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09-25-2003 Aventura Cultural Center Foundation Meeting 9/25/03 Agenda 1. Meeting called to order 2. Roll call of attendees 3. Approval of minutes 4. Introduction of guests, Michael Spring, Director of Department of Cultural Affairs, Miami-Dade County, Deborah Margol, Deputy Director 5. Review history of the Cultural Foundation Committee and the Committee charge 6. County support and the regional arts landscape - Mr.Spring, Ms.Margol 7. Completion of review of feasibilty study (demographics, finances, theater-site) 8. Subject and date of next meeting A. Completion of review and recommendation for next step for Commissioner's November meeting 9. Adjourn , it', ,., WEBBMAN AGEIIENT :() Jl- J~ () nA -''1' If, 1) Memorandum Report TO: EPHRAIM WEINBURG, PERFOR.J.\fING ARTS CENTER STEERING COlYL\HTIEE FROM: DUNCAN M. WEBB SUBJECT: UPDATING THE MARKET ANALYSIS DATE: 9/23/2003 CC: MICHAEL CHIPMAN Further to our m~eting of August 25, we are pleased to provide an update of our 2001 report. Our analysis considers what is occurring in the regions around Aventura that will influence its future direction in regards to the presence and growth of the arts and how that growth will affect planning for new facilities. The Market for Audiences and Funders We will examine the market in terms of audiences and funders for four different groups: Aventura City, Miami-Dade County, Broward County and the visitor population. Specifically, for each group we want to know total population, projected growth, the demographics of the population now and demographic trends for the future. All statistics are drawn from the U.S. decennial census, unless otherwise noted. Aventura Size, Growth and Characteristics The Aventura City population has grown significantly over the past decade. In 2000, Aventura had a total population of 25,267, an increase of 69% from 14,914 in 1990. No information on projected growth for the City of Aventura was available at this time. Aventura is much less diverse than its surrounding counties, though the percentage of Hispanic residents has increased over the past decade. In 2000,93.8% of the population was White, down from 98% in 1990. The Hispanic population grew from 7.2% in 1990 to 20.7% in 2000. If trends continue in Aventura as they are in the surrounding region, particularly in Miami-Dade County, the Hispanic population will continue to increase and playa larger role in the community. The median age in Aventura is 52.8, significantly higher than the national average of 35.3. Of the total population, 35.2% are 65 and older, much higher 1 WEBBMANAGEIIENT \:; :i'N-r; f} ,gX 0 Kl/;, ,ED than the national average of 12.4%. Of those 25 and older, 89.4% have a high school diploma, compared with 80.4% nationally. The percentage of those in Aventura with a bachelor's degree (22.4%) is much higher than the national average (15.5%), as is the number of those with a graduate degree (16.2%) compared with the national average (8.9%). These demographics would indicate a very strong market for attendance at fine and performing arts events. Median Household Income in Aventura is $44,526, which is higher than the national average of $41,994; the same is true for the Median Family Income with $59,507 average in Aventura, and $50,046 average nationally. Per Capita Income in Aventura ($41,092) is almost double than the national average of $21,587. Miami-Dade County Size, Growth and Characferistics The Dade County population has seen dramatic, consistent growth over the past decade. In 2000, Dade County had a total population of 2,253,362, an increase of 15% from 1,967,000 in 1990. The population is projected to increase 13% to 2,551,284 in 2010 and then increase 27% to 2,858,185 by 2020. One of the most dynamic populations in the country, Dade County is 23.7% Non-Hispanic White, 21.6% Black and 57.3% Hispanic. The Hispanic population has increased dramatically from 5.3% in 1960 to nearly 60% in 2000. If trends continue, the Hispanic population in Dade County will reach 69% by 2020. The median age in Dade County is 35.6, nearly equal to the national average of 35.3. The population of those 65 and older is 13.4%, slightly higher than the national average of 12.4%. Of those 25 and older, 67.9% have a high school diploma, compared with 80.4% nationally. The percentage of those with a bachelor's degree (12.3%) is also lower than the national average (15.5%), but the number of those with a graduate degree (9.3%) is higher than the national average (8.9%), a statistic that bodes well for potential traditional arts (music, dance, theater) attendance. Median Household Income in Dade County is $35,966, which is lower than the national average of $41,994; the same is true for the Median Family Income with $40,260 average in Dade County, and $50,046 average nationally, and Per Capita Income at $18,497 in Dade County and $21,587 nationally. 2 WEBBIIAN AGEIIENT o~ n iaA',f. Broward County Size, Growth and Characteristics In 2000, Broward County had a total population of 1,623,018, an increase of 29.3% from 1,255,488 in 1990. The population is projected to increase 20% to 1,954,572 in 2010 and then 40% to 2,273,287 by 2020. Broward County is 58% Non-Hispanic White, 16.7% Hispanic, and 21.6% Black. The Hispanic population has increased from 4% in 1980. Though the Broward Hispanic population is not as prevalent or growing as fast as in Dade County, it is a significant segment of the population. The median age in Broward County is 37.8, slightly older than the national average of 35.3. The population of those 65 and older is 16.1%, higher than the national average of 12.4%. In terms of educational attainment, 82% of those 25 and older have a high school diploma compared with 80.4% nationally. The percentage of those 25 and older with a bachelor's degree (15.8%) is almost equal to the national average (15.5%), as is the number of those with a graduate degree (8.7%) compared to the national average (8.9%). Median Household Income in Broward County is $41,691, almost equal the national average of $41,994; the same can be said for Median Family Income ($50,531 in Broward compared with $50,046 nationally) and Per Capita Income ($18,497 compared with $21,587 nationally). Population and Demographics Charts, Graphs and Maps Miami-Dade Broward Aventura City County County Florida United States Population Age iTotal 25.2671 2.253.3621 1.623,018i 12.336,0381 281.421 ,9061 .-" .-- -.-- ----.---.--.----r------.------- -- '-"--'-'---r--'-', ~-----'.'.-..--.-.1 ! Median !!i2.~. 35.6! 37.8!' 35.61 35.3 1m 1 ............ .- '~H' ....m.--..-r ... ... iUnder ~_______________._~--.---- 10.1% .___ 24.8%: 23.6%: 22.:t-----25.7%j [65 and_LlP___. ____._n_..____.__.___L___n._15.2% __ _ ___.13.3%' ___.___.16Yi9L____1L6% _.___..lM%1 Race 1 White i Black __ n..______ f.tIi~Q~~ or LalliJ.Q ! America!!J!}9JE.r:L_ · Asian . - _.__n__." ,---- -... --...----[. .. -- .-.-. -.. -...- -...----.--.,---.--=-=:1.-.-..-----------.1 ; 93.8% 23.70/0< 58.0%: 78.0%1 69.10/01 , ! ' , , I ... _____-1__ .____ 1.7%[---. .21.6%! 20.00/0, 14.6%~__-.1.f.J~i _ .. ..~ _4Q,L"!9 . ._._57.30/01___ 16.7%[ __ 16.8% _ 12.5%1 . ..._______L____...QJ.~.L____. 0.40/0, 0.2%' ~__..QJl_"(gj , 1.2%1 1.80N 2.30/0, 2.1%1 3.6%! Education 67.9% 82.0% 79.9%; 12.3% 15.8% 14.3%1 _!tc~"&,_ ___. 8.7% '- _____.JL1."!&.... _. 80.4% 15.5%: ~~~O{o: IHS or hiQher 89.4%1 'Over 25 wi bachelors decree 22.4% , ,Qver:~'It!Jl@Qld.~t~_gegre~_._ .. _mL_ ___ _1Q,~~01 Income 1999 ,M!;)dian Household Income___~.___I--.-~...g~~.n $35,966_ $41,691 . Median Family Income . _______.__-L-_.~~t.---....HQ,260, _$50,531. !.e..~LQ.{lpita Incofllil_ ________ _.M1.092r--" _j18.497~ ___...JnJN._ ! f?r'11ijiesl'l! mar? !b~rl$tOQ,Q9.o4~'~,"Io! .J~A"Io! .1J;3.~"(o~. __ n i Families wi more than $200,000___-'-_ 9.5%1 3.0%. 3,3%: ~8,819T.~1,91 56251 $50,046 $21,5571 $21,587' 13.1%: 15.2%1 -----t. "-.' .mm._.m_, 2.9% .___ __2~9o/'!l 3 WEBBlKANAGEIIENT ',IN C on 1'(/ HAT ED Age Breakdown Comparison 80 to 84 years ~.. , - , - , , 90 years and over 70 to 74 years 60 to 64 years 50 to 54 years 40 to 44 years 30 to 34 years 20 to 24 years 10 to 14 years Under 5 years o 2 4 6 8 10 1--------'-----'------ ,- % Aventura _ % National 0 % Broward ~ % Miami-Dade I This chart shows the percentage of the total population in each age group by geography. Some of the significant comparisons follow: · Aventura has a vastly higher than average percentage of persons in the 60-90 year old range than the national average. Take particular note of the significantly higher percentage of 70-90 year-old group in Aventura. · The percentages are about average for Broward and Dade counties in the 45-65 year-old range, but slightly higher than average in the 30-40 year-old range. · Also note the dramatically lower percentage of the population in the 5- 24 year-old range, particularly in Aventura and Broward County. · This is a population with a significant number of retirees and elderly people, and a comparatively small number of young families. 4 WEBBMANAGEIIENT 2,500,000 ..... ---------1 I Dade/Broward County Population Growth 1960-2000 2,253,362 1,937,094 --------- - --------1~625;_7'&1-- 1,267,792 935,047 I In______ : i I i I I 2000 I ----I I-+- Brow ard County ...... Dade County i I . . i ----~:~~--~:..:~=-.:.:..:.:..:-.==~-=-~~===========-..=::.....~~J 2,000,000 1,500,000 1,000,000 1,623,01 . --T,255;~88--------- 1,018,200 620,100 500,000 o 1960 1970 1980 1990 F '>DIe CHi ':~1)HA TIO) 2020 Population Growth Projections The two graphs above show significant growth in the general population since 1960, and projected growth through 2020 90.0% 80.0% 70.0% 60.0% - 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% .-._------~----_._----"-------, I i I i I i I ---.-----.------ "'''__4__.._..___"_..__ I Broward County Demographic Shifts 1980-2000 58.0% ... \...... IU . V.V /0 -+ 16.7% 1980 1990 2000 i-t-Hispanic Population l ! :--vVhi!e/_~o!1~~~~p.~!1i~ ~?!?~~~ti~~j __J i---Dade County Demographic Shifts 1960.2000 I I 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% - 0.0% 57.3 Yoi 23.7%, 1960 1970 1980 1990 2000 ~.... n~__ _~~~p'_~_~i~.~oe~!~t!?~"""""'~~i!~(~9n~~i~p'~ni~~?p_ulation ] These graphs above and below show important trends in the demographic breakdown of Broward and Dade Counties. Note particularly the dramatic shift in the Hispanic to Non-Hi~p;:mic poplJlatiQIlS since 196Q in Dade CQunty and projections for both. Broward County Demographic Projections Through 2030 70% 58% 60% 50% 37% 35% 40% 30% 29% 31 0 32% 27% . ~23 0 20% . ~!o- 2tQ/n . . 1 Va 22% 23% 23% 23% 24% 10% .2Q% 21% 0% 2000 2005 2010 2015 2020 2025 2030 ,--:- --..-- ....-- ----.-. ------------, 1--t-l\bn.Hspanic White -Black Hspanic, ~ ,I 80.0% 70.0% 60.0% - 50.0% 40.0%-- -- ----------______ 30.0% 20.3% 20.7% 20.6% 20.5% 20.4% 20.0% - ~ T -..J- : 10 00/ 23.7% . 10 -. . -1~2%-16.4%14.1% 0.0% Dade County Projected Demographic Shifts Through 2020 63 5'11 66.4% . 0 . 3'''To-eQ~G9h----'-~----- -- --- ! ~Non-Hispanic . White ' :-Black Hispanic i L-._____________.____________________ 2000 2005 2010 2015 2020 5 WEBBMANAGEIIENT 7::::1:.rC on {'Oxl A"f ED Miami-Dade Income Distribution 1999 Less than $10,000 $150,000 to $199,999 $100,000 to $124,999 $60,000 to $74,999 $45,000 to $49,999 $35,000 to $39,999 I_ % Miami-Dade! . I i - % National J "--.--------.- $25,000 to $29,999 $15,000 to $19,999 o 5 10 15 The Income Distribution maps for Dade and Broward Counties on this page show that Dade has a much higher than average percentage of households that make $O-30K per year, and lower than average percentage of households earning $50-100K, while Broward more closely matches national trends in all categories. Broward Income Distribution 1999 Less than $10,000 I I I $150,000 to $199,999 $100,000 to $124,999 $60,000 to $74,999 $45,000 to $49,999 $35,000 to $39,999 $25,000 to $29,999 $15,000 to $19,999 i_ % Browardll ! _ % National L___.._ _ __ __.__._____ __. J o 2 4 6 8 10 12 The two maps on the following page show significant growth in the concentration of wealth in Broward County from 1990 to 2000. 6 WEBBMANAGEIIENT ;~~ 'C ~) n. P' f~ H A 'J"' ,'r:,~ D Income Distribution Maps for Miami-Fort Lauderdale MSA 1990 Median Household Income (by census tract) 2000 Median Household Income (by census tract) 7 Data Classes llo lIars Do - 10070 o 183.65 -30024 1130119 - l\.34.S8 . 444lJ - 67236 . &8992 - 1500)1 B.o.undaties .~ County Features ,N Major Road :~tn(:"';;! Stream/Waterbcdy 5tream/Waterbcdy Items in grrsj text are not vis io le attl115 ZOOOl lewl Data Classes 1lo1lars o 0 - 258'6l\ o 25975 - 39233 II 39513 - 50473 .570&2 . 81669 . &3671 - 20c001 Boundaries .!'I" . 00 CllUlty Features ;V Major Road ~tn:I(:': 5tre.am/Waterbcdy Stream/Wate rbcdy ItA!fllS in .~r ii.';text are not visible at this zoom level WEBBMANAGEIIENT ...~IN C n!lPOft ATED Related Studies and Research Classical Music Prospects: Telephone Survey of Miami Area Adults In 2002 Audience Insight produced a study that characterized the Miami market in terms of its potential to support live classical music programs, identified and profiled prospects for classical music in the area, and segmented Miami prospects according to their relationship with the art form of classical music. Relevant findings of that study follow. · 56% of Miami respondents were classified as "classical music prospects," meaning they had an above average preference rating for classical music, or attended at least one live performance in the past 12 months and would accept a free ticket to a classical music concert. · These prospects currently attend a range of live classical music concerts. · 1/3 of Miami adults say they ate "very interested or "extremely interested" in arts activities. In this respect Miami adults closely mirror U.S. adults. · 31% of Miami adults say arts activities playa "major role" in their lives compared to 25% of U.S. adults. · Among Miami adults, preference levels for classical music are roughly equivalent to preference levels for jazz concerts and stage plays. · 17% of respondents report attending at least one live classical music concert in the past 12 months. · In Miami arts participation rates are higher than national rates for attending art museums/galleries, Broadway shows, opera and ballet. · Miami adults attend slightly more performing arts events than U.S. adults, on average. · 16% of Miami adults say that they have volunteered for an arts or cultural organization. · 61% of Miami adults say that they would like to attend live performances more often than they do now. · 54% would attend a free classical music concert if a friend or family member offered them tickets · 67% of all "Prospects" read the Miami Herald, and 15% read The New York Times Arts Section and the New Times. . 2/3 of Miami Prospects have attended a classical concert by an orchestra, and about half of those say that they did so within the past 12 months. 8 WEBBMANAGEllIENT ~I>JCOn f'(}IitATii:D Postal Survey of New World Symphony Subscribers and Single Ticket Buyers Audience Insight produced another study in 2002 for the New World Symphony intended to establish a strong information base about New World Symphony subscribers and single ticket buyers that will help to guide marketing decisions. It also sought to understand the complex relationships that NWS audiences have with the art form of classical music, in order to serve them better, to profile NWS ticket buyers in terms of their lifetime experience with the institution and to gain a sense of the values and benefits that NWS ticket buyers seek from the live concert experience. Following are relevant findings from that study about the classical music market in the Miami area: . 57% of respondents were female, 83% were over the age of 55, 62% . were married . 93% of subscribers where White, 5% were Hispanic . 86% of single ticket buyers were White and 16% Hispanic. . 26-28% of subscribers or ticket buyers had graduated from college and 56% had graduate degrees. . 33% of subscribers had annual household incomes of $200,000 or more. . Average annual frequency of attendance at classical music concerts was 13.8 times for subscribers and 9.5 times for single ticket buyers. Jackie Gleason Theater of the Performing Arts Telephone Survey Final Report In 2000, Strategy Research Corporation and Market Facts produced a study to describe who goes to the theater, what type of performances different groups of people attend, how they hear of the shows, how tickets are purchased and what patrons do before and after the show. The study also sought to uncover any insights into what makes a particular performance a "hit" to be used as a basis for actionable marketing efforts by the Jackie Gleason Theater of the Performing Arts. Relevant findings from this report follow. . Hispanics were significantly more likely than Whites or African Americans to attend Hispanic shows. . Whites were significantly less likely to attend Hispanic shows and most likely to attend Broadway Series, Dance, Opera/Classical Music, and Country/Rock shows. . Although African Americans were significantly more likely to attend Family and Jazz/Pop concerts, they were just as likely to attend all other shows. 9 WEBBMANAGElIIENT ,;:} I"ilC () n. Y" (} "flAT ED 381 27 381 81 ----~---_ 65 551' 511 ---9.l---_-L-..____~__Q.l 4! . NOTE; The total percentage is not 100% because lhase answering alher were not included · The over 65 age group was most likely to attend Broadway Series and Opera/Classical shows _ .. ..-nl.2..s.;_..__ "~~1. ___-'.a.. ......- .2..4.L. 39! 38 35 ~OJ 35 36 3 31' .4L.. ...-~i22~':~=~_._3~ ~~::-:==__j.Q ___ ::_.~-=___~::~tr:=..~~~:~~C._~--=~.~~~.. ...__-1~. ---.._-~.~.---._-~.:_.._-;-~ .. 89% of Hispanic performance attendants were Dade County residents as opposed to 11 % from Broward · Dade residents were most likely to attend Hispanic shows, over other show types. · Although Broward residents were just as likely to attend CountylRock shows as Broadway Series, Jazz/Pop Concert and Family shows they were more likely to attend these than Dance, Opera/Classical, Hispanic and Comedy shows. · Other key findings of the report show that most Classical Music attendees were over the age of 50 and more were Dade residents than in 1993. Also those with an annual household income of over $50,000 attend more performances per year than others, most notably Broadway musicals, opera, classical music and ballet. Non-resident Audiences In 2001 the Greater Miami Convention and Visitors Bureau conducted a Visitor Profile and Economic Impact Study. Some highlights of the findings in that study are as follows: · Overnight visitors spent $13.5 billion in direct expenditures in Greater Miami and the Beaches. Average daily expenditures rose to $211.58; average expenditure per trip was $1,324.49; average length of stay was 6.26 days. · 96% of overnight visitors said they were "extremely or very satisfied" with their stay. The weather and climate were cited as the number one reason for visiting. 10 WEBBMANAGEIIENT .i,XNG~)J1 .HA · 10.5 million visitors stayed at least one night in Greater Miami and the Beaches - this included a market mix of 50% domestic and 50% international visitors · Total visitor levels declined from 2000, largely due to 9/11. · VacationlPleasure travel was the reason a majority of people visited (represents 65% of market mix) in 2001. Business/Convention travel comprised 13.7% and people visiting friends and relatives were 15.4% of the market mix. · Cultural activities were among the notable characteristics cited for what visitors like about the area. · 10.7% of visitors attended Miami area theaters during their stay. · The largest percentage of domestic visitors came from the Northeast (predominantly New York), followed by Southern, Midwest and Western states. · Almost 63% of international visitors came from Latin America, including 2.2 million from South America, 700,000 from the Caribbean and 416,000 from Central America. There were 1.2 million European visitors and 585,000 Canadians. Audience Distribution Maps Florida Grand Opera Tick et Buyers _1 _2-50 _ 51 - 250 _ 251-500 _ 501-910 80YNTO~J BEACH BOCA RATON FGO Reach Ticket Buyers by Zip Code Last 5 years Total NORTH MIAMI BEACH ~\~_.. ~ WEBBMANAGEIIENT ~~c c' y'~ .T~~: Concert Association of Florida Of1dfy - - -.......G._a'M~1Hcl~~:aI't}aAT:sU. 3~1iIes Single Tickets by Zip Code Premier Series 02-03 BOYNTON BEACH Palm Beach BOCA RATON FORT LAUDERDALE 8ro\llillWtl Center br tl"e Arts oilier /IIORfH MIAMI BEACH .-ateGlessO'l r...... ~ CClllrty Auiitorillm 00 o 4.5 9 · Legend FLZlps Pram i ef' 02..03 01-2 11I1 J -6 _7-n _1~-~.gj _ 3Il-219 18 E.7 ~.. '~:f As the maps above show, the area just north of Miammii. Beach, :iim.cludizng A ventura shows a high density of ticket buyers f()r ;the Concert Associatiom. of Florida and Florida Grand Opera. That strong atten&nce and interest m the arts would most likely spill over into a performing artt:s center located ill Aventura itself. - Market Analysis Conclusions What does all this information mean? We base our conclusions on statistics gathered from comprehensive studies released by the National Endowment for the Arts and the RAND Corporation. Summaries of those studies follow. 12 WEBBMANAGEIIENT ..s ll~ C () li},~' () J;1. :.'\. TED 2002 Survey of Public Participation in the Arts Although they changed travel and other plans, Americans continued to attend arts events in the twelve months after September 11, 2001 - based on the 2002 Survey of Public Participation in the Arts (SPPA). Nearly one-third of adults reported going to at least one jazz, classical music, opera, musical, play or ballet performance during the twelve months ending August 2002, not including elementary or high school performances. About one-quarter of adults said they visited an art museum or art gallery. Combined, 39 percent of adults, or 81 million people, attended these types of events. This is 5 million more than attended (76 million) in 1992, the last year of a directly comparable National Endowment for the Arts survey. The National Endowment for the Arts has been tracking attendance at these "benchmark" events since 1982. The percentage of adults reporting attendance at live jazz, classical music, opera, musicals, nonmusical plays, ballet and art museums/galleries held steady between 1992 and 2002. As in 1992, more people reported attending musical plays than any other type of performing arts examined in the SPP A. The SPPA also examined activities such as visiting historic sites and reading literature. Counting all of the art forms and types of participation in the arts examined in the SPPA, 76 percent of adults, or 157 million people, made the arts part of their lives in the twelve months ending August 2002. The survey investigated different forms of participation, including viewing or listening to performing arts on television or radio, reading literature, visiting historic sites, performing and creating art, owning art and taking arts classes. Nearly two- thirds of Ame'rican adults attended arts and cultural events, visited historic sites or read literature from September 2001 through August 2002. Four-in- ten reported personally performing or creating art during this period. Over half watched or listened to the arts on television, radio, recorded media or the Internet. About 5 percent took an arts-related class. Methodology The 2002 SPPA marks the fifth NEA survey of arts participation in the past 20 years. The surveys conducted in 1992 and 1982, also conducted by the U.S. Bureau of the Census, are the primary points of comparison for the 2002 SPPA. The SPPA supplements in 1992 and 1982 were attached to the National Crime Survey while the 2002 SPPA was collected as a supplement to the Current Population Survey. The 17,135 adults participating in the 2002 SPPA exceeded previous surveys. The response rate was 70 percent- 13 WEBBMAN AGEIIENT '~l 1'1 {; .() no n.A T .ED similar to the rate in the second half of 1992 (68 percent) when a similar questionnaire was used. Questions asked of respondents were consistent from 1992 to 2002 with the exception of several additional questions asked about traveling to arts events and time spent on the Internet viewing, discussing or learning about the arts. DVD viewing was also added to the 2002 SPPA media participation questions. In 1997, the SPPA was conducted through a telephone survey independent from any Census research studies. Data are not directly comparable to 2002 because of these differences in data collection. Even though the methodology for the 2002 and 1992 surveys are more similar, comparisons should be made cautiously because of the change of sponsoring survey (National Crime Survey in 1992 versus Current Population Survey in 2002) and different season for the study (surveys conducted each month in 1992 and only in August in 2002). It is unknown how the topic of prior questions may affect responses to arts participation questions. Attendance The SPP A has tracked attendance at certain performing arts events since 1982. Attendance rate trends were examined for seven "benchmark" activities followed by analysis of other live arts events. Benchmark attendance. In the twelve months ending August 2002, 39 percent of U.S. adults attended at least one of the following arts activities: jazz, classical music, opera, musicals, plays, ballet or art museums. These seven activities identify a "benchmark" participation rate for live arts attendance that the NEA has monitored since 1982. Although the 2002 rate is 2 percentage points below 1992's rate of 41 percent, this difference is not statistically significant. The actual number of participants increased from 76 million to about 81 million reflecting the growth in the adult population from 1992 to 2002. Rates of attendance for most arts activities have remained relatively constant since 1982's SPPA. There were no statistically significant differences between the percentages of adults attending in 1992 versus 2002. Other live arts attendance. In addition to the seven activities described above, survey respondents were asked about going to arts and crafts fairs and festivals and visits to historic sites. September 11 may have affected attendance at fairs, festivals and historic sites. Festival and fair attendance fell to 33 percent of adults in 2002, 7 percentage points below 1992 and a 14 WEBBMAN AGEIIENT ~ IN' (: t)H. J~ (; It /\ TIt D statistically significant decline. This was the largest decline of any live attendance event in the SPPA. Visits to historic sites dropped from 34 percent of adults in 1992 to approximately 32 percent in 2002, the second largest drop. among live events. This decline was also statistically significant. Other arts activity. The SPP A also asks about reading habits. In 2002, 56 percent of respondents indicated they had read a book during the previous twelve months, about the same as in 1992. However, the percentage of respondents reading literature, defined in the survey as plays, poetry or novels, decreased by 8 percentage points from 1992 to 2002 (46 percent of 2002 respondents), a statistically significant drop. Broadcast and Recorded Media Although the past decade saw impressive advances in media options for viewing and listening to the arts, this form of arts participation experienced a relatively large decrease from 1992. Participation via every type of listening or viewing showed statistically significant declines. Even so, the percentage of adults reporting viewing or listening via broadcast and recorded media remained higher than live attendance. TV; VCR or DVD viewing. Jazz, classical music, opera, musicals, plays, dance (including ballet) and visual arts each experienced at least a 5 percentage point decline in respondents' viewing of these art forms on broadcast or cable TV, video or DVD from 1992 to 2002. The largest decline, from 34 to 25 percent, was for respondents indicating they had watched a program about artists, art works, or art museums in the previous twelve months. The percentage of respondents who reported watching non-musical plays and opera decreased by one-half. The percentage of adults viewing classical music performances declined from 26 percent in 1992 to 18 percent in 2002. Those viewing dance declined from 20 to 12 percent of adults. Viewing of jazz and musicals declined as well. Projecting these results to the adult population in the U.S., the number of adults viewing these art forms on TV, VCR or DVD declined from 1992 to 2002. Radio. The percentage of adults reporting that they listen to jazz, classical music, opera, musicals and plays on the radio declined from 1992 to 2002. Though not as dramatic as for viewing performances on TV, declines were substantial. The largest absolute decrease was for classical music, falling from 31 percent of adults listening on the radio in 1992 to 24 percent in 15 WEBBMANAGEKENT <;-l.NCt)ll P'Oliit.T.ItD 2002. However, it should be noted that the 49 million classical music listeners reported in 2002 was still more than a third larger than the number in 1982 (36 million). Recordings. Classical music also saw the largest absolute decline in the percentage of adults listening to audio recordings, from 24 percent in 1992 to 19 percent in 2002. Other performing arts also experienced large declines. Internet. The 2002 SPP A asked several questions regarding use of the Internet. About 53 percent of respondents said they use the Internet. A total of 19 percent of all survey respondents (one third of Internet users) reported exploring at least one arts topic on the Internet. Of the art forms, music is the most frequent topic of Internet investigation, totaling 13 percent. of respondents, or 27 million American adults. The second most commonly investigated arts topic on the Internet is literature (9 percent of respondents), followed by visual arts (6 percent), theater (4 percent), dance (2 percent) and opera (1 percent). Personal Participation in the Arts The 2002 SPPA researched personal participation in the arts through questions on performing and creating art. Performance and creation. Singing in a choir, chorale or other vocal group remained the most popular form of personal performance in 2002. With 9.8 million adults participating, it had more than double the number of participants than any other type of personal performance except dance. Weaving, sewing and other needlework remained the most popular among the visual arts activities. Though these activities have relatively higher levels of participation than other performing arts or visual arts activities, both experienced statistically significant declines from 1992 to 2002. Only photography, ballet, composing music and writing literature increased in activity from 1992 to 2002. The percentage of adults who said that they had performed classical music in the past twelve months dropped by one-half in 2002, from 4 percent to 2 percent. Adults who performed dance other than ballet dropped from 8 percent to 4 percent of respondents. Both declines are statistically significant. Classes. In the 2002 survey, more respondents took classes in the performing arts in the prior twelve months (6 million adults) than in the visual arts (5 million). The most popular type of class was music - 2 percent of respondents reported that they had taken a music class in the past twelve months (4 million adults). 16 WEBBMAN AGEIIENT ~~DIC on J"ORA TED Summary About the same share of adults participated in performing arts and visual arts activities (about 59 percent) in the twelve months ending August 2002. For performing arts, most adults participated by watching or listening to music, plays or dance on television, the radio, via audio recordings or the Internet. Over half of adults say they have viewed some type of performing arts media in the previous twelve months. Participation through attendance at live events is smaller (32 percent), with more adults attending plays (musicals or non-musical plays) than other types of performing arts events. For the visual arts, participation is most often in the form of attending an art museum or gallery or an arts and crafts fair or festival. In addition, nearly 39 percent report personally creating some type of visual art, though this includes ownership of an original artwork. Approximately one-half of U.S. adults experienced "literature" in some way in 2002 (poetry, plays, novels or short stories). In sum, over 76 percent of adults have experienced art in some form in the twelve months ending August of 2002. The RAND Study on the Future of Performing Arts in the United States In 1999 the Pew Charitable Trust commissioned the RAND Corporation to create a comprehensive report on the state of the performing arts at the end of the 20th century and make projections about where the arts are going in the years to come. RAND pulled together data from many sources, including national and regional arts participation surveys conducted by the National Endowment for the Arts every five years since 1982, to create the most comprehensive report to date on current and future state of the arts in America. The RAND report revealed important and significant data, with both good and bad implications for American art.s organizations. On the one hand, the arts appear to be booming: the number of organizations offering live performances continues to grow, Broadway plays and live opera are bringing in record audiences, and the demand for commercial recordings is stronger than ever. Arts participation grew through the 1990s, and receipts from events increased from $13 billion in 1992 to $20 billion in 1996. However, the study also found that theatre groups, symphony orchestras, and dance companies are cutting costs or closing their doors because they are unable to attract the audiences and contributions needed to meet expenses. 17 WEBBllI.IANAGEIIENT '~1 >1 con l' f'j H I\ T!!: D The study also found that participation in the arts is rising due to increasing populations, but it is important to remember that less than half (only 42%) of adults reported going to at least one performing arts event in the previous 12 months (but at an average of 5.4 times) and that some art forms are much better attended than others. Also, the report found that 96% of adults polled watched television for three hours per day and 65.5% went to movies at least once in 12 months, underlining the trend toward media-based arts participation. Further attendance data from 1997 showed that those polled attended each of the following art forms at least once in the previous 12 months: jazz performance 11.9%, classical music 15.6%, opera 4.7%, musical play 24.5%, non-musical play 15.8%, ballet 5.8% and other dance 12.4%. Average rates of attendance per year varied between 1.7 and 3.1 times for each genre. Jazz was the most frequently attended; opera and ballet were the least frequently attended. Education is by far the best predictor of performing arts attendance, surpassing age, income, and gender (although women attend more frequently than men) as attendance predictors. Persons with some college education attended the arts more than twice as often as those with only a high school diploma. Those with graduate degrees attended four times as often as those with only a high school education. There are several reasons education plays such a significant role in predicting arts attendance. One is that more highly educated individuals are more likely than others to have been exposed to the arts by family members during their childhood and to have taken courses in the arts during their schooling. Education also helps people develop skills in dealing with the abstract, a skill that is useful for appreciating the arts. The study also suggests that because attendance is the most social form of arts participation, more highly educated people may be more interested in the social dimensions of participation than others. When 3,500 people nationwide were asked why they did not go to events as often as they would like, respondents cited time, available events, and expense as the top three reasons. Another deterrent to live arts attendance is the dramatic growth in attendance for the non-live arts, both recorded and broadcast performances. The report attributes the popularity of media delivery to several factors: the increasing quality of electronically reproduced substitutes for live performances, the rising direct and indirect costs of attending a live performance, and an increasing preference among Americans for home-based leisure activities. 18 WEBBMANAGEIIENT N C OH.t).()R A.rrf\:D The RAND study cites a number of socio-demographic trends that are likely to further dampen future demand for live performances. Although education levels are expected to rise - a trend that should create more demand for the arts - Americans are placing an increasing premium on flexibility in their leisure activities. Also, baby boomers will gradually be replaced by a younger generation that appears less inclined to attend live performances and is more comfortable with entertainment provided through the Internet and other emerging technologies. The uncertain status of arts education in public schools may also be a factor in reducing demand for the arts. The number of nonprofit performing arts organizations increased by over 80 percent between 1982 and 1997, while the number of commercial performing arts organizations increased by over 40 percent. At the same time the average real revenues for nonprofit performing groups have declined, suggesting that most of the new nonprofit organizations are small. These small companies tend to emphasize local participation and rely heavily on volunteer labor. The report concludes that the structure of the performing arts system is undergoing a fundamental shift. While the commercial recorded and broadcast performing arts industry is growing more and more concentrated globally, live performances are proliferating at the local level, typically in very small organizations with low operating budgets and a mix of paid and unpaid performers and staff. At the same time, a few very large nonprofit and commercial organizations are growing larger and staging ever more elaborate productions. Mid-sized nonprofit organizations, on the other hand, are facing the greatest difficulty in attracting enough revenues to cover their costs. Many of these groups are likely to disappear. On a positive note, it is evident that arts organizations within a community enrich its cultural life on many levels, not the least of which is actual revenue from local, state, and federal government income taxes which totaled over $23 billion nationwide in 2000. The arts also provide a necessary and life- enhancing source of entertainment, a vehicle for the preservation and transmission of culture and societal benefits such as openness, competence, livable environment, community pride and diversity. Many communities have been revitalized when arts facilities and organizations were developed from within. 19 WEBBMANAGEIIENT ~':;.l N {; ~) u. 'p {} R AT IsD Forces and Trends Following are brief descriptions of broader forces and trends that can have a major bearing on the future of a new facility in Aventura: The non-profit arts industry: The Rand Corporation recently published a report on the future of the performing arts in which it highlighted the vulnerable position and precarious future of small and mid-size arts organizations in small and mid-size communities. With aging audiences, increasing competition and limited skills, these organizations are in a fragile state. Given this national trend and limited observations about the state of local arts groups, we would express some concern about the state and prospects of the local arts industry. The good news from that report is that it suggests that arts organization can succeed if they focus on promoting their benefits on the level of individual (enjoyment/enrichment), the group (a positive shared experience), the community (economic and community impacts) and society as a whole (civilization, tolerance and so on). Leisure Time: Competing for audiences is a complicated and involved effort. No longer can a theater sell only what is on the stage. Increasingly, consumers must be sold the entire experience, from the moment they get up off the couch, get in the car, drive to the theater, park, walk, shop/eat/drink, purchase tickets, find their seats, see the performance and then reverse the process. Arts organizations must be more pro-active in the way they influence and sell the entire experience. Government support: Government support for the arts is generally on the decline on a national basis. More importantly, the amount of pure arts funding is declining rapidly. In many communities, the challenge is to seek, funding for arts organizations and facilities that comes from areas like economic development, education, transportation, tourism and so on. Most urgent at present is the potential loss of arts funding from the State of Florida. This in fact is not an anomaly. Consider what's happening on other States: Arizona: The joint legislative budget committee has recommended eliminating the Arizona Arts Commission and its $5.1 million annual budget. Another $7 million, the principal in a state endowment fund for the arts, would be removed, leaving the endowment at zero. The governor proposes funding the arts commission at last year's level and retaining the endowment principal. California: Arts funding was slashed from $30.7 million to $20 million last year. The proposal for next year is $11.5 million. 20 WEBBMANAGEMENT ;;lNC on '1'0 Lt AT F. D Colorado: State arts support, the lowest in the nation, was reduced from $2 million in 2001 to $963,863 last year. The legislature's joint budget committee in late March voted to eliminate arts funding for 2003-04. This would also cancel $613,600 in federal matching funds. Massachusetts: Arts funding was cut 62 percent last year, to $7.3 million. Gov. Mitt Romney proposes keeping funding at that level. Minnesota: Gov. Tim Pawlenty cut $384,000 out of this year's state arts board budget of $12.7 million. Pawlenty proposes cutting the 2003-04 arts budget to $7.6 million. Missouri: In 2002, the Missouri Arts Council budget was cut by $2 million to $3.9 million. The house budget committee recommends $953,000 for the arts in 2003-04 to qualify for National Endowment for the Arts matching funds. The committee also is considering taking principal funds from the cultural trust. New Jersey: In February, Gov. James McGreevey proposed eliminating all $43 million in arts funding, including $18 million for the state arts council. In late March, his office reported that he is prepared to restore half the arts council's budget. Ohio: The house recommended a decrease in arts funding from $31.2 million to $24.5 million. Oregon: The legislature has frozen unspent arts funds for the 2002-03 fiscal year ending in June and is considering eliminating the $2.4 million that was to be spent during the next two fiscal years. Pennsylvania: Gov. Ed Rendell has threatened to veto the entire 2003-04 state budget unless the Pennsylvania Council on the Arts receives $14 million, the same as last year. Rhode Island: Proposals involve a cut of $180,000 off the current year's $2.3 million arts budget. Washington: Gov. Gary Locke proposes cutting the state arts commission budget from $5.6 million to $3.4 million. Private sector funding: The great challenge is that this is a relatively new and unusual city without the centuries old traditions of arts philanthropy that exist in other parts of the world. The good news is that many of South Florida residents do come from those more traditional parts of the world; the 21 WEBBMANAGElI4ENT :El.1v (~Olll}O 111\ TEn bad news is that most don't, and many that do are not in a position to give. There is significant competition for funding with the Performing Arts Center project and 2 museums coming to Centennial Park. For the PAC, there is $25 million to raise from the private sector. It is also possible that most of the major funders are advanced in years. And there is a big question as to where the next generation will come from. Conclusions While Aventura is a small community, it is growing, and it shows many signs of strong potential support for the arts. The extremely high level of educational attainment, higher than average income and large retired population correspond with national studies on the important characteristics of populations that will participate in and attend the arts. In short, an educated, affluent, older population is a perfect fit for classical music and fine arts programs in the Aventura area. That said, planners should keep in mind the growing Hispanic population and how it will affect future programming and marketing efforts. The character of Miami-Dade and Broward County is all about differences. The area has an almost unparalleled range of age, ethnicity, income and educational attainment levels, an enormous visitor population and a resident population that is very interested in attending, participating in and giving to the arts. Based on studies discussed above, there is also evidence of a large, untapped arts audience base for classical music in the Miami area. Senior citizens and active retirees make up a large and important sector of the population, particularly when considering the potential for increasing the arts audiences. According to studies cited above, 31 % of Miami area adults (1,201,678 of a total 3,876,380) say arts activities playa "major role" in their lives and 61 % of Miami adults say they would like to attend live performances more often than they do now. Also, 56% of Miami survey respondents were classified as having an above average preference for classical music or attended at least one live performance in the past 12 months and would accept a free ticket to a classical music concert. Another important trend to consider is the shifting demographic composition of the population, particularly the fast-growing Hispanic population that is also increasingly educated and affluent. Additionally, 10.7% (over 1 million) of the 10.5 million annual visitor population attended Miami area theaters during their stay, many of whom would likely be interested in fine arts programs. We believe there is 22 WEBBMANAGEIIENT .. ';I;,iCOHf>nlRA'~'ED significant potential to develop the non-resident audience. That potential can be divided into two segments: · Transient visitors. 50% of the 10.5 million visitors are international, with 63% from Latin America and a significant portion from Europe and Canada. These travelers are more likely to be interested in attending classical arts events, as their stays are longer, their pocketbooks deeper and their cultural tastes probably more in line with traditional fine art forms. · Seasonal visitors - snowbirds from the North and South. Domestic visitors make up 50% of the total visitor population and those who stay for extended periods of time are the most likely to attend the performing arts. They are usually retirees with disposable time and income, and they are often highly educated - all three of which would suggest a strong potential for classical music and fine arts performance attendance. On a final note, it is evident that the winds are changing, both in terms of who attends the arts in general and in the population and demographics of Southeastern Florida in particular. If anything, Aventura, JVIiami-Dade and Broward Counties are a theater of change and the most successful presenters of the arts in that region are those who not only acknowledge those changes, but also anticipate and embrace them in programming and planning for new facilities. We hope that the information in this report will enable those involved in planning for new performing arts facilities and programs in Aventura to make sound choices - choices based on a solid understanding of where things are now and a keen awareness of those changes waiting in the wings. 23