Broadway serves as a cultural and economic cornerstone of New York City, yet the financial success of its productions is shaped by an intricate interplay of external and internal factors. This study investigates the relationship between Broadway’s economic performance, NYC tourism numbers, and production costs, focusing on the central research question: To what extent is Broadway’s success dependent on increasing tourism and decreasing production costs? By analyzing this key relationship, the study builds on limited existing research, offering new insights into the economic drivers of one of the world’s most iconic entertainment industries.

Using quantitative methods, data from four decades (1980–2023) were analyzed across three hypotheses. The first explored the correlation between annual NYC visitor numbers and Broadway grosses (N = 44 years of data). The second tested the relationship between Broadway grosses and material production costs (as indexed by the key costs - i.e., lumber and cotton price; N = 521 months of data). The third examined the combined effects of tourism and production costs on Broadway’s financial outcomes through multiple regression analysis (N = 44 years). While findings strongly supported the impact of tourism on grosses (e.g., R2 = .95, p < .001), production costs alone showed no significant correlation. However, when considered alongside tourism (via multiple regression), cotton prices emerged as a significant predictor ΔR2 = .006, p = .023, emphasizing the multifaceted nature of Broadway’s financial success.

These results emphasize Broadway’s reliance on tourism while highlighting the nuanced role of cost management, particularly the significance of cotton prices over lumber, in balancing creative excellence with financial sustainability. The study also encourages future research to examine broader success metrics, emphasizing adaptability and resilience amid external disruptions like global crises and economic shifts. Overall, this research enhances understanding of Broadway’s economic dynamics while providing a framework for addressing challenges in a changing cultural and financial environment.