Cities with a strong and vibrant cultural sector routinely experience outstanding economic growth because:

• the economic benefits of a strong cultural sector include increasing innovation, productivity, and returns on the city’s brand
• exports from the region increase in terms of both volume and monetary value
• the inclusion of more people in arts and culture, along with the development of a participatory, “Live Culture” environment, help to spread the positive economic externalities associated with culture

These are all areas where Toronto can leverage its current cultural capital. By building on the inclusive nature of the city along with its existing brand strength, the City of Toronto can make the best use of its municipal cultural funding.

Authors
Andrew Bell, Martin Prosperity Institute, Rotman School of Management
Kevin Stolarick, Martin Prosperity Institute, Rotman School of Management

Subjects: Toronto, Arts, Culture, Regional Development

Related Projects: Creative Industries & the Creative Economy, Music & the Entertainment Economy

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Details
The report compares the municipal funding of the Major Cultural Organizations (Majors and MCOs) and Toronto Arts Council clients (TAC) to four benchmarks. Toronto’s municipal expenditure on culture is compared to average Canadian expenditure on culture growth at the federal, provincial, and municipal levels. Funding in terms of population and inflation fluctuations is also examined. Additionally, total municipal funding to the Majors and TAC is compared to the total revenues generated by these organizations over time. Finally, Toronto funding growth is projected into the future along with anticipated inflation and population changes. This projection informs six funding scenarios.