Report: Arizona’s arts makes major economic impact
Regional News
Audio By Carbonatix
10:00 AM on Friday, September 18
(The Center Square) - Arizona’s arts plays an important role in the state’s economy, according to a new report.
Common Sense Institute Arizona, a nonpartisan think tank, released a report showing that the arts provides $18.4 billion in total economic output.
The report noted the economic contribution correlates to $11.5 billion in Arizona's Gross Domestic Product and supports over 113,000 jobs statewide.
Arizona’s arts sector represents an estimated 2.5% of the state’s economy “either directly or indirectly,” the report explained.
Katie Ratlief, CSI Arizona’s executive director, said the arts are “thriving" in Arizona.
Phoenix and Tucson have Arizona’s strongest art scenes, Ratlief told The Center Square. Phoenix is the state’s largest city and its capital, and Tucson is home to the University of Arizona, which has 56,544 students.
The report said Arizona's 2,155 arts nonprofits generate over $1 billion in yearly revenue and directly employ more than 8,300 people.
The report also noted that, on a per-capita basis, these nonprofits generate about $141 in revenue per resident.
According to the report, arts organizations can drive tourism for places in Arizona, especially small and rural communities.
Josh Coddington, the director of communications for the Arizona Office of Tourism, told The Center Square in an email that the state’s “arts and cultural institutions act as a catalyst within the broader tourism landscape.”
“Cultural attractions directly support destination competitiveness and generate ongoing tax revenues and employment opportunities for communities across the state,” he explained.
Arizona art organizations have “grown rapidly” over the last 10 years, Ratlief said, noting the average income of Arizonans has increased as well.
She explained as Arizona “has gotten wealthier,” people have invested more in the arts. The report said Arizona’s household income grew from $68,103 to $110,522 from 2014 to 2024, representing a 62% increase.
As Arizona’s economy continues to grow, with more jobs and rising incomes, Ratlief said she expects the state’s arts sector to continue to “get stronger.”
Common Sense Institute Arizona, a nonpartisan think tank, released a report showing that the arts provides $18.4 billion in total economic output.
The report noted the economic contribution correlates to $11.5 billion in Arizona's Gross Domestic Product and supports over 113,000 jobs statewide.
Arizona’s arts sector represents an estimated 2.5% of the state’s economy “either directly or indirectly,” the report explained.
Katie Ratlief, CSI Arizona’s executive director, said the arts are “thriving" in Arizona.
Phoenix and Tucson have Arizona’s strongest art scenes, Ratlief told The Center Square. Phoenix is the state’s largest city and its capital, and Tucson is home to the University of Arizona, which has 56,544 students.
The report said Arizona's 2,155 arts nonprofits generate over $1 billion in yearly revenue and directly employ more than 8,300 people.
The report also noted that, on a per-capita basis, these nonprofits generate about $141 in revenue per resident.
According to the report, arts organizations can drive tourism for places in Arizona, especially small and rural communities.
Josh Coddington, the director of communications for the Arizona Office of Tourism, told The Center Square in an email that the state’s “arts and cultural institutions act as a catalyst within the broader tourism landscape.”
“Cultural attractions directly support destination competitiveness and generate ongoing tax revenues and employment opportunities for communities across the state,” he explained.
Arizona art organizations have “grown rapidly” over the last 10 years, Ratlief said, noting the average income of Arizonans has increased as well.
She explained as Arizona “has gotten wealthier,” people have invested more in the arts. The report said Arizona’s household income grew from $68,103 to $110,522 from 2014 to 2024, representing a 62% increase.
As Arizona’s economy continues to grow, with more jobs and rising incomes, Ratlief said she expects the state’s arts sector to continue to “get stronger.”
Despite Arizona's arts scene growing, it ranks 47th in art nonprofits per capita, the report said.
Arizona’s arts nonprofits rank 26th in revenue per capita, the report noted, adding that the nonprofits average nearly $500,000 in annual revenue and have almost four employees per nonprofit. These rank seventh and 28th, respectively, in America, the report said.
The report also noted arts organizations receive support from a variety of sources, including sales, donations and taxpayer-funded government support. The Arizona Commission on the Arts gives out over $3 million in annual funding to support a variety of art programs.
Paul Meecham, the president of the Tucson Symphony Orchestra, told The Center Square that about 50% of the orchestra’s revenue comes from fundraising. He added that 80% of that fundraising comes from individuals while the rest comes from foundations.
Forty percent of the orchestra’s revenue comes from ticket sales, he explained.
Meecham said less than 1% of the orchestra’s budget comes from taxpayer-funded public sources.
The Tucson Symphony Orchestra employs 25 full-time administrative staff members and 215 musicians, Meecham said. He noted that 78 musicians work with the orchestra year-round while the others’ time varies.
The orchestra’s budget is $6.5 million, with $4.2 million going toward staff wages, Meecham explained. This represents nearly two-thirds of its budget.
He said the rest of the orchestra’s budget is spent on vendors, utilities and other items.
According to Meecham, around 40,000 people attend events at the orchestra yearly.
The president said the amount of the orchestra’s audience that comes from outside Pima County, where Tucson is located, varies by event.
He estimated that for big events, the orchestra’s audience from outside Pima County is around 15%, whereas for more localized events it is between 5% and 10%.
According to an Americans for the Arts analysis of Fiscal Year 2022 spending in Pima County, people who attended an art event spent $36 on average. Nonlocals spent nearly $67.
Looking ahead, the orchestra, which will turn 100 years old in 2029, is trying to enlarge its endowment, the president explained.
He noted the endowment will help the orchestra’s financial stability and expand its education programs. The orchestra’s endowment is currently $18.5 million, according to Meecham.
He said the orchestra withdraws 5% of the endowment’s total value to support its operating costs.
The orchestra’s budget is estimated to grow to nearly $7.5 million in 2031, he said.
Arizona’s arts nonprofits rank 26th in revenue per capita, the report noted, adding that the nonprofits average nearly $500,000 in annual revenue and have almost four employees per nonprofit. These rank seventh and 28th, respectively, in America, the report said.
The report also noted arts organizations receive support from a variety of sources, including sales, donations and taxpayer-funded government support. The Arizona Commission on the Arts gives out over $3 million in annual funding to support a variety of art programs.
Paul Meecham, the president of the Tucson Symphony Orchestra, told The Center Square that about 50% of the orchestra’s revenue comes from fundraising. He added that 80% of that fundraising comes from individuals while the rest comes from foundations.
Forty percent of the orchestra’s revenue comes from ticket sales, he explained.
Meecham said less than 1% of the orchestra’s budget comes from taxpayer-funded public sources.
The Tucson Symphony Orchestra employs 25 full-time administrative staff members and 215 musicians, Meecham said. He noted that 78 musicians work with the orchestra year-round while the others’ time varies.
The orchestra’s budget is $6.5 million, with $4.2 million going toward staff wages, Meecham explained. This represents nearly two-thirds of its budget.
He said the rest of the orchestra’s budget is spent on vendors, utilities and other items.
According to Meecham, around 40,000 people attend events at the orchestra yearly.
The president said the amount of the orchestra’s audience that comes from outside Pima County, where Tucson is located, varies by event.
He estimated that for big events, the orchestra’s audience from outside Pima County is around 15%, whereas for more localized events it is between 5% and 10%.
According to an Americans for the Arts analysis of Fiscal Year 2022 spending in Pima County, people who attended an art event spent $36 on average. Nonlocals spent nearly $67.
Looking ahead, the orchestra, which will turn 100 years old in 2029, is trying to enlarge its endowment, the president explained.
He noted the endowment will help the orchestra’s financial stability and expand its education programs. The orchestra’s endowment is currently $18.5 million, according to Meecham.
He said the orchestra withdraws 5% of the endowment’s total value to support its operating costs.
The orchestra’s budget is estimated to grow to nearly $7.5 million in 2031, he said.
The Center Square reached out to several other arts organizations, but they said they weren't available to comment.
