The economic valuation of cultural events in developing countries: combining market and non-market valuation techniques at the South African National Arts Festival
- Authors: Snowball, Jeanette Dalziel
- Date: 2006
- Subjects: Standard Bank National Arts Festival -- Economic aspects , Performing arts festivals -- Economic aspects -- South Africa -- Grahamstown , Arts -- South Africa -- Economic aspects , Finance -- South Africa , Arts -- South Africa -- Finance , Arts -- South Africa -- Political aspects , Finance, Public -- South Africa , South Africa -- Politics and government -- 1994-
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: vital:969 , http://hdl.handle.net/10962/d1002703 , Standard Bank National Arts Festival -- Economic aspects , Performing arts festivals -- Economic aspects -- South Africa -- Grahamstown , Arts -- South Africa -- Economic aspects , Finance -- South Africa , Arts -- South Africa -- Finance , Arts -- South Africa -- Political aspects , Finance, Public -- South Africa , South Africa -- Politics and government -- 1994-
- Description: The arts in many countries, but particularly in developing ones, are coming under increasing financial pressure and finding it difficult to justify the increases in government funding needed to maintain and grow the cultural sector. The trend in cultural economics, as well as in other areas, appears to be towards including qualitative valuations, as well as the more traditional quantitative ones. This thesis argues that the value of cultural events should include long term historical qualitative analysis, financial or economic impact and a valuation of the positive externalities provided by cultural events and that any one of these should only be regarded as a partial analysis. Four methods of valuing the arts using the South African National Arts Festival (NAF) as an example are demonstrated. Firstly, a qualitative historical analysis of the role of the NAF in South Africa’s transformation process from Apartheid to the democratic New South Africa is examined, using theories of cultural capital as a theoretical basis. It is argued that the value of cultural events needs to take into account long-term influences especially in countries undergoing political and social transformation. The second valuation method applied is the traditional economic impact study. Four economic impact studies conducted on the NAF are discussed and methodologies compared. It is concluded that, despite the skepticism of many cultural economists, the method can provide a useful partial valuation and may also be used for effective lobbying for government support of the arts. Chapter four discusses willingness to pay studies conducted at the NAF in 2000 and 2003 (as well as a pilot study conducted at the Klein Karoo Nationale Kunstefees). It is found that lower income and education groups do benefit from the positive externalities provided by the Festival and that this is reflected in their willingness to pay to support it. It is also argued that such contingent valuation studies can provide a reasonably reliable valuation of Festival externalities, but that they may be partly capturing current or future expected financial gains as well. Finally, the relatively new choice experiment methodology (also called conjoint analysis) is demonstrated on visitors to the NAF. The great advantage of this method in valuing cultural events is that it provides part-worths of various Festival attributes for different demographic groups. This enables organizes to structure the programme in such a way as to attract previously excluded groups and to conduct a cost-benefit analysis for each part of the Festival.
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- Date Issued: 2006
Towards more accurate measurement of the value of the arts to society: economic impact and willingness to pay studies at the Standard Bank National Arts Festival
- Authors: Snowball, Jeanette Dalziel
- Date: 2001
- Subjects: Standard Bank National Arts Festival , Standard Bank National Arts Festival -- Economic aspects , Art -- Economic aspects , Money in art , Art -- Marketing , Performing arts festivals -- Economic aspects -- South Africa -- Grahamstown
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:939 , http://hdl.handle.net/10962/d1002672
- Description: The accurate measurement of the value of the arts to society is becoming increasingly important in developing countries, like South Africa, where the arts must compete with housing, health, education and the like for public funds. Motivation for the public funding of arts events, like the Standard Bank National Arts Festival in Grahamstown, is usually based on the economic impact, that is, the financial benefits to the region, of such events. The argument is problematic, however, because the primary recipients of such economic benefits are often middle to upper income groups who also attend more arts performances. Furthermore, the studies have not taken into account the positive externalities which, it is argued, are generated by the arts and are enjoyed by attenders and non attenders alike. This thesis argues that it is the social benefits which the arts provide, those external to the market, which should be the basis of public funding. In order to quantify these positive externalities, a willingness to pay (WTP) study was conducted in the Grahamstown region. It is generally, but erroneously, believed that the Festival does not benefit the poorer, largely black, Grahamstown East residents. The study found that, in addition to the economic value (R23 - 25 million a year), the non-market benefits which the festival provides are worth between R2.3 and R3 million a year and form a very important part of its value, particularly to low income groups. The study also found that there are methodological adjustments which can be made to WTP studies to successfully control for the many forms of bias it is prone to. By using a combination of closed and open ended and liable and non-liable questions, the motivation of respondents' answers to WTP questions was determined, making it possible to adjust for bias caused by, for example, "free rider" and "warm glow" responses. It is argued that by identifying and excluding such responses from WTP surveys, it is possible to reduce bias to an acceptable level.
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- Date Issued: 2001