It took Hurricane Katrina for people to recognize the value of musicians to New Orleans, soul singer Irma Thomas said Saturday.

"The artists of this city represent a great part of this economy, and everybody knows that now," Thomas said during a roundtable discussion at the New Orleans Jazz and Heritage Festival.

Before Katrina, music, arts and entertainment -- the state's "cultural economy" -- were part of a $9.6 billion industry, Lt. Gov. Mitch Landrieu said. While that industry, like others in the region, continues to rebuild, Landrieu said high-profile events like Jazz Fest help move it closer to the level it was at before the 2005 storm.

But the storm also changed the music scene here and taught musicians important lessons about their business, Thomas said. Now, instead of just passing on licks or other musical traditions or tips to young musicians, some older performers also are emphasizing the business side, she said -- and such things as the importance of receipts, and a paper trail for work in what, for some, remains a cash-only business.

Thomas, who is set to perform Sunday at Jazz Fest, said she didn't think twice about coming back, and only recently moved back into her 9th Ward home.

"I was raised here," she said. "My heart's here."

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Lynn LeBeaud has been selling hats at Jazz Fest since 1979, but thinks this one might be her best yet.

On Friday, opening day, she said she sold more than a thousand hats -- far more than the 500 to 600 hats she sold, on average, before Katrina, and enough to keep her and her two workers so busy they couldn't even fit in a bathroom break.

Not that she was complaining: Not only was business swift, she said, but the vibe at the festival was great.

"I'm excited about the liveliness of Jazz Fest again," she said. "I'm excited about the people. They're back."

Organizers did not release crowd estimates. But Saturday morning, shortly after the gates had opened, a crowd was already gathering around LeBeaud's hat stand, browsing through stacks of lids ranging from safari-style to straw hats and cool fedoras to cowboy hats.

She attributes part of the interest to people still replacing hats lost in Katrina. At least one festival-goer, though, just wanted a new one. Another was looking for a reprieve from the blazing sun.

(Copyright 2007 by The Associated Press. All Rights Reserved.)