Live Music in the Time of Corona: On the Resilience and Impact of a Philharmonic Orchestra on the Urban Economy

Abstract

During the COVID-19 pandemic, many governments enforced epidemic policies of social distancing, restrictions of professional practice, and the prohibition of cultural live performances. Because such policies dried up important sources of income in the cultural and tourism industries, this paper examines how cultural institutions coped with this crisis. Drawing on the case of the Mannheim Philharmonic Orchestra in Germany, we collected original data and employed a regional economic impact analysis to determine both the financial resilience of the Orchestra and its impact on the urban economy. Because the Orchestra could not reduce costs during the COVID-19 pandemic, public subsidies were crucial to fill the income gap of missed live concerts. In turn, the regional impact analysis suggests that the Orchestra maintained its positive effect on the economic demand for goods and services in the urban economy. When balancing the city’s subsidies with the rental (city concert halls) and tax incomes generated by the Orchestra’s local impact, the Orchestra managed to induce surplus revenue for the city’s treasury.