Understanding the value of cultural venues in regional Victoria Wangaratta Performing Arts Centre Prepared for Arts Victoria Oct 2013

Economic Assessment ~ Background Arts Victoria commissioned Essential Economics Pty Ltd to undertake a detailed Economic Impact Assessment of the new Wangaratta Performing Arts Centre (WPAC) to ascertain net benefits arising from the investment. Reviewed 2006/07 and 2011/12 as periods to compare pre and post (or ‘before’ and ‘after’) development outcomes. These years represent periods either side of construction when the WPAC was operational for an entire 12-month period and where the best quality of data was available.

Wangaratta Performing Arts Centre An $8.5 million development constructed on the site of the previous Town Hall provides a significantly enhanced offer for performers, users and visitors, including a 530-seat raked theatre, memorial hall, conference room, café and bar and gallery spaces.

Objectives To assess economic benefits associated with the development of WPAC; To estimate net operational benefits arising from the facility; To quantify net economic benefits to the region such as employment and visitor spending; To identify, and where possible, quantify other benefits associated with the development, such as increased volunteerism, community partnerships etc..

Methodology series of targeted face-to-face interviews with local business owners (including accommodation providers, café and restaurant owners, tourism operators, and contractors and suppliers). meetings with relevant Council staff (representatives from WPAC Venue and Facilities Management, Council’s Economic Development Unit and Tourism Development Unit) meetings with allied businesses such North East Tourism and Wangaratta Festival of Jazz. ….to understand how WPAC’s operations - including investment flows, employment levels, visitor numbers and spending etc. – impact on the wider community.

Outcomes Broadly speaking looked at 3 main areas: 1.Visitation & spending impacts – Performing Arts & Business Events (conferences & events) 2.Employment 3.Return on investment Also considered: 1.Impact on arts precinct 2.Volunteerism 3.Partnership building 4.Marketing & branding

Outcomes Net economic benefits arising from the redevelopment of the WPAC, based on 2011/12 operations include: New regional visitation of 5,200 persons associated with arts performances (either attendees or performers), conferences and events. Regional visitor spending of approximately $1.6 million (direct and indirect), benefiting a wide range of regional businesses including accommodation providers, cafes and restaurants, pubs, food and wine producers, and retailers. New employment of 19.5 EFT, including 2.75 EFT directly associated with the facility, and the balance involved indirectly through suppliers and visitor spending etc..

Outcomes Return on investment is likely within years, based on operational performance continuing at levels achieved in 2011/12. In 2011/12, for every dollar of operational subsidy provided jointly by State and Council, one dollar and eighty cents was generated for the regional economy (benefit cost ratio of 1.8:1).

Outcomes Improved patronage to the broader arts precinct, including the Wangaratta Arts Gallery which has experienced an increase in attendance. Significant Increase in volunteer levels, with volunteer hours increasing sixfold from the predevelopment situation. Consolidation of commercial and community partnerships and development of new partnerships. Increased national and state exposure for Wangaratta and the region in the media.

“When a WPAC event is on our restaurant is full with around 50% of patrons show goers” Adam Pizzini, Rinaldos Casa Cucina “One of our more recent performer guests was saying how fantastic it is to come to a country town and have such a great theatre and that in many towns they have to adapt to very small stages in the local church hall or equivalent” Jenny Bannam, Hermitage Motor Inn “Every Sunday I sit down with the WPAC’s What’s On Calendar when drawing up the staff roster for the week” Tess Siperki, Hollywood Pizza “The new WPAC has given a new lease of life to the Wangaratta Jazz and Blues Festival“ Paul Squires, Chairman Wangaratta Jazz and Blues

Cultural Assessment Study Purpose of study To examine the cultural contribution of the Wangaratta Performing Arts Centre including comparison where relevant with the old facilities that it replaced.

Methodology Data used for this report included * program data between 2005 and 2012; * acquittal data provided to Arts Victoria; * published articles and reports relating to both the old and new venues; * interviews with key personnel/stakeholders in Wangaratta * interviews with key relevant arts organisations in relation to the PAC’s five key objectives. The study involved an assessment of available data about the previous performing arts facility and a comparison between the operations and impacts of the ‘old’ and ‘new’ facilities. Survey of Wangaratta residents to assess contribution of WPAC to liveability for local community

5 key objectives for WPAC * delivery of a professional performing arts centre * greater diversity & quality in the arts and culture program * growing access to the arts in Wangaratta * a focal point for community gathering in Wangaratta * integration of Wangaratta PAC in the touring network

Findings WPAC is a lively centre for its community. It is a place to experience the arts, to participate in the arts, a place to meet, socialise, volunteer work and gather to celebrate community events. The professional nature of the new facilities and presence of a team of venue staff have facilitated a range of important cultural benefits for Wangaratta. It has enabled a greater diversity and quality in Wangaratta’s performing arts program. It is now able to attract major touring shows to Wangaratta by offering a more professional experience for performers and crews, including local and amateur productions, and a greatly enhanced theatrical experience for audiences.

Findings Visitor numbers have steadily increased since the Centre’s opening four years ago and its program of shows and activities is growing access to the arts in Wangaratta. WPAC is a focal point for community gathering in Wangaratta and the programs focus on offering different activities to increase audience participation in a number of ways. It includes activities for students, parents and fans of different artforms and other groups within the community who may not have previously engaged with the old venue WPAC has formed important resource sharing and programming relationships with other north-east regional venues and collectively this has improved viability of the touring network, both regionally and statewide. This has flow-on benefits for producers, artists and touring companies.

2013 Survey* of Wangaratta Residents * Online survey received 438 responses - 98% had visited WPAC. Therefore not possible to generalise the results across community more generally but provides useful data about views of visitors to WPAC.

Uses for research The Economic Assessment backed up an internal report developed by council officers for the previous Council and added 3 rd party validation to our findings Both reports have / will be presented to the Administrators prior to budget finalisation to support requests for funding in FY14/15 budget. (FYI – RCoW has a budget shortfall of $1.2million due to the actions of 2013 & budgets are very tight) RCoW is preparing a business case for a Gallery upgrade – elements of both reports will assist in adding weight to that report RCoW is looking to develop a concept plan for an Arts Precinct. Elements of both reports will assist in adding weight to that report