Arts sector contributes billions to Canadian economy, but funding challenges remain: report

Canada's arts and culture sector contributed $65 billion to the economy last year, but an increase in public investment is needed to offset a drop in private funding and a rise in costs, says a new report from the Canadian Chamber of Commerce.

The report, released this week, says every dollar invested by the federal government in arts and culture generates $29 in economic activity. It says the economic impact of arts and culture is highest in Ontario, Quebec and B.C., supporting hundreds of thousands of jobs.

The report's findings reveal what the Toronto Arts Council and Foundation already knows, said Dane Bland, director of development and engagement.

"It illuminates the value of arts and culture to not just economic impact, but to life as a Canadian, to life as a Torontonian, as a whole," Bland said.

"I think one of the special things about living, working in a place like Toronto is just how pervasive culture is to all of us. And that shines through in terms of economic statistics."

Bland said reports such as this one should signal to all levels of government that it is worth it to spend public money on arts and culture, not just for the return on investment, but for public good.

"We know that the arts require more funding and that art funding has not kept pace with inflation."

In 2023, Ontario's arts and culture sector contributed $28 billion in GDP to the Canadian economy, which means Ontario represented 43 per cent of the sector's economic impact in Canada that year, the report says. Arts and culture in the province supported more than 458,000 jobs in 2023.

In Ontario, the report says visual arts and applied arts, followed by audio-visual and interactive media, generated the most revenue in 2023. It also says Ontario has Canada's "largest live performance domain," which thrives because of the province's large population and strong tourism market.

According to the report, growth in the arts and culture sector since 2011 has outpaced the growth of key industries such as oil and gas, wholesale trade, retail trade, construction and manufacturing.

"Canada’s arts and culture sector is an economic engine and an asset to all Canadians’ quality-of-life," the report reads.

But the federal government’s allocation to arts, culture and heritage is "slipping" as a share of total federal spending, while government grants, earned revenue and private donations are facing "headwinds" and costs are rising, the report says.

"Increasing public funding, an investment in Canada’s arts and culture sector, will strengthen its resilience and ensure continued socio-economic benefits for Canadians, both now and in the future," the report says.

Aubrey Reeves, president and CEO of the national charity Business / Arts, said the report is the result of a partnership between her organization, chamber of commerce and Canada Council for the Arts. The research was commissioned by Business / Arts in partnership with the council.