This year's Sydney Festival contributed an estimated $56.8 million to the state's economy, according to a Deloitte Access Economics survey.
Our $1.6 million investment contributed to the Sydney Festival's terrific buzz in January, and helped give the city's hotel, restaurant and retail sector a $24.9 million boost.
It confirms the hard economic value of supporting Sydney's creative life.
The City of Sydney has now boosted its support for creative festivals - committing an additional $450,000 for the Biennale of Sydney over the next three years, and an extra $100,000 for Sydney Festival First Night 2013.
This brings the City's total support for next year's Sydney Festival to $2.1 million, with more than $1.5 million committed for the 2012 and 2014 Biennale events.
Each year the City invests more than $3.6 million in cash and in-kind support to help bring major festivals to life, including Sydney Festival, the Biennale, Sydney Film Festival, the Sydney Writers' Festival and Mardi Gras.
Research shows that more than half a million people attended the 2010 Biennale, injecting more than $45 million into the Sydney economy, while around 200,000 people attended last year's Festival First Night, spending at least $24 million across the City.
In total, the City spends more than $9.6 million each year on grants and sponsorships to over 500 cultural and community groups through its grants and sponsorship programs.