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The Broadway League Releases Biennial Report “Broadway’s Economic Contribution To New York City” 2006-2007 Season Edition

The latest biennial economic impact study by The Broadway League, “Broadway’s Economic Contribution to New York City: 2006-2007 Season,” reveals that the impact derived from Broadway-related spending has hit $5.1 billion – a 44% increase from the $3.5 billion in impact contributed in the 1998-1999 season. The Broadway industry also supported an estimated 44,000 full-time jobs during the 2006-2007 season.

Breakdown of Broadway’s Economic Impact:

Visitor Spending - Ancillary spending by tourists who came to the city specifically for Broadway

 $3.09 Billion
Show Expenses - Spending to produce and run shows  $1.98 Billion
Theatre Expenses - Expenses incurred to maintain and renovate theatres $26 (Million)
TOTAL $5.1 Billion

“We’re pleased that our latest economic impact study shows an increase in Broadway’s contribution to the city,” commented Charlotte St. Martin, Executive Director of The Broadway League. “Broadway continues to play a vital role in ensuring the economic growth of New York.”

Visitor Spending

Audiences from out of town are the backbone of Broadway’s economic impact because they bring “new” money into the local economy from elsewhere. These revenues support not only Broadway, but also tourist-dependent industries such as hotels, taxis and restaurants.

Eighty-four percent of all tickets sold in the 2006-2007 season were purchased by people who did not live in New York City. In fact, tourists accounted for approximately 65% of the 12.3 million tickets (18% bought by suburbanites), the largest percentage in the past two decades. Of the 10.3 million tickets purchased by visitors from out of town, 4.69 million were sold to 3.16 million people who chose to make their trip to NYC expressly for Broadway.

Ancillary spending by these Broadway motivated visitors totaled $2.23 billion, while indirect rounds of spending totaled another $962.9 million. Together, the direct and indirect monies that were added to the local economy by Broadway-motivated visitors reached $3.09 billion. This represented a 5% decrease from the 2004-2005 season, in real terms, but a 4% inflation-adjusted increase from the 2002-2003 season.

Show Expenses

Along with 32 shows that carried over from past seasons, 35 new productions were mounted during the 2006-2007 season. Producers spent $186.1 million to bring these 35 new shows to Broadway (production expenses refer to new shows only up to first performance), and another $719.4 million to run both new and continuing shows.

This $905.4 million generated another billion dollars in indirect spending, for a total impact of $1.98 billion, representing a 10% increase from 2004-2005. Moreover, the number of playing weeks (total number of weeks all shows played) was the second highest in recorded history, reaching 1,509.

Inherent Contributions

From actors, directors and producers to waiters, taxi drivers and store clerks, Broadway supports a wide range of employment. During the 2006-2007 season, Broadway directly supported an estimated 44,000 full-time equivalent jobs. Broadway shows and venues directly and indirectly employed 14,000 people, while 30,000 people were employed in local restaurants, shops, taxis etc. because of Broadway-motivated visitors.

Broadway also generated significant tax revenues for New York City, through taxes such as general corporation tax, bank tax, utilities tax, commercial rent tax and local property tax. Excluding corporate profit taxes, an estimated $202.4 million in local tax revenues may be traced directly to the Broadway industry.

“Broadway’s Economic Contribution to New York City” is published biennially by The Broadway League, the clearinghouse for information on the business, demographics and economic impact of Broadway theatre throughout North America. The League compiles various statistics and publishes extensive reports on a number of topics. Printed versions of the reports are available for purchase online at http://www.broadwayleague.com/orderform.php.