Hebert Research – 2008
High Demand for Performing Arts Center Eastside
Research Summary
The goals of the research were to comprehensively assess the attitudes and perceptions of performing arts attendees, patrons, and donors with respect to the development of the new performing arts center in Bellevue, Washington; to assess region-wide demand for its services; and to develop an objective economic impact estimate supported by current data.
Hebert Research conducted its research using a mix of primary and secondary research studies involving both qualitative and quantitative research methods. The research was conducted between January and March of 2008, using focus groups, telephone surveys, national comparative models, and a widely accepted, computer-based, economic impact assessment modeling system called IMPLAN.
Summary of Findings
Economic Impact:
The new Performing Arts Center Eastside (PACE) will have a significant economic impact on the economy and employment of King County and on new state and federal tax revenues.
- Over the next 12 years, the total combined economic impact on King County from direct, indirect, and induced spending is projected to be $469,295,847. This is based on the estimated spending of $85.5 million during the two-year construction project and the $222 million on tickets, shopping, and dining by over 3.056 million attendees while attending over 3,200 performances during the first 10 years of operation.
- There will also be a significant employment impact of 1,211 new FTE jobs (full-time equivalent) over the two-year construction project and new, annual employment of 723 jobs starting in 2010 and increasing to 1,007 jobs by 2020.
- During the two-year construction project and the first 10 years of operation, the new performing arts center will generate $42,515,375 in new Federal tax revenues and $24,177,594 in new state tax revenues. Locally, over the next 12 years, King County will benefit from $2,837,194 in increased tax revenue and the City of Bellevue will realize at least $1,661,296.
- As part of their experience in attending a performance, 3.056 million attendees are expected to spend $72,674,124 on dining at conveniently located restaurants and on concession snacks and beverages during the first 10 years of operation.
- A minimum of 467,568 "shoppers" (15.3% of all attendees) are expected to spend $28,100,838 on retail shopping as part of their experience when attending a performance during the first 10 years of operation.
PACE as a Regional Asset:
- The new performing arts center was viewed by a vast majority of Seattle and Eastside focus group attendees and survey respondents as a significant quality-of-life enhancement and a regional asset that would increase interest, appreciation, and participation in the performing arts.
- There was a strong consensus among all survey respondents that the concept of the new performing arts center was very appealing (mean = 7.87). Almost three-quarters (68.6%) gave it a high rating, including more than a third (39.4%) who gave it the highest rating of 10.
- Close to two-thirds (65%) gave a high rating, including a third (33.5%) who gave the highest rating on its expected contributions toward improving the culture of the Puget Sound area.
- More than half (52.3%) gave a high rating, including almost a quarter (24.9%) who gave the highest rating for PACE enhancing the quality of life in the community.
- Almost half (46.7%) of all respondents (74.1% Seattle and 42% Eastside) gave a high rating, including 16.1% who gave the highest rating, on the influence of PACE for increasing the interest and attendance among all Puget Sound residents to the benefit of other arts organizations.
- Survey respondents also gave a moderately high rating of 6.94 on the importance of the new performing arts center in helping to create interest, appreciation, and participation in the performing arts for children and youth. Almost half the respondents (46.7%) gave a high rating, including almost a fifth (19.8%) who gave the highest rating of 10.
Region-Wide Audience Support for PACE:
- Most participants indicated that travel time, parking, and overall convenience were the three major factors that influenced their attendance.
- Most Eastside residents do not attend performances in Seattle often due to the increasing rush hour travel time and congestion on the SR 520 and I-90 bridges. The erosion of Eastside residents as a component of the audiences of Seattle-based performing arts groups is approaching 10% annually.
- All Eastside participants indicated they would attend performances more often if PACE is built.
- All participants were impressed about the fact that PACE would have convenient access to 10,000 free, underground parking spaces.
- Among the focus group participants, those who have a strong interest in the performing arts say they expect to attend an average of 6.32 performances per year at the new performing arts center.
- Among survey respondents who have a high willingness to support PACE as a donor, they expect to attend an average of 9.05 performances per year.
- Among those with a high willingness to become season ticket holders, they expect to attend an average of 9.25 performances per year.
- Those who have a high willingness to volunteer also have the highest expected average attendance of 11.35 performances per year.
- More than half of respondents (60%), who indicated their attendance at performances would increase as a result of the new performing arts center also indicated a high likelihood of increasing their attendance at existing venues.
Some focus group participants (patrons and donors) commented that Seattle's performing arts centers have not offered the diversity and quality of programming required to maintain their frequency of attendance. However, they believe that PACE, without the limitation of a resident performing arts company, would have the flexibility to pursue more diverse and balanced programming involving locally, nationally, and internationally acclaimed performers.
Conclusions
The research results are consistent with a similar study conducted for PACE in 2004 and conclusively support the fundamental hypotheses of PACE's capital and endowment campaign and strategic plan, which may be summarized as follows:
- The rapid transformation of the Eastside is producing one of the nation's wealthiest and most highly educated populations and isolating it from its cultural life at the same time.
- There is an unmet need and significant demand for a major Eastside performing arts center.
- PACE is being designed and built in an ideal location to meet that demand.
- The specific programmatic vision put forward by PACE has widespread support.
- Established Seattle-based performing arts groups will benefit from PACE.
- Established and emerging Eastside performing arts groups will benefit from PACE.
- PACE will create significant economic, cultural, educational, and social benefits for the community.