisperceptionissummarisedbythefollowingaudiencerespondent:

“I love the little City Gallery and its thoughtful exhibitions. I have encouraged other people in my Ballarat heritage group & “Save Civic Hall” to visit the brilliant “History of the Future” exhibition. When in Melbourne I love the liveliness of the arts scene and am grateful that much of it is free as I have a reduced income now. Melbourne is one of the world’s liveliest cities - largely due to your arts programming. The street art, public sculptures, busking etc. all add to the ambience.”

AudienceRespondent

Theartists,theaudienceandgeneralpublicalikeareabletodemonstratethattheCityofMelbourne’sinvestmentintheartshasimpactintermsofculturalprofile.Furthermore,despiteaccountingforasmallpercentageofrespondentstherewasevidencefromboththeaudiencesurvey(asthestatementabovefromanaudiencerespondentshows)andalsofromthegeneralpublicsurveytosuggestthattheartsprovidedbytheCityofinMelbournearecherishedbeyondthecityboundaries. 

3.2.6 EducationImpact

Educationimpactreferstotheimpactattachedtointellectualandculturalcapitalspilloversresultingfromartsactivities.

Tomeasuretheintellectualandculturalcapitalspilloverscreatedbyculturalassetsandspending,aswellastheabilitytofostergreatercreativityorcapacityforculturalevolution,respondentsfromboththeaudienceandgeneralpublicsurveyswereaskedtorankthefollowingstatementsreferringtoperceivedimpactonascalerangingfrom(stronglydisagreetostronglyagree).

“Arts events and activities contribute to our cultural knowledge and education”

• 87.5percentofaudiencerespondentsagreedwiththisstatement• 56.74percentofgeneralpublicrespondentsagreedwiththisstatement“Theartsfosterscreative thinkingandinnovationwhichbenefitsourcity”• 87.5percentofaudiencerespondentsagreedwiththisstatement• 55.93percentofgeneralpublicrespondentsagreedwiththisstatement,whichwasthelowestof allvaluations

“The arts contribute to Melbourne’s economy by drawing visitors who also spend money on local businesses”.

21The Economic Impact of the City of Melbourne’s Investment in the Arts

• 83.7percentofaudiencerespondentsagreedwiththisstatement• 60.69percentofgeneralpublicrespondentsagreedwiththisstatement

Thecontributionoftheartstofosteringcreativethinkingandinnovationwasratedthelowestofthevariousresponsesforthegeneralpublicandaudiencesalike.However,asthenumberthatagreewiththisstatementisstillquitehigh,itisclearthereisperceivedvalueontheimportanceoftheeducationalimpactsofartsprovisionfromboththegeneralpublicandtheaudiences.

“The ArtPlay Grant Is extremely helpful in providing opportunities to crest new work, develop professionally and engage with the community and other arts professionals. The ArtPlay programs are excellent being both innovative and engaging. The staff at ArtPlay are outstanding”.

Artistssurveyrespondent

3.2.7WillingnesstoPay

Boththeaudienceandgeneralpublicsurveyincludedquestionsaimedatelicitingthewillingnesstopay(WTP)ofsurveyparticipantsusingcontingentvaluationtechniques.ThesurveysaskedrespondentstheirwillingnesstopaybasedonasimplescenarioforboththosewhohaveattendedanactivityoractivitiessupportedbytheCityofMelbourne(audiencesurvey)inthelastyear,aswellasthosewhohavenot(generalpublicsurvey).

AudiencesurveyrespondentswerepresentedwithastandardWTPscenario:

Thousands of arts events and activities occur throughout the City of Melbourne each year engaging both professionals and volunteers. Individual artists also produce creative work for sale, performance, and/or exhibit their throughout Melbourne. These activities draw many visitors to the city annually, and help boost the local economy. Many such activities are supported by or held in spaces funded by the City of Melbourne.

ImaginethefollowinghypotheticalscenarioforourpurposesinassessingtheeconomicvalueofCityofMelbourneartsprograms:

All funding for the arts has been reduced by 25 per cent, so the only way that the arts can receive support at previous levels is through direct contributions.

Forthegeneralpublicsurveythescenariowasthesamewiththeexceptionthatallfundingwasabolishedratherthanreducedby25percent.

Respondentsinbothsurveyswerethenaskedaseriesofquestionsonhowmuchmoneytheywouldbewillingtocontributetoretainartsservices.

Firstly,basedonthe101completeaudiencesurveyresponsesitwasfound:

• Thetypical(median)respondentwouldbewillingtopayapproximately$37tomaintaintheArts Melbournesupportedactivitiesandclosethe25percentgapcreatedbyahypotheticalshortfallin funding.• Forthegeneralpublic,42percentwerewillingtopay,withtheaverageamountbeingslightly higherat$41perannum.

TheevidencefrombothaudiencesandthegeneralpubliconwillingnesstopaysuggeststhatMelbournianssupportandimpactanexistenceimpactassociatedwiththeartsactivitiesprovidedbyArtsMelbourne.

22The Economic Impact of the City of Melbourne’s Investment in the Arts

Chart 3: Audience/patrons willingness to pay (WTP) on a per annum basis.

Source:CityofMelbourneAudienceSurvey(2016)

Chart 4 General Public willingness to pay (WTP) on a per annum basis.

Source:CityofMelbourneAudienceSurvey(2016)

Usingtheaverageofgeneralpublic’swillingnesstopaybandsthewillingnesstopayis$41.33perpersononaverage.BasedonAustralianBureauofStatistics(ABS)populationdata,respondentsforthegeneralpublicsurveyarerepresentativeoftheVictorianpopulation.ItisthereforepossibletoextrapolatewillingnesstopayestimatesacrossthewiderpopulationandascertainaggregatedvaluesassociatedwiththeimpactoftheCityofMelbourne’sartsactivities.

Toprovideanaggregatedestimate,anaverage(perperson)willingnesstopayfromsurveydataismultipliedbythepopulationofMetropolitanMelbourneandVictoria.GiventhemostrecentABSestimatesforMetropolitanMelbourne’spopulationis4,529,500(ABS,2015)andVictoriais6,039,100(March2016)thisyieldsestimatesof:

23The Economic Impact of the City of Melbourne’s Investment in the Arts

• $105,302,382aggregatedWillingnesstoPaywithinMetropolitanMelbourne.• $140,397,752aggregatedWillingnesstoPaywithinVictoria.

3.2.8 Volunteerism

Inadditiontothewillingnesstopayquestiondesignedtoprovideevidenceofadirectmonetaryvaluation,itwasimportanttoaccountforanotherwayindividualsmaycontributetosupportthearts–throughvolunteering.

Focusingsolelyonwillingnesstopayunderestimatesanindividual’swillingnesstocontributeassomepeoplewillbeabletocontributetimebutnotmoney.WhenaskedifwillingtovolunteertimetosupporttheartsinthefaceoffundingcutstoArtsMelbourneactivities,theaudienceandgeneralpublicsurveysfound:

• 65.7percentoftheaudiencerespondentssaidtheywouldvolunteertosupportArtsMelbourne activities.• 30percentofthegeneralpublicrespondentsindicatedtheywouldbewillingtovolunteerto supportArtsMelbourneactivities.Onaveragetheywerepreparedtoprovide24hoursayearof theirtime.• Aroundhalfoftheartistssurveyedincurredadditionalfinancialcoststheyhadtocoverthemselves torealisetheirprojectssupportedbyArtsMelbourne.Thetimespentbyartistsoncreativework relativetoremunerationsuggestsnon-financialmotivationsakintovolunteering.

Theseresultsfromaudiencesandthegeneralpublicshowedbothawillingnesstopay,andawillingnesstovolunteertimetosupportthearts.ThedatasuggeststhatwhentheCityofMelbournesupportsthearts,itgeneratesculturalbenefitsbeyonditsneteconomicbenefits.

Iftheseotherwiseunpricedimpactsarenotaccountedforinthedecision-makingprocessesaroundtheallocationofscarcelocalgovernmentfunds,thereisariskthatfinaldecisionsmayfavouroutcomeswithahighercommercialimpact,butmightnotdeliverthebestnetoverallimpactandsocialbenefittothebroadercommunityandeconomy.

4 ConclusionandRecommendationsTheCityofMelbourne’sartsbranchinvestsinitsprogramstohelprealiseavisionofMelbourneasacreativecity,andtobefitthecity’sreputationastheculturalcapitalofAustralia.TheCityofMelbourne’sArtStrategy2014-17underlinesthiscommitmenttotheartsbysupportingarangeoffundingopportunitiesforartists,artsprojects,organisationsandevents.

4.1 SummaryoftheEconomicImpactAssessmentResults

Artist Survey

Artistsweresurveyedwho,overthelastfiveyears,hadreceiveddirectfundingfromtheCityofMelbourne,orsomeotherformofin-kindsupport(suchassubsidisedaccesstoaCreativeSpace).

ThemainpurposeoftheartistsurveywastodeterminetheextenttowhichsupportfromtheCity

“there is a risk that final decisions

might not deliver the best net

overall impact and social benefit”

24The Economic Impact of the City of Melbourne’s Investment in the Arts

ofMelbourneenhancedcareeropportunitiesforartistsintermsoftheircreativepractice.CareerdevelopmentforartistsandperformersisanessentialingredientforMelbourne’sprofileasavibrant,creativeandliveablecity.

Findingsfromthesurveyofartistsincluded:

• 94percentofartists’outputwouldnothavetakenplacewithouttheCityofMelbourne’sfunding/ support.• 80percentofartistswereworkingtosupportthemselvesfinancially(whichdropsto50percent duringperiodoffundingdelivery).• 75percentofartistsreportedthattheywereabletodevelopworksofhigherstandards.• Artistsspendtimeoncreativeworkforarangeofreasons,andmanyofthempursuetheirartfor non-financialmotivations.• Closetohalftheartistsreportedtheyincurredadditionalfinancialcoststhattheyhadtopay themselves.

Audience Survey

ThesecondsurveyfocusedonaudiencememberswhohadattendedatleastoneCityofMelbournefundedartsexhibition,activityorperformanceduring2016.Thissurveyaskedquestionsaboutaudiencemembers‘willingnesstopay’forcertainaspectsofarts.Furtherquestionsweredesignedtomeasurebequest,prestigeandeducationimpactassociatedwiththeprograms.

Findingsfromtheaudiencesurveyincluded:

• Every$1ofspendingonCityofMelbourneartsactivitiesgeneratesaround70centsofnew economicactivitytobenefitthelocalcommunity.• Audiencemembersindicatedtheywouldbewillingtopaybetween$25and$49perannumto supporttheartsprogrammingcurrentlyofferedbytheCityofMelbourne.• In70percentofcases,theeventwasthemotivationtovisitthemunicipality.• Duringthisvisit,keyspendingincluded:• Foodorrefreshmentpurchasesaveraging$13.45perperson.• Retailpurchasesaveraging$44perperson.• Audiencememberstypicallylivedlocally.• Audiencememberstypicallybelongedtohouseholdswithrelativelylowincomes.• Thereisaloyalaudiencebasewithmanyaudiencemembersattendingbetweenfourtotentimes overtheyear.

General Public Survey

ThesurveyofthegeneralpublicextendedthemeasureofeconomicimpactbyconsideringtheimplicitimpactthegeneralpublicplacedonartsactivitiesprovidedbytheCityofMelbourne.ThisprovidedinsightintotheexistenceandbequestimpactoftheartsasthesampleselectedforthegeneralpublicsurveyhadnotattendednorengagedinanyvenuesoractivitiesfundedbytheCityofMelbourneforthe12monthsprecedingNovember2016.

Findingsfromthegeneralpublicsurveyincluded:

• Despitenotengagingwithartseventsprovided,thereisawidespreadpositiveperceptioninthe publicaboutthebenefitsoftheCity’sartsprograms.• Over77percentstronglyagreedthat“The arts in Melbourne, including our iconic venues and festivals, should be preserved for future generations to enjoy”.• AggregatedwillingnesstopayacrossVictoriais$140millionperannumwith75percentofthis

25The Economic Impact of the City of Melbourne’s Investment in the Arts

generatedbyresidentsinmetropolitanMelbourne.• Asmallamountofrespondentswerewillingtopaysurprisinglylargesumstosupportthearts:12 percentwerewillingtopayapproximately$144perannumtowardsthissupport.• Asignificantvolunteerpoolwerepreparedtodonatetheirtime.Approximately30percentof respondentswerewillingtovolunteeranaverageofthreedaysayear.

Asacomplementtotheprimarydataanalysisbasedonthekeyfindingsfromeachofthethreesurveys,theresearchemployedsecondarydataavailablefromtheAustralianBureauStatistics(ABS)tocalculateoftheeconomicimpactassociatedwithwhatiscommonlyreferredtoasamultipliereffect.

Inthecontextofspendingonthearts,themultipliereffectreferstotheadditionalspendinggeneratedasaresultoftheinitialexpenditurethattakesplace–includingonthingsnotdirectlyrelatedtothearts(forexample,spendingbyanartspatronatacafébeforeashow).

Theresultsofthemultiplieranalysisindicatedthat:

• 7.7jobsaregeneratedintheCityofMelbourneforeveryonemilliondollarsoflocaleconomic activityassociatedwiththearts.• 5.4ofthesejobsarecreateddirectlyintheartsandrecreationsector,whileanadditional2.3are createdthroughflow-oneffects.• Everydollaroflocalspendingintheartssectorreturnsanetcontributionofatleastanadditional 70centsovertheinitial$1spenttothelocaleconomy.

4.2 Recommendations

Asthisreportreveals,theinvestmentbytheCityofMelbourneintheartsreturnstangibleeconomicbenefitstoboththelocalandbroadereconomy.ArtsvenuesandprogramsattractvisitorstotheCityandplayavitalroleunderpinningMelbourne’sreputationasacreativeandculturalcity.

Asidefromtheeconomicbenefits,theimportanceofintangiblebenefitsfromtheartscannotbeignored.TheabilityoftheartstoenhancesocialandculturallifeforthosewhoencounterthemimprovesthelivesofMelbourneresidents,workersandvisitors.Thebenefitsoftheartsextendbeyondthedomainofwhatcanbequantifiedandmeasured.Puttingamonetisedvaluationontheartswillonlycapturepartofthestory.ItwillunderstatetheplethoraofbenefitsthattheartsprovidetoMelbourne’ssocial,economicandculturallife.Furthermore,itisimportanttobearinmindthatwhileaneconomicimpactstudysuchasthisprovidesvaluableevidenceabouttheimpactoftheinvestmentintotheartsbytheCityofMelbourneatapointintime,thisimpactisnotnecessarilystatic.

Wethereforemakethefollowingtwokeyrecommendations:

Recommendation 1:

TheCityofMelbourneconsiderstrategiestomarketandpromotetheeconomicbenefitsofitsinvestmentintheartswhilesimultaneouslyconveyingthesignificanceofthenon-economicbenefits.

Recommendation 2:

GiventhesubstantialinvestmentintheartsbytheCity,aspartofitsaccountabilitiesandinaccordancewithbestpracticeprogrammanagement,thecityshouldreplicatethisanalysiseverytwoyears,informedbydatafromtheannualdeploymentofthesurveysdevelopedforthepurposesofthecurrentanalysis.

26The Economic Impact of the City of Melbourne’s Investment in the Arts

5 AbouttheReportAuthorsThisreporthasbeenproducedbyRMITUniversityCulturalEconomicsGroup.Thisgroupbringstogetheramixofacademicsintermsoftheircareerstage,areasofmethodologicalexpertiseanddisciplineareas.Thegroupispremisedonthebeliefthatresearchintoartsandculture,includingeconomic,socialandculturalaspectsisabletobeinformedbyunderstandingsacrossarangeofdisciplinesusingarangeofdifferentapproachessuitedtodifferentpurposes.Thegroupencouragescollaborationbothwithintheacademiaaswellasengagementwithkeystakeholdersinindustry,thecommunityandfromalllevelsofgovernment.Keythemeswithinthegroup’sresearchinclude:creativeindustryanalysis;creativecities;explorationofthelinkbetweencreativityandinnovation;andartisticlabour.

Specificallythereportauthorsinclude:

DrMegElkinsDrMegElkinsisanapplieddevelopmenteconomistworkingintheSchoolofEconomics,FinanceandMarketingatRMITUniversity.ShewasawardedaPhDinEconomicsfromLaTrobeUniversityin2014.Herresearchinterestsincludepolicyevaluationindevelopingeconomies,inparticularlyreviewingPovertyReductionStrategyPapersandtheMillenniumDevelopmentGoals.Furtherareasofinterestaresocialprotection,corruption,povertyreduction,labourmarketsandwell-being.Meg’scurrentresearchinterestsareintheareaofappliedmicroeconomicsinvestigating:pathwaysin-and-outofhomelessnessusingJourneysHomeDataSet;youthandlabourmarketoutcomesassociatedwithleisureactivitiesusingLongitudinalSurveyofAustralianYouthdata,andsocialprotectionandtheachievementoftheMillenniumDevelopmentGoalusingAsianDevelopmentBankandWorldBankData.MegisamemberofDevelopmentStudiesAssociation(DSA)intheUKandamemberofthemulti-dimensionalpovertygroupassociatedwiththeDSA/EuropeanAssociationofDevelopmentResearchandTrainingInstitute(EADI).MegiscurrentlyleadingaprojectinvestigatingtheeconomicimpactoftheartsandartistswiththeCityofMelbourne.Otherrecentresearchanalysesyouthcuriosityandleisureactivities.Herresearchhasbeenpublishedinseveralhighqualityeconomic,communicationandeducationpublications.

DrBronwynCoateDrBronwynCoateiscurrentlyaLecturerinEconomicsatRMITUniversity.Sheco-ordinatestheRMITUniversityCulturalEconomicsGroup.Bronwyn’sresearchisinnovativeandrecognisedforthecontributionitmakesinunderstandingthedynamicsofcreativeindustries.Bronwyn’sPhDinvolvedaseriesofempiricalstudiesthatinvestigatedthesecondarymarketforvisualartscreatedbyAustralianartistswithafocusonIndigenousart.HerresearchcontributedtodebateandpolicyaroundtheintroductionofresaleroyaltylegislationthatcameintoeffectinJune2010.SincecompletingherPhDBronwyn’sacademiccareerhasbeendisruptedasaresultofraisingayoungfamily.BronwyncontinuestoworkaspartofateamofresearchersontheKinomaticsProject,involvingabigculturaldataset(inexcessof330millionrecords)thatexploresthediffusionandflowoffilmasaculturalproductaroundtheworld.Bronwyncollaboratessuccessfullywithotheracademicsacrossarangeofdisciplines,whichisofimportancetoinformingculturalpolicydebatethroughempiricallymotivatedevidencedbasedresearch.

AssociateProfessorAshtondeSilvaDrAshtondeSilvaisanappliedeconomist/econometricianspecialisingintheanalysisoftheproperty(includinghousing)sector,naturalresources,artsandculture,credit&financialmarketsandgovernmentpolicy.Hehaspublishedpapersinleadinginternationalacademicjournalsaswellaswrittenseveralreportsforkeyindustrybodies.Hehasastrongrecordofattaininggrants,industryresearchcontractsaswellasGovernmentfundingtoinvestigateareasofhouseholdfinancesandbroadereconomicpolicy.Representativesfromindustryandthepopularpressregularlycontacthimforhisperspectivesandinsights.

27The Economic Impact of the City of Melbourne’s Investment in the Arts

AssociateProfessorJonathanBoymalDrJonathanBoymalisanAssociateProfessorintheOfficeofthePro-ViceChancellor(Business),andholdsanunderlyingpositionintheSchoolofEconomics,FinanceandMarketing.Jonathanhasresearchexperienceintheareaofappliedeconomics.Thisincludescompetitivegrantapplications,programevaluationatthestateandfederalgovernmentlevel,andrefereedpublicationsandHDRcompletionsintheareasofhousingandurbaneconomics,culturaleconomics,populationeconomics,evaluation,economicpsychology,healtheconomics,cost-benefitanalysisandtechnologydiffusion.

DrMehmetOzmenDrMehmetÖzmenisaneconomistanddatascientistwithextensiveexperienceinanalytics,statisticsanddataminingmethodologies.Mehmethasextensiveconsultingexperienceinbothacademiaandinbusinessusingevidencebasedanddatadrivenapproachestoresolvepublicpolicyquestions.HeisalsoanactiveacademicwithteachingandmentoringactivitiesandhasrecentpublicationsintoptierinternationalandAustralianpeer-reviewedjournals.

OtherContributorstotheReportwhoseEffortsareAcknowledgedInpreparingthisreporttheRMITUniversityCulturalEconomicsGroupgratefulacknowledgesthecooperationandinputfromtheCityofMelbourne.WealsoacknowledgeDr.BenElthamforhisfeedbackandsuggestionsonanearlierversionofthisreport.WearealsogratefultoLaszloRomerforthedesignandlayoutofthereportdocument.

AllimagesusedthroughoutthereportdepictingvariousartsprogramswereprovidedcourtesyoftheCityofMelbourne.

Anyerrorsandomissionswiththecontentofthisreportremaintheresponsibilityofthereportauthors.

28The Economic Impact of the City of Melbourne’s Investment in the Arts

6 Appendix:RespondentProfileInformationgleanedfromthesurveysofartistsandaudiencesprovideimportantinsightonhowinvestmentintheartscontributestoMelbourne’seconomy.Inaddition,viewsexpressedbythegeneralpublicprovideusefulinsightsintotheartsprogramlatenteconomicimpact.

6.1 ArtistsSurveyRespondentCharacteristics

Therewere136artistrespondentswhoattemptedthesurveywith65oftheseprovidingcompletedresponsesthatwereabletobeusedforanalysis.ThesurveywascarriedoutonlinefromJulytoAugust2016andrespondentswereinformedofandrecruitedtothesurveythroughtheCityofMelbourne’sownchannels.Theartistsurveyprovidesvaluableinsightsintothewayartsandcultureprogramsenhancethequalityandquantityofartisticandcreativeculturallyenrichedoutput.Thisdeliversbenefitstoartists,audiencesandthecommunityasawholetorevealthatimpactcreationandimpactfromtheartsisintrinsicallylinked.

Growingthequalityofoutputnecessarilymeanssupportingartists’professionaldevelopment.Inprovidingprofessionaldevelopmentopportunitiesforartists,theCityofMelbourneprovidesthreeformsoffunding:

1. ArtsGrantsandExpressionsofInterestprograms-theCityofMelbourne’sannualartsgrant recipientsareoftendistinctlydifferentfromthosefundedviagrantsfromCreativeVictoriaand theAustraliaCouncilfortheArts.TheArtsMelbournebranchoftenfundnon-traditionaland contemporaryartistswhoareseentobepushingtheboundaries.ExpressionsofInterests(ArtPlay, ArtsHouse,PublicArtMelbourneandSignal)provideopportunitiesforartiststodevelopnewworks forcitylocationsandvenues.OthergrantingprogramsrespondtoneedsidentifiedbyArts MelbourneprogramareasandaligntoCouncilgoals.2. CreativeSpaces–subsidisedstudios,makingandcreativespacesfortheartistsandcreativesto developandsustaintheirpractice.3. CommissionedandProgrammedArtists–InitiatedandsupportedbyprogramsincludingArtPlay, SignalandArtsHousetoprovideculturalengagementwiththecommunity.

Thesethreeareasprovidethemeanstoenableartiststoaccessandactivatenewnetworks,aswellasenhanceexistingonesthroughcollaboration.Inunderstandingthecareercycleofanartist,theformationofanartist’scapacityascreativeentrepreneurandthereputationthattheybuildovertimefromtheirworkandthenetworkstheyestablisharecrucialdriverstolongtermsuccess.Theartistsurveyaddressescareertrajectoriesbyaskingartiststoself-reportwhatstageintheircareertheyseethemselves(i.e.asemerging,mid-careerorestablished).Inlightofthedifferentstagesartistsidentifywith,itisofinteresttoconsiderresponsestoquestionsontheartist’sreachandnetworkingopportunities.

Closetohalfofallrespondentswereagedunder45yearsand70percentwerefemale.ParticipantshadahigherthanaverageeducationlevelwithmorethanhalfparticipantsreportingaPostgraduateDegreeand80percentreportingaBachelororHigher.Ofthose,60percentreportedreceivingUniversitytrainingintheirartspractice.Oneinfivesaidthattheyhadbeenstudyingorreceivingformaltrainingintheartsoverthepast12months.

Halfoftheartistssaidtheyobtainedadditionalincomethroughpaidemploymentorothersourcestosupportthemselffinanciallyovertheperiodinwhichtheyreceivedfunding.

29The Economic Impact of the City of Melbourne’s Investment in the Arts

Chart 6: Artists self identified art form

Source:CityofMelbourneArtistsSurvey(2016)

Oftheartistssurveyed31.3percentidentifiedasvisualartists.Theatreandliveartperformersaccountedfor30.1percentoftheartistssurveyed.Musiciansaccountedfor13.8percentofperformersandthoseartistswhoidentifiedwritersaccountedfor7.5percentofthesurveyrespondents.

6.2 AudienceSurveyRespondentCharacteristics

TheaudiencesurveyprovidesvaluableinsightonhowCityofMelbourneartsactivitiesencourageaudiencemembersintocontributingtothelocaleconomybyspendingonlocalbusinessesaspartoftheirattendanceatanArtsMelbourneactivity.

Consideringthatmanyartsactivitiesarefreeorheavilysubsidised,thissurveyalsoshedslightonhowaudiencemembersimpactdifferentaspectsofartintheCityandadditionallyelicitsthewillingnesstopay(WTP)forartevents.

Therewere136respondentswhoattemptedthesurveyintotal.Ofthese,31werepartialcompletesandfourwereremovedfromanalysisduetocompletenon-response.ThesurveywascarriedoutonlinefromJulytoAugust2016andrespondentswereinformedofandrecruitedtothesurveythroughCityofMelbourne’sownchannels.Closetohalfofallrespondentswereagedunder35,andnineoutof10werefemale.ManyrespondentswerelocalarearesidentslivingintheCityofMelbournepostcode(25percent)withtherestresidingininner-citysuburbsclosetotheCBD.

Intermsofemploymentandpurchasingpower,mostrespondentswereemployedinpaidwork(full-time:31percentandparttime/casual:44percent).Inaddition:

• 26percentofrespondentswerefromhouseholdsearninglessthan$60,000ayear.• 63.7percentofrespondentswerefromhouseholdsearninglessthan$150,000ayear.• Asmallerproportionofrespondentswerestudyingfull-time(Tertiary:13.3percentandSchool:3.8 percent).• 14.3percentwereengagedinunwagedhomeorcarerduties.

30The Economic Impact of the City of Melbourne’s Investment in the Arts

• Thosewhorespondedtothesurveyalsohadaboveaverageeducationwith44.8percenthaving completedapostgraduatequalificationand72.4percenthavingcompletedatleastabachelor degree.• 36percentofrespondentsdeclaredtheirmainoccupationtobeintheartsorcreativesector.

Aspartofthesurvey,audiencememberswereaskedabouttheArtsMelbournevenuesandactivitiestheyhaveattendedinthelast12months(Chart7).Further,theywereaskedtoindicateapproximatelyhowoftentheyattendedtheseevents(Chart8).

Themostcommonlyattendedprograms/venueswereArtPlay(61percent),ArtsHouse(47percent)andtheCityGallery(42percent).Morethan40percentofrespondentsforagivenvenue/programwererepeatvisitorsoverthepast12months.

Chart 7: Venues attended by audiences

Source:CityofMelbourneAudienceSurvey(2016)

31The Economic Impact of the City of Melbourne’s Investment in the Arts

Chart 8: Frequency of audience attendance by venue

Source:CityofMelbourneAudienceSurvey(2016)

Respondentswereaskedwhichvenue,programoractivitytheyhadmostrecentlyattended.Theirresponseformedthebasisforanumberofquestionsonthesurvey.Interestingly,closeto40percentrespondedArtPlaywhileanother30percentArtsHousewiththeremainingattendingoneoftheothervenuesorprograms.Readersshouldnotethattheanalysiswillbebiasedtowardsattendeesoftheseprograms.

32The Economic Impact of the City of Melbourne’s Investment in the Arts

Chart 9: Most regularly attended venue

Source:CityofMelbourneAudienceSurvey(2016) Respondentswereaskedtoreporttheirgroupsizeaswellastheagecompositionoftheirgroup.Itwasfoundthat38.2percentrespondentswereinagroupoftwowhilemorethan14percentofrespondentswereinagrouplargerthansix.Theaverageratioofunder18toover18yearsofagewasconsistently30percentto40percentacrossgroupsizes.

TakingtheserespondentsasrepresentativeoftheCityofMelbourneartsactivitiesaudiencebase,intermsoftheeffectiveeconomicimpactofthecontributionoftheCityofMelbourneartsinvestment,itshowsthatasignificantproportionareregularattendees,oftenfamilies,withrelativelylowhouseholdincomeandwhoareunlikelytohavelargeamountsofdiscretionaryincome.

6.3 GeneralPublicSurveyRespondentCharacteristicsIncontrasttotheaudiencesurveythatcomprised75questionsspanningsixsections,thegeneralpublicsurveycontainedfewersections.ThiswasduetothefactthatrespondentshadnotattendedaCityofMelbournelistedartsactivitywithinthelast12months.

ThegeneralpublicsurveywasadministeredbyRMITwithapopulationage-genderrepresentativesurveypanelprovidedthroughSSI.TheonlinesurveyrecruitedindividualsfrommetropolitanMelbournewithasmallnumberofadditionalVictorianresidentsalsoinvitedtocompletethesurvey.Thesurveywasattemptedby1400respondentswith1024individualsmeetingtheselectioncriteriaofnothavingattendedaCityofMelbourneartseventinthepast12months.

The1024validrespondentswerefrom223differentpostcodes.Mostresidedininner-citysuburbswith91.8percentofrespondentsbeingfrommetropolitanMelbourne(postcodes3000-3207).Only4.2percentofeligiblerespondents(thosewhohadnotattendedaCityofMelbourneartseventinthepast12months)werefromtheCityofMelbournelocalgovernmentarea(Figure1).

33The Economic Impact of the City of Melbourne’s Investment in the Arts

Figure 1: Distribution of General Public Survey Postcodes

Source:CityofMelbourneGeneralPublicSurvey(2016)

Thesurveywasage-genderrepresentativewith46.7percentofrespondentsidentifyingthemselvesasmaleand52.6percentasfemale.Respondentswerefromawiderangeofagesasshowintable1below:

Table 1: General Public Survey Respondent Age Groups

Respondent Age Group % Count18-24years 10.84% 11125-34years 17.68% 18135-44years 19.82% 20345-54years 18.95% 19455-64years 14.65% 15065andover 17.68% 181Prefernottoanswer 0.39% 4Total 100% 1024

Source:CityofMelbourneGeneralPublicSurvey(2016)

34The Economic Impact of the City of Melbourne’s Investment in the Arts

Intermsofemploymentandpurchasingpower,mostrespondentswereemployedinpaidwork(full-time:34.5percentandparttime/casual:20.8percent).Inaddition:

• 36.7percentofrespondentswerefromhouseholdsearninglessthan$60,000ayear.• 71.3percentofrespondentswerefromhouseholdsearninglessthan$150,000ayear.• Asmallproportionofrespondentswerestudyingfull-time(Tertiary:6.3percentandSchool:0.61 percent).• 5.8percentwereengagedinunwagedhomeorcarerduties.

Levelsofeducationwererepresentativeofthegeneralpopulationwith10.9percenthavingcompletedapostgraduatequalificationand28percenthavingcompletedabachelordegree.27.5percentheldacertificateordiplomaand31.3percenthadahighschooleducationorless.

Culturalconsumptionofthegeneralpublicisdemonstratedinthefollowingfigure.

Chart 10: Generalised cultural consumption for the general public

Source:CityofMelbourneGeneralPublicSurvey(2016)

35The Economic Impact of the City of Melbourne’s Investment in the Arts

7 ReferencesAustralianBureauofStatistics(ABS)(2015)3218.0–RegionalPopulationGrowth,Australia,2014–15:ESTIMATEDRESIDENTPOPULATION,StatesandTerritories–GreaterCapitalCityStatisticalAreas(GCCSAs).AustralianBureauofStatistics.

AustralianBureauofStatistics(ABS)(2016)3101.0–AustralianDemographicStatistics,Sep2016.AustralianBureauofStatistics.6October2016.

Acton,J.(1973)EvaluatingPublicProgramstoSaveLives:TheCaseofHeartAttacks.SantaMonica:RANDCorporation.

ArtsCouncilEngland(2014)TheValueofArtsandCulturetoPeopleandSociety:EvidenceReview.Availableonline:http://www.artscouncil.org.uk/exploring-valuevalue-arts-and-culture/value-arts-and-culture-people-and-societyaccessed:20July2016.

BoardofTradeofMetropolitanMontreal.(2009)CultureinMontreal:EconomicImpactsandPrivateFunding.Availableonline:http://www.ccmm.ca/documents/publications/etudes/CCMM_Culture_en.pdfaccessed:20July2016.

BOPConsulting.(2013)MeasuringtheEconomicBenefitsofArtsandCulture.ArtsCouncilEngland.UK.

Brown,A.S.andRatzkinR.(2011)MakingSenseofAudienceEngagement:AcriticalAssessmentofEffortsbyNon-profitArtsOrganizationstoEngageAudiencesandVisitorsinDeeperandMoreImpactfulArtsExperiences.TheSanFranciscoFoundationandTheWallaceFoundation.UnitedStates.

Burgan,B.Mahmoudi,P.andSpoehr,J.(2016)WISeREconomicImpactAnalysisTool.Availableonline:http://eiat.aurin.org.au/accessed:20July2016

Chan,T.W.(Ed.)(2010)SocialStatusandCulturalConsumption.Cambridge:CambridgeUniversityPress

Chang,S.W.P.(2013)TheEconomicValuationofCultureinSingapore:CaseStudiesoftheSingaporeArtsFestivals,NationalMuseumandtheEsplanade-TheatresontheBay,PhDthesis,UniversityofQueensland

Choi,A.Papandrea,F.andBennett,J.(2007)‘AssessingCulturalValues:DevelopinganAttitudinalSale’,JournalofCulturalEconomics,31:311-335

DavidsonS.anddeSilvaA.(2013)TheAustralianCoalIndustry–AddingvaluetotheAustralianEconomy,MineralsCouncilofAustralia.

EssentialEconomics,(2010),MelbourneCityCouncilAnnualandTriennialGrantsProgramEconomicEvaluation,FinalReportNo09161,Melbourne

Hanley,N.Wright,R.E.andAdamowicz,V.(1998)‘UsingChoiceExperimentstoValuetheEnvironment,’EnvironmentandResourceEconomics.11(3):413-428.

KPMG(2013)EconomicImpactoftheVictorianArtsandCulturalSector.ArtsVictoria,Melbourne.

Markusen,A.(2006)‘UrbanDevelopmentandthePoliticsofaCreativeClass:EvidencefromaStudyofArtists’,EnvironmentandPlanning.38:1921-1940

36The Economic Impact of the City of Melbourne’s Investment in the Arts

Noonan,D.S.(2003)‘Contingentvaluationandculturalresources:Ameta-analyticreviewoftheliterature,’JournalofCulturalEconomics.27(3–4):159–176.

O’Brien,H,L.(2010)MeasuringtheValueofCulture:AReporttotheDepartmentforCultureMediaandSport.DepartmentofMedia,CultureandSports:LondonUK.

O’Brien,H.L.andToms,E.G.(2010)‘TheDevelopmentandEvaluationofaSurveytoMeasureUserEngagement,’JournaloftheAmericanSocietyforInformationScienceandTechnology.61(1):50-69.

Towse,R.(Ed.)(2003)AHandbookofCulturalEconomics.Massachusetts:EdwardElgarPublishingInc.Throsby,C.D.(2001)EconomicsandCulture.Cambridge:CambridgeUniversityPress.Throsby,C.D.(2010)TheEconomicsofCulturalPolicy.CambridgeUniversityPress.

ThrosbyC.D.,WithersG.A.(1983),‘Measuringthedemandfortheartsasapublicgood:Theoryandempiricalresults’,inHendonW.S.,ShanahanJ.L.,eds,EconomicsofCulturalDecisions,AbtBooks,Cambridge,MA,pp177–191.

37The Economic Impact of the City of Melbourne’s Investment in the Arts