It works the same way in Germany. If you're playing music in essentially any venue, even just on the radio, you pay a royalties fee. For places that do it everyday there is usually a flat yearly fee. At least here, a good chunk of that money does indeed fund other cultural endeavors.
You also pay fees to GEMA if you buy a writable CD or USB or other forms of data storage, because you could potentially use it to store music on it. It's included in the price. This also affects devices with which you could transfer the data on the storage medium.
At least here, a good chunk of that money does indeed fund other cultural endeavors.
Cultural endeavors is a very polite way to put it. A large chunk of it goes to only a handful of big performers in the music industry, the small ones who would actually need money get very little.
Actually GEMA takes a percentage from the big pop musicians to help fund the contemporary/avantgarde composers who would otherwise earn a lot less. There are plenty of things to complain about with GEMA but I think for the most part they do a lot to support smaller, more obscure genres. (I ran a publishing company for contemporary music in Germany for ten years, so I had a lot to do with GEMA)
It depended on many factors like the size of the venue, length and instrumentation of the piece, also the genre. I can't give you an amount in € off the top of my head how much I earned lol.