The Happy Valley Adventure Bureau, the official destination marketing organization for Centre County and the Happy Valley Sports & Entertainment Alliance, hired ESI to conduct a study on the impacts of employment and operational spending that supports arts, cultural, and entertainment activities within the county that serve as crucial drivers of tourism, quality of life, and regional economic competitiveness.
ESI applied input-output modeling to estimate the average annual economic impacts of the operations of arts, cultural, and entertainment entities in Centre County and spending by patrons at performance venues, festivals, and events. Fiscal benefits of these economic activities are analyzed for the Commonwealth of Pennsylvania. Given the focus of this study, relevant activities at Penn State were also considered, including the operations of cultural venues such as the Center for Performing Arts or activities within the College of Arts & Architecture.
Centre County hosts various arts, entertainment, and cultural events, performances, and festivals each year, which attract both local and non-local attendees. Patrons of these activities make a significant economic impact on the local community as they dine in local restaurants, shop at local stores, and in some cases stay overnight. This visitor spending represents “new dollars” in the county economy, generating subsequent spillover impacts and supporting hundreds of jobs. Key findings include:
- The annual operations of arts, cultural, and entertainment establishments in the county, relevant activities at Penn State, and spending by patrons, generates a total economic impact of $137 million in Pennsylvania, supporting approximately 2,710 full time jobs and $80 million in employee compensation.
- Within Centre County, the total annual economic impact is $282 million, supporting 2,560 full-time equivalent jobs, and $70 million in employment compensation.
- Approximately $5.2 million in annual state tax revenue is generated.
Special events help build destination awareness and encompass a wide variety of activities, including festivals, fairs, exhibitions, and shows. Art and cultural events are vital in drawing significant attention to a destination by showcasing local culture. These events and activities can effectively build destination awareness and attract tourists, contributing to the local economy.
In addition to the quantifiable impacts from visitor spending and ongoing operations, the arts, cultural, and entertainment ecosystem contributes significantly to the fabric of Centre County.