What are economic impact studies and how should you approach one?
What are economic impact studies and how should you approach one?
By
Chris Norwood
SUMMARY
This overview explains what and economic impact study is, what it measures, and the benefits and drawbacks of the model in evidencing the value of the arts and cultural sectors – useful for fundraisers, development professionals and in advocacy. It explains terminology and what to watch out for if commissioning a study.
Media coverage:
The publicity and promotion provided by media reporting can bring unaccounted economic benefits to both the project or venue being reported on and the town, city or region where it is taking place.
Economic costs:
Not all economic effects will be positive – externalities such as increased traffic, added pressure on public services, and the detriment of other leisure activities may all be considered costs to be included in an economic impact assessment.
Cultural and economic development / regeneration:
There may be medium- to long-term benefits to the town or city in the form of increased capital expenditure and enhanced investability or business image.
