© 2003, Rotary Club of Charleston

P.O. Box 21029
Charleston, SC 29413-1029

Club secretary:
Carroll Schweers
chasrot@comcast.net

Arts bring about $2 billion into state economy
USC Business professors outline research into impact

MAY 27, 2003 - Studies show Spoleto Festival USA and Piccolo Spoleto pump more than $67 million into the local economy - - part of the $2 billion in state revenue generated by the arts, two USC business professors told members.

Ken May and Donald Shunk of the University of South Carolina's Moore School of Business conduct research studies statewide and regionally that measure the economic impact of the arts on communities and within state boundaries.

May said that when the state legislature created the SC Arts Commission in 1967, it was the beginning of a serious relationship between the cultural arts and business and commerce statewide. The purpose of the commission is to assure equal access by all to the arts. He described the dramatic expansion of arts programs since the commission was established.

Before introducing Shunk, May pointed out that in the latest evaluation in the year 2000, both Spoleto USA and Piccolo Spoleto festivals produced about $67 million for the local economy. Piccolo alone brought in $31 million.

Shunk discussed the difficulty in defining arts for purposes of measuring their impact. He divided them into roughly three areas: heritage and cultural preservation, performance and exhibitions, and individual artists and performers.

Following these criteria for describing artistic programs, he referred to his studies that show that some $2 billion of the state's economy is linked to the arts. This includes about 30,000 jobs and $700 million in labor income (about 1 1/2 percent of the state's total economy.)

He also discussed recent surveys of Spoleto visitors to pinpoint new dollars brought in by non-residents. His research showed that in 2002 $46.5 million in new dollars was brought into the community. That figure includes $19.2 million in labor income and 1,170 jobs. In other words, he said, out of every 200 jobs locally, one exists because of the Spoleto festivals.

While Shunk said he was unable to measure the effect on economic development, he said he was convinced that qualitatively, business interests and growth were well served.

The program concluded with the St. Petersburg String Quartet, playing the famous Nocturne Borodin.

- John Milkereit

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