1. GENERAL
This publication presents a summary of the national expenditure on culture, entertainment and sport for the period from 1984/85 to 2013.[1] The summary includes the value of goods and services consumed by households and by the general government sector. Among the goods included in this expenditure were: televisions and video recorders, personal computers, books, and entertainment and sport products. The various services included: orchestras and theatres, sport and games, using the internet, radio and television services, cinemas, community centres, National Lottery, Sports Lottery, etc. The summary is based on data collected in the framework of the national accounts for the purpose of calculating private consumption, public consumption, and capital formation.
The findings in this publication are presented in eight tables:
A summary of the national expenditure on culture, entertainment and sport for 1984/85 through 2013 at constant prices, by type of activity, is presented in Table 1. Data on expenditure and financing by sector and type of activity are presented in Table 2, and data on expenditure by operating sector are presented in Table 3.
Table 4 specifies the national expenditure on culture, entertainment and sport, at current prices, for the years 2006–2013, by type of activity and operating sector. However, fixed capital formation (in buildings and equipment) for 1995–2013 is presented by sector only, without a breakdown by type of activity.
Most of the national expenditure on culture, entertainment and sport consists of households’ commercial expenditure on purchases of goods and services. The breakdown of this expenditure by goods and services and by type of activity, for 2006-2013, is presented in Table 5.
The remainder of the national expenditure on culture, entertainment and sport consists of expenditure on culture, entertainment and sport services supplied to households by government and other non-profit institutions, at lower than cost prices. A breakdown of the expenditure of these institutions for 2011–2013 is presented in Table 6. Current expenditure is classified as labour cost and expenditure on purchases of goods and services. Capital formation is divided into expenditure on construction of new buildings and expenditure on purchase of equipment.
Tables 7 and 8 present the national expenditure on culture, entertainment and sport, excluding consumption of fixed capital, for 2006–2013, by financing sector and type of activity.
2. MAIN FINDINGS
In 2013, the national expenditure on culture, entertainment and sport amounted to NIS 50.9 billion, which was 4.8% of the Gross Domestic Product. This amount included the value of goods and services provided by the business sector, the general government sector, and non-profit institutions.
The national expenditure on culture, entertainment and sport at constant prices increased by 3.2% in 2013 compared with 2012, which follows an increase of 4.3% in 2012 compared with 2011 (Diagram 1, Table 1).
In 2013, the per capita expenditure on culture, entertainment and sport at constant prices amounted to NIS 6,046.0. This was an increase of 1.2% compared with the previous year (Diagram 2).
Financing of the National Expenditure on Culture, Entertainment and Sport (Table 2, Diagram 3)
In 2013, 91.2% of the national expenditure on culture, entertainment and sport was financed by households, compared with 86.2% in 2012, and 85.3% in 2011. The rest of the expenditure was financed by local authorities (5.1%) and the government and national institutions (2.4%), as well as by non-profit institutions (1.3%).
Of the total expenditure by households on culture, entertainment and sport in 2013, 69% was on cultural services such as: plays, movies, concerts, visits to nightclubs and swimming pools, sport events, internet services and gambling. The remainder of the expenditure was for the purchase of goods such as televisions, radio and stereo systems, computers, books, and musical instruments.
National Expenditure on Culture, Entertainment and Sport, by Operating Sector
(Table 2, Diagram 4)
The share of the business sector in the supply of goods and services for culture, entertainment and sport was 66.7% in 2013. The business sector supplied all of the goods for culture as well as all of cultural services for communications, gambling, internet and computers. In addition, the business sector supplied most of the cultural services for music, performing arts, and sport. The remaining culture, entertainment, and sport services were supplied by non-profit institutions such as: community centres, museums, theatres, and sport associations, etc. (20.7%) and local authorities – public libraries, culture and sport activities, gardens and planting, and swimming pools (10.5%). The share of the government and national institutions was minimal (2.1%), and mainly included items from the Ministry of Education budget such as culture and art, the Youth and Society Administration, and the Sport Authority, as well as expenditures made by the Jewish Agency for Israel, which focused mainly on the areas of socio-cultural activities for new immigrants and neighbourhood activities.
Current National Expenditure on Culture, Entertainment and Sport, by Type of Activity (Table 4, Diagram 5)
Of the total current national expenditure on culture, entertainment and sport in 2013, 21.8% was spent on music and performing arts (concerts, culture performances, nightclubs, and purchase of musical instruments); about 16.4% was spent on sport and games (sport clubs, swimming pools, purchase of sport equipment, etc.); 12.9% was spent on radio and television (television and radio broadcasting, cable broadcasting, purchase of radios and televisions, etc.); 12.4% was spent on social and cultural activities, which were mainly held in neighbourhood community centres; 7.9% was spent on nature and environmental protection (zoos, gardens, and planting). The purchase of computers and use of the internet accounted for 7.4%; and another 6.1% was spent on gambling (the National Lottery and the Sport Lottery, excluding prizes); 6.5% was spent on literature and printed matter; and an additional 3.3% was spent on cinema and photography (production and screening of films, and purchase of camera and filming equipment). A relatively small share (about 4.0%) was spent on cultural heritage (museums, antiquities), and 0.7% was spent on visual arts.
Capital Formation in Buildings and Equipment (Table 6)
Capital formation of the government, local authorities, and non-profit institutions in buildings and equipment for culture, entertainment and sport activities amounted to NIS 2.3 billion in 2013. Most of the investment (69.3%) was made by local authorities. This amount constituted 1.1% of the total fixed capital formation in the economy, excluding housing, ships and aircraft. Of this capital formation 87% was allocated for buildings, and the rest was for machinery, transport vehicles and other equipment.
Comparison with Previous Publications
Revisions have been made in this publication in comparison with findings published in the previous publication (Publication No. 1549), due to integration of the data with the findings of the 2006–2013 Household Expenditure Surveys. These surveys served as the basis for estimating the expenditure of households on goods and services related to culture, entertainment and sport.
3. TERMS, DEFINITIONS AND EXPLANATIONS
3.1. In the absence of any accepted uniform international definition of expenditure on culture, entertainment and sport, the types of expenditures delineated in two international publications are included:
(1) The UNESCO recommendations concerning statistics on public financing of cultural activities.[2]
(2) The items included under the heading “Culture and Entertainment” in the classification of individual consumption by purpose (COICOP).[3]
In the chosen definition, the expenditure of households on hotel services, restaurants, and cafes was not included. This definition is narrow compared to other definitions, and it has been proposed that the definition also include holidays, trips, transport services, and purchase of vehicles.[4] If the value of hotel services, restaurants and cafes (except vehicles) had been included, the national expenditure on culture, entertainment and sport would have more than doubled.
The value of culture, entertainment and sport services may also include, in some cases, services of a different type which cannot be separated in the financial statements, e.g., restaurants, cafeterias and shops operating in museums, theatres and the like.
3.2. The expenditure on culture, entertainment and sport includes expenditure of households on goods and services supplied by the business sector, the value of the services of government and other non-profit institutions and the value of the fixed capital formation of these institutions.
The value provided by the government and non-profit institutions at a low cost or free of charge was estimated according to the cost of production. Cost of production includes:
(1) Labour cost, which includes compensation for employees/employee jobs, taxes on wages and salaries, and other components of work.
(2) Current purchases of other goods and services.
Costs of production do not include expenditure of the government, local authorities and non-profit institutions on interest and linkage differentials. As a result, financing by loans, as opposed to financing by taxes and grants, does not affect the estimate of the value of culture, entertainment and sport services.
Expenditure on purchase of durable goods by households was recorded as expenditure for the year of purchase, even though these goods serve households for a longer period of time.
Fixed capital formation is comprised of expenditure on construction of buildings and purchasing equipment and vehicles used for culture, entertainment and sport. Capital formation is only classified by sector, due to the lack of a complete breakdown by type of activity.
3.3. Classification of goods and services
Classification of goods and services in the field of culture, entertainment and sport, by type of activity, was mainly based on UNESCO's recommendations:
Cultural heritage: Museums, archives, preservation of antiquities and archaeological excavations.
Literature and printed matter: Libraries, books, newspapers and other periodicals (except textbooks and school libraries).
Music and performing arts: Theatre, dance and concerts; nightclubs and other entertainment performances; purchase of instruments and equipment for playing and listening to music.
Visual arts: Galleries and painting, sculpture and other arts.
Cinema and photography: Production and presentation of films; purchase of photographic and filming equipment.
Radio and television: Television and radio broadcasting; purchase of radio and television receivers.
Socio-cultural activities: Community centres and cultural activities in the community, including Centres for Culture, Youth and Sport.
Sport and games: Sport clubs, swimming pools, purchase of sport equipment, etc.; organization of games and sport competitions.
Computers and internet: Using the internet, purchasing computers and equipment for computers.
Environmental protection: Recreational activities connected with nature and preservation of the environment.
Gambling: National Lottery and Sport Lottery.
General administration and unclassified activities: Administration of cultural, youth and sport activities, non-profit institutions n.e.c.
3.4. The national expenditure on culture, entertainment and sport was classified
according to the following sectors:
(1) Businesses: expenditure on products and services supplied by all industries – except the government, local authorities, national institutions and non-profit institutions which sell their services at a price that is not economically significant, and whose expenditures are not financed mainly by commercial establishments. This sector also excludes expenditure on housing services.
(2) Government ministries and national institutions (the Jewish Agency for Israel and the World Zionist Organization).
(3) Local authorities (municipalities, local councils and regional councils).
(4) Non-profit institutions, where a distinction is made between:
(a) Public non-profit institutions – non-profit institutions for which over 50% of their expenditure is financed by the government sector (government ministries, national institutions, or local authorities).
(b) Private non-profit institutions – non-profit institutions for which the financing of the government sector is less than 50% of their expenditure.
Within the classification of expenditure by sector, two types of classifications were used: by operating sector, and by financing sector.
In the classification by operating sector, expenditures were summed up according to the sector that supplied the goods and services, irrespective of the financing sector. For example, the expenditure of non-profit institutions (such as museums or cinematheques) on the purchase of goods and services was recorded as the expenditure of these institutions and not as the expenditure of other bodies in the economy that financed them.
In the classification by financing sector, financing was defined as the total direct expenditure on goods and services plus subsidies, grants, transfers and other net payments to other sectors (excluding loans).
Government financing excluded the component of subsidies in government loans, which were provided at low interest rates or without linkage.
Transfers between sectors were determined according to the entries in the government’s reports. The corresponding entry in the reports of the other sectors may differ from the entries in these reports. The most common differences were cases where receipts from the government were recorded in the financial reports of the non-profit institutions or the local authorities for periods different from those in which the government recorded its payments to these entities.
3.5. Expenditure items included in each sector
Households
Expenditure of households for purchase of goods and cultural services from commercial institutions, such as tickets to the cinema, theatre, concerts, nightclubs and other entertainment performances; admission and memberships to sport clubs and swimming pools; gambling, coin collection, radio and television fees, use of the internet, etc.; durable goods, such as televisions, DVDs and radios, stereo equipment, CDs, and home computers; leisure and hobby products, e.g., musical instruments, cameras and photographic equipment, sport equipment and accessories, toys and games, flowers, plants, and pets; books, newspapers and periodicals.
Government and National Institutions
(1) Expenditure of the Ministry of Education on culture, entertainment and sport, in the ordinary budget and in the development budget, included the following items: culture and art, Jewish religious culture, the Youth and Society Administration, the Sport Authority, the Israel Antiquities Authority and museums, as well as part of the Department for Adult Education. Culture, entertainment and sport services provided by the IDF were not included. Israel Broadcasting Authority services were included in the business sector.
(2) Expenditure in Israel by the Jewish Agency for Israel and the World Zionist Organization that were classified as culture, entertainment and sport. This expenditure is largely related to socio-cultural activities among new immigrants and in neighbourhoods.
( 13 )