Economic Impact & Potential
A Performing Arts Center won’t just benefit our performing arts organizations and audiences—it has the potential to make an incredible impact on our local economy. Nationally, performing arts and culture generate $1.2 trillion, support 5.4 million jobs, and return $29.1 billion in tax revenue. A Chattanooga Community PAC can localize those proven results by creating jobs, visitor spending, and long-term economic growth that strengthens the city’s tax base.
Economic Impact Estimations
1. CURRENT LOCAL NONPROFIT ARTS IMPACT: According to the 2022 Arts & Economic Prosperity 6 (AEP6) report, Hamilton County’s nonprofit arts sector generated $191 million in economic activity, supported 3,120 jobs, and produced $3.6 million in local tax revenue. Audiences spent $97 million across 2.24 million attendances.
2. COMPARABLE-CITY PAC IMPACT: PACs in comparable cities have added just under to over hundreds of millions per year. Examples include Durham PAC ($127M/yr), Greenville’s Peace Center ($122M/yr), Euguene’s Hult Center ($124M/yr), and Grand Rapids’ DeVos Complexes ($82M/yr). PACs in similar-sized cities contribute an estimated average of $114M annually to the local economy.
3. BASELINE-PLUS PROJECTION: Taken together, AEP6 establishes a Hamilton County baseline of $191M in 2022; adding a Chattanooga Community PAC performing within peer-city norms, it implies a total local impact in the range of $273M–$316M (contingent on program scale and local capture, as validated in Phase Two).
Broader Economic Impact
DOUBLE DIVIDEND: Every $1 invested in the arts yields $1.50-$2.00 in local spending and returns roughly $5 in tax revenue. This is a higher return than most public investments, driving both cultural and economic value.
GROWTH SECTOR: The performing arts economy is growing twice as fast as the national average, with even small venues producing 2.2× local spending multipliers. This makes performing arts one of the most reliable and expanding sectors for sustained community growth.
TOURISM & REVENUE: Performances don’t just fill seats—they fill hotels, restaurants, and shops. Arts, culture, and heritage drive over two-thirds of all U.S. tourism, and audiences for nonprofit arts events alone generate $78.4 billion in direct spending each year, with one-third traveling from outside their county and spending an average of $60 per visitor.
DOWNTOWN IMPACT: PACs ignite continuous activity that revitalizes small business districts. The Oregon Shakespeare Festival in Ashland, OR (pop. 21K) generates $120M+ annually, with 80% of attendees traveling 125+ miles, proving the performing arts draw major tourism, even in small cities.
BUSINESS & TALENT: Major employers—from manufacturers to tech firms—cite vibrant cultural amenities as key to attracting and retaining talent. A PAC can signal that Chattanooga is investing in quality of life, giving the city a competitive edge in regional and national recruitment.
ARTS VS. SPORTS: Sports drive short-term spikes; performing arts sustain year-round economic impact and more than double the jobs. The arts contribute 4.2% of U.S. GDP ($1.17T)—surpassing sports—and add $78B annually in restaurant, hotel, and retail spending tied to performances. Sports are important and create incredible moments, while the arts build and sustain momentum.