Issue Brief: Southwest Florida Arts Sector Analysis

December 06, 2024 / RERI Research Team

Data from the U.S. Bureau of Economic Analysis (BEA) shows that the nation’s arts and culture sector value added was over $339 billion dollars in the second quarter of 2024, accounting for about 1.2 percent of the country’s total GDP in the quarter. In Florida alone, the BEA estimates the arts GDP at $24.6 billion in 2023. The American for the Arts organization released their sixth economic impact study of the nonprofit arts and culture industry in the U.S in 2023. Their report points to over 120,000 nonprofit business in the arts and culture sector in the country contributing directly and indirectly to the economy and provides some local estimates as well including Lee County and Collier County.

In June 2024, the nonprofit arts sector experienced a funding reduction from the state government. Despite the state legislature recommending approximately 47.8 percent of the amount proposed by the Division of Arts and Culture, the nonprofit arts sector ultimately received no funding at all. In this issue brief, we analyze the potential impacts to value added in Southwest Florida resulting from this reduction in funding. We use an input-output model to assess the direct and indirect effects of this funding reduction and analyze which industries could potentially be impacted the most from the funding reduction.

Results from the analysis find that the potential total value added lost due to the reduction in nonprofit arts funding can range between $18.9 million to $37.9 million, with an average of $28.4 million. Besides the arts sector, some of the industries with the most potential value added lost include Real Estate (average of $3.2 million lost), Broadcasting ($2.6 million lost), Professional, Scientific, and Technical Services ($2.3 million lost) and Food Services and Drinking Places ($1.1 million lost). Finally, we find the reduction in funding results in the share of value added falling between 0.02 percent to 0.04 percent, with an average of 0.03 percent.

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Issue Brief: Southwest Florida Arts Sector Analysis

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