An economic summary of Washington County's cultural industry

Washington County's cultural industry, which includes the design, education, entertainment, fashion, film, humanities, and traditional arts sectors, generated $570.5 million in output (direct spending) in 2022 (Figure 1). This $570.5 million directly supported an estimated 3,505 jobs and indirectly supported an additional 2,499 jobs in Washington County (Figure 5).

Industry Snapshot October 2023 $359.8 $361.2 $359.8 $361.2 $546.9 $359.8 $559.8 $361.2 $546.9 2018 $559.8 2019 An Economic Summary of Washington County’s Cultural Industry Economic Contributions Washington County’s cultural industry, which includes the design, education, entertainment, fashion, film, humanities, and traditional arts sectors, generated $570.5 million in output (direct spending) in 2022 (Figure 1). This $570.5 million directly supported an estimated 3,505 jobs and indirectly supported an additional 2,499 jobs in Washington County (Figure 5).1,2 There was an 8.3% year-over increase in cultural industry spending from 2021 to 2022 after adjusting for inflation. The $570.5 million in cultural industry spending represented 3.4% of Washington County’s total output in 2022 (Figure 2). Washington County’s cultural industry also generated $275.7 million in gross domestic product (GDP), or a 3.4% share of total county GDP (Figure 3). Cultural industry activity generated an additional $355 million of output and $168 million of GDP through indirect and induced effects. $321.3 $321.3 $507.7 $321.3 $507.7 2020 $353.5 $355.0 $353.5 $355.0 $560.0 $353.5 $570.5 $355.0 $560.0 2021 $570.5 2022 Direct Indirect/Induced Direct Indirect/Induced 2020 2021 $570.5 $559.8 County $560.0 $546.9 $507.7 Figure 2: Washington Industry Output (Direct 2018 2019 2020 2021 2022 Spending) As Share of Total County Spending, 2022 2018 2019 Direct 2022 Indirect/Induced Cultural Industry Output (Direct Spending) $0.57 B (3.4%) Cultural Industry Output (Direct Spending) All Other Output $16.43 B (96.6%) $0.57 B Industry (3.4%) Cultural Output (Direct Spending) $0.57 B (3.4%) All Other Output $16.43 B (96.6%) Source: Kem C. Gardner Policy Institute analysis of U.S. Bureau of Economic Analysis data All Other Output $16.43GDP B (96.6%) Figure 3: Washington County Cultural Industry As Share of Total County GDP, 2022Cultural Industry GDP Othe $0.28 B (3.4%) Cultural Industry GDP Jobs Washington County’s 3,505 cultural industry jobs increased by 8.3% from 2021 and surpassed baseline 2019 jobs by 12.1%.3 These direct jobs generated $136.4 million in labor income.4 Cultural industry jobs composed a 3.9% share of total county jobs and experienced the third fastest year-over growth after the natural resources & mining sector and information sector Figure 1: Washington County Cultural Industry Output (Total Spending), 2018-2022 (In Millions of 2022 Dollars) $359.8 $361.2 $321.3 $353.5 $355.0 $559.8 $507.7 $560.0 $570.5 Other $0.28 B (3.4%) All Other GDP $7.72 Cultural Industry GDP B (96.6%) T $0.28 B (3.4%) All Other GDP $7.72 B (96.6%) All Other GDP $7.72 B (96.6%) Source: Kem C. Gardner Policy Institute analysis of U.S. Bureau of Economic Analysis data 2022 2,499 3,505 Figure County Cultural2,198 Industry Jobs, 2021 4: Total Washington 3,235 2022 2,499 3,505 2018-2022 2020 2022 2021 2,831 3,505 3,235 1,690 2019 2021 2020 3,127 3,235 2,831 2,004 1,690 2,198 2018 2020 2019 3,039 2,831 3,127 2,234 1,690 2,004 Direct $546.9 Othe 2019 2018 2,1982,499 Indirect/Induced 2,004 2,234 All Other County Jobs: 79,440 3,127 3,039 Direct Indirect/Induced Advertising, Mktg, &3,039 Photography 13.4% 2018 Direct Cultural Industry Jobs:2,234 3,505 Architecture & Design Services -1.2%Jobs: 2,499 Indirect/Induced Cultural Industry 2018 2019 2020 2021 2022 Direct Indirect/Induced Education 7.7% Advertising, Mktg, & Photography 13.4% Direct Indirect/Induced Note: Includes full- & and part-time private and public employment; includes sole proprietors. Grantmaking Professional Orgs. 50.0% Architecture & Design Services -1.2% Source: Kem C. Gardner Policy Institute analysis of U.S. Bureau of Economic Analysis data Source: Kem C. Gardner Policy Institute analysis of U.S. Bureau of Economic Analysis data 3.3%9.0% All Industries Advertising, Mktg, & Manufacturing Photography 13.4% Education 7.7% Architecture Design Services Motion Picture & Sound Recording -1.2% 6.8% 30.2% 50.0% Construction Grantmaking & Professional Orgs. Education 7.7% 8.3% Museums Parks -9.9% Cultural&Industry Manufacturing 9.0% Kem C. Gardner Policy Institute 411 EastOutput South Temple Street, Salt Lake City, Utah 84111 I 801-585-5618 I gardner.utah.edu CulturalI Industry Grantmaking & Professional Orgs. 50.0% 14.9% Other Industries Motion Picture & Sound Recording 30.2% 4.2% Education & Health Services (Direct Spending) Manufacturing 9.0% 1.3% Performing Arts .0 $559.8 $546.9 $560.0 2018 2019 2020 2021 Direct Direct Figure 7: Year-Over Change inIndirect/Induced Washington County Cultural Direct Cultural Industry Jobs: 3,505 Industry Jobs by Sector, 2021-2022 Indirect/Induced Cultural Industry Jobs: 2,499 2022 Advertising, Mktg, & Photography Indirect/Induced Grantmaking & Professional Orgs. Construction Manufacturing Cultural Industry Motion Picture & Sound Recording Education & Health Services Museums & Parks -9.9% Financial Activities -0.6% Other Industries Information Performing Arts Leisure & Hospitality -11.5% Publishing Industry Manufacturing Retail -17.4% (Direct Spending) Note: Includes full- and part-time private and public employment; includes sole proprietors. Direct Cultural Industry Jobs: 3,505 $0.57 (3.4%)of Source: Kem C. Gardner Policy Institute analysis of U.S.BBureau Economic Analysis data Indirect/Induced Cultural Industry Jobs: 3.3%2,499 All Industries Figure 6: Year-Over Change in Washington County Jobs by $16.43 B (96.6%) Construction All Other Output6.8% Industry, 2021-2022 8.3% 3.3% 4.2% 6.8% Education & Health Services Construction %) Natural Resources & Mining Leisure & Hospitality 8.3% All Other GDP 5.9% $7.72 B (96.6%) 3.7% 5.0% Other Services (except Public Admin.) Manufacturing Professional & Business Services Natural Resources & Mining Trade, Transportation, & Utilities Other Services (except Public Admin.) 1.7% 2022 Wholesale Other Services (except Public Admin.) 1.7% Trade, Transportation, & Utilities 3,505 17% 50.0% Performing Arts17% -11.5% 22% Retail -17.4% Publishing Industry 15% 12% TV, Radio, & Social Media 2013 October 12%2023 I -13.7% Wholesale22% 2022 gardner.utah.edu 9.0%8.3% 30.2% 4.2% 14.9% 1.3% 11.8% 8.3% 3.7% 16.4% 501.9% 5.9% 16.4% 5.9% Retail 17% 25% Publishing Industry 2,499 6% Retail 9% Education 15% 5% 10% 10% Museums and Parks 11% Architecture & Design Services 5% 7% Advertising, Mktg, & Photography 17% Performing Arts 15% Wholesale & Manufacturing 22% 12% 2013 2022 Note: The Grantmaking & Professional Organizations, TV, Radio, & Social Media Industries, and Other Industries subsectors have been omitted due to low numbers; the Other subsector includes jobs in Libraries & Archives, Rental & Leasing, Furniture Repair, and Photofinsihing. $15.8 $15.4 $15.5 Source: Kem C. Gardner Policy Institute analysis of U.S. Bureau of Labor Statistics data 1.3% & Photography Wholesale & Manufacturing Performing Arts Wholesale & 501.9% Manufacturing Motion Picture & Sound Recording 6% 6% 1,690 than all Washington increased at2,831 a greater year-over rate 25% County jobs (3.3%) (Figure 6). Publishing Industry 2019 2,004Retail wholesale 3,127 Washington County’s cultural industry-related 17% 6% subsector adding 25% experienced a 501.9% year-over increase, Motion Picture & 6% 2018 6% 2,234 Sound Recording 3,039 Industry 266 jobs in the jewelry merchant wholesalePublishing category. This significant employment increase was due to the expansion of 6% Indirect/Induced Direct 9% Education Picture & jewelry wholesaler, Paparazzi Accessories, intoMotion the St. George 15% 6% 6% Sound Recording area. Grantmaking & professional organizations and the motion Advertising, Mktg, & Photography 10% 13.4% Museums and Parks picture experienced 50.0% and 9% 5%& sound recording subsectors Education Architecture & Design Services -1.2%(Figure 7). 30.2% year-over increases, respectively 15% Education Architecture & 11% industry job7.7% Washington County’s cultural profile has shifted 10% 10% Design Services Museums and Parks Grantmaking & Professional Orgs. jobs, which in 2013 made up 50.0% over time. industry one5% Publishing 5% Manufacturing 9.0% for fewer than quarter of all cultural industry jobs, now account Advertising, &Mktg, Architecture 11% 10% 7% Motion Picturejobs & Sound Recording 30.2% one-in-five (17%). Conversely, wholesale &Design &manufacturing Photography 17% Services jobs, 5% which composed 12% of cultural industry jobs in 2013, Museums & Parks -9.9% made up 22% in 2022 (Figure 8). 14.9% Performing Arts Other Industries Advertising, Mktg, 15% 7% 50.0% Figure 8. Direct Cultural Industry Employment in Washington County by Industry Type, 2013 vs. 2022 16.4% Note: Includes full- and part-time private and public employment; includes sole proprietors. Source: Institute analysis of U.S. Bureau of2,198 Economic Analysis data 2021 Kem C. Gardner Policy 3,235 2020 and 6.8% Note: The Other Industries subsector includes jobs in Libraries &5.0% Archives, Rental & Leasing, Professional & Business Services Furniture Repair, and Photofinishing; the Wholesale & Manufacturing subsector has been omitted from this figure. 1.7% Trade, Transportation, & Utilities Source: Kem C. Gardner Policy Institute analysis of U.S. Bureau of Labor Statistics data 5.0% Professional & Business Services 3.3% 7.7% Natural Resources Mining -13.7% TV, Radio, & Social &Media Financial Activities -0.6% 8.3% Cultural Industry 11.8% Information 4.2% Education & Health Services Cultural Industry GDP 8.3% Leisure & Hospitality $0.28 B (3.4%) Financial Activities -0.6% 3.7% Manufacturing 11.8% Information %) -1.2% All Industries Education Direct Cultural Industry Jobs: 3,505 All Other County Jobs: 79,440 Cultural Industry Output Indirect/Induced Cultural Industry Jobs: 2,499 Cultural Industry All Industries 13.4% Architecture & Design Services All Other County Jobs: 79,440 25 All Other County Jobs: 79,4402,234 3,039 2018 $570.5 Figure 5: Cultural Industry Jobs as Share of Total Washington County Jobs, 2022 0 .5 50.0% $507.7 $6.7 2 $6.7 $11.7 $13.5 $5.8 $5.0 $4.7 I N F O R M E D D E C I S I O N S TM $10.0 Manufacturing Motion Picture & Sound Recording Museums & Parks 22% 9.0% Manufacturing 12% 30.2% -9.9% Tax Revenue Other Industries 14.9% Tax revenue generated by cultural industry activity supports 1.3% Performing Arts health and human services, public safety, and other county -11.5% Publishing Industry services through General Fund contributions. Washington Retail -17.4% County’s cultural industry spending generated an estimated TV, Radio, & Social Media -13.7% $15.8 million in direct tax revenue in 2022, a 16.8% year-over 501.9% Wholesale increase after adjusting for inflation (Figure 9). This $15.8 million in tax revenue included $10.0 million in state and $5.8 million in local tax revenue. Of total direct tax revenue, state sales tax composed the largest share at $4.4 million, followed by state income tax at $4.1 million (Figure 10). When considering Washington County’s state and local tax revenue contributions, the cultural industry represented 1.3% of total state sales tax revenue, 1.5% of state income tax revenue, 1.2% of local sales tax revenue, and 1.5% of property tax revenue (Figure 12). 2013 2022 Cultural Industry Direct Tax Figure 9: Washington County Revenue, 2018-2022 (In Millions of 2022 Dollars) $15.4 $15.5 $6.7 $6.7 $15.8 $13.5 $11.7 $4.7 $8.7 $8.7 2018 2019 $10.0 $8.5 $6.9 2020 State $5.8 $5.0 2022 2021 Local Source: Kem C. Gardner Policy Institute analysis of U.S. Bureau of Labor Statistics data Figure 10: Washington County Cultural Industry Direct Tax Revenue by Tax Type, 2022 (In Millions of Dollars) RAP Tax Revenue Washington County levies a 0.1% Recreation, Arts, & Parks (RAP) tax. Counties and municipalities generally use RAP taxes to support recreation, arts & culture, and parks in their communities. Washington County’s RAP tax funds are dedicated to the advancement of Washington County’s local arts and culture organizations and recreation projects. State statute regulates the allowed uses of the funds. RAP receives one (1) penny of every $10 spent on every taxable Washington County purchase. These funds are distributed each year in the form of grants to eligible nonprofit community arts, culture and zoological organizations. RAP tax funds assisted 28 Washington County organizations. Figure 11 shows Washington County’s RAP tax revenues from 2018-2022, including the county’s estimated visitorLocal property tax $3.8(16.7%). Because RAP tax revenueState sales generated portion is derived tax $4.4 from all taxable county purchases, the county’s RAP tax did not decline during the 2020 pandemic. Year-over county RAP tax collections were up 3.4% (inflation-adjusted) in 2022 and Local sales tax $1.7 totaled $5.93 million dollars. Local property tax $3.8 State sales tax $4.4 Local sales tax $1.7 Local other taxes $0.3 State other taxes $0.4 State income tax $4.1 State corporate tax $1.1 Source: Kem C. Gardner Policy Institute analysis of U.S. Bureau of Labor Statistics data Figure 11: Washington County RAP Tax Revenue, 2018-2022 Cultural Industry Cultural Industry Generated Share Generated Share (In Millions of 2022 Dollars) $4.4 (1.3%) $4.03 $4.13 State Sales $3.44 $3.36Tax Revenue $329 Local other taxes $0.3 State other taxes $0.4 Nonprofit Revenue State income tax $4.1 State corporate tax $1.1nonprofit revenue ($32.3 million) composed Cultural industry 13.8% of all county nonprofit revenue (Figure 13). $0.67 2018 $0.69 2019 $4.1 (1.5%) $5.93 $5.73 $4.62 $4.94 $3.85 $0.77 2020 Visitor-Generated $4.77 State Income Tax Revenue $270 $0.96 $0.99 2021 2022 Resident-Generated AllofOther Industries AllC.Other Industries Source: Kem Gardner Policy Institute analysis of U.S. Bureau Labor Statistics data Cultural Industry Generated Share $4.4 (1.3%) Cultural Industry Generated Share $4.1 (1.5%) $324.7 (98.7%) Cultural Industry Generated Share $1.7 (1.2%) State Sales Tax Revenue $329 State Income Tax Revenue $270 Local Sales Tax Revenue $140 3 I N F O R M E D D E C I S I O N S TM All Other Industries All Other Industries $266.3 (98.5%) Cultural Industry Generated Share $3.8 (1.5%) Local Property Tax Revenue Cultural Industry $257 Nonprofit Revenue $32.3 (13.8%) I All Other Nonprofit Revenue gardner.utah.edu October 2023 $202.2 (86.2%) All Other Industries All Other Industries $3.36 State other taxes $0.4 Local other taxes $0.3 State corporate tax $1.1 State other taxes $0.4 State income tax $4.1 State income Figure 12: Washington County Tax Revenue Contributions, 2022 tax $4.1 State corporate tax $1.1 (In Millions of Dollars) $0.67 2018 $0.67 2018 $3.44 $0.96 $0.77 $0.69 2020 2021 2019 $0.96 $0.77 $0.69 Visitor-Generated Resident-Generated 2020 2021 2019 Visitor-Generated $0.99 2022 $0.99 2022 Resident-Generated Cultural Industry Generated Share $4.4 (1.3%) Cultural Industry Generated Share $4.4 (1.3%) Cultural Industry Generated Share $4.1 (1.5%) Cultural Industry Generated Share $4.1 (1.5%) Cultural Industry Generated Share $1.7 (1.2%) Cultural Industry Generated Share $1.7 (1.2%) Cultural Industry Generated Share $3.8 (1.5%) Cultural Industry Generated Share $3.8 (1.5%) State Sales Tax Revenue State Sales $329 Tax Revenue $329 State Income Tax Revenue State Income $270 Tax Revenue $270 Local Sales Tax Revenue Local Sales $140 Tax Revenue $140 Local Property Tax Local Revenue Property $257 Tax Revenue $257 All Other Industries All Other Industries All Other Industries All Other Industries $324.7 (98.7%) $266.3 (98.5%) $138.6 (98.8%) $252.7 (98.5%) All Other Industries All Other Industries All Other Industries All Other Industries Note: 2022 $324.7 income tax revenue is estimated; E-911, Liquor, Muni Telecom, and Muni Energy local sales taxes have$138.6 been omitted from the total local sales tax revenue estimate. (98.7%) $266.3 (98.5%) (98.8%) $252.7 (98.5%) Source: Kem C. Gardner Policy Institute analysis of U.S. Bureau of Labor Statistics and Utah State Tax Commission data Figure 13: Washington County Industry Nonprofit Revenue As Share of Total County Nonprofit Revenue, 2022 (In Millions of Dollars) Cultural Industry Nonprofit Revenue $32.3 (13.8%) Cultural Industry Nonprofit Revenue $32.3 (13.8%) All Other Nonprofit Revenue $202.2 (86.2%) All Other Nonprofit Revenue $202.2 (86.2%) Source: Kem C. Gardner Policy Institute analysis of U.S. Internal Revenue Service data Endnotes 1. This Washington County profile assesses the economic multiplier effects associated with the current or predicted level of sales generated by the cultural industry in the county. Economic contribution captures the economic expanse of all cultural industry county spending and shows the relative reach and magnitude of the industry in the Washington County economy. In contrast, economic impact studies measure the changes in the size and structure of a region’s economy that occur when vendors purchase goods and services within the region with money generated outside the region. 2. For this analysis, the Gardner Institute utilized 83 cultural arts industry NAICS codes provided by the Utah Cultural Alliance and their advisory board of economists and economic development professionals to define the industry. Researchers entered industry codes into Chmura’s JobsEQ software tool to generate industry jobs and then entered jobs into the IMPLAN economic model to produce jobs, labor income, industry sales, and tax revenue. 3. Jobs include full- and part-time private and public employment, and selfemployment. 4. Labor income is the sum of employee compensation (wages and benefits) and proprietor income. (TT) WaCo Cultural SS Oct2023 October 2023 I gardner.utah.edu 4 I N F O R M E D D E C I S I O N S TM