Scope

Pracsys was engaged by the Department of Local Government, Sport and Cultural Industries (DLGSC) to attribute a monetary value to the intangible socio-economic benefits gained through attending or participating in arts and cultural activities. This was an expansion of our previous work that developed a Public Value Measurement Framework (PVMF) for arts and cultural activities.

Approach

We undertook an in-depth literature review to identify measurable socio-economic outcomes that aligned with the PVMF, relevant valuation methodologies and best practice for socio-economic impact estimation. We then used the Benefit Transfer Method to link high quality research with passive and active participation data to monetise the benefits associated with arts and cultural activities. Our team also designed and tested a use-based Willingness to Pay (WTP) question to monetise the value a person places on attending or participating in events related to arts and culture.

Outcome

The research we undertook allowed us to estimate the socio-economic value achieved through participation in and attendance of arts and cultural activities. Our modelling enabled a conservative estimate of the value provided by the Department’s funding; for every dollar of funding provided by the Department to funded organisations, there is approximately $5 of social benefit in the broader community.