The Social Benefits of Public Theaters: The Case of Hyogo Cultural Center, Hyogo Pref.

Abstract

Public theaters established by local governments play an important role not only for cultural promotion but also as an “open space” for assembly of local residents. However, they have been under great pressure to reduce costs and increase benefits to residents, and the damage caused by the recent COVID-19 pandemic has further increased the pressure. This study examines in detail the costs and social benefits of a leading local theater, the Hyogo Cultural Center in Hyogo Prefecture. The Center was established as a symbol of reconstruction after the 1995 Kobe earthquake, and attracted more than 500,000 visitors a year before the COVID-19 pandemic. The total willingness-to-pay (TWTP) of the citizens of Hyogo Prefecture to maintain the activities of the Center is estimated to be more than 11.3 billion yen annually, which far exceeds the present annual budget allocated by the Prefecture to the Center. WTP is correlated with age, gender (male), and income, and those who appreciate the Center as a hub for artists, and outreach programs, have high likelihood to support the Center. It is desirable to establish a system to invite persons who have a large WTP to contribute to the support of the Center.