© Vienna State Opera
Is culture profitable for public finances? According to the Vienna Chamber of Commerce, the public subsidies granted to the Vienna State Opera are fully offset by the tax and economic benefits generated by its activities. In view of inflation, however, Bogdan Roščić argues for an increase.
Is culture a burden on public finances? At first glance, perhaps, but the financial balance sheet is more favourable when the economic spin-offs generated by cultural actors are included in the equation. This is shown by the latest report of the Vienna Chamber of Commerce, which evaluated the economic management of the Vienna State Opera (based on the 2023/24 season).
According to the report, the Vienna State Opera received a public subsidy of €79 million for the season (out of a total budget of €145 million, of which €100 million went to staff costs). A significant amount, but offset by economic activity worth €177 million, of which €44 million was returned to the state in the form of taxes. According to the Vienna Chamber of Commerce, the Vienna Opera also generates indirect economic activity through the 650,000 visitors it attracts each year - 40% of whom are foreigners and 20% from other Länder. According to the government agency, this induced economic activity is valued at €119 million, of which €35 million returns to the state coffers in the form of taxes.
In total, the State Opera contributes €296 million to Vienna's economy and generates around €79 million in tax revenue. According to Walter Ruck, president of the Vienna Chamber of Commerce, as quoted in the Austrian press, 'the Vienna State Opera doesn't cost any public money', but what's more, the institution 'is of essential economic importance for the city's activities'.
The model “will eventually collapse”
And this is significant in the current economic context in Austria. The country is confronted with the level of its public debt, which is expected to reach 4.1% in 2025, above the 3% limit set by the Maastricht criteria. Austria could be subject to an excessive deficit procedure from Brussels and, like elsewhere in Europe, the Austrian authorities are looking for savings - and, as is often the case, culture could be a prime target for budget cuts.
Bogdan Roščić, who runs the State Opera, is using the Vienna Chamber of Commerce report to his advantage. Despite an occupancy rate of 99.94% and ticket revenues of 42.8 million euros, he points out that he has to defend the State Opera's budget and subsidies every year. The institution has never been more prosperous, but also more threatened. According to Bogdan Roščić, the existence of the Vienna State Opera is “questioned every year”. According to the director, if the opera's subsidy had been automatically increased since the changeover to the euro, it would now be eight million euros higher.
And according to Bogdan Roščić, the model “will eventually collapse”. Further savings in personnel costs are considered impossible at the current level of wages, and cutting costs would therefore mean cutting the quality of the opera's performances – with the risk that the number of visitors to the institution would fall, leading to a drop in its income and the economic activity it generates. According to the president of the Vienna Chamber of Commerce, it would be in the interest of public finances to increase the subsidy for the State Opera in line with inflation.
free translation of our article first published in French
the 14 of January, 2025 | Print
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