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Culture and the Arts are a Vital Industry for New York City

In a year when so much attention has been focused on the woes of the financial industry in New York and London, it is important to remember that both of these great cities are centers of corporate headquarters, communications and the media, and renowned centers of higher education and the creative industries, including fashion and design. Of particular importance is that both London and New York are major centers of arts and culture, which serve as a major focus for local residents and also as an attraction to visitors both domestic and international. But the arts, in addition to their value as enrichment and entertainment, are also an important part of the city economy, and some 25 years ago the effort was launched in New York City to first define, then measure, the size of that economic impact. We have recently completed the third study in assessing and measuring this impact for New York City, finding that in the year 2005, the ‘arts as an industry’ generated a total economic impact of US$21.2 billion. In this article we will review how this industry was initially defined and the reasons why some sectors were included and some excluded. We discuss the components of the industry as analyzed in the recent study, and show