Economic and Strategic Impact
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CALGARY’S CREATIVE INDUSTRIES Economic and Strategic Impact Presented to: Calgary Economic Development The Conference Board of Canada, 2019 Prepared by Greg Hermus, Alan Arcand, Henry Diaz, and Ryan Zhuang © The Conference Board of Canada, 2019 Calgary’s Creative Industries: Economic and Strategic Impact About The Conference Board of Canada The Conference Board of Canada is the foremost independent, objective, evidence-based, not-for-profit applied research organization in Canada. We are experts in publishing, disseminating research, economic analysis and forecasting, helping people network, running conferences, developing individual leadership skills, and building organizational capacity. We are independent from, but affiliated with, The Conference Board, Inc. of New York, which serves nearly 2,000 companies in 60 nations and has offices in Brussels and Hong Kong. Acknowledgements This study was made possible through funding provided by Calgary Economic Development. However, the findings and conclusions of this report are entirely those of The Conference Board of Canada. Any errors and omissions in fact or interpretation remain the sole responsibility of The Conference Board of Canada. © The Conference Board of Canada, 2019 Economic Impact of Creative Industries in Calgary Table of Contents ....................................................................................................................................................................... i Executive Summary ...................................................................................................................................... ii Calgary’s Creative Industries Direct Impact in 2016 .................................................................................................. ii Economic Footprint of Creative Industries in Calgary: $3.85 Billion in 2016 ............................................................ iii GDP and Employment .......................................................................................................................................... iii Government Revenues ........................................................................................................................................ iii Tourism Spending on Calgary’s Creative Industries: $71 Million in 2016 ................................................................. iii Economic Value of Calgarians Volunteering in the Creative Industries: Over $200 Million in 2017 ........................ iv Creative Sector’s Non-Economic Benefits ................................................................................................................. iv Benchmarking Analysis Paints a Mixed Picture for Calgary’s Creative Industries .................................................... iv Introduction.................................................................................................................................................... 1 ...................................................................................................................................................................... 3 Quantifying Calgary’s Creative Sector .......................................................................................................... 4 Employment .............................................................................................................................................................. 4 Revenues ................................................................................................................................................................... 6 GDP ............................................................................................................................................................................ 7 Labour Income ........................................................................................................................................................... 8 Labour Productivity ................................................................................................................................................... 9 Economic Footprint of Calgary’s Creative Sector ....................................................................................... 12 Importance of Tourism to Calgary’s Creative Sector .................................................................................. 17 Tourist Participation in Creative Activities Benchmark ........................................................................................... 21 Contribution of Volunteers in Creative Industries in Calgary ...................................................................... 24 Estimating Volunteering in Arts and Culture ........................................................................................................... 24 Estimating the Economic Value of Volunteering in Arts and Culture ...................................................................... 26 Qualitative Benefits of Volunteering ....................................................................................................................... 26 Non-Economic Benefits of Calgary’s Creative Industries ........................................................................... 29 Creative Industries and Health Outcomes ............................................................................................................... 29 Creative Industries and Education ........................................................................................................................... 30 Creative Industries and Social Development ........................................................................................................... 31 © The Conference Board of Canada, 2019 Calgary’s Creative Industries: Economic and Strategic Impact Talent Attraction and Retention .............................................................................................................................. 31 Creative Industries Benchmarking ........................................................................................................................... 33 Creative Businesses in Calgary vs Other Canadian Economic Regions ............................................................... 34 Creative Workers in Calgary vs Other Canadian Economic Regions ................................................................... 37 Arts Funding in Calgary vs Other Canadian Economic Regions ........................................................................... 39 Benchmarking: the Bottom Line ......................................................................................................................... 41 Conclusion................................................................................................................................................... 43 Bibliography ................................................................................................................................................ 47 Appendix A: Calgary’s Creative Sector Economic Footprint Tables (2016) ............................................... 51 Appendix B: Economic Impact Methodology .............................................................................................. 63 Taxes ....................................................................................................................................................................... 63 Employment ............................................................................................................................................................ 63 Construction of the Metropolitan Economic Contribution Model ........................................................................... 64 Appendix C: Value of Volunteering Methodology ....................................................................................... 66 Estimating the value of volunteer hours in Calgary and in Alberta ......................................................................... 66 Estimating employment equivalency of volunteer hours ........................................................................................ 67 Appendix D: Glossary of Terms Used ......................................................................................................... 68 Appendix E: Defining Calgary’s Creative Sector......................................................................................... 69 © The Conference Board of Canada, 2019 Economic Impact of Creative Industries in Calgary c Glenbow, Photo by Jason Lawrence © The Conference Board of Canada, 2019 Page i Economic Impact of Creative Industries in Calgary Executive Summary At a Glance • Creative products, produced by creative industries, directly supported the employment of just under 24,000 people in Calgary in 2016 and directly contributed over $2.1 billion in local GDP that same year. • The full economic footprint of Calgary’s creative sector—including the direct, indirect, and induced impact—contributed more than $3.85 billion in GDP to the Canadian economy in 2016. • It is conservatively estimated that domestic and international travellers spent $71 million on creative goods and services in Calgary in 2016. • Nearly 49,500 people volunteered for arts and cultural organizations in 2017, equal to 3,670 full- time equivalent jobs and an economic value of $204 million. • In addition to the economic boost provided by the sector, Calgary also derives significant non- economic benefits