2

Preface

The Economic, Social and Cultural Value of Salamanca Arts Centre 2011-12 had an antecedent.

Rosemary Miller

Salamanca Arts Centre

3

The Economic, Social and Cultural Value of the Salamanca Arts Centre (2011-12)

Paul Muller, Neil Cameron, Lauren Jameson, Kristel Robertson, Robert Grafton

Foreword

Tasmanian context.

Saul Eslake

June 2013

4

Acknowledgements

Contact detailsPaul Muller

5

Contents

1. Introduction 9

2. Methodology 12

Value model 23

3. Activity 25

4. Inputs

5. Arts Capital 31

6. Value

7. The Value of the Salamanca Arts Centre

8. Conclusion

9. Opportunities for Future Research

6

Appendices

Tables and Figures

85

7

Executive summary

This report was commissioned by the Salamanca Arts Centre (SAC) to quantify its

economic, social and cultural value.

-

Figure 1: Value Model

8

-

three dollars

$660,000

1.5 percent

very high

over $30

$5.3 million.

9

1. Introduction

Arts in Tasmania,

statements.

10

11

not only SAC, but its direct, indirect and potential stakeholders. It will assist SAC

and its partners by:

Tasmania

12

2. MethodologyEconomic value

13

Alternative approaches to economic valuationFinancial analysis

14

Revealed preferences

Transaction prices

To that end, the travel cost

15

Hedonic pricing

Opportunity costing

16

Economic impact analysis

the attraction of economic impact analysis

direct impacts

indirect impacts

induced impacts

and institutions measured, and

17

18

Stated preferences

19

Choice experiments

Contingent valuation method (CVM)

20

Non-use values

non-use value

1. Option value

2. Bequest value

3. Existence value

Altruistic value

To this, a

shared value.

21

Preferred approach

maintain the status quo.

value

As a result, the

time

22

over-estimation. A

Value model

23

Figure 1: Value Model

refers

Knowledge

expressed

24

This report therefore uses:

25

3. Activity

Salamanca Arts Centre (SAC)

attachment is considered.

26

4. Inputs

Direct costs

$16.6 million

27

Private expenditure

$13.3 million

Private philanthropy

$0.2 million

Government investment

$3.1 million.

28

Opportunity costs

$0.9 million.

Opportunity cost of volunteers

$775,481.

29

SAC infrastructure

30

$63,920

Government grants, subsidies and tax exemptions

3

$59,924.

3

31

5. Arts Capital

32

33

Physical capital

Infrastructure

34

Product

People

35

36

Psychological capital

37

outcomes.

Social capital

38

Knowledge capital

seminars.

39

40

Symbolic capital

41

42

6. Value

$52.5 million

$3.2 million.

$2.4 million.

43

at least $7.5 million.

$11.7 million

$27.7 million

44

45

Quantity of life

How many DALYs are ‘gained’ through engagement with the Arts?

What is a day worth?

46

million.

47

$2.4

million.

48

Health system

made that other SAC consumers sourced their health care outside of Tasmania.

Justice

49

$0.2 million

Donations of time and money

for.

50

Brand

51

$0.5 million

commended as a direction for future research.

52

19.9 per cent on

$7.5 million

53

Consumer productivity

54

$7.5 million.

55

Innovation

56

million.

$11.7 million.

57

Input/Output modelling

and so on.

58

59

2008-09.

noted in the text.

60

Sector Expenditure Tasmanian GSP Wages Imports Taxes

Relating to SAC Production Impact Impact Impact Impact

SAC Impact (C) (D) (E) (F)

(A) (B)

Accommodation and

technical and

Total $16.61 $25.24 $11.70 $5.98 $7.59 $2.41Total $16.61 $25.24 $11.70 $5.98 $7.59 $2.41

Sector Expenditure Tasmanian GSP Wages Imports Taxes

Relating to SAC Production Impact Impact Impact Impact

SAC Impact (C) (D) (E) (F)

(A) (B)

61

$6.0 million

.

$2.4 million.

to normal.

$3.3 million

62

$27.7 million

63

Use value

The use value

5

5

64

is therefore $20.4 million.

Non-use value non-users

65

$4.0 million.

So what?

66

recommended as a direction for future research.

67

7. The Value of the Salamanca Arts Centre

$52.5 million

Inputs

Government

$ 17,512,821

Value

Programs

Volunteers

Brand

Commercial

Business

$ 52,498,338

68

three

dollars

is 17:1.

agglomeration

69

the results are

trade in isolation.

70

8

c

c

71

$5.3 million.

SAC productivity

9,

Centre.

9

72

Politicians are smarter than you think!

This is commended as a direction for future research.

A cautionary note

73

8. Conclusion

of SAC exceed the social costs, the outcome is in fact

Supporters of the Arts have struggled

to develop a national conversation that

makes the case for robust, on-going public

support of the Arts.

While arts enthusiasts feel deeply about

the importance of the Arts and can

speak quite eloquently about a number

of aspects such as the universality or the

transcendent nature of the Arts, many have

been frustrated by an inability to spark a

positive, national, constructive public

conversation on the topic…

Instead, public spending on the Arts is too

often criticised as an example of “wasteful”

government spending or “misguided”

government intrusion into an area where it

doesn’t belong.

In order to create a more constructive

public dialog, it is necessary to explore

the dynamics in the current public

conversation—in the media, for instance—

as well as in the thinking of the majority

of people who do not focus on the Arts in

their daily lives (Fine Arts Fund, 2010).

74

9. Opportunities for Future Research

commended as a direction for future research.

75

of the I/O method should consider this.

76

77

AppendicesAppendix 1: SAC Organisations, Programs, Venues and Events

TenantsArtists in studio

Catherine Woo Cristina Palacios

Arts organisations

Arts retail

Eat and drink

78

Venues

79

Appendix 2: Business Survey

Resident Information

Artist in Studio

Background

Presentations—Performance

Y

80

Presentations—Exhibitions

Y

13. If you answered YES,

81

Representation

Financials

82

83

Y

84

Appendix 3: Community Survey

85

WTP($) Number Percent

250 19 1.3

1250 5 .3

Total 1481 100.0

Survey design

86

87

Survey instrument

What is the purpose of this survey?

Salamanca Arts Centre.

Why have I been invited to participate?

What will I be asked to do?

study?

88

Are there any possible risks from participation in this study?

What if I change my mind during or after the study?

What will happen to the information when this study is over?

How will the results of the study be published?

of the results.

What if I have questions about this study?If you have any questions about the research, please contact the Salamanca Arts

Centre at info@salarts.org.au, or the principal researchers.

89

General attitudes to the Arts

SAC participation2. Which of the following businesses or events at the Salamanca Arts Centre have

you engaged with in the last 12 months?

Artefacts

Hammer and Hand

90

Info Centre

Tasmanian Writers Centre

91

4. In the last 12 months, approximately how much did you spend at the

Salamanca Arts Centre?

5. In the last 12 months, approximately how much more did you spend on the

Arts in general?

your engagement with the Salamanca Arts Centre?

Known outcomes of engagement with the Arts include physical,

Willingness to pay7. Please consider the following hypothetical scenario:

Would you or your business be willing and able to contribute - as either a

donor or event sponsor - somewhere between $20 and $2,000?

Y

The following questions are path dependent on the prior answers given:

Y

Would you or your business be willing and able to contribute $1,250?

Y

92

Would you or your business be willing and able to contribute $100?

Y

Would you or your business be willing and able to contribute $2,000?

Y

Would you or your business be willing and able to contribute $750?

Y

Would you or your business be willing and able to contribute $250?

Y

Would you or your business be willing and able to contribute $50?

Y

Demographics 8. Are you...

15 to 19

93

10. What is your average household income?

94

Glossary

CPI Consumer Price Index

SAC Salamanca Arts Centre

95

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