COVID-19 economic impact on the Arts, Entertainment and Recreation sector
In March 2020, COVID-19 hit the culture, heritage and sport sectors hard and its impacts are still ongoing. The Arts, Entertainment and Recreation sector, experienced a 58.2% drop in GDP and 48.9% drop in employment from February 2020 to April 2020.
Figure 1. GPD and Employment Growth by Sector (February 2020 to April 2020)
Source: Statistics Canada: Survey of Employment Payroll and Hours (accessed 22/10/2020) & Gross Domestic Product by Industry - National (Monthly)
Figure 1. GPD and Employment Growth by Sector (February 2020 to April 2020) – text version
Sector
GDP
Employment
All industries
-18.1%
-16.2%
Arts, entertainment and recreation
-58.2%
-48.9%
While some sectors started to recover over the summer, in the Arts, Entertainment and Recreation sector GDP and employment were down 52.1% and 38.3%, respectively, between July 2019 to July 2020.
Figure 2. GPD and Employment Growth by Sector (July 2019 to July 2020)
Source: Statistics Canada: Survey of Employment Payroll and Hours (accessed 22/10/2020) & Gross Domestic Product by Industry - National (Monthly)
Figure 2. GPD and Employment Growth by Sector (July 2019 to July 2020) – text version
Sector
GDP
Employment
All industries
-5%
-11%
Arts, entertainment and recreation
-52.1%
-38.3%
COVID-19 Emergency Support Fund for Cultural, Heritage and Sport Organizations.
On April 17, 2020, the Prime Minister announced funding of $500 million to establish a new COVID-19 Emergency Support Fund (ESF) for Cultural, Heritage and Sport Organizations.
Implemented in two phases, the Emergency Support Fund was an additional temporary measure created to provide financial support to organizations in these sectors.
Main objectives:
helping organizations maintain jobs;
support business continuity.
Implementation Phases:
Phase 1:
Formula-based top-up to existing recipients of a number of arts, culture and sport program;
Streamlined process where eligible recipients submit an attestation to receive the top-up funding;
Calculated based on applicant’s most recent application submitted to their respective program.
Phase 2:
Funding for organizations in the arts, culture and heritage sectors that primarily do not currently receive funding from Canadian Heritage, the Canada Council for the Arts, Telefilm Canada, the Canada Media Fund, Musicaction or FACTOR, as well as some organizations that do currently receive funding but were not included under Phase 1.
Key delivery partners include:
Canada Council for the Arts;
Telefilm Canada;
Canada Media Fund;
Musication;
FACTOR;
CACTUS;
Provinces and territories.
Results and Monitoring Framework and Survey
In June 2020, the Department of Canadian Heritage developed a COVID-19 Results and Monitoring Framework and survey to report on the expected results of the Emergency Support Fund:
The main mechanism for tracking results is an anonymous, voluntary online survey that is being conducted in multiple waves;
Of the $481.6 million spent as of September 2020 through phases 1 and 2, the survey scope covers 98% of the Fund;
The Digital Citizen Contribution Program component is excluded from the scope because its objectives are different (combatting misinformation versus maintaining business continuity/supporting jobs);
The Athlete Assistance Program component is excluded from the scope because funding is directed at individuals, not organizations.
Phase 1 - $291.3 million (actuals as of September 30, 2020):
Components within scope of the survey:
Building Communities through Arts and Heritage
Canada Arts Presentation Fund
Canada Arts Training Fund
Canada Book Fund
Canada Media Fund
Canada Music Fund
Canada Periodical Fund
Harbourfront Centre Funding Program
Sport Support Program
Canada Council for the Arts
Telefilm Canada
Components moved to Phase 2 due to timing considerations:
Sport Support Program bilateral agreements with provinces and territories
Components not within scope:
Digital Citizen Contribution Program
Athlete Assistance Program
Phase 2 - $190.3 million (actuals as of September 30, 2020):
Components within scope of the survey:
Canada Music Fund
Canada Periodical Fun
Canada Media Fund
Museum Assistance Program
Canada Arts Presentation Fund
Canada Arts Training Fund
Indigenous Languages and Culture Program
TV5
Canada Book Fund
Development of Official-Languages Communities Program
Sport Support Program bilateral agreements with provinces and territories
Canada Council for the Arts
Telefilm Canada
Components not within scope:
Digital Citizen Contribution Program
Phase 1 Survey recipients
The survey was distributed to Phase 1 recipients in September and October 2020.
The key findings presented next reflect the views of Phase 1 Emergency Support Fund respondents and not the culture, heritage and sport sectors overall.
Scope of these key findings represents 56% of Phase 1 Emergency Support Fund recipients.
Phase 1 high level findings
Impact of the pandemic on respondent organizations.
A large majority of respondents reported that prior to receiving the Emergency Support Fund funding, the COVID-19 crisis affected their organization financially.
Impact of the Emergency Support Fund on the sector
Purpose and helpfulness of the Emergency Support Fund.
Responses indicate that the Fund met its intended objectives of supporting business continuity and maintaining jobs.
For supporting business continuity purposes:
77% of respondents reported that the Emergency Support Fund funding helped them stay in operations to a large or moderate extend.
Only 2.9% of respondents said the Fund did not at all help them stay in operation. Reasons cited include:
52% indicated that the amount received was insufficient.
25% indicated that the organization did not need ESF funding to stay in operations.
23% indicated other reasons.
17% indicated that the most important issues could not be addressed through funding.
4% indicated that the amount received came too late.
91% of respondents reported that they are operating and plan to continue operations.
8% of respondents reported temporary closure and plan to resume within six months.
1% of respondents reported to likely cease operations within the next six months
0% of respondents reported to permanently cease operations
For maintaining jobs purposes:
Paying the wages of self-employed and freelancers was among the top three reasons respondents sought Emergency Support Fund funding.
In addition to maintaining jobs and supporting business continuity, the Fund also helped organizations adapt their business model, implement new required public health measures and honour existing contracts.
Adapting to a new business model was among the top three reasons respondents sought Emergency Support Fund funding.
Complementary support measures.
The Emergency Support Fund is one among many mechanisms of support used by respondents to weather the effects of the pandemic.
Respondent Satisfaction
Respondents were satisfied with each step of the Emergency Support Fund delivery process.
Extent the Emergency Support Fund helped stabilize the overall sector
Respondents perceived that the Emergency Support Fund helped stabilize their sector.
Culture Value Chain
The Emergency Support Fund supported every part of the culture value chain.
Respondents, excluding respondents from the Sport Support Program, were asked: With which part(s) of the cultural value chain does their organization’s activities align?
60% of respondents reported that their organization’s activities align with creation, meaning the originating and authoring of ideas and content (e.g. writers) and making of one-off productions.
51% of respondents reported that their organization’s activities align with production, meaning the reproducible cultural forms, as well as the specialist tools, infrastructure and processes used in their realization.
44% of respondents reported that their organization’s activities align with dissemination, meaning the bringing of cultural products to consumers and exhibitors.
44% of respondents reported that their organization’s activities align with exhibition, meaning the place of consumption and to the provision of live and/or unmediated cultural experiences to audiences by granting or selling access to consume or participate in time-based cultural activities.
38% of respondents reported that their organization’s activities align with consumption, meaning the activities of audiences and participants in consuming cultural products and taking part in cultural activities and experiences.
Diversity and inclusion
47% of respondents indicated the Fund benefitted at least one diverse community, group or people.
80% of respondents reported that their organization undertakes strategies to support diversity and inclusion.
Nearly half of all respondents indicated that they undertake strategies to support Reconciliation with Indigenous Peoples.
Figure 9. Percentage of organizations indicating that the funding benefitted at least one diverse community, group or peopleFigure 9. Percentage of organizations indicating that the Emergency Support Fund (ESF) funding benefitted at least one diverse community, group, or people – Text version
Communities, Groups, People
Percentage of organizations indicating that the ESF benefitted the following:
Racialized communities
22%
Official Languages minority communities
8%
Religious minorities
2%
Remote and Northern communities
4%
Rural communities
8%
Seniors
9%
Those with low income
15%
Women
25%
Youth
15%
Deaf communities
3%
Ethno-cultural communities
9%
Gender diverse communities
12%
Immigrant and refugees
9%
Indigenous Peoples
17%
LGBTQ2 communities
17%
Persons with disabilities
8%
Preliminary qualitative results
Qualitative analysis is currently under way. Preliminary findings include:
Responses demonstrate that the pandemic has had an impact on organizations that were funded. For instance, there were layoffs, cancelled events, changed events (virtual), new spending on cleaning services and personal protective equipment, and new IT systems for remote working. Many said that the Emergency Support Fund helped their organization survive through the summer.
Some, however, stated that the funds were only a drop in the bucket, and that they will need more funds in order to maintain operations if the pandemic continues.
Respondents were satisfied with the ease of the overall process for receiving the funds, but several voiced that tying the funds to core funding may have been a barrier for some organizations to get the funding that they needed.
Conclusion and next steps
The 56% response rate and the quality of the 714 pages of feedback received through the open ended questions shows that ESF recipients were very interested in sharing their experiences with us.
Results show that the Emergency Support Fund, along with other measures, helped existing client organizations maintain jobs and support business continuity.
For respondents who said the Fund did not help them stay in operation, the most cited reason was insufficient funding.
Phase 2 survey to be administered in mid-November.
Dashboard – all phase 1 survey questions
Part 1: Information About the Organization’s Application to the Emergency Support Fund (ESF)
Part 2: Impact of the Pandemic on Your Organization
Part 3: Impact of the Emergency Support Fund (ESF) on Your Organization
Part 4: Impact of the Emergency Support Fund (ESF) funding on the sector
Figure 18. Survey question 11 - Diversity and inclusionFigure 18. Survey question 11 - Diversity and inclusion – Text version
Diversity and inclusion:
Survey question 11: Did any Emergency Support Fund (ESF) funding received by your organization benefit diverse communities, groups or people (e.g. gender diverse communities, persons with disabilities, ethno-cultural communities, youth)?
47% of respondents reported the ESF funding benefitted at least one diverse community, group or people.
36% of respondents reported the ESF did not benefit at least one diverse community, group or people due to no notable characteristics.
17% of respondents reported the ESF did not benefit at least one diverse community, group or people due to insufficient information.
Follow up to survey question 11: Which of the following communities, groups or people benefitted? (select all that apply)?
Communities, Groups, People
Which of the following communities, groups or people benefitted? (select all that apply)
Ethno-cultural communities
9%
Gender diverse communities
12%
Immigrant and refugees
9%
Rural communities
8%
LGBTQ2 communities
17%
Official Languages minority communities
8%
Persons with disabilities
8%
Radicalized communities
22%
Religious minorities
2%
Remote and Northern communities
4%
Deaf communities
3%
Youth
15%
Women
25%
Those with low income
15%
Seniors
9%
Indigenous Peoples
17%
Part 5: Process of Receiving the Emergency Support Fund (ESF) funding.
Part 6: Information About Your Organization
Figure 27. Survey question 22 – Diversity & inclusionFigure 27. Survey question 22 – Diversity & inclusion – Text version
Diversity & inclusion:
Survey question 22: Does your organization undertake strategies to support diversity and inclusion?
Yes: 80%
No: 20%
Follow-up to survey question 22: What strategies does your organization undertake to support diversity and inclusion? (select all that apply)
Collect and monitor internal employment diversity data: 26%
Collect and monitor demographics of volunteers: 14%
Collect and monitor demographics of beneficiaries of the organization: 17%
Track and evaluate diversity and inclusion objectives for the organization: 39%
Advocate for the needs of one or more diversity groups as a central purpose of the organization: 26%
Administer specialized programing (initiative, funding, etc.) for diversity groups: 23%
Administer diversity and inclusion-related training to staff and/or volunteers (i.e. anti-racism training, accessibility training, anti-oppression training etc.): 24%
Follow-up to survey question 22: For which diversity group(s) did your organization advocate / administer specialized programming: