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Have we been undervaluing live performance?

Friday, 1 November 2024

A trailer for the Royal NZ Ballet's 2024 season of Shakespeare's A Midsummer Night's Dream.

For every $1 spent on live performance in New Zealand, $3.20 is returned in benefits to the community, a new report by two leading universities says.

The sector contributed at least $17.3 billion in social and economic value to the country in the year to June, it also found.

The figures were higher than previous estimates, however staff from Massey University and the University of Canterbury who conducted the study were confident the process was robust.

It’s hoped the data will help the under-resourced arts sector in articulating and advocating for its value to local and central government and funders at a time of economic downturn, in which audiences have less disposable income. Historically the sector has been unable to lobby well because of a lack of evidence that clearly illustrates its value in tangible, concrete terms.

It would also help to inform policy across various departments as the Government prepares to unveil its long-awaited draft national cultural strategy that’s nearly ready for release.

The crowd at last year’s Womad Aotearoa music festival in New Plymouth.
The crowd at last year’s Womad Aotearoa music festival in New Plymouth.

The research, funded by the Ministry for Culture and Heritage, is a more complete accounting of the benefits of live performance and used Treasury tools to incorporate consumer spend motivated by live performance with employment, taxation and social benefits.

Massey University associate professor Dave Carter said people often went out for meals or drinks before and after events, and spent money on accommodation, transport, parking, childcare and other expenses on top of their paying for tickets or entry fees.

Carter described the findings as impressive but not unexpected, and said the true figures could be much higher. Through the process staff deliberately overestimated costs, underestimated spend and took the lowest estimates.

Opening night of the Royal NZ Ballet
Opening night of the Royal NZ Ballet's production of A Midsummer Night's Dream, performed at Wellington's St James Theatre in October this year.

It was now up to officials and decisionmakers to use the dataset and documented experiences to deliver better outcomes. “While the numbers are exciting, it’s what the sector does with them that’s important,” Carter said.

The research found inflation was significantly impacting production costs, sponsorship, philanthropy and audience numbers. Producers hold concerns over a reliance on unpaid labour in operational roles, and alcohol sales dictating which events they could offer.

Producers wished to pay staff more but tight budgets meant some were effectively working voluntarily, which could lead to burnout and attrition.

Australian tenor Paul O’Neill and New Zealand soprano Eliza Boom with the NZ Symphony Orchestra conducted by José Luis Gómez, at a performance at Wellington’s Michael Fowler Centre in October 2024.
Australian tenor Paul O’Neill and New Zealand soprano Eliza Boom with the NZ Symphony Orchestra conducted by José Luis Gómez, at a performance at Wellington’s Michael Fowler Centre in October 2024.

“There is an overwhelming sense that the status quo is delivering valuable, but not optimal, outcomes for the community, and that a new way forward is needed,” the report’s executive summary says.

While live performance receives a modest government subsidy estimated at $75.5 million for the 2024 financial year, funding for the arts has declined as a proportion of GDP over the last decade.

Producers suggested new investment could help broaden access to events, which were highly associated with social connection, wellbeing and personal satisfaction. Removing access barriers could unlock even greater benefits.

Paul Goldsmith, the arts minister, will speak about the research findings at an event in the capital. (File photo)
Paul Goldsmith, the arts minister, will speak about the research findings at an event in the capital. (File photo)

Arts Minister Paul Goldsmith would speak to the findings at an event in Wellington on Monday when the report is formally unveiled among industry leaders and officials, who will discuss how to address the structural challenges.

A tool will also be released on Monday to allow producers to estimate the economic and social benefits of their work.

Ministry for Culture and Heritage insights manager Emma Wethey said the research showed how valuable and important the live performance sector was. It would complement the ministry’s own research, and be added to its evidence base.

Fast facts