From Arts to Exports: The Economic Force of Toronto’s Culture Sector

Photo of the event Future Makers Exhibit 2024: Entangled Dimensions. Artists: Jane Tingley, Wilfred Lee. Photographer Arthur Mola.

Written by Anthea Foyer, Sector Development Officer, IDM Office, City of Toronto

Toronto is a leading North American hub for culture and the creative industries. From film and TV to video games and immersive experiences, visual and performing arts, libraries and archives – the creative industries are a key player in driving economic growth both locally and internationally. However, as our economy continues to face uncertainty and historical underinvestment, collaboration, investment and policy support is needed to ensure the sector’s continued growth and innovation. 

Toronto’s cultural vibrancy motivates people to move here, work here, and stay in the city. In turn, this attracts and supports new investment across a variety of industries, and contributes to Toronto, and Ontario, being consistently rated among the best places in the world to live. 

The importance of culture and creative industries cannot be overstated. These sectors are deeply integrated into Ontario’s economy. They generate billions of dollars annually and support over 270,000 jobs in Ontario alone. In fact, Ontario’s culture sector contributes $26 billion to the GDP, providing economic benefits that ripple across many industries and regions. 

The impact of these sectors is not confined to Ontario’s borders, as local businesses often engage in commerce nationally and internationally, forging connections with markets around the world. This includes Ontario’s video game sector that exports 80 per cent of its products outside of Canada, and Canada’s film industry that has official co-production agreements with close to 60 countries.

Tourism and culture are also tightly entwined. In 2023, over 18.4 million unique tourist trips to Ontario included cultural activities. In addition, culture tourists are more likely to be from overseas with nearly one in three international visitors to Ontario participating in arts and culture tourism (2023). Investment in cultural tourism brings high yields. For example, the Government of Ontario’s 2021- 22 Celebrate Ontario Blockbuster and Reconnect funding generated an estimated $1 billion in economic impact across the province, with every dollar of provincial funding driving nearly $21 of visitor spending

Segments in creative industries, such as video games and VFX, involve highly technical innovation, and Toronto companies have been early leaders, as one example, creating the Maya and Houdini software that grew to be used worldwide. These industries contribute to Toronto’s status as North America’s second-largest tech hub. Innovations in these industries are relevant across sectors including artificial intelligence (AI), healthcare and manufacturing. As well, Toronto’s status as a global leader in AI promises leadership in the ethical and economically sustainable application of AI as we move forward. This rich cultural and research environment paves the way for a new wave of innovation and creativity that can fuel economic and creative pathways to the future. 

As our economy experiences prolonged uncertainty, these sectors are not immune. Toronto’s outstanding talent, premium production infrastructure, competitive tax credits, and low dollar will continue to attract investment, though diversifying our international partners will be an important goal. Further, as the current climate motivates conversations about who we are as Canadians, our culture and our creativity are in the foreground of our collective response. The value of Canadian content has never been more apparent, but the sectors that make it are challenged due to the lack of funding or financing. This moment sends a signal that Canadians love Canada, and we need to see more of it in all forms. Support is needed to make that a reality.

To maximize the sector’s impact, and to reach the high potential of creative and economic impact from Ontario’s people and businesses, it is crucial for governments and industry to work together to:  

• enhance Ontario’s global competitiveness and attract international investment in the sector through collaboration and directed programs 

• expand and strengthen local workforce and skills development programs for careers in culture and creative industries, focusing on high-demand positions and cross-sectoral, transferable skills;  

• invest in the infrastructure needed to support culture-based tourism, including new cultural forms;  

• increase funding for the creation of domestic content, and sustaining inclusive practices in its allocation; 

• and ensuring the sector is prepared for the impact of AI through the increase of resources for training and knowledge-sharing, and by supporting principles-based frameworks that uphold human creativity, fairness, and economic sustainability. 

As we look to the future, Toronto’s culture and creative industries will continue to play a central role in fostering innovation, driving economic growth, and shaping the cultural landscape both in Ontario and beyond. By recognizing the immense value of creativity, we can help propel Toronto—and Ontario—toward a brighter, more prosperous future. 

Learn how the culture sector drives economic growth in our collaborative brief: Ontario’s Arts, Culture, and Creative Industries: Strengthening Competitiveness and Communities.