Economic Impact of Murals
Oftentimes, when we think about the impact of murals, we think about it in terms of community – building, beautification, or placemaking. The less discussed topic of the economic impact of murals is well worth exploration. Starting at the highest level first, let’s take a look at the economic impact of the arts in general. According to the US Bureau of Economic Analysis, the arts (for profit and non-profit) are a $876.7 billion dollar industry (4.2% of the nation’s GDP, in 2020). To put these numbers in perspective, America’s farms contributed 0.6% of the GDP the same year. Computer and electronic product manufacturing accounts for 1.6% of the United States’ GDP. Interestingly, the construction industry contributed 4.3% of our GDP last year.
In 2015, Americans for the Arts produced Arts and Economic Prosperity 5 (AEP5), its fifth economic impact study of the nation’s nonprofit arts and cultural organizations and their audiences. It found “When patrons attend an arts event, they may pay for parking, eat dinner at a restaurant, enjoy dessert after the show, and return home to pay the babysitter. The study found that the typical attendee spends $31.47 per person, per event beyond the cost of admission. AEP5 also shows that one-third of attendees (34 percent) were not from the county in which the arts event took place. Their event-related spending was more than twice that of their local counterparts ($47.57 vs. $23.44). What brought those visitors to town? Two-thirds (69 percent) indicated that the primary purpose for their visit was to attend that arts event. The message is clear: a vibrant arts community not only keeps residents and their discretionary spending close to home, it also attracts visitors who spend money and help local businesses thrive.” (https://files.floridados.gov/media/697914/nationalfindings_summaryreport-1.pdf)
Validating these findings with a local example, and one specific to murals, the SHINE St. Petersburg Mural Festival had an economic impact study done in 2019. The study found that 36.7% of non-local attendees (out of county) reported SHINE as the primary purpose of their visit. Local event attendees (from Pinellas County), reported spending an average of $61.88 per person, per day while enjoying the murals. Because viewing the murals is free, the largest spend went to food and beverages at local bars and restaurants, while other spending was directed at retail stores, entertainment/recreational activities, gas/transport and parking. For out of county visitors, which made up 68.6% of attendees, these numbers were even higher. In total, the study found that between direct and in-direct spending, this one event created $2.1 million in economic impact for Pinellas County. (Destination Analysts, 2019 SHINE St. Pete Mural Festival Event Economic Impact Analysis).
What’s important to consider also is that when the event is over, the murals remain. Locals and visitors alike participate in year-round walking, biking and self-guided tours of the murals. The art is free and accessible to all who wish to visit. The beneficiaries of those visitors continue to be the local bars, restaurants, retail shops, galleries, museums, and parking garages surrounding the artwork. Murals stimulate local economies on multiple levels. Even without an annual festival, commissioning an artist or agency like Greater Public Studio to paint a mural directly supports a local creative, generates economic impact for the business receiving the mural and quite likely its neighbors. So, when discussing the arsenal of reasons why murals add value, remember that beyond the beautification and community engagement, there is a great economic value add as well.
