Austin News

Austin is justifiably proud of the label “The Live Music Capital of the World.”

But an academic study has added to reports from performers as well as music venue owners and employees: Without an infusion of capital soon, The Live Music Capital of the World may soon be dead.

A University of Houston Hobby School of Public Affairs survey conducted by the Austin Chamber of Commerce and the Opening Central Texas for Business Task Force said the majority of the 52 music venues surveyed – 62% – said they would be forced to close on Halloween, an eerily fitting date.

JP Riedie | Submitted

“The survey data signal quite clearly that the three industries in Austin that are in the most dire straits today as a consequence of the COVID-19 pandemic and its concomitant closures and restrictions on business operations are found in the live music, restaurant/bar, and hospitality services industries,” the report concludes. “Without either a dramatic decline in COVID-19 infections and a broad opening up of the Austin area economy or the provision of additional federal, state, and/or local financial assistance, it is quite possible that more than half of Austin’s Live Music businesses and Restaurants and Bars will be forced to close permanently by Halloween.

“As one respondent noted in the open ended comment section of the survey: ‘I think there’s a real risk of losing 90% of the independent music venues in Austin within the next few months.’ They were just one voice among hundreds, but their prophecy could well come true if economic conditions do not improve or additional aid is not forthcoming.”

Austin Tourism District 7 Commissioner District John Patrick “JP” Riedie said the Austin City Council must provide the funds to prevent this cultural disaster from happening. Supporters of the music industry have been calling on the council to act.

Riedie said a sizable reserve fund exists created from the city’s Hotel Occupancy Tax (HOT) funds that could be used now. Mayor Steve Adler said the money legally cannot be used for that purpose.

Riedie said that is a simply incorrect.

“No, there is over $200 million in the Convention Center reserves that can be used for this purpose since those businesses contribute to tourism,” he told Austin News. “These reserves were generated by user fees, parking garage revenue, vendor fees and excess Hotel Tax subsidies.”

Riedie said the city needs to focus its efforts and dollars on the people and businesses who have fueled its massive growth in the last few decades. Its music scene and culture have been crucial to that expansion.

A draft of Cultural Tourism Plan on the city website indicates how important art, music and entertainment is to the state capital.

“Austin’s creative and tourism industries are incredibly productive. Annually in Austin, the creative industries generate $4.35 billion in economic activity, and the tourism industry generates $6.3 billion in visitor spending alone,” it states. “And while Austin’s global recognition as an emerging 21st century city is on the rise and the region is seeing unparalleled growth and rapid urbanization, Austin faces very real challenges like cost of living increases, access to affordable housing and studio space, and sufficient transportation infrastructure to support both current and projected residents. All of these factors put at risk the very essence that defines its distinct and authentic character by providing an accessible and affordable place for the creative sector. Thus puts Austin’s established cultural brand at risk.”

Riedie said at this unprecedented time, the city must support and protect the people and businesses that are suffering. That’s why the reserve funds should be tapped into instead of designating hundreds of millions of dollars to support the current convention center and build a new one, he said.

“Austin subsidizes its convention center more than any other city in Texas,” Riedie said.

“Those who run the city have always prioritized the interests of wealthy downtown landowners and multinational corporations over small businesses and cultural workers,” he said. “Those funds are available right now.”

Riedie, the CEO of the Austin Creative Alliance, said it’s a matter of public priorities. 

“Our city faces the moral choice of continuing to transfer wealth generated by small businesses, music venues, restaurants and artists into a small section of downtown that largely benefits multinational hotel conglomerates, or instead investing that money to preserve Austin’s distinct culture,” he said.