5 | Economic Impact of the Victorian Arts and Cultural Sector Economic Contribution of the 3 Victorian: Arts and Culture Sector The analysis of the economic Some cultural goods and services contribution of the arts and culture as it does not include the value- have creative or artistic elements that sector in this study is based added from other industries. In are tangible, such as artwork or on the following components. other words, it represents only publications, while others are Comparisons across these measures the value added to products and intangible services, such as musical and fuirther explanation of the results services that the creative performance or museum visitations. are presented in more detail in businesses in Victoria produce. Some are final goods that are supplied Appendix D. to consumers, such as radio and video Employment refers to the number of broadcasts or a theatre performance, Output refers to the and people employed. This study takes while others are intermediate goods, services produced by an industry or into account total Full Time such as sector. It is the value of these goods Equivalent (FTE) jobs, the preparation of sets for film or and services, produced using a which assumes standard working hours theatre productions. combination of labour, capital, and are 37.5 hours a week. other goods and services including What cultural outputs have in Further, it is recognised that this sector imports. common with all other industry also contributes in other qualitative outputs is that their production Value added is equivalent to output ways that are not captured in utilises resources of labour and less goods and services sourced conventional economic statistics. For capital as well as intermediate from other suppliers (including example, other benefits include goods and services. The sector imports), and is the sector’s contributing to generates wealth and creates jobs contribution to gross state product. a city’s liveability, and helping through the utilisation By excluding goods and service to foster knowledge and skills and commercialisation of their inputs from other industries and transfers as well as contributing to intellectual property. imports, added’ avoids education outcomes, tourism, ‘value double counting 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
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
Economic_Impact_of_the_Victorian_Arts_and_Cultural_Sector_2013.docx