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The Economic Impact of Cultural Institutions in the Negev
The summary presents the primary results of a study designed to assess the economic impact generated by cultural institutions operating in the Negev. It was carried out by Trigger Foresight, a subdivision of Deloitte Israel, as part of Shatil’s Project Wealth: Promoting Local Sustainable Economic Development in the Negev, and in cooperation with the Yahav-Anchoring the Negev Initiative. 

The study employed an Economic Impact Assessment (EIA) methodology for evaluating economic impact, which assesses the direct and indirect economic impact of a given institution on the community and region in which it operates. It also examines the extent to which the institution’s economic activity “leaks” outside of the local community and the region. The methodology is based on similar studies conducted upon cultural institutions in the U.S., Australia and Britain, which followed the economic activity these institutions generated in their surroundings, taking into account the players who influenced and were influenced by that activity, including its customers, suppliers, employees etc.

The study presented here examines the economic activity of two cultural institutions in the Negev, the Be’er Sheva Theater and “Hangar Adama” in Mitzpe Ramon. The institutions differ from one another in size, location, and the extent of their activity. One is metropolitan and reportorial in nature, while the other is a cultural institution working from a small and relatively isolated community. Working on two different institutions from the same field makes it possible to examine it in greater depth, and lays the groundwork – however preliminary – for more general insights relevant to the sector as a whole.

The research divided the economic impact of these two cultural institutions into three geographical circles of reference. The first circle is the community in which the institution is located, the second circle is the Negev region, and the third encompasses the entire geographic area beyond the Negev. Because of the differences in location, character and size between the institutions, modifications to the research methods and work strategies employed in each were made when necessary.

This document represents a stage in the ongoing process of research. It includes the primary data from “Hangar Adama” and its analysis. Analysis of the data from the Be’er Sheva Theater is not yet complete, and the preliminary findings presented here reflect only a partial image that will be filled in more completely in the future.

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