Entertainment and culture sector needs help to survive crisis

Where were you when the live music stopped? When actors vanished, production crews thinned out, and the curtains closed in local venues? Thousands of singers, entertainers, actors, athletes and their related workers have found themselves without work due to COVID-19. No other industry has its survival as inextricably linked to mass social gatherings as entertainment and culture.

The province estimates the loss to the sports sector alone is already at $1 billion. The film and television industry injected $2 billion into the Toronto economy in 2018 and created 30,000 highly skilled jobs. The music industry has an estimated economic impact of $1.5 billion. A report recently released by the City of Toronto and the Canadian Live Music Association found that each venue that closed cost an average of $575,000 in annual GDP contributions, and $148,000 in provincial and federal taxes. The challenges that the film, music, and live events sectors currently face, and the economic impact of these issues, are real.

The Toronto Region Board of Trade recently gathered leaders from these sectors to share their struggles, plans and hopes for the entertainment and culture industry in the Toronto region. Here are their insights:

The high cost of space isn’t helping

The arts, culture and entertainment sector is constrained by the high cost of space in Toronto, whether renting or buying. Even before COVID-19 hit, Toronto did not have enough affordable, accessible spaces for creative and cultural organizations. Today, those organizations are paying rent and upkeep on physical spaces they are unable to use. This is a hit that, on top of existing shortfalls, the sector simply cannot weather.

Government support goes a long way

The entertainment and cultural industry is calling upon government to extend benefits and subsidies to support the sector over what will be a long recovery period, like the Canada Recovery Benefit (CRB) and Canada Emergency Wage Subsidy (CEWS) programs. Although the tax credit system already relieves some pressure for organizations, our group of sector leaders identified the need to extend programs to include live events and theatre. They also asked if tax credits could be expanded to include costs related to safety protocols.

The federal government has announced $500 million in dedicated support for the arts and creative industries. This support is a welcome first step toward addressing the challenges faced by the sector. However, only $20 million was earmarked for live music venues, which will likely not return to regular concert programming until March 2021.

Public trust is key

A successful return to production depends on public trust. That can only exist once clear and effective public health protocols are in place. The sector is calling for: clearly communicated guidelines from government and public health officials; support with preventive measures and public health protocols around reopening; and help managing new costs related to safety protocols within tight event and production budgets.

Looking ahead

The return of live sports and arts performances is impossible to predict but is almost certainly not fully viable until a vaccine is widely available. The message to our leaders and policy-makers is simple: Be bold by supporting and encouraging pragmatic changes within the sector so that it can survive. The entertainment sector’s vast contribution to the Canadian economy, and its irrefutable impact on societal happiness and the liveability of the Toronto Region, make it a top priority for continuous support. Many people – and businesses – move to urban areas to be closer to the arts, culture and entertainment scenes and other like-minded fans. In pausing live events, let’s ensure our approach allows us to once again hit the play button when the time is right.