CCT: The Economic Impact of the Arts, Film, History, and Tourism Industries in Connecticut

Study by Connecticut Center for Economic Analysis Marks the First in State to
Examine Significant Economic Impact of Culture and Tourism Combined

HARTFORD, Conn. (December 7, 2006) – A new study released today by the Connecticut Commission on Culture & Tourism (CCT) reveals that arts, film, history and tourism account for more than $14 billion in economic activity and more than 170,000 jobs – 10 percent of the state’s labor force – annually in the state. This is the first study to examine the combined economic impact of CCT’s four divisions.

“Culture and tourism enhances Connecticut on numerous levels today – creating new industries and jobs and bringing in revenue to the state, and also enriching our lives and the overall quality of life in our state,” said Governor M. Jodi Rell. “Connecticut is committed to ongoing investment in the arts, history, film and tourism as we constantly strive for ways to improve our economy and the state and local levels. Today’s report confirms that we are not only on the right track, but on target for better and better results.”

Researched and compiled by the Connecticut Center for Economic Analysis (CCEA), "The Economic Impact of the Arts, Film, History and Tourism Industries in Connecticut" finds that in 2004 these industries together generated more than $9 billion in personal income for state residents and more than $1.7 billion in state and local revenue. Direct, indirect and induced spending related to culture and tourism account for 7.6 percent of the gross state product and 6.9 percent of state and local revenue.

Without the culture and tourism industry, the state’s unemployment level would increase from its 2004 level of 4.43 percent to 14 percent. And as a result of culture and tourism’s contribution to Connecticut’s economy, each household saves $196 in taxes each year.

“This study demonstrates that Connecticut's return on investment in culture and tourism is profound,” said Jennifer Aniskovich, executive director of the Connecticut Commission on Culture & Tourism. “To distinguish itself as a sought-after destination, exceptional place to do business and an enviable place to call home, our state must continue this investment.”

Stan McMillen, Ph.D., associate director of CCEA and the study's principal investigator, said the study calculates that every dollar appropriated to CCT returns $9.30 in net state and local revenue; $507 in gross state product; and $328 in personal income. “Culture and tourism not only creates jobs, but supports industries that would not otherwise exist,” McMillen said.

The total economic impact of Connecticut’s culture and tourism industry (171,023 direct, indirect and induced jobs) exceeds the combined economic impact of than the state’s aerospace industry (94,812 direct, indirect and induced jobs) and pharmaceutical industry (26,321 direct, indirect and induced jobs). The culture and tourism industry also accounts for significantly more gross state product ($14 billion) than either the aerospace ($11 billion) or pharmaceutical ($3.9 billion) industries.

Travelers to Connecticut spend more than $9 billion each year, generating $70 million annually in hotel occupancy taxes and $1.15 billion in state and local revenue. Travel and tourism results in 110,000 jobs - 6.5 percent of the state’s total - and generates $5.3 billion in personal income and $7.95 billion in gross state product.

"Connecticut has a lot to offer, from outdoor recreation and great shopping and restaurants to historic charm and a booming cultural scene," said Len Wolman, CCT Tourism Cluster co-chair and chairman of Waterford Group. "Our state of the art meeting and convention facilities along with world class casino and entertainment venues set us apart. Connecticut will soon be a destination for residents of Amsterdam, once direct flights are offered next year to Bradley International Airport. It is important that the state remain cognizant of tourism's economic impact and its incredible potential."

More than 27,000 arts jobs exist in Connecticut and the industry supports 44,000 jobs statewide. The arts generate more than $3.8 billion in gross state product annually including more than $2.6 billion in personal income.

“Connecticut’s arts scene is rich with world-class museums, events and theaters,” said Ken Kahn, executive director of the Greater Hartford Arts Council. “The arts are so much more than a source of entertainment. In addition to inspiring Connecticut’s residents and visitors, expanding our children’s creativity and improving our overall quality of life, the arts are a significant driving force in our economy.”

CCT supports the arts through grants and technical assistance to artists, arts organizations and schools. Funding for the arts, in the form of grants, is matched by private sector contributions at the rate of $11 for every dollar spent by the State.

Each year, millions of people visit Connecticut’s historic sites and attractions. Historic preservation not only allows visitors to relive history, but also creates more than 2,000 jobs, $17.8 million in state and local revenue and more than $111 million in gross state product.

“Connecticut’s history is a window into the people and events that shaped America,” said Helen Higgins, CCT commissioner and executive director of the Connecticut Trust for Historic Preservation. “Investing in the preservation of significant historical structures attracts visitors and residents who want to learn about our past, creates jobs and enhances local property values.”

CCT markets Connecticut as a film production location and administers the film tax credit program. This 30 percent production tax credit incentive, passed in July 2006, makes Connecticut one of the most competitive states in the country for film, commercials and digital productions.

"Business in Connecticut is more than just factories and offices — it's in our history, it's in our heritage, it's in our quality of life," said state Senator Gary D. LeBeau (D-East Hartford), co-chairman of the legislature's Commerce Committee. "Those are attractive qualities for filmmakers, and the legislature recognized this when we approved tax incentives for producers to come and shoot in Connecticut. Our investment is already paying off, both financially in terms of tax revenue and job growth, and in boosting the state's culture and tourism industry."

The tax credit is a significant incentive for production companies to choose Connecticut,” said Greg Johnson, CCT commissioner and a film producer in New Haven. “With the tax credit program and a variety of scenic locations, the state is becoming a prime production location for an industry that will create good paying jobs and generate new economic activity.”

According to the study, film and digital media activity in Connecticut accounted for more than 8,000 film jobs in 2004 and supports more than 18,000 jobs statewide. Direct, indirect and induced spending in connection with in-state filming resulted in $2.5 billion in gross state product, including $1.2 billion in personal income.

The Connecticut Commission on Culture & Tourism brings together tourism, film, history and the arts. Its mission is to preserve and promote Connecticut’s cultural and tourism assets in order to enhance the quality of life and economic vitality of the state. The Connecticut Commission on Culture & Tourism is located at One Financial Plaza, 755 Main Street, Hartford, Connecticut. For more information, log on to www.cultureandtourism.org.

In operation since 1992, the Connecticut Center for Economic Analysis (CCEA) is an umbrella organization for the Forecasting and Analysis group, The Connecticut Economy: A University of Connecticut Quarterly Review, and the Center for Economic Education. CCEA is also a member of the University of Connecticut’s Consortium for Public Policy Research.

The CCEA’s Forecasting and Analysis Group develops an array of critical economic indicators that track the state’s economic performance. Among them is the forecasting model for employment and Gross State Product used to develop the CCEA Connecticut Economic Outlook. The Outlook provides a ten-quarter projection of state output and employment.

Attention Editors/Writers: Copies of the CCEA study and summary brochure may be obtained by visiting CCT’s Web site at www.cultureandtourism.org. Additional sources are available for interviews regarding culture and tourism’s economic impact on Connecticut:

Jennifer Aniskovich                   Jenny Smith/Becky Giantonio
     Executive Director                    Pita Communications, LLC
     Connecticut Commission            (860) 293-0157, exts. 15/25
     on Culture & Tourism                 jenny@pitacomm.com
     (860) 256-2800                        becky@pitacomm.com

NOTE TO EDITORS:

Photo examples of Connecticut's culture and tourism industry may be downloaded from: www.pitacomm.com/pr/ccct.

NEW STUDY REVEALS CULTURE AND TOURISM IN CONNECTICUT

ACCOUNT FOR MORE THAN $14 BILLION IN ECONOMIC ACTIVITY