Social and Economic Impact Assessment of Shetland Music SOCIAL and ECONOMIC IMPACT ASSESSMENT OF SHETLAND MUSIC Prepared for: Douglas Irvine Head of Business Development Chief Executives Department Shetland Islands Council Town Hall, Hillhead Lerwick Shetland ZE1 0PY Tel: 01595 744577 Fax: 01595 744509 e.mail: douglas.irvine@sic.shetland.gov.uk Prepared by: AB Associates Ltd Kirk Business Centre Castle Street Scalloway Shetland ZE1 0TF Tel: 01595 880852 Fax: 01595 880853 e.mail: info@abassociatesltd.com AB Associates Ltd. November 2003
Social and Economic Impact Assessment of Shetland Music CONTENTS EXECUTIVE SUMMARY Page 1. INTRODUCTION 1.1 Remit 1 1.2 Background to Report 2 2. METHODOLOGY and APPROACH 2.1 Desk/Survey Work 3 2.2 Impact Analysis 2.2.1 Quantify Baseline Information 5 2.2.2 Assess the Employment and Monetary Value of 5 Music to the Shetland Economy 2.2.3 Assess the Social Impact of Music in Shetland 7 2.2.4 Other General Issues and/or Opportunities 7 2.3 Analysis and Appraisal 8 2.4 Task/Methodology 8 2.5 Conclusions and Key Findings 8 3. BASELINE ANALYSIS 3.1 Music Events 2002 9 3.2 Events Where Venues Paid Musicians Directly 2002 9 3.3 Shetland Times Advertised Events 2002 10 3.4 Audience Statistics 2002 11 3.5 Shetland Artists External Performances 2002 11 3.6 Visiting Artists 2002 11 3.7 Other Music Related Activities Including Education 12 3.8 Festivals 13 3.9 Overall Attendance Music Events 2002 13 3.10 Tourism 13 4. SOCIAL IMPACT 4.1 Social Impact Matrix 14 4.2 Impact on Individuals. 15 5. ECONOMIC IMPACT 5.1 Linkages 17 5.2 Shetland Venues 17 5.2.1 Impact on Individuals 17 5.2.2 Expenditure 17 5.2.3 Income 18 5.2.4 Income Expenditure 18 5.2.5 Average Income Per Attendee 2002 18 5.2.6 Bar Purchases 2002 19 5.3 Shetland Performers 19 5.3.1 Income 19 5.3.2 Shetland Performers Expenditure 19 5.3.3 Income Expenditure 19 5.4 Numbers of Performers 20 5.5 Visiting Performers 20 5.5.1 Income 20 5.5.2 Expenditure 20 AB Associates Ltd. November 2003
Social and Economic Impact Assessment of Shetland Music 5.5.3 Income - Expenditure 20 5.5.4 Additional Indirect Expenditure 20 5.6 Other Music Related Activities 21 5.7 Festivals 21 5.7.1 Income 21 5.7.2 Expenditure 21 5.7.3 Income - Expenditure 21 5.7.4 Voluntary Work 21 5.8 Tourism 21 5.8.1 Festival Income 21 5.8.2 Visitor Spend from Festival Music Tourism 21 5.8.3 Other Events Income from Tourism 22 5.8.4 Visitor Spend from Other Event Music Tourism 22 5.8.5 Overall Impact of Music Tourism 22 5.9 Other Indirect Impacts 22 5.10 Induced Impacts 22 5.11 Overall Impacts 23 5.11.1 Economic 23 5.11.2 Employment 24 6. OTHER ISSUES 6.1 SWOT 25 6.2 Perception 26 6.3 Awareness of Shetland Music 26 6.4 Performers Opinion of Venues 26 6.5 Quality of Promotion 26 6.6 Awareness of Music Development Officer 27 6.7 Priorities for action 27 6.8 Other Comments 27 7. OVERALL CONCLUSIONS 28 APPENDICES 1. Baseline Analysis 2. Social Impact 3. Economic Impact 4. Other Issues 5. Questionnaires Tables 5.1 Overall Impact on Local Economy 2002 5.2 Impact on Employment 2002 FTEs 6.1 SWOT Analysis AB Associates Ltd. November 2003
Social and Economic Impact Assessment of Shetland Music EXECUTIVE SUMMARY Introduction The main purpose of the study was to provide baseline data on the scale and nature of the music industry in 2002, to assess its economic and social impact, and to identify some of the key issues and opportunities facing the industry. Baseline Analysis of Activity Levels Overall a total of 1,240 music events were estimated to have occurred in 2002, half of which were in Lerwick, 25% in the islands and 25% in the rest of the mainland. 33% of music events were held in halls and 67% in other venues such as pubs and clubs. These events attracted audiences of 174,000 (excluding the festivals). The festivals attracted 7,000 people. Thus a total of over 180,000 attended music events in 2002. In 2002 there were approximately 56 Shetland performers/bands and nearly 400 individual performers. A total of 62 performances were given by external artists who came to Shetland primarily because they were invited but also because of the high reputation of Shetland music. Nearly 90% thought it likely they would return. A total of 112,560 people attended performances by Shetland musicians outside Shetland. Over 330 performances took place all over the world. Around 5.5% of attendances (approximately 10,000) at music events in Shetland were estimated to have been made by visitors. These attendances represented about 4700 actual visitors (340 at Festivals and 4350 at other events). It is estimated that 20% of the latter group came primarily because of music to give a total of 1,200 whose visit could be attributed to music. They represent about 2.5% of the total number of visitors to Shetland as per the numbers from the 2000 Visitor Survey. Unfortunately this survey did not ask whether music was one of the reasons for visiting Shetland therefore there is limited corroborative evidence for these statistics. Social Impact Views on the social impact of the Shetland music industry were gathered from performers, those responsible for music venues such as halls, pubs, clubs, etc and from music related activities and businesses. Responses were grouped at the Shetland level, community level, and individual level. The overwhelming view was that music activity had a positive impact at all three levels though there were some doubts on a few issues where some negative effects were identified. At the Shetland level music was felt to make a substantial contribution to a positive image to the outside world for the islands and this was important in promoting tourism. It was also felt that music contributed to the cohesion and identity of the community and the quality of life in the islands. AB Associates Ltd. 1 November 2003
Social and Economic Impact Assessment of Shetland Music At the community level, especially outside Lerwick, music is seen to be a vehicle for bringing a community together. It was also felt to reinforce cohesion by involving all age groups particularly events in community halls. At the level of the individual it was concluded that again the overall impact was positive because of benefits for personal development, self-esteem and providing young people with a focus. On the other hand it was noted that underage drinking, substance abuse and occasional vandalism could be associated with some music events, and that music could lead to unhealthy competition and elitism. It was also recognised however that alcohol and drug abuse was not an issue solely related to or caused by music events, but that it could manifest itself at music events. Economic Impact The quantification of the economic value of the industry has proved a difficult exercise both from the point of view of deciding where to draw the line in defining the industry and getting accurate data on income and turnover. It would have been possible to say that the core direct employment and income for the music industry was simply the performers and instrument makers and that all others dependent on this small group of people could be classified as indirect, e.g. venues and suppliers and support services. However studies in other areas have tended to extend the definition of direct employment more widely before then calculating indirect and induced multipliers. Therefore in order to be able to make some comparisons with other areas this study has also taken a wider definition. The following definition has been used:- Direct Indirect Induced 1.Local performers 1.Production of 1.Other services that 2.Visting Performers merchandising benefit from wages and profit from direct & indirect activities 3. Festivals 2.Music retailing, crafts 4.Teachers/tutors 3.Tourist related and external performers 4. Indirect spend by attendees 5.Other Related Activities such as :- 5. Venues and suppliers including :- Agents/managers & Printing/advertising, other back up staff, Composers, Recording Studios, Instrument Makers, Music development officer Security, food and drink 5.Other support services such as :- hotels, B&B s, pubs transport, food providers, AB Associates Ltd. 2 November 2003
Social and Economic Impact Assessment of Shetland Music Further difficulties were encountered due to much music related activity being casual or voluntary. Most musicians earn money from another FT or PT job as well as many of those involved in organising events. Nearly all members of pipe bands, brass bands, orchestras, choirs, dance groups, etc. are voluntary and receive no remuneration. This voluntary effort can be difficult to value however it is important to try to make some estimates to assess the value of this contribution. Venues It is assumed that for halls if a music event was not on there would be no activity at that time, while for other venues such as pubs it is assumed there would be core staff regardless of music events. In the latter case only additional impacts are included in terms of employment and income. In some other studies the total employment and turnover of all venues has been attributed to music however it is felt that this would result in inflated figures and be misleading. It is estimated that during 2002 the events generated paid income of nearly 80,000 plus the same again if voluntary effort is calculated at the same rates to give an overall value of 160,000. If the voluntary and paid time is converted into full-time equivalents it equates to 12 FTEs. The total income to the venues from hosting music events was 1.3m in 2002. It should be noted that this income figure does not include gross bar income but rather just the additional bar profit associated with the event. If gross value of bar sales is included then the total would rise to 2.0m. The average ticket price is just over 3 and average gross bar spend per attendee is around 8. Performers It is estimated there were around 400 Shetland music performers in 2002. Around 45% of the total participated on a voluntary or leisure basis, around 40% received some supplementary income, while the remaining 15% obtained an income and had a full or part-time job. If the total is converted into FTEs then there are nearly 50FTE jobs involved in music performances. This total is almost certainly an underestimate as there will be more people participating on a voluntary and leisure basis than has been picked up. The element of impact is broken down into performances within Shetland and those outside. First of all it is estimated that the gross income to Shetland performers from events held outside Shetland amounts to 354,000 while that for Shetland AB Associates Ltd. 3 November 2003
Social and Economic Impact Assessment of Shetland Music performers operating within Shetland amounts to 234,000 giving an overall total of 588,000. These estimates are based on average rates for performance provided by performers rather than actual income details due to a reluctance to give specific information. In addition an assumption has been made about sales of merchandising per attendee at events. This makes up 143,000 or 24% of the total income. External performers who made 62 performances in Shetland in 2002 make a contribution to the local economy, though in direct terms they actually take more money out of the economy than they contribute. Gross fee and merchandising income was calculated to be 58,000 while total expenditure in Shetland was 14,000 giving a difference of 44,000. However performers also make other purchases within the islands through accommodation, food, local travel and gifts. It is therefore estimated that the actual loss when this expenditure is included equates to around 260 per performance. There are of course intangible benefits from bringing in external performers in term of influence on and inspiration to local musicians that is difficult to quantify. It could also be argued that local people buying tickets and merchandise from an external performer is displacement as that money could have been spent on other local goods and services. Festivals The impact of the two main music festivals the Folk Festival, and Fiddle and Accordion Festival has been calculated separately. Their total income was 117,000 in 2002 and the time spent by voluntary helpers amounted to the equivalent of half a job over a year, i.e. O.5 FTE. In addition it is estimated that visitors to the Festivals spent a further 69,000 indirectly on accommodation, food, etc. Overall Impact The overall impact of the music sector on the Shetland economy has been broken down into the main components of direct, indirect and induced based on the standard economic methodology referred to in the beginning of this section. The direct turnover of 1.6m and 84 FTE s in the industry, generates over 6.0m of turnover in the local economy, and results in over 170 FTE s dependent on the activity. This means that the relatively low level of direct income to the performers and those directly earning their living from music has a large multiplier effect with significant numbers of people benefiting through providing premises, supplies and service, and through additional spend by those attending music events. It should be noted that these figures are best estimates based on the information gleaned from the survey and from experience elsewhere. It is AB Associates Ltd. 4 November 2003
Social and Economic Impact Assessment of Shetland Music likely that the direct income figures may be underestimates e.g. the merchandising sales outwith Shetland (except at events where Shetland bands performed) are not included, as well as any income from royalties or media appearances. Also accurate income data was difficult to obtain and is dependent on secondary sources and grossing up. Impact Turnover/Income Employment FTEs* 3 Direct Shetland performers 588,000 47.00 Visiting performers 14,000 0.00 Festivals 117,000 0.50 Teachers/tutors etc 680,000 33.50 Other related activities 250,000 4.00 TOTAL DIRECT 1,649,000 85.00 Indirect Venues* 1 1,030,000 12.0 Music retailing, 350,000 merchandising etc Tourist related and external performer spend* 4 6.50 355,000 10.50 1,700,000 28.00 Indirect spend by attendees* 5 Suppliers to venues 710,000 11.00 TOTAL INDIRECT 4,145,000 68.00 Induced *2 TOTAL INDUCED 579,000 21.40 Gross Impact TOTAL OVERALL 6,373,000 174.40 *1 The gross total of 1,274,520 has been adjusted down by the amount of the fee income to performers to avoid double counting. *2 The induced multiplier has been based on the type II multiplier for other services in the I/O tables for Shetland 1996/97 *3 It should be noted that these figures are for full time equivalents and do not reflect the total number of people involved that is significantly greater e.g. the 47 FTEs for Shetland performers account for around 400 people, most of whom are not paid. *4 This does not include direct spend at events. This is included under the direct categories above. If total spend by visitors and visiting performers is isolated it is likely to be in the order of 450,000 *5 It is assumed that on average each local attendee at a music event spent 10 on other items such as transport and food and drink This table clearly illustrates the very significant multiplier effect that the activity of a relatively small number of musicians can have throughout the economy when all those involved and benefiting are included. AB Associates Ltd. 5 November 2003
Social and Economic Impact Assessment of Shetland Music Displacement: Some attempt has been made to identify the extent and scale of displacement. Clearly where the income for this activity is heavily reliant on local expenditure and there is not a lot of new money coming into the economy then there will be some displacement. In other words people could have spent their money on something else. The question is would they have spent their money on another local service or purchased goods from outside Shetland. The answer would help to determine whether the spend on music is more beneficial to the local economy than the alternative. From the data collected there would appear to be a good level of recirculation as a result of the income generated and that it has helped to retain money in Shetland. But on the basis of the limited information available it is difficult to say it has definitely been better than other expenditure except for money spent directly outside Shetland, though it has obviously provided an opportunity to spend locally that might not otherwise have happened. Other Issues SWOT Analysis An analysis of the strengths, weaknesses, opportunities and threats was made based on the responses to the survey. The key strengths were seen to be the high quality of music tuition available free in schools, the high musical standard along with quality festival events, while the key weaknesses were seen to be the too strong focus on fiddle and traditional music, high travel costs to and from the islands and the lack of a dedicated music venue. The main opportunities identified were for music to be used more effectively for promoting Shetland as a tourist destination and development of the Shetland brand, for more outreach musical activities to be more widely available in remoter areas and the development of music tourism and fiddle schools, while the main threats were seen to be the uncertainty over future financial support for music development, and the fragmented nature of the music industry with a high dependence on volunteers. In addition there is possibly a lack of career opportunities based in Shetland except for teaching, and those wishing to pursue a career have tended to leave Shetland. This is an issue which may need to be addressed with some form of incentives or sponsorship to make it possible to pursue music as a career. For example the role of music and the promotion of Shetland could be more recognised through the employment of musicians to undertake specific tasks. Also, as identified above, the music industry tends to be fragmented and perhaps could benefit from more co-ordination and closer co-operation among the diverse parts. The role of the music development officer could be extended to incorporate economic and promotional elements as well as the more focused support for musicians. This could include the development of products and merchandising to maximise the economic benefits of the sector. AB Associates Ltd. 6 November 2003
Social and Economic Impact Assessment of Shetland Music Another related issue that needs to be addressed is the fact that people do not always want to pay enough for the venues to cover their costs and for the musicians to get a realistic income Perception and Awareness of Shetland Music The study was asked to address the more subjective aspects of perception and awareness. It is clear from the responses that traditional music ranks highest in terms of awareness and is perceived as being closely tied in with the wider traditions and heritage of the islands. The high quality of the music in Shetland was seen to be the second highest ranked factor and was important in attracting visiting artists. Performers Opinions of Venues In overall terms the halls come out as being significantly better than the other venues that ranged from Clickimin to pubs and clubs. Over 70% of responses indicated the hall facilities were good or excellent while only about half of the venues were rated that highly and over 20% suggested they were inadequate. There still seems to be problems with sound systems. Quality of Promotion Visiting artists were asked for their views on the effectiveness of local promotion and publicity. Over 90% felt it was either excellent or good and none felt it was inadequate. This is quite a remarkable achievement as someone usually has some complaints to make. Awareness of Music Development Officer All those approached individually or with questionnaires were asked if they were aware of the work of the music development officer. It is clear that the performers were most aware followed by some of the support services and venues. Priorities for Action Those interviewed were asked for their views on the priorities for action needed to encourage the development of the music industry. The comments are grouped according to the main categories of interests approached. Halls and Other Venues The main points raised by the venues related to the high cost of hiring musicians especially in the remoter areas, which when combined with a reluctance from local people to pay higher entry fees, meant there may be a need to have some form of subsidy. There was also felt to be a need to encourage young people with more accessible training, possibly more tuition in schools. AB Associates Ltd. 7 November 2003
Social and Economic Impact Assessment of Shetland Music Performers and Other Music Related A wide number of suggestions were made by this group but the main themes were the need for more promotions and marketing of music both inside and outside Shetland, the need to support less well known groups and a wider range of genres, e.g. jazz and classical, the need for a central focus point for music, and the need to be aware of some of the other social issues such as underage drinking. External Interviewees Those from outside Shetland highlighted the high cost of travel to and from the islands and the need to get this down, and also the need to establish better links between music and tourism activity. Overall Conclusions It is clear from the results of this study that the music industry makes a contribution to the economy and social fabric and well being of the Shetland community that is far beyond the relatively small number of full and part time musicians involved. Also while it has been possible to quantify the scale and impact of the industry up to a point, it should be stressed that there are additional effects that are not as readily quantifiable and many that are more qualitative in nature. For example what is the effect of music in promoting other Shetland products and tourism? Does the presence of Shetland musicians at the Brussels Seafood Show result in more sales for Shetland businesses? There would appear to be the potential to make even more use of Shetland traditional music in promoting Shetland products and image. However this should not be done at the expense of the other types of music in Shetland that have the potential to make a greater contribution to the local economy, albeit in a different way. There is a global market to be tapped with a high value low volume product in the form of merchandising as well as directly with local skills and talents. This potential remains to be exploited. However given the current low level of direct income for musicians there must be some question marks over the sustainability of the activity as an industry. It is still very much a socio cultural activity that depends on high levels of voluntary effort. There is nothing wrong with that, indeed that is one of its strengths and why it has such a positive impact on the community. It would be advisable to maintain this element while at the same time developing a local career structure and economic activities to build on the base already established. It is recommended that, with the baseline data, the analysis of the industry, and some of the priorities for action provided in this report, it would now be appropriate to develop and update the strategy and action plan for the future development of the industry. AB Associates Ltd. 8 November 2003
Social and Economic Impact Assessment of Shetland Music 1. INTRODUCTION Remit This study has been prepared in response to a brief issued by Douglas Irvine of Shetland Islands Council Development Department, for the preparation of a social and economic impact study of Shetland Music. Shetland Music is defined as any form of music played/recorded by Shetland residents such as traditional Shetland fiddle music, rock, classical, jazz, country and western etc. The results of the survey will be used as a base line to inform decisionmaking on future developments in the music sector such as a new music venue. The Terms of Reference from the client are as follows: The main aim of the project is to establish the worth of the Shetland music industry in economic and social terms, based on 2002 data. This involves the following tasks:- 1. Establish what Shetland's music resource is in terms of quantity, quality and prestige; 2. Research the monetary value of music to the Shetland economy including: - Live performances inside and outside Shetland; Retail sales of Shetland music inside and outside Shetland; Music events such as the Folk Festival and Fiddle and Accordion Festival; Visitor spend; Career musicians; Support activities (transport to and from Shetland, transport inside Shetland, technical support etc.); Support services (education, tuition, Shetland Arts Trust) 3. Assess the full-time equivalent jobs in the Shetland music industry and ancillary activities; 4. Indicate relevant issues raised or identified during the study which may help in the future development of music in Shetland; 5. Prepare a report that presents information gathered in a form that can be readily used to predict the impact of changes within the industry. 6. Social Aspects. In addition to the objective aspects of the economic survey it is important to gather information on the more subjective social impacts of the Shetland music industry including: - AB Associates Ltd. 1
Social and Economic Impact Assessment of Shetland Music Impact on quality of life in Shetland; Impact on Shetland's external image and any knock-on effects on tourism in the islands; Impact on social integration/ inclusion and community building; Impact on the personal development of artists. Impact on substance abuse and vandalism Background to Report Shetland Music is known world wide for the high quality of its musicians and music making. The annual Folk Festival, and Fiddle and Accordion Festival attract musicians and visitors from all over the world, and Shetland musicians have travelled the globe taking the islands music to locations worldwide. The Shetland music industry extends well beyond the traditional music sector, and there are significant numbers of rock, pop, jazz, folk, country and classical musicians performing within the islands and/or using the islands as a base. Shetland is also renowned for the production of high quality musical instruments such as fiddles. The economic value of the music industry in the islands has only been examined in general terms by other studies. "The Economic and Social Impact of the Arts in the Highlands and Islands" (2001) produced estimates of the employment and output generated by the arts in Shetland, however it is difficult to identify the musical element of this data separately. The study was also unable to collect enough data for a full analysis. As a result the full extent of the value of the music industry in the islands is not known. It is important that the full economic impact of Shetland s music industry is identified and quantified in order to assist the future development of music related projects, to inform decision-making, and to identify issues of concern, and opportunities for the future. Music is an integral part of life in Shetland, including areas such as musical education and tutoring in schools, private tutoring, live music performances, producing music, hosting musical events, and attending musical events. From schools, to theatres, public halls, churches, hotels, public bars and nightclubs, music is an integral part of community life all over Shetland. For this reason it is important that as part of this study, the cultural and social importance of music is addressed as well as the economic importance. A study of this type is needed to inform the public, private and community sectors of the value of music to the Shetland Economy; and to support representations made by the public, private and voluntary sectors to secure resources to assist in the strategic development of music. AB Associates Ltd. 2
Social and Economic Impact Assessment of Shetland Music 2. METHODOLOGY & APPROACH This study has been carried out using 2002 data. The main issues tackled are the investigation of the quantitative and qualitative value of the music industry in Shetland. Not only does this study look at the more quantitative issues in terms of employment, output and income, but also the social benefits associated with community infrastructure, social well being, and impact on Shetland s culture and history, that are more qualitative in nature. The term music has been given the widest possible definition including everything from traditional to DJ performances. Some of the issues explored in this study are: - What is the baseline position with regard to numbers of musicians, people in support activities, number and type of performance/events, number of participants and size of audiences, and numbers of visitors? What impact does music in Shetland have on the economy in terms of output, income and employment? What is the value added? How much Shetland music is consumed locally or outside Shetland? What is the impact of national and international tours and live performances by Shetland artists outside Shetland? What impact does Shetland music have on social inclusion within the islands? What attracts musicians, and major promoters to Shetland and what is the external perception of Shetland music? Desk/Survey Work Desk based analysis was carried out to investigate other relevant reports and strategies to inform data collection and results. Several reports that were consulted included:- The Economic and Social Impact of the Arts in the Highlands and Islands, Independent Northern Consultants (2001); Audit of the Arts in Orkney, Steve Westbrook and Bryan Beattie (2000); Economic impact studies of music and arts in other areas; Music Development Strategy for Shetland; Social and Economic Impact of Islesburgh Trust, AB Associates (2001); Input/Output analysis of the Shetland Economy; Fraser of Allander/AB Associates (1998); An economic profile of the music sector on Merseyside (1999); A Sound Performance: The economic value of music to the United Kingdom, National Music Council and KPMG (1999); The National Cultural Strategy (2002) Scottish Executive; Scottish Arts Council Music Strategy (2002); Creative Industries Mapping Document (2001) Department for Culture, Media & Sport (includes detailed value added and employment figures for the different sectors of the music industry at UK level, with useful information on the supply chain); AB Associates Ltd. 3
Social and Economic Impact Assessment of Shetland Music The Value of Music in Scotland A Report for Scottish Enterprise by University of Westminster (June 2000); Traditional Music in Scotland Scottish Arts Council (March 1999). Interviews were carried out with key personnel from the following organisations to gather baseline data and identify and explore all of the possible impacts: - Shetland Arts Trust; Local Retailers; A representative sample of: - - Main bands working inside and outside Shetland; - Community Halls; - Local private venues hotels, pubs and night clubs; - Promoters; - Support personnel; - Recording Studios; - Tutors; - Instrument makers and repairers; Clickimin Centre; Islesburgh Community Centre; Shetland Islands Tourism; Visiting Artists; External Organisations. Those surveyed were selected through discussions with the Shetland Arts Trust and information available on the Shetland Music website. Several interviews were undertaken and questionnaires distributed including:- A telephone survey of 40 Shetland Performers resulting in 14 returns, which was a return rate of 30%; A postal survey of all community halls in the islands resulting in 14 returns, which was a return rate of 30%. A survey of 15 other live music venues including, pubs, clubs and hotels resulting in 15 returns which was 56% of other venues identified, and 75% of those approached; A survey of the Fiddle and Accordion and the Folk Festivals; A survey of 14 visiting artists; A survey of 8 external organisations; Interviews with other music related areas such as promoters and agents, teachers and tutors, instrument makers, radio stations, retailers, support services, transportation and public sector bodies totalling 16. AB Associates Ltd. 4
Social and Economic Impact Assessment of Shetland Music 2.2 Impact Analysis 2.2.1 Quantify Baseline Information Baseline information has been produced in a format that can be used to assist future music development activities and policies. Statistics have been gathered on the following: - Employment hours worked by employed and active volunteers in the music industry, support sectors and other associated activities. Hours worked have been converted into FTE employment and been given a monetary value. Number of performances and events by genre and venue. Number of venues by type. Average and gross audience numbers. Value of turnover/output of the surveyed music performers, groups, venues and other associated activities with estimates of gross output derived from survey data. Wage income attributable to the music activities. Value added has been calculated where possible so that the real benefit to Shetland can be identified. Great care has been taken to gather as much original data as possible in order to increase the reliability of grossed up" figures. Some figures have also been based on best estimates using reasoned assumptions where actual data was unavailable. 2.2.2 Assess the Employment and Monetary Value of Music to the Shetland Economy The impact of activity in the Shetland music industry was examined in order to assess the following: - 1.) Direct Impact: The effect of the so-called first round expenditures by music organisations/groups themselves. Direct expenditures include: wage and salaries paid to employees; profits earned; this was calculated from information received from interviews and survey work, grossed up by total numbers in each group. 2.) Indirect and Induced Impact: The effect of second and subsequent rounds of expenditures by suppliers to music organisations/groups and by the suppliers suppliers. Multipliers from the Shetland Input/Output study were considered along with the information gained from the surveys and used to calculate the indirect impact and knock on effects. This allowed the calculation of the total impact of the industry to be made. Great care was taken not to double count indirect impacts. 3.) Jobs: Total employment has been measured in FTE (full time equivalent). These figures include volunteers, and cover all music making activity and ancillary activities. In other words the direct core AB Associates Ltd. 5
Social and Economic Impact Assessment of Shetland Music employment has been identified as has those jobs that are partially and indirectly dependent on the music industry. 4.) Tourism Impact: The impact of music activities on tourism in terms of employment and income has been calculated. 5.) Methodological Issues: The survey undertaken provided much of the data for the analysis of impact especially for the direct and indirect income and expenditure. This has meant less reliance on theoretical models or assumptions based on studies in other areas. One of the main difficulties has been what to include in the definition of direct and indirect. Other studies have tended to take a very broad definition of the industry. However given the availability of some local data it has been possible to identify the core of the sector separately from those activities that are more indirect and benefit from the presence of music. The following definition has been used:- Direct Indirect Induced 1.Local performers 1.Production of 1.Other services that 2.Visting Performers merchandising benefit from wages and profit from direct & indirect activities 3. Festivals 2.Music retailing, crafts 4.Teachers/tutors 3.Tourist related and external performers 4. Indirect spend by attendees 5.Other Related Activities such as :- 5. Venues and suppliers including :- Agents/managers & Printing/advertising, other back up staff, Composers, Recording Studios, Instrument Makers, Music development officer Security, food and drink 5.Other support services such as :- hotels, B&B s, pubs transport, food providers, Other problems that had to be addressed were those of double counting, displacement of other expenditure, the degree of leakage, and the extent of dependence of venues and other businesses in the music activity. Judgements were made based on local knowledge and the views of those interviewed. It was also difficult to get accurate information on the earnings of musicians directly from the musicians therefore it was necessary to rely on using the data on fees charged by musicians at different venues grossed up by the numbers of performances by different types of musicians at the different venues over the year. AB Associates Ltd. 6
Social and Economic Impact Assessment of Shetland Music Despite the comprehensive survey and research undertaken it is important, when interpreting the quantified results, to realise the basis for the figures and the fact that they are likely to be underestimates rather than overestimates. 2.2.3 Assess the Social Impact of Music in Shetland The social impact aspect of the study attempts to look at how the Shetland music industry currently impacts upon people, their physical and psychological health, well-being and welfare, their traditions, lifestyles, institutions and inter-personal relationships. In order to help assess the social impacts, matrices have been designed and set up. These have been used as a tool to ensure that a rigorous, consistent, and comprehensive assessment is made and can assist in assessment of the significance of the impact of music on the different factors of social assessment. The main social areas that have been evaluated are as follows:- Social in/exclusion and community building; Role of music in promotion of a positive image of the area; Contribution of music to tourism, and Shetland s image as a tourist destination; Role of music in the community; Impact on community identity; Contribution to conveying Shetland history and heritage; Impact on education, learning and personal development; Impact on quality of life; Contribution of music to improving creative talents and social awareness; Social status of musicians. Impact on substance abuse, vandalism and other criminal activity The information for the social impact assessment was gained from the surveys and interviews undertaken. 2.2.4 Other General Issues and/or Opportunities The original brief included as a task to establish what our (Shetland) music resource is in terms of ability, support and prestige. This has proved difficult to analyse. Ability could have been quantified in terms of educational attainment, music grades or qualifications per head of population but there are many good musicians without formal qualifications. Production of tapes/cds per head of population was considered but comparative data was not available. Perhaps one of the most important support elements is education and the impact it has in generating later benefits, therefore it was decided to assess pupils currently being educated in relation to overall pupil numbers. Prestige is a very subjective element which needed to be researched through external as well as internal interviews. Therefore external organisations were approached in relation to their perception of Shetland music. Priorities for action identified from the desk research and survey work have been highlighted, as well as any key issues that may need to be tackled in the near future. AB Associates Ltd. 7
Social and Economic Impact Assessment of Shetland Music A SWOT analysis (strengths, weaknesses, opportunities and threats) has been used to evaluate how well for example the resources and policies of the Shetland music industry match the needs of the environment and how well it can meet the needs of future changes in the industry. 2.3 Analysis and Appraisal The results of the various surveys identified above have been analysed and drawn together in order to address the six specific tasks in the brief. 2.4 Tasks Methodology 1. Music resources in terms of ability, These aspects were covered in the support and prestige. surveys of performers, venues, support activities, visiting artists and external organisations 2. Monetary Value of Music. Different aspects were covered in the survey of performers, venues, visiting artists, and support activities. 3. Full time equivalent jobs. This information was obtained from the surveys of performers, venues and ancillary activities 4. Issues raised during the study. These aspects were covered in the surveys of performers, venues, support activities, visiting artists and external organisations. 5. Report format to enable results to be readily used. The methodology developed has enabled the results to be presented in a readily usable format. 6. Social Impact. Different aspects were covered in the survey of performers, venues and support activities. The results of all the above processes have been quantified and assessed to establish the overall value of music to the Shetland economy and its social impact. The data has been produced in the form of tables and graphs where appropriate, and has been based on survey data and desk research. All of the relevant issues raised relating to the future development of music in Shetland, obtained during data gathering, have also been identified. 2.5 Conclusions and Key Findings The methods used and assumptions made in estimating the value of Shetland music have been clearly stated. Any aspects of the study that have not been included in the formal quantitative appraisal have been identified and analysed separately. This study details the work undertaken from the initial desk research, right through to findings which are summarised in the conclusions. These conclusions have been drawn from the analysis undertaken, and include explanation of how they were reached, and any qualifications necessary. AB Associates Ltd. 8
Social and Economic Impact Assessment of Shetland Music 3. BASELINE ANALYSIS Music Events 2002 Overall a total of 1240 music events are estimated to have occurring in Shetland 2002. 404 or 33% of these occurred in halls and 836 or 67% in other venues. 614 or 50% occurred in Lerwick, 327 or 26% in the rest of the Mainland and 299 or 24% in non-mainland locations. Overall the three most common type of music events that occurred were in descending order DJ, dance and rock events being 374 or 30%, 237 or 19% and 178 or 14% respectively. The three most common type of music events in halls were in descending order dance, other and rock events being 171 or 42%, 79 or 20% and 59 or 15% respectively. The three most common type of music events in other venues were in descending order DJ, rock and mixed events being 328 or 39%, 119 or 14% and 85 or 10% respectively. The three most common type of music events in Lerwick venues were in descending order dance, DJ, mixed and other events being 262 or 43%, 84 or 14% and 75 or 12% respectively. The three most common type of music events in venues in the rest of the Mainland were in descending order dance, DJ and rock events being 89 or 27%, 84 or 26% and 54 or 17% respectively. The three most common type of music events in non-mainland venues were in descending order dance, other and rock events being 124 or 42%, 69 or 23% and 52 or 17% respectively. Events Where Venues Paid Musicians Directly 2002 Overall figures for music events where the venue paid musicians directly were 613 or 49% of events. This varied from 118 or 29% for halls and 494 or 59% for other venues. The three types of events by number where the venue most frequently paid musicians directly were in descending order DJ, rock and dance events being 310, 138 and 83 respectively. For halls the most frequent were rock, dance and DJ being 46, 36 and 30 respectively, and for other venues DJ, rock and dance being 280, 92 and 46 respectively. Venues in Lerwick directly paid musicians for 332 music events, venues in the rest of the Mainland 201 and venues in non-mainland locations 81. The three types of events by number where the venue most frequently paid musicians directly were in descending order for Lerwick venues DJ, rock, and folk being 244, 51 and 25 respectively, for venues in the rest of the Mainland dance, rock and DJ being 66, 47 and 44 respectively, and for non-mainland venues rock, DJ and dance being 40, 22 and 12 respectively. It should be noted when considering the figures above that although only 49% of grossed up music events in total were identified as having the venue directly paying the musicians, this does not mean that musicians were only paid for 49% of all musical events occurring. While some performances may be undertaken for no formal payment there are also a number of events where venues are hired and musicians are paid by groups or individuals other AB Associates Ltd. 9
Social and Economic Impact Assessment of Shetland Music than those responsible for the venue e.g. weddings, birthday parties, fund raisers, regatta and show dances etc. Shetland Times Advertised Events 2002 Excluding festival events there were 686 events advertised in the Shetland Times in 2002, these events have been considered to be being marketed to Shetland as a whole. The three types of musical event most frequently advertised in the Shetland Times are Country/Rock 233 or 34%, DJ 221 or 32% and dances 113 or 16%. In comparison the three most frequently occurring types of events are DJ 374 or 30%, other 301 or 24% and Country/Rock 258 or 21%. Public halls accounted for 33% of all events held in Shetland and 27% of all events advertised in the Shetland Times. Other Venues account for 67% of all events held in Shetland and 73% of all events advertised in the Shetland Times. Overall 46% of music events occurring in public halls and 60% of events occurring in other venues were advertised in the Shetland Times. When examined by area the vast majority of music events advertised in the Shetland Times in 2002 occurred on the Mainland of Shetland, 95%, as opposed to only 5% in non-mainland locations. For Mainland events advertised, 57% in total occurred in Lerwick and 38% in total in the rest of the Mainland. This compares to actual events occurring of 50% in Lerwick, 26% in the rest of the Mainland and 24% in non-mainland locations. This gives proportions of events advertised in the Shetland Times by area of 63% for Lerwick, 81% for the rest of the Mainland and 11% for non-mainland locations. It should be noted that many regular music events in Lerwick are not advertised regularly in the Shetland Times as it is already well known among residents that they occur. This reduces the proportion of Lerwick events advertised. Also a number events in the rest of the Mainland tend to be less regular or indeed annual events which may make them more likely to be advertised, as does a desire to attract a higher attendance rate from outwith the locality. This is more feasible for Mainland than non-mainland locations where transportation to and from a venue especially by taxi is more readily available and it is less likely that an overnight stay will be required. Many non-mainland events tend to be advertised locally e.g. in local shops and only larger events where it is hoped to attract a higher attendance rate from outwith the area tend to be advertised in the Shetland Times. A total of 62 performances by external performers were advertised in the Shetland Times in 2002, 34 of these in Lerwick, 22 in locations in the rest of the Mainland and 6 in Non-Mainland locations. These figures have been assumed to be the baseline as it is thought likely that all performances by external performers would be advertised in this manner. AB Associates Ltd. 10
Social and Economic Impact Assessment of Shetland Music Audience Statistics 2002 Based on survey data an average attendance of 130 people for a local performer, and 292 for an external performer at events within Shetland has been assumed. Average attendance for Shetland bands playing outwith the islands has been assumed to be 335 people again based on survey data. These average figures give a total of 173,910 people attended music events in Shetland in 2002 (excluding festivals). This figure is the number of attendances and will include an element of double counting with regard to individuals. Within this figure 153,140 attended performances by local artists and 20,770 attended performances by external artists. 58,875 attended music events in halls, and 115,035 attended music events in other venues. 86,790 attended music events in Lerwick, 47,020 attended music events in the rest of the Mainland and 41,100 attended music events in Non-Mainland locations. Shetland Artists External Performances 2002 In addition it is estimated that a total of 112,560 people attended 336 performances by Shetland artists at music events outwith the islands. Details of venues where surveyed performers had played in 2002 shows that artists from the islands perform on a global stage in venues as distinct as Orkney and Thailand. Visiting Artists 2002 A total of 62 performances by external artists in the islands in 2002 were identified, and this has been equated to an overall number of groups or performers of 20 as the majority give more than 1 performance whilst in the islands. It should be noted that these figures do not include performers at festivals. Survey data indicates that on average 4 external artists and 1.5 external support workers are involved in each external performance, with an average length of stay in the islands is 5 days, which would again appear to indicate more than one performance. On average performers surveyed had visited the islands 5 times with totals varying from 1 to 23. 62% of artists surveyed had been to visitor attractions in Shetland. A number of those stating they had not visited any attractions said that this was due to their hectic performance schedule, which did not allow time to do so. 57% stated that they first visited the islands because they had been invited to perform, 24% that it was due to the reputation of Shetland music, 14% because the islands had been recommended to them and 5% because their agent had arranged it. 64% stated that they were very likely to return for musical reasons and 22% that they were likely to, 7% were unsure and only 7% stated that they were AB Associates Ltd. 11