The Economic Impact of Arts on Martha's Vineyard

The following excerpt of economic impact data was drawn from the Arts Martha's Vineyard Planning Report.
A copy of the full report can be downloaded from their site here.

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Today seasonal residents (second homeowners) and hundreds of thousands of short-term visitors come to the Island attracted by the unique natural, historical, and cultural values that define the beauty and character of Martha’s Vineyard.  As a seasonal and vacation destination, the number of people on the Island changes dramatically from the peak season to the off season.  It is estimated that the year-round population of almost 16,460 (US Census 2010) swells to between 60,000 and 75,000 during the peak summer months of July and August.

The driving force of the Island's economic base is the second homeowner.  According to the 2010 US Census, 43% of the Island’s housing stock is occupied year-round. This is testament to the tremendous demand for seasonal homes in a highly desirable vacation and retirement destination.  The Vineyard is second to Nantucket in seasonal housing occupancy by Massachusetts counties.  Vineyard towns are financially dependent on seasonal residents and second homeowners because they pay property taxes but do not require the most costly of services - education. The extreme fluctuations from peak season to the winter season present a challenge to the Island’s infrastructure facilities for water, sewer, solid waste, natural resources and especially the Island's road network.  The tourist and seasonal nature of the Vineyard poses significant challenges to the Island towns to be able to balance the needs of a growing (and aging) year-round population while accommodating the needs of a seasonal population.   

The Martha’s Vineyard Commission’s 2009 Island Plan evaluated strategies on how best to sustain the Island’s core tourist economy and the Island’s growing population without compromising the quality of life and natural resources that has made the Vineyard a second home and retirement destination.  The Island Plan identified hospitality (food and accommodations), retail, construction, and real estate as the four key industries that make up more than half of the Island’s economy, which needs to be kept “robust, vital, and responsive to the changing needs” of the Island’s year-round and seasonal population.  At the same time, a more diverse and stronger year-round economy will allow the Vineyard to have greater self-reliance in the face of a global economic recession, climate change, peak oil, and globalization.

The Island Plan identified existing niche and emerging industries for the Vineyard to build upon.  Some of these industries included Arts and Culture, Farming and Fishing, Health and Social Services, Energy and Solid Waste, and Professional and Technical related industries.  The Island Plan identified the following objectives:
  > Bolster existing vacation based economy
  > Encourage more local spending
  > Support local ownership of Businesses
  > Promote greater diversity in the off season,
  > Promote greater self sufficiency of essential products such as food and energy,
  > Create a robust environment for lifetime learning,
  > Incentivize economic behaviors that protect, restore, and celebrate the environment

The Arts and Culture Collaborative has begun to quantify the economic impacts of the Arts and Culture community.  MVC staff reviewed and utilized both methodologies in the “2005 Arts, Artisan, and Cultural Organizations: Economic Impact Analysis of an Emerging Industry on Cape Cod & The Islands” by the Center for Policy Analysis University of Dartmouth (UMASS) and the “2007 The Creative Economy: A New Definition” by New England Foundation for the Arts (NEFA).  

The MVC’s findings for the direct economic impacts of both arts and culture and creative economy related industries can be found in Appendix 9.  MVC staff based the definition criteria of arts and culture and creative economy on the 2005 UMASS Study and 2007 NEFA Study.  “Arts and Culture” is made up of almost 50 North American Industrial Classification System (NAICS) sub-categories while the “Creative Economy” totaled more than 70 including Arts & Culture.  The Creative Economy also includes publishing industries, architectural, engineering, interior and landscaping design services and related industries.  

The year 2008 was analyzed as a snapshot in time utilizing data from the Massachusetts Department of Labor & Workforce Development and US Census Bureau’s Non-employer Statistics.  The year 2008 was the most recent year that the Census released Non-employer Statistics.  Information including Business Establishments, Employment, Receipts, and Wages & Income were quantified for both industries within the Arts and Culture as well as the Creative Economy.  

In 2008, the Vineyard’s overall economy totaled $513,168,575 with 4,440 business establishments (including 3,278 non-employers), and 7,814 employees.  The direct economic impacts of Arts and Culture is estimated at $21,640,909 or 4.2% of the Vineyard's overall economy while the Creative Economy made up 10.2% ($52,452,719).  Both of the Vineyard’s Arts and Culture and Creative Economy industries surpass the state’s 2.8% or higher employment standard for an “emerging industry cluster”.  Arts and Culture comprised 3.4% employment (263 employees) while the Creative Economy comprised 7.1% or 557 employees.   Information on other economic data such as the indirect and induced impacts of Arts and Culture related industries in addition to the Creative Economy are still being analyzed by the MVC. The direct Economic Impacts of the Vineyard’s Arts and Culture community are quite significant to the Island’s overall economy.

In 2008, the Vineyard’s overall economy totaled $513,168,575 with 4,440 business establishments (including 3,278 non-employers), and 7,814 employees.  The direct economic impacts of Arts and Culture is estimated at $21,640,909 or 4.2% of the Vineyard's overall economy while the Creative Economy made up 10.2% ($52,452,719).  Both of the Vineyard’s Arts and Culture and Creative Economy industries surpass the state’s 2.8% or higher employment standard for an “emerging industry cluster”.  Arts and Culture comprised 3.4% employment (263 employees) while the Creative Economy comprised 7.1% or 557 employees.   Information on other economic data such as the indirect and induced impacts of Arts and Culture related industries in addition to the Creative Economy are still being analyzed by the MVC.

The direct Economic Impacts of the Vineyard’s Arts and Culture community are quite significant to the Island’s overall economy.
 

The Arts and Culture Collaborative will continue to identify strategies to promote economic development for the Arts and Culture related industries in an economically sustaining manner while promoting the Vineyard as a year-round cultural destination that will complement and enhance new and existing tourism opportunities on the Island.