Explainers

How Much Is the Arts Worth? This is Value of the Arts Economy in Australia

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Playwright Jasmine-Lee Jones at the Darlinghurst Theatre Company; Baker Boy performs at the AFL Grand Final 2021

It’s no secret that the arts industry has been smashed since the very start of the pandemic. Since March 2020, a very limited number of arts events have been able to operate – annual arts and cultural festivals have been cancelled, theatres have been operating at minimum capacity, galleries have closed, local artists unable to tour. With many in the industry now unemployed and uncertain about what the future holds, it’s time to answer an important question: how much is the arts worth to us? What is the value of the arts economy in Australia?

Here’s a breakdown of how much value the arts adds to Australia and our economy – you might be surprised at how it compares to construction and mining!

How we undervalue Arts education

The government’s handling of the University sector gives us a clue about what it thinks of the Arts. When the federal government announced its $130billion JobKeeper relief subsidy, it didn’t include Universities. Just like the Arts, the University sector contains a heavily casualised workforce. Being left out of the JobKeeper scheme saw 21,000 uni jobs lost, mostly from arts, humanities and creative industry courses.

Another shakeup was the restructure of uni fees, which prioritised ‘job-ready’ graduate industries… and a 113% rise in fees for arts and humanities degrees. By cutting off education pathways and prospects, we risk losing a creative generation and a future arts workforce. This is how the cultural, humanistic and financial value of the Arts gets worn down, to the point where it may not survive in a post-pandemic Australia.

The economy and the Arts

In the 2020-2021 budget, the arts wasn’t exactly a winner. Even though 80,000 jobs were lost within the arts and almost 53% of businesses stopped operating, the sector was still largely left unaddressed in Treasurer Josh Frydenberg’s speech. Sadly, this makes sense – we often think that Australia’s biggest industries (that seem to get the most government support) are mining, agriculture, construction and defence. But the size of the Arts sector is much bigger than people think, and we need greater awareness of how much value the Arts contributes to the economy in Australia.

The most recent estimates show the Arts contribute around $15 billion to Australia’s Gross Domestic Product (GDP) – total GDP is around $893bill. The sector also has a ripple-like economic impact on hospitality industry revenue by creating a sustained influx of customers. For every theatre show, live music gig, or art exhibition, there are cafes, bars and restaurants that all benefit too. Major cultural events (think Adelaide Fringe Festival, Splendour in the Grass, and the Melbourne International Comedy Festival) are drawcards for domestic and international tourism – the Arts play a crucial role in this $60b industry, too.

Data from 2019 reveals 193,600 people directly employed in the industry. This means the Arts also employs four times as many people as coal mining – and yet there is much less support for stabilising this significant workforce. In the Arts, 81% of workers are freelancers, or are self-employed and rely on contracts (43%) and royalties and advances (35%). But even Government investigations into insecure work focused more on driving and food delivery services than the very much gig-based Arts.

Public support and participation in the Arts

Every year, the Australian Council for the Arts runs the National Arts Participation Survey, in which focus groups across regional, rural and metropolitan cities provide their views on the arts. It found that Australians see the value the Arts has in our culture and society now more than ever, as well as providing a way for communities to bond.

In 2019, the survey found that 85% of Australians aged 15+ felt significant positive impact from arts and creativity – an massive increase of 10% in just three years. With that in mind, it makes sense that 3 in 5 Australians support a $750mill Federal relief package for the Arts sector. Aussies want the Arts to survive the pandemic!

It’s hard to calculate a true figure for the revenue that Arts brings in, because its boundaries aren’t as clear cut as something like sports advertising profits or new construction projects. But it is clear that there is a gap between how the Government values the Arts vs how the public values the sector.

How can we help the Australian Arts industry?

At a government level, what would it look like for financial support to be based on industry participation instead of solely on attributable GDP? This could change the way the system currently undervalues the arts, and the carry-on economic effect it has on tourism, hospitality, and even the likes of agriculture, farming and wine industries that all rely on Arts events for customers. Not to mention investing in an industry that 85% of Australians say they participate in and love!

For the rest of us, the most important thing we can do to save the Arts is give the sector respect. A two-minute long song, or 30-minute comedy routine or an hour-long theatre performance often represents years of work, training, and financial investment all for the purpose of surprising and delighting you, the audience.

If you have the means, consider donating to funds and charities that support artists and the Arts. But this is a tough financial time for many of us, so free or low cost things you can do are:

  • Offer emotional support: Check in on your friends in the Arts and ask how you can you help them in small ways, like sharing their work on social media.
  • Attend online events: Many of the major arts and cultural festivals (particularly those in NSW and VIC) are running digital events. Attending those and staying engaged with their programs will help keep the momentum to get them through another year.
  • Buy direct from artists: Whether it’s music, art prints or originals, books, or even merch, buy direct from the artists where you can. Keep in mind that indirect methods like streaming doesn’t really help your fave pay their bills – so when you do have money to spend, send it straight to them!
  • Become a member: Membership for your local community arts centre or institutions are usually free or very affordable.

For those in the Arts industry, the Media, Entertainment and Arts Alliance (MEAA) has heaps of free resources and updates on government support funding available. There are also independent funds set up to support creative and arts industry workers since JobKeeper ended – the Alliance of Australasian Performing Arts Benevolent Funds has created benevolent and support funds in each state for financial support and food relief. Anybody in the performing arts who needs to apply for COVID crisis relief; requiring industry support; or who needs wellbeing and mental health services, charity Support Act is providing assistance.


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