5 | Economic Impact of the Victorian Arts and Cultural Sector Economic Contribution of the 3 Victorian: Arts and Culture Sector Some cultural goods and services have creative or artistic elements that are tangible, such as artwork or publications, while others are intangible services, such as musical performance or museum visitations. Some are final goods that are supplied to consumers, such as radio and video broadcasts or a theatre performance, while others are intermediate goods, such as the preparation of sets for film or theatre productions. What cultural outputs have in common with all other industry outputs is that their production utilises resources of labour and capital as well as intermediate goods and services. The sector generates wealth and creates jobs through the utilisation and commercialisation of their intellectual property. The analysis of the economic contribution of the arts and culture sector in this study is based on the following components. Comparisons across these measures and fuirther explanation of the results are presented in more detail in Appendix D. Output refers to the and services produced by an industry or sector. It is the value of these goods and services, produced using a combination of labour, capital, and other goods and services including imports. Value added is equivalent to output less goods and services sourced from other suppliers (including imports), and is the sector’s contribution to gross state product. By excluding goods and service inputs from other industries and imports, ‘value added’ avoids double counting as it does not include the value- added from other industries. In other words, it represents only the value added to products and services that the creative businesses in Victoria produce. Employment refers to the number of people employed. This study takes into account total Full Time Equivalent (FTE) jobs, which assumes standard working hours are 37.5 hours a week. Further, it is recognised that this sector also contributes in other qualitative ways that are not captured in conventional economic statistics. For example, other benefits include contributing to a city’s liveability, and helping to foster knowledge and skills transfers as well as contributing to education outcomes, tourism, destination branding, international image, etc. Final 24 hour weekend opening of the Salvador Dali: Liquid Desire exhibition at the National Gallery of Victoria, October 2009. Source: NGV
23 | Economic Impact of the Victorian Arts and Cultural Sector policies to promote the industry. 4-1: Victorian Government Cultural Funding, 2010-11 ($millions) Furthermore, many of the marketing initiatives strongly promote the arts and culture Arts Victoria Other Government Funding sector in an aim to also promote the tourism and travel industry in Victoria. The arts and culture sector is also supported by the Victorian Major Events Company (VMEC), a Victorian Government organisation that secures major entertainment and sporting events for Victoria. VMEC promotes the sector by attracting major domestic and international events to Victoria and establishing opportunities with various businesses in the state. Some recent major cultural events include Melbourne Winter Masterpieces exhibition: Napoleon: Revolution to Empire and World DanceSport Championship2. Table 4-1 shows the allocation of funding from Arts Victoria and other government funding across each of the 10 Australian Culture and Leisure Classification system industries. In 2010-11, other Victorian Government agencies provided almost $258 million to the arts and culture sector. In total, Victorian Government funding to the sector was worth around $580 million that year. Figure 4-1 highlights that a significant portion of Victorian government funding, with environmental heritage funding a particular exception, is allocated via Arts Victoria. Museums, antiques and collectables 105.2 25.8 131.0 Environmental heritage 0.0 142.7 142.7 Libraries and archives 60.6 35.9 96.5 Literature and print media 2.8 2.1 4.9 Performing arts 106.7 9.3 116.0 composition and publishing 0.0 4.1 4.1 Visual arts and crafts 2.8 0.5 3.3 Design 0.0 3.6 3.6 Broadcasting, electronic media and film 20.2 27.6 47.8 Other arts and culture 23.8 6.7 30.5 Total 322.2 258.2 580.4 Source: Unpublished data from Arts Victoria and Cultural Funding by Government 2010-11 Figure 4-1: Victorian Government Cultural Funding 2010-11 ($millions) Museums, antiques and collectables Environmental heritage Libraries and archives Literature and print media Performing arts Music composition and publishing Visual arts and crafts Design Broadcasting, electronic media and film Other arts and culture 0 40 80 120 160 Arts Victoria Funding Other Govt Funding Source: Unpublished data from Arts Victoria and Cultural Funding by Government 2010-11, (cat 4183.0) 2 Victorian Events Company (2009)