USER GUIDE FOR THE ECONOMIC IMPACT MODEL FOR THE ARTS AND HERITAGE (EIMAH) ONLINE

The Economic Impact Model for the Arts and Heritage (EIMAH), is an online tool that allows non-economists to calculate the economic impacts of expenditures on arts and heritage activities at the provincial, territorial and national levels. Such activities could include the development and operation of heritage institutions, art exhibitions, cultural events, as well as others. The model also estimates the economic impacts associated with visitor/tourism spending attributable to these activities. Developed by the Department of Canadian Heritage, the tool can be found online at: www.rcip-chin.gc.ca/mieap-eimah.

The application is composed of a series of tables that prompt the user to enter information. This information is used in turn by the model to calculate economic impacts. Entering this information may require combining or disaggregating categories used in the organization's own accounting structure to conform to the designated EIMAH categories defined below.

GETTING STARTED: DATA PREPARATION

You may use the Economic Impact Model for the Arts and Heritage (EIMAH) to estimate the economic impacts of organizational expenditures and visitor/audience expenditures, or one or the other. Simply skip the tables that are not relevant to your analysis.

Assessment of the Economic Impact of Organizational Spending

EIMAH consists of 3 tables into which you can enter the data for different types of organizational spending. These are operating and maintenance expenditures; infrastructure expenditures; and, wages and salaries. If more than one organization is involved in the activity or event being assessed, a column can be added to each table for each additional organization. Therefore, it is recommended that the data associated with each organization be kept separate and entered separately for each.

Whether you are assessing the economic impact of an existing organization, an event that has already taken place, or a project that is planned for the future, you will need to gather expenditure data from either administrative records, surveys and/or estimates, as well as from all private sector, public sector and not-for-profit partners. You will need to organize your data into the expenditure categories outlined below prior to the input process.

Operating and Maintenance Expenditures

The amount spent by the lead organization and any partners for the purchase of goods and services should be broken down into the following categories:

• Public utility services - expenditures made on utilities such as telephone, postal, telecommunications, electricity, natural gas, water, sewage, etc., required for the operations of the various organizations.
• Printing and publications - expenditures made by the lead organization and any partnering organization(s) for the printing of books, brochures, pamphlets, etc. not purchased in retail stores. Those purchased in retail stores should be entered in the "Other Expenditures" category.
• Programs, sets and materials - expenditures associated with the planning or production phase of a project as well as the presentation or performance phase. It is understood that most such expenditures occur during the planning or production phase of a project. This category of expenditure includes the commissioning of reproductions or works of art, or heritage such as paintings or sculptures, as well as all expenditures made in the production of a project including electrical materials, sound and lighting equipment, costumes, recordings, and other sundry expenditures. This category also includes the development and delivery of programs which are instructional, educational, scientific, and artistic or heritage in nature. For example, summer programs for the excavation of artifacts, in-house programs in creative painting, and school programs for the appreciation of music, painting or the media arts.
• Professional and business services - the costs of contracting professional services, such as accounting, legal (lawyers and notaries), designing (architects); for management (including marketing and consumer research), property management, courier services; for consulting, hardware and software service contracts, information technology, EDP consulting (Electronic Data Processing), engineering and other scientific and technical services in support of the operations of the organization. This category also includes the costs of contracting natural sciences research activities and any kind of translation services, as well as expenditures for insurance and real estate fees and for professional development and staff training.
• Other business services - amounts spent by an organization for photographic services (processing photo services), for security contracts, rental of office equipment, rental of automobiles and trucks (includes amount spent by employees when traveling for work purposes renting automobiles), repair services, laundry, cleaning and pressing services.
• Travel - those expenditures made by employees of participating organizations when traveling for work purposes or consultants hired to the project. This includes travel by ground (automobile, railway, bus), by air (passenger and airplane rental service), water (boat, ferry, etc.), amounts spent on overnight accommodation (hotels, motels, bed & breakfast, college or university campus residences, etc.), purchases of food and beverages at restaurants, at food stores, liquor, wine and beer stores, and for hospitality, bar costs and catering services.
• Advertising and promotion - all expenditures made for advertising and promotion of organization, event or any other production. It includes advertising costs, promotional costs, aids and displays, photos and video clips, newspaper and magazine placements, television and radio placements, posters and news releases, as well as complimentary gifts and goodwill products.
• Financial, insurance and real estate services - contracting of financial services (auditing, etc.), insurance services (for all purposes), and real estate services (rentals, fees, advisory services, etc.).
• Transportation and storage - any and all costs associated with the freight, express and cartage of artistic and heritage assets; for the transportation of sets, materials, equipment, etc. as well as their storage in commercial warehousing or storage facilities.
• Other expenditures - expenses related to fundraising campaigns, purchases of office supplies and other items in retail stores such as book and stationery stores, hardware stores, photographic supply stores, sporting good stores, clothing and shoe stores, etc., and any other unallocated operating expenditures.

It must be noted however that expenditures made for the purpose of purchasing artefacts, acquiring land, as well as used equipment or machinery are not to be included. These expenditures are essentially transfers between two economic agents and do not increase production in a province or territory.

Infrastructure Expenditures

The amount spent by the organization, and any partners, on infrastructure (capital) both for new (including expansion of existing infrastructure) and improvements made to existing capital structure in each of the following categories:

• Repairs/renovations - any expenditure made on regular maintenance work (improvements, alterations, renovations) aimed at reconditioning a building, existing structures or another type of construction (excluding road repairs).
• Residential - expenditures attributable to the construction of single, detached, semi-detached, duplexes, apartments, as well as temporary dwellings such as tents and campgrounds established for the purpose of a production or holding an event. This category includes standard residential types of construction, as opposed to industrial, institutional or commercial structures.
• Non Residential - expenditures associated with new, or additions to existing, structures:
  Commercial buildings: bookstores, recreational and entertainment buildings, cafeteria and restaurants, etc.
  Institutional buildings: museums, art centres, libraries, broadcasting stations, schools and academies, education and interpretive centres, visitor centres, etc.
  Other building construction: research and conservation centres and laboratories, workshops, stores and warehouses, hostels, office buildings, garages and service bays, etc
• Access roads/parking - expenditures attributable to the construction of roads (access to a park/site, museum or heritage facilities, etc.) and streets (grading, scraping, oiling and filling): parking lots, sidewalks, entrance ways and rest areas (look-outs).
• Access roads/parking lot repair and maintenance - any expenditures made on regular maintenance/repair services work aimed at reconditioning access roads, parking lots, sidewalks and entrance ways, such as pothole filling, snow clearing, tarring roads, etc.
• Other engineering construction - expenditures associated with:
  Waterworks and sewage systems: tile drains, storm sewers, water mains, sewage treatment, water pumping, filtration, water storage, etc.
  Other engineering construction: bridges, overpasses, walkways, tunnels, parks, landscaping, sodding, trails, outdoor facilities, signs, etc.
• Professional services - payments made to acquire professional services: accountants, lawyers and notaries; architects, engineers, and other scientific and technical services (such as archeology, etc.); construction site coordination and supervision, etc. Note these expenditures are those directly related to Capital and Infrastructure Costs (as opposed to O & M).
• Exhibits and furniture - expenditures associated with the construction of permanent and temporary displays and exhibits, as well as purchases of any office equipment and institutional furniture.
• Other expenditures - any other unallocated infrastructure expenditures.

It must be noted that expenditures made for the purpose of acquiring land and existing buildings as well as used equipment or machinery are not to be included. These expenditures are essentially transfers between two economic agents and do not increase production in a province or territory.

Wages and Salaries

The amount spent on wages and salaries for the operation and maintenance of the organization and any partner organizations, including wages for curators, artists, directors, administrative staff and contracted artists. This category includes a field for the number of person-years of full time equivalents (FTEs).

Assessment of the Economic Impact of Visitor/Audience Spending

EIMAH consists of one table into which you can enter visitor/audience spending data. If more than one visitor/audience segment is being analysed, additional columns can be added to the table for each visitor/audience segment (ex. local, rest of province/territory, rest of Canada, international). The data entered into the model can be derived from actual administrative and/or survey records (useful for evaluation purposes), hypothetical (useful for planning and projections), or a combination of the two.

In gathering visitor/audience spending data, only spending related to the targeted organization or event is considered relevant for the assessment of economic impact. Therefore, only spending within the province or territory in which the organization is located or in which the event takes place should be entered. For recommendations regarding the gathering of visitor/audience data for economic assessment projects, as well as for a sample survey, you may consult the Economic Impact Assessment Pilot Project report, available by e-mail through the following site: http://www.pch.gc.ca/pc-ch/org/sectr/cp-ch/p-h/publctn/index-eng.cfm.

For each visitor/audience segment, you are able to indicate the level of motivation (expressed as a percentage) attributable to the organization or the event. For this reason, when surveying visitors/audiences, it is recommended that a question be added that asks individuals to describe the degree of influence the institution or attraction has had on their trip decision. For example, a visitor/audience survey could ask the following level of Influence question: How much influence, would you say the [organization/attraction] had in determining the choice of [city/town] as a stop or destination on your trip? Using the scale below, please choose any number between 0 and 10, where 0 indicates "no influence" and 10 is that the [organization/attraction] is the main single reason for visiting [city/town] on this trip.

Because the application asks for visitor/audience expenditures according to the same expenditure categories used by the Canadian Travel Survey, the latter requirement allows you to use estimates from that survey if more precise data are not available.

Visitor/Audience Expenditures

The amount spent by visitors on goods and services should be broken down by the following categories for each visitor segment that you have identified for your analysis:

• Transportation (automobile) - purchases of gasoline, accessories, oil at service stations and general repairs at garages.
• Transportation (car rentals) - only direct amount spent renting automobiles, minivans or other vehicles. Expenditures associated with the operation of a rented vehicle must be included in the category entitled: Transportation (automobile).
• Transportation (other modes) - air (passenger and airplane rental service), water (boat, ferry, etc.), railway and bus transportation expenditures.
• Accommodation - amount spent by visitor/audience on overnight trips (hotels, motel, campgrounds, bed and breakfast, cabins, outfitters, college or university campus, etc.).
• Food and beverages (at restaurants) - purchases of food and beverages at licensed or unlicensed restaurants and for catering services (cafeteria, mobile canteens).
• Food and beverages (at stores) - purchases of food and beverages at food stores, liquor, wine and beer stores, and service stations. Food and beverages purchased prior to departure could be included here if they were consumed on the trip/visit.
• Recreation and entertainment - expenditures associated with visiting museums, historic buildings or built heritage; attending art and heritage exhibitions; with attending events such as plays, concerts, performances and movies; with participating in educational events and recreational activities (such as amateur excavation, cave exploration, underwater archeology, crafts, etc.), all of which are related to a visit. This category also includes rentals of equipment associated with artistic, educational, or heritage activities, etc.
• Other expenditures - purchases of art including paintings, sculptures, reproductions; of souvenirs, crafts, gifts, prints, posters; of movies, film, video, audio, broadcasts; of books, poetry, electronic literature; of items and equipment purchased in retail stores (such as book and stationery stores, photographic supply stores, hardware stores, sporting goods stores, clothing and shoe stores, pharmacies) and any other purchase not identified in the other categories.
  

Please note that only those expenditures made within the province or territory should be included in the analysis of economic impacts within the province or territory.

USING EIMAH: INPUTTING DATA

The first screen of the application is called the Scenario Manager. It is from here that you can either:

• Define a new project: Input data for the first time regarding a particular project. A project can be, for example, the ongoing operations of an art gallery, a newly-opened museum wing, or an exhibition.
• Create a new project scenario based on an existing scenario: This option will allow you to access a previously saved project scenario and make modifications while retaining the information contained in the original project scenario. For example, you might choose to create one scenario based on a pessimistic projection of visitor/audience spending and another based on an optimistic projection of visitor/audience spending, while keeping the same assumptions regarding operations spending.
• View/modify a previously created scenario: View and modify a scenario previously created and saved using EIMAH.

The menu along the left contains links and functions that can be accessed from any screen within EIMAH. These links are:

• Scenario Manager: the screen described above;
• Upload Scenario: to upload a previously created project scenario file (*.xml);
• Save Scenario: to save a project scenario at any point in the process;
• Export File: once all data is entered, it can be exported to any text editor or Excel spreadsheet for further manipulation of the data (Please note that these files cannot be loaded back into EIMAH);
• View Reports: to view the economic impact reports associated with a particular project scenario, as well as print the reports and save them as html pages (using “File” “Save As” from your browser).
  

Exiting the browser window at any point will close your user session with EIMAH and you will lose any unsaved data. As well, after one hour of inactivity within the browser window, your session will expire and any unsaved data will be lost. If this happens, EIMAH will return to the Terms and Conditions page. You can access “Save Scenario” from the left menu to save your project scenario to your computer hard drive or your network at any point prior to exiting the browser window. Saving a project scenario will allow you to return later to complete the process of entering data and/or to create new project scenarios based on previously created ones. Once a project scenario has been saved, it can be accessed from the drop-down box at the bottom of the Scenario Manager screen during an active session (an active session is the period during which you are using EIMAH without a pause of more than 60 minutes and without closing your browser window), and can be uploaded and accessed from the drop-down menu in subsequent sessions.

The second screen is Scenario Definition into which you input the project name (name of organization or project), scenario name (unique to the scenario defined), a brief description of the project scenario, your name and the province in which the organization is situated or in which the event/activity took place. All of these fields are mandatory and, therefore, an error message will appear if any of them are left blank. The purpose of this screen is to give you the opportunity to document, for future reference, the scenario facts and assumptions made.

The third, fourth and fifth screen relate to Organizational Expenditures. These contain tables into which you can enter project scenario expenditures related to organizational operations and maintenance; infrastructure; and, wages and salaries. These tables prompt you to enter expenditures according to the categories designated in the table (as described above). For each organization involved in the project, a new column can be added to the table into which the expenditures associated with each can be entered. The “add”, “rename” and “delete organization” buttons can be used on any of the three Organizational Expenditures tables. The addition or deletion of an organization to/from one table will apply to all three. Note that once an organization is deleted, data associated with that organization is lost and cannot be retrieved.

The EIMAH Web application automatically estimates the number of employees (full-time equivalents) based on the average income in 1999 for that province or territory to facilitate the process for those working on a speculative scenario for which the actual number of employees is unknown. However, if you have the actual number of FTEs or you wish to use a different estimate of employees, this can be entered. This field can only be left as a zero value if the salaries/wages entered is less than $20,000.

The sixth screen relates to visitor/audience Expenditures. Enter the total spending of visitors to the institution(s) or attending events into this table. The name of a default visitor/audience segment is ‘base visitor/audience segment’, but can be changed by using the “Edit visitor/audience” button. Other visitor/audience segments can be added by using the “Add visitor/audience Segment” button. For example, you may wish to have the following visitor/audience segments: local, rest of province/territory, rest of Canada, international. Similarly, a visitor/audience segment can be deleted by using the “Delete visitor/audience Segment” button.

While it is not necessary for the operation of the model to provide breakdowns of visitor/audience segments, the analysis of visitor/audience spending in general benefits greatly from having visitor/audience spending broken down by segments based on geographic origins of the visitor/audience or other visitor/audience characteristics and the amount of influence the attraction or event had in motivating the visit.

After entering the full amounts in each field for the visitor/audience expenditure categories, you should assign a figure in the “Percentage Motivation” box for each visitor/audience segment that you have identified. Note that if the percentage motivation is not changed, the default of 100% will be applied automatically. To see the effect of the application of motivation, click on the button “Apply”. This will show the numeric values that the model will actually use in calculating impacts for those visitor/audience segments where motivation has been changed from 100%. To see the data as input, click “Normal View”. Remember to ensure that “Normal View” is selected prior to saving in order to ensure that the data is saved an input.

While the Web-based EIMAH application is designed to remain active for 60 minutes before a user session times out (unless you close your browser window prior to saving, in which case all data input is lost), it is recommended that you save your work at this point. If you decide to make changes to the saved scenario, you have the option of either saving over the previously saved file or saving the modified scenario as a separate file.

UNDERSTANDING THE RESULTS

The final screen displays the direct and indirect contribution to provincial or territorial GDP, direct and indirect labour income, direct and indirect employment impacts, and taxes on products and production. In addition, the links at the top of the screen allow you to switch between different views of the results. For the province or territory in which the institution or event under analysis is located the Web application displays summary results, the impacts attributable to each funding partner (organization) identified in the scenario, impact results by each visitor/audience segment and the impacts that expenditures attributed to an institution or event in a given province or territory have on all other provinces and territories in Canada. The last link shows national impacts.

Summary of Provincial/Territorial Economic Impacts
This summary provides an overview of the economic impacts by major sources (goods and services, infrastructure, wages and salaries and visitor/audience spending) for each unit of measurement (Gross Domestic Product, Labour Income and Employment - Full Time Equivalent) broken down for direct and indirect impacts. Tax revenue is also presented broken down by product taxes and production taxes.

Impacts of Organizational Spending
This summary provides an overview of the economic impacts by each of the organizations in the analysis (for example: organization = museum, coop association, private sector, etc.) for each unit of measurement (Gross Domestic Product, Labour Income and Employment - Full Time Equivalent) broken-down for direct and indirect impacts. Tax revenue is also presented for each identified organization broken down by product taxes and production taxes.

Impacts of Visitor/Audience Spending
This summary provides an overview of the economic impacts by visitor/audience market segments/user groups (for example: segments = day users - resident, Day users - non resident, overnight users - resident, overnight users - non resident, etc.) for each unit of measurement (Gross Domestic Product, Labour Income and Employment - Full Time Equivalent) broken down for direct and indirect impacts. Tax revenue is also presented for each visitor/audience segment broken-down by product taxes and production taxes.

Impacts in Other Provinces and Territories
This summary provides an overview of the economic impacts by major sources (goods and services, infrastructure, wages and salaries and visitor/audience spending) for each unit of measurement (Gross Domestic Product, Labour Income and Employment - Full Time Equivalent) broken down for direct and indirect impacts. Tax revenue is also presented broken down by product taxes and production taxes.

National Impacts
This summary provides an overview of the economic impacts by major sources (goods and services, infrastructure, wages and salaries and visitor/audience spending) for each unit of measurement (Gross Domestic Product, Labour Income and Employment - Full Time Equivalent) broken down for direct and indirect impacts. Tax revenue is also presented broken down by product taxes and production taxes. It is calculated as the sum of the impacts within the province or territory and the impacts in other provinces and territories.

To print these tables, click on the “Select Reports” button, and then select the appropriate report from the list and follow the standard process of printing from the Web.

If you wish to manipulate the results, you can export all of the information input into the tables, as well as the economic impacts calculated, by selecting “Export to Excel” from the left menu.