In Philadelphia, arts and culture is not merely a thriving sector that has generated hundreds of millions of dollars, but it is also the heart of the city’s cultural landscape and history. Known for having the nation’s largest public arts program, Philadelphia is also home to the Pennsylvania Academy of Fine Arts — the first and oldest fine arts museum and art school in the nation, the Walnut Street Theatre — the oldest continuously operating theatre in the United States, and the Philadelphia Museum of Art — one of the largest museums in the world. From visual to musical to performing arts, Philadelphia’s creative economy has played a pivotal role in the city’s economic resurgence and has strengthened its identity as a premier destination for creativity and innovation.
The City of Brotherly Love has evolved from a booming manufacturing hub to a thriving knowledge center. In response to decades of economic and population decline in the latter half of the 20th century, city and private sector leaders leveraged the creative economy and hospitality as catalysts for revitalization. This investment helped to reverse downward trends, as the city’s population began to rebound at the turn of the century and employment in arts, hospitality, and culture became a cornerstone of economic growth.
Through a series of studies conducted by Econsult Solutions, including the Avenue of the Arts Economic Impact Study and the 2025 State of North Broad Report, it is evident that the creative economy has promoted tourism, neighborhood revitalization, and job creation. In fact, the Greater Philadelphia Cultural Alliance estimated that the arts and culture economy generated a $3.3 billion annual impact in the greater Philadelphia region.
The UN Trade and Development agency defines the creative economy as an evolving concept of ideas, knowledge, technology, and creative industries like film, photography, performance, and architecture, among others. Between 2001 and 2024, arts and culture employment in Philadelphia grew by 38 percent, rebounding strongly after a pandemic-related decline. This growth trajectory is supported by Philadelphia’s ranking as the 6th most arts-vibrant large community in SMU DataArts’ 2024 report.
Fueled by public-private partnerships from Creative Philadelphia, Avenue of the Arts, Pew Center for Arts & Heritage, and other cultural institutions, investments in cultural and real estate initiatives have positioned the arts sector as a key economic engine in an unpredictable. Moreover, strategic investments and developments along North and South Broad Street have directly supported artists, institutions, and projects that contribute to the city’s creative vitality. These efforts, among other city-wide initiatives, have positioned Philadelphia at the center stage of the country’s semiquincentennial in 2026, inspiring further investment and development across the city and region.
Indeed, creative placemaking has played an indelible role in the city’s economic turnaround, with successful projects like the Mural Arts Program turning public spaces into cultural hubs that improve business growth, increase foot traffic, and highlight the city’s rich diversity. The Avenue of the Arts, anchored by Broad Street from City Hall to Washington Avenue, is the central cultural and arts district of Philadelphia and is home to many of the city’s most renowned theatres, performance venues, restaurants, and hotels. Key investments made by the Avenue of the Arts Inc. has helped catalyze nearly $1.7 billion in private sector investments in development costs alone since 2016.
The 2025 State of North Broad Report additionally serves as a case study for the role of cultural institutions in revitalizing neighborhoods, from employment to business development, and other infrastructure improvements. The success of community engagement programs and arts-based economic development projects have enhanced property values, reduced vacancies, and improved public spaces in the area. Other neighborhoods such as Old City, Northern Liberties, Germantown, and University City have become enclaves for artists, leading to the establishment of galleries, studios, and performance spaces, which drive local business and job growth.
Arts-driven tourism is a powerful engine for Philadelphia’s economy that boosts hotel occupancy, sustains local businesses, and reinforces the city’s identity as a premier cultural destination. From festivals and exhibitions to live performances, arts events consistently draw visitors, while the city’s dynamic food scene is home to James Beard Award-winning chefs and a growing immigrant population. Signature events like the Roots Picnic, the Flower Show, the Philadelphia Fringe Festival, the Philadelphia Museum of Art Craft Show, and Made in America continue to elevate the city’s cultural profile. Philadelphia’s commitment to uplifting its resident’s voices reflects the city’s diverse makeup, where 66 percent of the population are people of color and 27 million people visited in 2024.
Upcoming cultural programming in 2026 such as TED Democracy, Printmaking by the People with the Mural Arts Program, exclusive exhibitions at top museums, and the ArtPhilly festival, among others, will focus significant attention on the city. Other events include Philadelphia 250, the NCAA’s Men’s March Madness, the PGA Championship, the FIFA World Cup, and the MLB All Star Game. As the United States prepared to celebrate its complex history and 250th anniversary in 2026, Philadelphia sits at the heart of the festivities. The creative economy will drive national and cultural celebrations anchoring city-wide programming rooted in creativity, community, and innovation.
These programs not only elevate Philly’s identity, but also drive tourism, support local jobs, and revitalize neighborhoods. To sustain this momentum, city leaders, funders, and cultural institutions must continue to invest in the arts and culture sector, especially during an uncertain federal funding environment. With cuts to the National Endowment for the Arts, the National Endowment for the Humanities, and museums at large, Philadelphia’s arts and culture institutions are at risk and have already lost $831,000 in NEA grants, $1.2 million for PA Humanities, and up to $1.74 million in NEH grants, with millions more at risk.
Despite this uncertainty, Philadelphia can set a national example of how culture fuels equitable economic development. As 2026 approaches, the creative economy offers a blueprint for inclusive growth — one that other cities can look to as they imagine the future of art-driven transformation.
Saskia Kercy, Senior Analyst | skercy@econsultsolutions.com
Saskia Kercy is a senior analyst at Econsult Solutions, Inc. (ESI). A Philadelphia native by way of Haiti, she earned a bachelor’s degree in both economics and global studies from Temple University and a master’s degree in economics from Howard University. Her research interests include development, labor, international, and urban economics, with specializations in stratification, inequality, and affordable housing policy.
