The ECONOMIC Impact of Art Districts with Examples.

ECONOMIC IMPACT OF ART DISTRICTS FOR TEXAS

Art districts in Texas have a significant economic impact, contributing to job creation and generating substantial revenue. Here are some key figures:

1. Economic Impact:

   • The Texas arts and culture industry has grown more than 30% over the past decade, generating approximately $6 billion annually for the Texas economy1.

   • In 2019, the industry contributed $50.1 billion to the state’s gross domestic product (GDP)2.

2. Job Creation:

   • The creative sector employs nearly 900,000 Texans, representing about 1 in 15 jobs in the state2.

   • Cultural districts specifically help create jobs by attracting businesses and tourists, which in turn supports local employment3.

3. Revenue Generation:

   • The arts and culture sector generates nearly $380 million in state sales tax revenue annually2.

   • Public grant funding for cultural districts has shown a significant return on investment, often earning a two-to-one return for the state’s economy4.

These figures highlight the substantial role that art districts play in boosting the Texas economy, creating jobs, and generating revenue.

ECONOMIC IMPACT MEASUREMENTS

The economic impact of art districts is measured using several key indicators and methodologies. Here are some common approaches:

1. Direct Economic Impact:

   • Revenue Generation: Measuring the revenue generated by art-related businesses, events, and activities within the district.

   • Employment: Counting the number of jobs created by the art district, including both direct employment (artists, gallery staff) and indirect employment (support services, hospitality).

2. Indirect Economic Impact:

   • Multiplier Effect: Using economic multipliers to estimate the additional economic activity generated by the spending of art district employees and visitors. This includes spending on local businesses, restaurants, and hotels.

3. Tourism and Visitor Spending:

   • Visitor Numbers: Tracking the number of visitors to the art district and their spending patterns.

   • Tourism Revenue: Calculating the revenue generated from tourism, including accommodation, dining, and retail spending.

4. Property Values and Real Estate Development:

   • Property Value Increases: Assessing changes in property values within and around the art district.

   • Real Estate Development: Measuring investment in real estate development and improvements in the district.

5. Cultural and Social Impact:

   • Community Engagement: Evaluating the level of community participation and engagement in art district activities.

   • Quality of Life: Assessing improvements in the quality of life for residents, such as increased access to cultural amenities and enhanced public spaces.

6. Economic Surveys and Studies:

   • Surveys: Conducting surveys of businesses, visitors, and residents to gather data on economic impact.

   • Economic Studies: Commissioning economic impact studies from universities or research organizations to provide detailed analysis and insights.

These methods help provide a comprehensive picture of the economic benefits and contributions of art districts to local economies.