The findings of a study released recently by the nonprofit California Desert Arts Council (CDAC) show that nonprofit arts and culture organizations in the Coachella Valley contributed $110.9 million in economic impact to the local economy, supporting more than 1,623 jobs in the sector; generating $19.5 million in tax revenues to local, state, and federal governments; and providing $57.6 million in personal income to residents.
The study, Arts & Economic Prosperity 6 (AEP6), was organized by the national advocacy organization Americans For the Arts. The participation of the Coachella Valley was funded by philanthropist and arts advocate Ann Sheffer through the Fund for a Creative IE that she established through the Inland Empire Community Foundation (IECF). The fund’s grant to CDAC allowed the local arts advocacy organization to rally 40 Coachella Valley event-producing arts and culture organizations to participate in data collection, including audience surveys. The study excluded commercial venues such as casinos, Acrisure Arena, and the Coachella and Stagecoach music festivals.
“The report demonstrates that the arts are not just an amenity,” says Kristen Dolan, executive director of CDAC. “They are a key contributor to the economy and a sector worthy of public and private investment.”
AEP6 found that attendees of performances, exhibitions, and festivals in the Coachella Valley spent an average of $77.02 per person per event (beyond the cost of admission and food and beverages purchased at the event) on dining and shopping near the venue, and on child or pet care.
Almost one-third (28.3 percent) of attendees traveled from outside the region, and each spent an average of $156.94 — that is, 245 percent more than local attendees — beyond the cost of admission and on-site food, beverage, and souvenirs. Of those “visitor” attendees, 47 percent said the primary purpose of their visit was to attend the event where they were surveyed. More than 45 percent of visiting attendees reported an overnight lodging expense as a result of attending the event and average daily expenses of $263 per person.
In terms of tax revenues, spending by Coachella Valley nonprofit arts and culture organizations contributed a total of $9 million, and event-related spending by audiences generated an additional $10.5 million.
“The next step,” says Dolan, “is to help our local nonprofit arts and culture organizations use this information in their development efforts, including fundraising and grant writing, as well as in initiatives to advocate for public funding and arts-positive policies.”
Americans for the Arts conducted AEP6 to document the economic and social benefits of the nation’s nonprofit arts and culture industry. The study was conducted in 373 diverse communities and regions across the country, representing all 50 states and Puerto Rico. The California Desert Arts Council joined the study on behalf of the Coachella Valley region.
Nationally, detailed information was collected from 16,399 nonprofit arts and culture organizations about their FY2022 expenditures (e.g., labor, local and non-local artists, operations, materials, facilities, and asset acquisition), as well as their event attendance, in-kind contributions, and volunteerism. Surveys were collected from February through July 2023. Some organizations only provided total expenditures and attendance (they are included in the study).
Responding organizations had budgets ranging from a low of $0 to a high of $375 million. Response rates for the 373 communities averaged 43.9% and ranged from 5% to 100%. In the Coachella Valley region, 40 of the 182 total eligible nonprofit arts and culture organizations identified by the California Desert Arts Council provided the financial and attendance information required for the study analysis—an overall participation rate of 22.0%. It is important to note that each study region’s results are based solely on the survey data collected. Therefore, the less-than-100 percent response rates suggest an understatement of the full economic impact findings.
Audience-intercept surveying, a common and accepted research method, was conducted to measure event-related spending by audiences. Attendees were asked to complete a short survey while attending an event. The randomly selected respondents provided itemized expenditure data on attendance-related activities such as meals, souvenirs, transportation, and lodging, as well as socioeconomic information, ZIP code of primary residence, and four social impact questions. Data was collected from May 2022 through June 2023 at a broad range of both paid and free events. In the Coachella Valley region, a total of 739 valid audience-intercept surveys were collected from attendees to nonprofit arts and culture performances, events, exhibits, and special events during the period from May 2022 through June 2023.
California Desert Arts Council unifies, empowers, and promotes arts and culture in the Coachella Valley region through initiatives in advocacy, business and professional development, cultural tourism and promotion, and education. Learn more at www.cadesertarts.org.
