Measuring economic impact of art events
abouth the methodology
Bauersachs Foundation has created a methodology for measuring the economic impact of non-profit events. A broad coalition of partners has been built, including the Faculty of Sociology at Paisii Hilendarski University of Plovdiv and the Open Arts Foundation. We believe this methodology is valuable to a wide range of users, incl. cultural operators and other grantees, donors – public and private sector, media and active citizens.
The object of the pilot testing of the methodology was the general economic impact of the Night/Plovdiv 2015 festival. Students from the “Entrepreneur as a Discoverer” program took an active part in the field work. We used three complementary methods to assess benefits and economic effects:
- Cost-benefit analysis;
- Travel cost method;
- Contingent valuation.
Measuring economic impact of art events
results
The results of the cost-benefit analysis indicate that every BGN invested in the organization of Night/Plovdiv 2015, equals 4 BGN revenues in the local economy. The marginal income, which is the result of 42,000 visits made by 31,000 unique visitors within the two festival evenings, is in the amount of BGN 783,000.
Through the method of travel costs, it was possible to build a conservative scenario, on the basis of which to calculate the amount at which festival visitors value the benefit received. Using the travel cost method, a conservative estimate of the “willingness to pay” was made in the amount of BGN 204,000.
On the basis of the optimistic scenarios, obtained by measuring the stated preferences of visitors of Night/Plovdiv 2015, a “willingness to pay” was calculated in the amount of BGN 589,000. The obtained value does not replace, but complements the benefits generated for the local economy, which allows us to calculate the total economic value of Night/Plovdiv 2015. The total benefits received as a result of Night/Plovdiv 2015 exceed between 5 and 7 times the investments made.
Night/Plovdiv 2015 impact
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