DERBY'S key arts organisations are providing an annual £14.4m boost to the city economy.

A study into the value provided by the arts showed that for every £1 invested by the city council there is an economic return of £11.33; every £1 of funding from the Arts Council sees a £13.07 return.

The figures were revealed at Quad and said to demonstrate the rising importance of cultural activity in the city following the opening of the £11m arts centre in September 2008 and the rebirth of the former Playhouse as Derby Theatre in October 2009.

The five organisations involved in the study were Quad, Derby-based orchestra Sinfonia Viva, umbrella arts provider Derby Live, which produces the city's "homegrown" stage productions, the Deda dance centre and First Movement, which promotes arts for people who might otherwise be excluded.

The study was completed in October, prior to any benefits showing from the theatre reopening. It estimates the annual economic impact of arts activity from the partner organisations as £14,351,782; that includes £2.5m spent on local suppliers, £7.3m spent by day visitors and £4.5m by people on overnight trips to Derby.

More than 765,000 enjoy Derby's arts activities annually and 309 people are employed directly or indirectly.

John Forkin, of Marketing Derby, said that perceptions of the city had changed dramatically in the last two years among both residents and visitors.

He said that £1bn had been invested in Derby in that time and that major projects like the Westfield shopping centre had transformed the city, with the arts playing a key part in the change.

"Arts are good for the city," he said. "There's not a serious city of the 21st Century that doesn't see culture as important for the community.

"I believe cities are like football teams: they are either getting better or worse, they never stand still.

"Derby is a city that's definitely moving on upwards. A healthy, wealthy arts community is vital."

Keith Jeffrey, director of Quad, said: "If you look at Newcastle/Gateshead then everyone imagines there's a fantastic cultural life there and, while it is a lot better than it used to be, apart from a few peaks there's not much happening there that now doesn't happen in Derby.

"What they have done is told a story that has changed perceptions and sold it nationally and internationally.

"Fifteen years ago, if someone said they were going to Gateshead for the weekend it would have been a joke on The Likely Lads. It's about getting the offer right – and arts and culture is by far the most effective way of changing perceptions of cities.

"The amount of profile you can get by doing high-quality work is amazing. We now have big opportunities to change the perception of Derby," Key components in Derby's arts strategy are events such as the Format photography festival and Feste, the annual free series of outdoor spectaculars.

A single one-day conference linked to Format resulted in 218 hotel nights and £40,000 of business into the city.

Stephen Munn, of Deda and one of the organisers of Feste, said: "We have ambitions over the next five years to take advantage of what Feste has achieved. The festival's unique selling point is outdoor spectaculars and I think we can build on that significantly."

Mr Munn said the current economic climate meant arts funding could suffer but that he believed that the quality can be maintained and improved.