How the Arts and Cultural Tourism Spur Economic Development

It’s the question that all local officials ask themselves: How can we attract and retain profitable businesses and talented people? A key component of such efforts — and one that’s often mislabeled an “amenity” — is arts and culture.

Creative businesses play a huge part in the California economy. These businesses comprise the arts, design, digital media and other fields that utilize a creative workforce. More than 134,000 creative businesses employ 500,000 Californians, with another 100,000 freelance or part-time creative workers in the mix. In addition, the Golden State’s 4,553 arts organizations contribute $3.56 billion annually to its economy.

But the value of the arts extends beyond the direct economic impact. When Gallup and the Knight Foundation set out to answer the question “What attaches people to their communities?” in a three-year study, researchers found that the key reasons cited by residents for loving their cities were entertainment and social offerings, how welcoming the city is and its aesthetics — in other words, the arts and culture.