2002 - 2005 Accomplishments

• Tourism product development incentives recommended
• Film incentive legislation approved by the General Assembly
• Research capacity for tourism and cultural resources expanded 
• Heritage Tourism program expanded 
• Arts and Agriculture driving trails developed
• Analysis of creative clusters underway

 
Next Steps

• Advocate for tourism and film incentives to generate new products 
• Strengthen important cultural resources and extend arts programs into rural areas
  

The following organizations are partners in the Economic Development Board's Tourism and Film Industries, and Cultural, Heritage, and Natural Assests initiatives:

• Department of Cultural Resources
• North Carolina Travel and Tourism Board
• Department of Commerce Division of Tourism, Film, and Sports Development 
• Department of Commerce’s Policy, Research, and Strategic Planning Division 
• Department of Transportation
• Governor’s Office
• General Assembly
• North Carolina Film Commission
  

Ensure Expansion and Continued Development of Cultural and Heritage Tourism, Craft, and Film Industries in North Carolina.

Action 7.1.1: Promote and increase marketing budget for all forms of leisure and business tourism to maintain and expand NC’s national and regional tourism market share, to create jobs, and to encourage related economic development.

a. Responsibility: Travel and Tourism Board, the North Carolina Film Commission, the Department of Commerce’s Division of Tourism, Film, and Sports Development, the North Carolina Department of Agriculture and Consumer Science, and the Department of Cultural Resources
b. Deadline: 2008
c. Funding Source: Legislative appropriations from the General Fund to Department of Commerce
d. Expected Outcomes: Increased tourism sales derived from leisure and business tourism and corresponding increases in state and local tax revenues

 

2007 Update

In 2006 the General Assembly approved recurring funds of $500,000 and non-recurring funds of 4500,000 to promote North Carolina as a tourist destination.  An additional $1 million in funding was allocated in 2006 to create a statewide “marketing reserve” and $250,000 was provided in non-recurring funds to support the film industry in North Carolina.  These resources will increase the economic impact of film and tourism activities in North Carolina.

Action 7.1.2. Implement incentives for tourism product development.

a. Responsibility: Economic Development Board, the North Carolina Travel and Tourism Board, Department of Commerce Division of Tourism, Film, and Sports Development
b. Deadline: 2006
c. Funding Source: Existing resources
d. Expected Outcomes: Identify and recommend incentives that make North Carolina an attractive local for tourism and sports-related events and industries
 

2007 Update

In 2006, this project was not supported by a plan or new legislation. This goal had been attempted in 2004, but did not get brought forward for legislative review. No further action intended; no further update.

Action 7.1.3. Implement incentives for filmmaking.

a. Responsibility: Economic Development Board, DOC Division of Tourism, Film, and Sports Development, and the North Carolina Film Council
b. Deadline: 2006
c. Funding Source: Existing resources
d. Expected Outcomes: Identify and recommend incentives that make North Carolina an attractive location for the production of cable movies, medium and small feature films, episodic TV series, and related activities.
 

2007 Update

In 2005, the General Assembly granted the film industry an incentive that provides qualified productions with up to a 15% rebate on purchases and expenses in North Carolina. Film incentives were revised in 2006 to provide qualified productions with up to a 15% rebate on purchases and expenses in North Carolina.

Action 7.1.4. Integrate existing research data into decision-making processes for Tourism, Film, and Cultural Resources.

a. Responsibility: Department of Commerce’s Policy, Research and Strategic Planning Division, the Division of Tourism, Film, and Sports Development, and the Economic Development Board
b. Deadline: May 2005
c. Funding Source: Existing resources
d. Expected Outcome: Utilize existing data upon to forecast, develop comparisons to other industries to make informed decisions about future strategies for development, using data derived from a North Carolina Tourism Satellite Account and other sources. Identify the impacts of arts and history tourism and the economic wellbeing of specific communities
 
 

2007 Update

In early 2007, the updated Tourism Satellite Account was completed.  Results show that travel and tourism in North Carolina is a $23 billion dollar industry.  A full report is available at www.nccommerce.com/tourism/econ.  The Division of Tourism plans to update the study again in 2009 (using 2007 data).Tourism Satellite Account data does not yet specifically identify cultural and heritage tourism assets.

Action 7.1.5. Foster greater marketing collaboration and cross-promotion between activities in the Department of Transportation, the Department of Cultural Resources, and the Department of Commerce's Tourism, Film, and Sports Development Division.

a. Responsibility: The Department of Cultural Resources, the Department of Transportation, and the Division of Tourism, Film, and Sports Development
b. Deadline: 2005
c. Funding Source: Existing resources
d. Expected Outcome: Collaboration between agencies to cross-promote cultural resources, tourism, and transportation infrastructure such as bicycle routes, events, and maps to increase economic activity associated with tourism using existing resources
 

2007 Update

In 2005 the North Carolina Civil War Trails Program was created to promote the state’s historical heritage and generate tourism revenues. This marketing collaboration between the Department of Transportation, the Department of Cultural Resources and the Department of Commerce's  Tourism, Film and Sports Development Division is an ongoing project that takes advantage of the common goals and shared resources of several state agencies. The North Carolina Civil War Trails program is currently in “phase 2”, focusing on western North Carolina sites, but still growing the number of sites in the eastern and central parts of the state.  There are approximately 140 markers in the ground, with more in the works. Partnership between the North Carolina Arts Council and VisitNC.com to share database information on respective Web sites.

Protect and Promote Our Natural, Cultural, Artistic and Heritage Assets.

Action 7.2.1: Maintain the state rehabilitation tax credit for historic preservation and increase county, municipal, and private understanding of preservation programs.

1. Responsibility: Economic Development Board, Department of Cultural Resource’s Office of Historic Preservation
2. Deadline: Ongoing
3. Funding Source: Existing resources
4. Expected Outcome: An increased supply of well-maintained historic structures and protected districts

2006 Update

With increased state revenues, legislative funds have been applied toward the repair and renovation of state historic sites. Through supportive legislation from the General Assembly, the Historic Preservation Office now charges a fee to process applications for state rehabilitation tax credits and uses the additional revenue to hire extra staff that will reduce backlogs and enable the office to work more efficiently. SB 352, a bill to offer income tax credits for the rehabilitation of historic mills, was approved by the 2006 General Assembly. The Department continues to implement state tax credits.

Action 7.2.2. Inventory and objectively compare North Carolina’s cultural resources as economic assets to those competitor states that are “Best in Class.”

1. Responsibility:  North Carolina Department of Cultural Resources, external firm
2. Deadline: May 2005
3. Funding Source: Existing resources
4. Expected Outcome: North Carolina will be able to objectively compare its cultural assets to those of other states in order to develop plans to make cultural options a competitive advantage in economic development. “Creative Clusters” of activity within the state will be identified

2007 Update

Since 2004 a number of publications have been issued by the Department of Cultural Resources to evaluate North Carolina’s cultural resources in comparison to other states and to examine them as economic assets. Among these, the report entitled “Just the Ticket! The Arts Make Money in North Carolina” details the economic impact of the non-profit creative sector in North Carolina. According to the study, the financial contribution of the non-profit creative sector to the state economy is approximately $723 million. A second report entitled “The Artful Traveler” explores the impact of cultural tourism in North Carolina. Issued by the North Carolina Arts Council, this study shows that cultural travelers to the state spend nearly a third more than the national average and almost twice the daily amount of general travelers to the state. 

Clusters of Creativity:  The Role of Arts and Design in North Carolina’s Economy estimates creative sector employment at nearly 3 percent of total employment in North Carolina, employing nearly 132,000 people with total wages of more than $3.9 billion. New inventory for agri-Cultural tourism for 77 counties with arts, farm sites, and small business partners completed and marketed.

Action 7.2.3: Increase state funding for cultural sites so that they can remain in good physical condition, be adequately staffed, and promoted to the general public.

a. Responsibility: Economic Development Board, Department of Cultural Resources, and General Assembly

b. Deadline: 2006

c. Funding Source: Existing resources and additional appropriations

d. Expected Outcome: Greater state support for public cultural resources and greater awareness of cultural sites by the general public

7.2.4: Create a greater level of private support for cultural amenities by reinstating the Governor’s Business Council on the Arts and Humanities.

a. Responsibility: Department of Cultural Resources and Governor’s Office

b. Deadline: 2006

c. Funding Source: Existing resources

d. Expected Outcome: Greater support for public cultural resources by private companies

 

7.2.5: Increase per capita funding for the North Carolina Arts Council from the 2003 level of $0.60 to $1.50.

a. Responsibility: Economic Development Board and General Assembly

b. Deadline: 2008

c. Funding Source: Allocations from the General Assembly

d. Expected Outcome: Greater support for public art to be distributed by the North Carolina Arts Council

Develop and Utilize Cultural Resources to Support Broader Economic Development.

Action 7.3.1: Develop a plan to strengthen existing, strategically, important state and other cultural organizations and demonstrate the link between cultural resources and economic development.

1. Responsibility: Department of Cultural Resources and Department of Commerce
2. Deadline: 2005
3. Funding Source: Existing resources
4. Expected Outcome: Board, Department of Commerce, and Department of Cultural Resources will be positioned to make the case for increased public investments in cultural assets in order to support economic development

2007 Update

Creative Economy Clusters have been identified as a significant industry sector employing nearly 3 percent of total state employment.  Four specific objectives to support and encourage strategies to build this cluster are proposed.

Objective 1.  Build on creative content as a source of competitive advantage.

Products and services that integrate the arts and creative content represent potential competitive advantages that can be unique and place-based and thus less likely to be sent offshore.

Progress measures for Objective 1

1.      By 2008, a network of artists, designers and manufacturers will be established.
2.      By 2009, a tax credit proposal will be introduced.

Action Steps for Objective 1:

1. Develop policies to build on creative content as a competitive advantage, such as:

• tax credits for design innovation similar to the existing tax credits for research and development activities
• support to manufacturers pursuing aesthetic modernization similar to that available to promote technological modernization
• creation of structures and venues to network artists and designers with manufacturers to identify new products and markets.

Objective 2.  Develop funding incentives for parlaying artistic activity into economic activity.

Many of North Carolina’s communities have thriving and distinctive artistic and artisan communities, but as yet have not taken explicit steps to parlay this artistic activity into economic activity.

Progress Measures for Objective 2

1. By 2008, three pilot projects will be initiated to model creative economy development strategies. Potential projects include Lenoir, Caldwell, Iredell, Surry, Hyde, Gates and Hertford counties.
2. By 2009, funding recommendations will be developed.

Action Steps for Objective 2:

1. Develop competitive grants programs or other funding incentives for enhancing the economic elements of the arts to provide a laboratory for testing and demonstrating the potency of arts initiatives for local and regional economies.  Explore the models that have been successful in other states:

• Massachusetts: John and Abigail Adams Arts Program provides funding to regional arts-based initiatives that can demonstrate economic outcomes
• Ohio:  CuyahogaCounty Board of Commissioners created the Community Partnership for Arts and Culture, which awarded more than $500,000 in 2005 for arts and culture programs  based on measures of economic impact
• New Hampshire: Community Arts Development Grant Program funds partnerships that use the arts to catalyze economic development and community revitalization.

Objective 3.  Connect community colleges with creative workforce.

Progress Measures for Objective 3

1. By 2008, establish visiting artist positions in community colleges serving Tier 1 and 2 counties
2. By 2009, develop prototype for Creative Cluster hubs to train workforce

Action Steps for Objective 3:

1. Expand educational programs to further resource building for self-employed rural artisans and small manufacturers: 

• Provide the creative presence of professional  artists in schools to improve educational outcomes, develop the college’s expertise and connections to regional creative industries, and strengthen the school’s ability to support creative economies.  
• Create community college “cluster hubs” to serve as specialized centers for learning and implementation, (much like BioNetwork, the North CarolinaCommunity College system’s cluster hub for biotechnology).   Different hubs, for example, might focus on (1) arts and design in manufacturing, (2) business skills for artists, artisans, and other creative workers, (3) entertainment-based programs.

Objective 4.  Provide coordination and increased resources to connect arts activities with tourism promotion.

Progress Measures for Objective 4

1. By 2008, additional cultural tourism trails will be developed and promoted.
2. By 2009, coordinated visitor data will be collected from participating venues.

Action Steps for Objective 4:

1. Assist smaller and more rural communities in learning how to identify and build upon their most valuable arts-based tourism assets.
   • Expand the network of arts and craft trails in the state to take in more communities and publicize these more widely
   • Expand  connections between arts-based tourism and heritage tourism
2. Cultural Resources has provided an inventory of existing Place-Based Economic Development projects.

Action 7.3.2. Create a state program to underwrite bonds for the construction and development of cultural, heritage, and tourism destinations.

1. Responsibility: Department of Commerce, Economic Development Board, and Department of Cultural Resources
2. Deadline: 2007
3. Funding Source: Appropriations from the General Assembly
4. Expected Outcome: Increased state involvement and cooperation between county, municipal, non-profit, and private sectors in the development of tourism, cultural, and heritage site development

2007 Update

The North Carolina Museum of Art received funds from bonds in last year's budget; we hope to receive similar funds for the Tryon Palace History Education Center in this year's budget.

Action 7.3.3. Fully develop North Carolina’s Heritage and Cultural Tourism Programs.

1. Responsibility: Department of Commerce and Department of Cultural Resources, Department of Commerce Division of Tourism, Film, and Sports Development, Department of Transportation’s Division of Bicycle and Pedestrian Transportation
2. Deadline: 2008
3. Funding Source: Existing resources and additional appropriations from the General Assembly
4. Expected Outcome: A statewide action plan that will maximize the impact of these assets as economic agents. This program could include the development of historical trails, scenic bicycle routes, the promotion of arts and crafts festivals and coordinated awareness programs

2007 Update

North Carolina Arts Council is developing cultural tourism trails accessible at www.ncarts.org.  Trails exist for crafts, blue ridge heritage music, Cherokee traditions, African-American culture and agriculture and are listed on HomegrownHandmade.com.  Trails are underway for literature and African-American heritage music.  Additional trails are being developed.  We have already begun planning for the Civil War 150 (2011-2015). In 2009 we'll celebrate the 300th anniversary of John Lawson's A New Voyage to Carolina with an exhibit of Lawson artifacts from the British Museum and other repositories in state. Later this year we hope to bring an exhibit from the British Museum of "lost" John White drawings (White was governor of the Lost Colony, 1587).

Cultural Resources is continuing development of HomegrownHandmade.com marketing, with a book to be published in 2007-2008 to increase awareness and through on-line training for small businesses who are project participants.