EXECUTIVE SUMMARY: THE ECONOMIC CONDITIONS OF THE NELSON AND AREA’S ARTS, CULTURE, AND HERITAGE SECTOR Nelson and the surrounding area are widely recognized as having a vibrant arts, culture, and heritage sector. With COVID‐19, this sector has been reported to be significantly impacted. However, there is an absence of local data to help understand the impacts of COVID‐19, as well as to understand the overall importance of this sector to the Nelson economy. The Economic Conditions of the Nelson and Area’s Arts, Culture, and Heritage Sector study aimed to provide data that supports the arts, culture, and heritage sector as it recovers from the impacts of COVID‐19. The study had three objectives: 1) To understand the impact of COVID‐19 on the arts, culture, and heritage sector; 2) To describe the size of the arts and culture sector and its contribution to the local economy; and 3) To identify recommendations for how to best support the COVID‐19 recovery in the arts, culture, and heritage sector. A total of 84 eligible respondents participated in the study, including 28 businesses/organizations. The majority of respondents primarily worked in two of the five sub‐sectors: performing arts (37%) and visual arts (33%). The remainder were split between literary arts, film/media, and heritage. The survey shows an established sector, with over 70% of responding businesses and organizations having been in operation for more than 10 years, with 43% in operation for 20 years or more. The impact of COVID‐19 on the arts, culture, and heritage sector has been inconsistent. The results highlight both the already precarious nature of the sector and its resilience. Income and Revenue  In 2020, the average individual income was 20‐ 25% less than the average projected income.  Working artists/creators, contractors, and those in the performing arts and film/media were most likely to experience shortfalls.   Business owners, employees, or managers/administrators were less likely to be affected. In 2020, the average revenues for businesses/organizations were 20% less than the average projected revenues.  Impact ranged dramatically depending on organization type and sub sector.  Charity revenues largely remained consistent, while the majority of not for profits were less than projected.  Literary arts remained consistent, while performing arts and film/media were less.  This loss is in contrast to the increasing revenues reported in the five years pre‐ COVID by the majority of businesses/organizations. Employment and Volunteering  Only 27% of respondents received 100% of their income from the sector ‐ a strong indication of people holding multiple jobs.  The reported wage range in the survey for full‐ time employees was $19 to $55 per hour. This is above Nelson’s 2021 living wage of $18.46 per hour. However, full‐time sector positions are not the norm and low wages in the sector were cited as a challenge by individual respondents.  Employment in the sector remains stable – but less so than prior to the pandemic and with changes in the available jobs favouring digital skills.  About half of the respondents worked the same hours or more than pre‐pandemic, and just less than half of the respondents worked less than pre‐pandemic.  Volunteer opportunities declined significantly. Identified COVID‐19 Challenges and Obstacles Top Obstacles by Individuals  General uncertainty and inability to plan for the future  Shortage of personal energy and motivation  Loss of audience and/or audience access  Personal or family health and safety concerns  Shortage of available work opportunities Top Obstacles by Businesses and Organizations  Inability to welcome patrons and/or host events  Temporary closure due to public health restrictions  Government regulations related to public health orders  Uncertainty of government response impacting ability to plan effectively  Financial constraints  Fluctuations in demand for services / programming / activities offered. Sector Resilience  The impacts of COVID‐19 on the sector are perhaps not as large or obvious as could be expected. The data suggests that individuals in the Nelson and area fared relatively well in comparison to those in the rest of the province.  However, it is possible that contextual differences (e.g., rural versus urban) and existing precarious conditions inherent in the arts, culture, and heritage sector (e.g., lack of job security, necessity of having multiple jobs) enabled the sector to be resilient in the face of COVID‐19.  Few respondents (15%) were considering a career change.  The majority (78%) of businesses and organizations were not concerned or considering closure at the time of the survey and over half (52%) were considering expanding in the next three years. Local sectoral connection with COVID‐19 support and funding programs was weak. This is a complex issue and warrants further investigation.   Access to COVID‐19 supports and funding was low:  40% of individual respondents did not access any relief programs.  46% of responding businesses/organizations did not access any relief or response programs. Perceived gaps in existing response programs included: inappropriate eligibility requirements, inaccessibility of programs, specific issues not addressed by existing programs, and lack of predictability.  There are potential missing connections with existing support programs (e.g., business expansion, recruitment, retention). The arts, culture, and heritage sector remains economically important to Nelson and area.    Income from workers and revenue from businesses and organizations – even when reduced by the impacts of COVID‐19 ‐ have direct and indirect impacts on the local economy, resulting in a substantial contribution to the economy of Nelson and area.  Estimated organizational output (revenue) is between $6.9 million and $11.9 million.  Estimated individual output (income) is between $4.21 million to $5.65 million.  Estimated local GDP contribution of the sector is between $14.2 million and $24.4 million Even at a conservative estimate, the percentage of Nelson and area’s labour force directly employed in arts, culture, and heritage sector (5.8%) which is higher than the provincial average, and is also higher than that of other local sectors like natural resources (3%) and manufacturing (1.6%). This is a conservative estimate because traditional statistical measures count 1 job per person, and as noted above only 27% of respondents received 100% of their income from the sector. Keeping in mind the differences in approach, a 2003 report identified an estimated economic impact of the sector at $15 million based on both supply and demand. The above estimates only consider the supply side and yet are equal or larger in terms of impact, suggesting the sector has grown. Based on the results, areas of opportunity and for improvement were identified. Priority opportunities include:   Increase opportunities for operational funding for arts, cultural, and heritage sector organizations in order to enhance sector stability. Understand low uptake of COVID‐19 support programs by identifying local, sector specific    barriers to access. Communicate these barriers in order to inform changes to existing and future programs and supports Identify opportunities to better understand and more accurately identify and track the size and diversity of the sector’s workforce, as well as businesses and organizations. Improve policies and programs to support equity‐seeking communities and foster safe and respectful workplaces, including workplace diversity training. Create a collective vision or strategy for the arts, culture, and heritage sector in Nelson and area. An inclusive strategy should recognize connections between arts, culture, and heritage and other local sectors in order to take advantage of links and opportunities. Approach and Methods The study approach included the following: 1) data collection completed through targeted interviews and an online survey; 2) data analysis; and 3) report preparation with a focus on recommendations to support the arts, culture, and heritage sector recover from the impacts of COVID‐19. Other relevant studies were included to provide context and comparison. This study is not without limitations. The full extent of the individuals (workers and volunteers), businesses, and organizations within the arts, culture, and heritage sector in Nelson and area is unknown, and therefore it was not possible to determine a representative sample size. Available data and calculations related to the arts, culture, and heritage sector come with a range of challenges that make it difficult to directly compare reports and findings.