New study documents $363 million in economic impact from South Dakota’s nonprofit arts and culture sector

JANUARY 2024:

South Dakota’s nonprofit arts and culture industry generated $363 million in economic activity in 2022. This is according to Arts & Economic Prosperity 6 (AEP6), an economic and social impact study conducted by Americans for the Arts with support from the South Dakota Arts Council, Arts South Dakota, and local arts agencies in Aberdeen, Brookings, Rapid City, Sioux Falls, and Yankton.

The reported economic activity supported more than 6,000 jobs, paid $196.4 million in personal income to South Dakota residents and generated $52 million in local, state, and federal government revenue. The nonprofit arts and culture industry generated $63.7 million in spending by nonprofit arts and culture organizations and $299.3 million in event-related spending by their audiences.

AEP6 uses a rigorous methodology to document the economic and social contributions of the nation’s nonprofit arts and culture industry and has a 30-year legacy as the largest and most inclusive study of its kind. The study shows that arts and culture are a critical economic driver of dynamic communities across the nation.

Arts and culture organizations are businesses. They employ people locally, purchase supplies and services locally, and produce the authentic cultural experiences that are magnets for visitors, tourists, and new residents. The very act of creating, presenting, exhibiting, and engaging has a positive economic impact on the community.

Patrick Baker, Executive Director of the South Dakota Arts Council, says, “through our grantmaking initiatives, supporting programs and projects in communities across the state, we’ve seen the value of public investment in the arts. Even a small investment yields a huge return that spans from economic benefits to community health and wellness. Vibrant arts communities are healthier communities across a broad range of indicators.”

The arts continue to play a vital role in South Dakota’s tourism economy as well.

James Hagen, Secretary of the South Dakota Department of Tourism, said, “the updated data clearly demonstrates the importance that arts-related tourism has on our communities and in the lives of citizens and visitors. Through the Arts in Economic Prosperity research, we can see that arts-interested travelers spend a significant amount of time and money in our state, which reinforces our investment in promoting South Dakota’s arts and cultural opportunities.”

Nationally, the AEP6 study reveals that America’s nonprofit arts and culture sector is a $151.7 billion industry, supports 2.6 million jobs, and generates $29.1 billion in government revenue.

The South Dakota Arts Council is a state agency providing grants and services to artists, arts organizations, schools, and other nonprofit organizations in South Dakota with funds from the National Endowment for the Arts and the State of South Dakota. The agency is organized under the Department of Tourism.

The South Dakota Department of Tourism is comprised of Travel South Dakota and the South Dakota Arts Council. The Department is led by Secretary James D. Hagen.

OCTOBER 2023:

Arts South Dakota, in partnership with the South Dakota Arts Council and the communities of Aberdeen, Brookings, Rapid City, Sioux Falls and Yankton, has released a new study of South Dakota’s nonprofit arts and culture industry showing $363 million in economic activity generated in 2022. Arts & Economic Prosperity 6 (AEP6) is an economic and social impact study by Americans for the Arts.

This economic activity—$63.7 million in spending by nonprofit arts and culture organizations and $299.3 million in event-related spending by audiences—generated nearly $52 million in local, state and federal government revenue and supported 6,054 jobs. Spending by arts and culture audiences also includes local merchants, restaurants and lodging facilities, a value-add that few other industries can compete with.

“South Dakota has always understood the power of cultural attractions and creative enterprises to drive our economy,” said Jim Speirs, Executive Director of Arts South Dakota. “This comprehensive study quantifies the impact of our non-profit arts industry in a way that dramatically illustrates its importance to us all.”

The audience survey portion of the South Dakota analysis also shows the overwhelming appreciation and community-building aspect of arts and cultural opportunities in our state. 91% of respondents mentioned a sense of community or neighborhood pride in arts offerings, while 88% would feel a sense of loss if cultural opportunities were not available. 87% said arts attendance was a way of ensuring that creative activities and venues are preserved for future generations.

Nationally, the Arts & Economic Prosperity6 study reveals that America’s nonprofit arts and culture sector is a $151.7 billion industry—one that supports 2.6 million jobs and generates $29.1 billion in government revenue every year.

AEP6 also expands beyond the economic and financial data to include social impact measurements of arts and culture’s effect on the well-being of communities and residents, as well as prioritizing equity, community engagement, and inclusivity.

“While an understanding of that economic impact of the sector is critical to its future growth,” Speirs said, “the true power of the arts is the social impact within our communities. In addition, arts venues and opportunities are exemplary leaders in accessibility and inclusivity. We have so much to be proud of in South Dakota’s creative community!”

To see the full AEP6 study as well as individual community data, go to artssouthdakota.org.