NY Times article about the state of New Orleans musicians...

The Katrina Effect, Measured in Gigs
....it remains to be seen how long a loose-knit band of charities can stand in for coordinated economic development in one of New Orleans’s most important business sectors. Although New Orleans is one of the country’s most culturally distinct cities, a large-scale recording industry never took root here, even before Katrina. Yet the informal music sector, the kind visitors find in clubs and bars, and large-scale musical events like Jazz Fest, is a mainstay of the city’s tourism business.

In fact, local authorities say, music and cuisine are the twin pillars of the tourism industry here; the leisure and hospitality businesses account for almost 63,000 jobs in the city and for about 35 percent of the sales taxes. Both of those figures are larger than those of any other business sector, including the energy industry.

Still, nearly two years after Katrina, there are fewer restaurants and bars offering live music, and the ones that do are paying less, musicians say. As the reality of the slow recovery has set in, fewer locals feel that they can afford cover charges or even tips, so clubs that used to have live music four or five nights a week have cut back to two or three.

Conventions, typically a strong source of music gigs, are running at 70 percent of 2004 levels, but leisure travel remains far below pre-Katrina levels, according to the New Orleans Convention and Visitors Bureau. Over all, visitors generated $2.9 billion in spending in 2006, down from $4.9 billion in 2004, according to the bureau. About 3.7 million people visited the city in 2006, compared with more than 10 million in 2004. - complete article