Study „Musik­wirtschafts­standort Hamburg“

• Introduction

  

  Introduction

  Commissioned by Hamburg Music, the "Musikwirtschaftsstandort Hamburg" study provides a first-time insight into how the city's music entrepreneurs bolster its economic vitality and overall prosperity. Conducted by Oxford Economics, this research delves into the music industry's economic impact on Hamburg, from its contribution to the gross value added and employment figures to its influence on tax revenues. It also highlights the industry's ripple effects on adjacent sectors, notably tourism.

  The study was sponsored by the Free and Hanseatic City of Hamburg, Ministry of Culture and Media, and financially supported by numerous companies from the Hamburg music industry.

  Below are the key findings of the study. The complete study is available for download here:

  Download study (in German)

  Download Executive Summary

• Value Added

  

  Value Added

  In 2019, the music industry in the Hamburg region contributed €1.027 million to the Gross Domestic Product (GDP).

  Of this, the direct contribution from Hamburg's music industry to the GDP was €614 million, the indirect contribution was €298 million, and the induced contribution amounted to €115 million. This means that the GDP multiplier for Hamburg's music industry stands at 1.67, indicating that every euro generated in the music industry supports an additional €0.67 of value added in other sectors.

  Consequently, the music industry in the region accounted for more than one-sixth of the value added by the Port of Hamburg or 1.45 times the value added by the city's sports sector in 2018.

• Nationwide Share

  

  Nationwide Share

  The Hamburg music sector made a significant contribution to the national music economy: approximately 19.8% of the music industry's (direct) value added was generated in the Hamburg region in 2019. This substantial share also underscores that Hamburg is one of the most economically important music industry centers for Germany – which represents the fourth-largest music market in the world – as well as for Europe.

• Employment

  

  Employment

  In 2019, the Hamburg music industry supported the employment of 16,041 people in the Hamburg region, including full-time and part-time employees as well as self-employed individuals. This equated to one in 121 jobs in the Hamburg region. For comparison, the publishing sector only supported about 12,400 regional jobs.

  The music industry directly contributed 11,668 jobs – thus, 73% of the supported jobs were within the music industry itself. Through the procurement and wage payments of the Hamburg music industry along its supply chain, an additional 3,587 (indirect) and 787 (induced) jobs were supported.

• Fiscal Contribution

  

  Fiscal Contribution

  In 2019, the Hamburg music industry is estimated to have supported tax revenues of approximately €591 million in the Hamburg region — meaning it either contributed directly or stimulated other sectors to make a contribution.

• Industry Segments

  

  Industry Segments

  Hamburg's pivotal role in Germany's music landscape ensures that every facet of its music industry stands out on a national scale. The musical instruments sector, for instance, has an especially strong presence in Hamburg. Moreover, music events are the most prominent sector within Hamburg's vibrant music economy.

• Music tourism

  

  Music tourism

  The music industry in Hamburg has significantly influenced tourism, leading to an expenditure of €914 million. This sum encompasses €433 million from visitors staying overnight for music-related activities and €481 million from those making day trips for specific events.

  Remarkably, when compared to major cities like Berlin or Munich, Hamburg's music-centric tourism stands out. The city attracts a higher number of visitors for music-related trips, and the spending is notably generous. On average, a brief music-focused visit to Hamburg results in an expenditure of €346.8 per person, whereas Berlin records about €238.1 and Munich €297.5.

  Furthermore, it's important to consider the broader implications. The thriving music industry in Hamburg not only boosts the economy but also likely elevates the city's prestige and the overall quality of life for its residents.

• Strategic Imperatives

  

  Strategic Imperatives for the Music Industry Hub Hamburg

  • Music tourism
  • Innovation Strategy
  • Skilled workers & talents
  • Urban Development
  • Key Asset
  • Cluster

  Hamburg Music has pinpointed specific areas of action for the regional music industry based on the study's findings. These recommendations provide tangible strategies and starting points to further enhance the strengths of Hamburg's music economy and effectively address both current and future challenges.

  

  Music tourism

  Strengthening the music tourism capital Hamburg, for example by enhancing the cooperation between the music and tourism industry and target group-oriented marketing at home and abroad

  • More tourists & economic boosts in related sectors
  • Increased variety of offers & enhanced service quality
  • Attract and captivate: Today's tourists = Tomorrow's skilled workers

  

  Innovation Strategy for the Music Industry

  Scaling the industry's innovative power through:

  • Promoting networking & knowledge transfer between the industry, academia & startups
  • Establishment and expansion of innovation support programs
  • Marketing of innovation-driven success stories
  • Enhanced resilience & international competitiveness
  • Promotion of entrepreneurship & new startups

  

  Skilled workers & talents

  Expanding and positioning Hamburg as one of the top global locations for work, education, and further training in the music industry

  • Boosting the industry's competitiveness and innovation potential
  • Attracting talents
  • International reputation as a location for highly professional skilled workers

  

  Urban Development

  Preservation of existing music spaces and utilization of Hamburg's unique potential for the establishment of globally radiant music, economic, and recreational areas

  • Highly attractive cityscape & tourism promotion
  • Expansion of Hamburg's recreational offerings
  • Support of existing businesses & fostering new business settlements and enterprises

  

  Music Industry as a Key Asset

  A strong music industry promotes the image, prosperity, and quality of life of the city – expanding target group-oriented and global marketing of the music metropolis Hamburg helps to leverage these effects.

  • Place Hamburg among the top 5 most livable business locations in Europe
  • Increase global visibility of resident music companies

  

  Music Industry Cluster

  Exploring the feasibility of an independent cluster for the Hamburg music industry

  • Coherent development of the music industry as one of Hamburg's most important future sectors
  • Coordination and implementation of infrastructure measures
  • Networking, location marketing, innovation promotion, education and further training, synergies with other clusters & broad economic impulses for the Hamburg region