Arts and the Economy
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March 2021 Arts and the Economy The Economic and Social Impact of the Arts in San Francisco Acknowledgments This report was prepared by Sean Randolph, Senior Wayne Hazzard, Executive Director, Dancers’ Group Director at the Bay Area Council Economic Institute, Roberto Y. Hernandez, Executive Director, Carnaval Research Analyst Estevan Lopez, and Executive Director San Francisco Jeff Bellisario. The Economic Institute wishes to thank Grace Horikiri, Executive Director, Nihonmachi Street Fair its sponsors: Grants for the Arts, the San Francisco Arts Commission, the San Francisco War Memorial & Anne Huang, Executive Director, World Arts West Performing Arts Center, and SF Travel for supporting Eva Lee, San Francisco Autumn Moon Festival and the project and the following individuals at those Chinatown Merchants Association organizations for their support and guidance. Jenny Leung, Executive Director, Chinese Culture Matthew Goudeau, Director, Grants for the Arts Center of San Francisco John Caldon, Managing Director, San Francisco War Rhiannon Lewis, Director of Institutional Giving and Memorial & Performing Arts Center Direct Response, San Francisco Conservatory of Music Mariebelle Hansen, Green Room Manager, San Fred Lopez, Executive Director, San Francisco LGBT Francisco War Memorial & Performing Arts Center Pride Parade and Celebration Khan Wong, Senior Program Manager, Grants for the Arts Patrick Makuakane, Director, Na Lei Hulu I Ka Wekiu Sandra Panopio, Senior Racial Equity & Data Analyst, Andrea Morgan, Director of Institutional Giving, San Francisco Arts Commission Contemporary Jewish Museum Brenda Tucker, Director, Arts Marketing, SF Travel David Meckel, Director of Campus Planning, California College of the Arts Rebekah Krell, Acting Director of Cultural Affairs, San Francisco Arts Commission Pat Nester, Interim Executive Director, Fort Mason Center for Arts & Culture Joaquin Torres, Director, Office of Economic and Workforce Development Elizabeth O’Malley, Managing Director, SFFILM Anastacia Powers Cuellar, Executive Director, Brava! The Economic Institute also wishes to thank the following For Women in the Arts leaders of arts and cultural organizations in San Francisco Eduardo Rallo, Proprietor of Colibri for the information and insights they provided through $teven Ra$pa, Associate Director of Community interviews conducted in the Fall of 2020. Events, Burning Man Jennifer Bielstein, Executive Director, A.C.T. Jason Seifer, Chief Financial Officer, Fine Arts Museums Stephen Beal, President, California College of the Arts of San Francisco Cheryl Blalock, Executive Director and Interim Artistic Matthew Shilvock, General Director, SF Opera Director, Lamplighters Melanie Smith, President, SF Performances Don Scott Carpenter, Executive Director, American Lex Sloan, Executive Director, Roxie Theater Bach Soloists Greg Stern, Chief Executive Officer, SFJAZZ Ben Davis, CEO, Illuminate Maeve Sullivan, Associate Director of Development, Laila E. Dreidame, Associate Director, Foundation and Alonzo King LINES Ballet Government Giving, SFMOMA Graham Todd, Deputy Director, Litquake Adrian Ellis, Director, AEA Consulting Kelly Tweeddale, Executive Director, Brad Erickson, Executive Director, Theatre Bay Area San Francisco Ballet Bob Fiedler, Executive Director, Stern Grove Festival Ann Wiens, Vice President, Marketing & Mark Hanson, CEO, San Francisco Symphony Communications, California College of the Arts Tim Hallman, Director of Communications and Business Philip Wilder, President & General Director, Chanticleer Development, Asian Art Museum Jay Xu, Museum Director, Asian Art Museum Contents Introduction ....................................................................................... 3 Chapter 1 Measuring the Economic Impact of the Arts .................................... 5 The IMPLAN Model Explained ............................................................ 5 Grants Provided to Nonprofit Arts and Cultural Organizations .......... 6 Annual Expenditures by Arts Organizations ....................................... 7 Employment in the Arts ....................................................................... 7 Impacts from Annual Expenditures and Employment ........................ 8 Attendance at Nonprofit Arts and Cultural Events ............................. 8 How Is Visitor Spending Calculated? ................................................. 10 What is the Total Visitor Spending and Its Economic Impacts? ........ 11 San Francisco War Memorial & Performing Arts Center ................. 14 Employment Impacts from the War Memorial .................................. 14 War Memorial Resident and Non-resident Licensee Organizations ...................................................................... 15 Employment of War Memorial Resident and Non-resident Licensee Organizations ...................................................................... 15 Employment Impacts from War Memorial Resident and Non-resident Licensee Organizations ............................................... 15 Attendance at Performances and Events at the War Memorial ........ 16 Event-Related Spending at Performances and Events at the War Memorial .......................................................................... 17 Economic Impacts from Event-Related Visitor Spending at Performances and Events at the War Memorial ............................ 18 Jobs and Economic Activity Directly Connected to the War Memorial .......................................................................... 19 Total Event-Related Visitor Spending Impacts .................................. 20 Total Economic Impact ...................................................................... 20 Return on Investment for the City and County of San Francisco ...... 21 Proposition E Funding for the Arts ................................................. 22 Chapter 2 Depth and Diversity in the Arts Community ................................... 23 Arts Districts ...................................................................................... 63 San Francisco Cultural Districts ....................................................... 70 Chapter 3 The Arts and Creative Industries ..................................................... 71 Chapter 4 Dealing with the Impacts of COVID-19 ........................................... 73 COVID Case Studies .......................................................................... 74 Chapter 5 The San Francisco Arts Ecosystem .................................................. 85 Chapter 6 Conclusion ....................................................................................... 87 Notes ............................................................................................... 88 Introduction San Francisco is one of the great centers for art performing arts, and cultural organizations, including in the United States. Few places boast a similar small organizations as well as large ones. It does not concentration of world-leading arts organizations, and address the vast array of for-profit arts and cultural few have a comparably deep community of creative organizations that also support the economy, but artists and performers. The city’s diversity embraces focuses instead on organizations and institutions that iconic institutions, but also a rich array of smaller are supported by the City, either directly through the organizations that are deeply connected to their San Francisco War Memorial & Performing Arts Center communities and contribute to the unique character of or as grantees of the San Francisco Arts Commission the city and the region. or Grants for the Arts. In the aggregate, these organizations are both cultural assets and economic Arts and cultural organizations are usually viewed in drivers that due to their nonprofit nature need and terms of their aesthetics and the opportunities they receive public support. provide residents and visitors for both entertainment and personal enrichment. They are also, however, an industry This report also assesses how arts organizations that employs people, purchases goods and services, and have been impacted by, and are responding to, supports other businesses that rely on their presence, the economic shutdowns caused by the current particularly in the districts and neighborhoods where they pandemic, and broader but important topics such are located. The best-known draw tourists to the city, as the significance of the arts for technology and and nearly all are deeply engaged in their communities creative industries. Issues not fully addressed in this through educational activity that extends their programs report, which lend themselves to further analysis, beyond their walls, particularly into public schools. include how the benefits of investment in the arts are distributed within communities, their ability to impact This report assesses the economic contributions of social equity, and their potential to support broader the arts in San Francisco, spanning museums, the economic development. 3 Arts and the Economy 4 1 Measuring the Economic Impact of the Arts The data used in this study was provided by San Francisco spending in the local economy. Impacts measured Grants for the Arts (GFTA), the San Francisco Arts through IMPLAN include annual operating expenses Commission (SFAC), and the San Francisco War Memorial of organizations supported through grant awards, & Performing Arts Center (WM), for grants covering employment at these organizations, and event-related fiscal