Thank you. Good morning.
I would like to thank you for inviting us here this morning.
On behalf of Festivals and Major Events Canada, I'd like to thank the committee for the opportunity to add our voice to your national consultation on budgetary priorities.
FAME is a member-funded advocacy organization bringing together the knowledge and experience of Canada’s major world-class festivals and events to speak with one voice and to advance the economic and societal importance of our sector. Formed in 2010 as the Canadian Festivals Coalition, we recently changed our name to be inclusive of the importance of our major international events.
Our submission contains three recommendations, including a request to review Canada's aviation cost structure and the funding model for the Canadian Tourism Commission. These items were presented to you in detail last week by the National Roundtable on Travel and Tourism, and I will focus my remarks today on recommendation one, related to investment in Canada's festivals and events.
Canada's major festivals and events are internationally recognized for world-class programming and the excitement that we generate, but we are so much more. Many associate our events with good memories, community engagement, and iconic Canadian moments, whether it's great theatre at the Stratford Festival, movie stars at the Toronto International Film Festival, or Bonhomme at Carnaval de Québec.
Today we're asking you to look deeper and associate us with economic growth, job creation, international competition, and export revenue. It is our hope that this presentation will help you to recognize our sector as a key driver of Canada's knowledge-based economy.
We have provided committee members with a copy of our 2010 economic impact study, which estimates that 15 of Canada's largest festivals attract 12,600,000 attendees annually, contribute $650 million in GDP to their local economies, and support the equivalent of 15,600 full-year jobs nationwide.
I know you are presented with a lot of numbers at these events, but I will highlight that our presentation uses a methodology directed by Industry Canada and reviewed by the Auditor General.
This substantial economic impact is derived from both operational and tourism spending estimated at $1.1 billion per year. The analysis also estimated that tourism and operational spending related to these events generates approximately $260 million in tax revenue for all three levels of government. I'll remind you that these statistics reflect only 15 of Canada's larger festivals, and they are greatly amplified when taken within the broader festival ecology of regional events.
FAME recommends that the federal government create a new, permanent $50-million annual investment fund for the economic development opportunities in Canada’s major festivals and events sector. The new program would be developed in consultation with the industry and administered through Industry Canada.
We believe that this new program of matching public and private funds will have a catalytic effect on sectoral growth and generate a significant financial return to Canadians. An ideal funding program would invest $30 million annually in Canada’s major international festivals and events, to be allocated by merit-based economic criteria and not subjected to regional quotas or limitations. It would also allocate $20 million annually to emerging and regional festivals and events that play an important role in their communities across the country. And it would provide for multi-year project funding to maximize opportunities for product development and return on investment.
Thank you.
The most recent federal initiative was funded through Industry Canada's marquee tourism events program, a two-year stimulus program ending in 2010. These recent stimulus investments enabled our sector to leverage additional partnerships, broaden marketing reach, and augment programming that attracted larger crowds and extended visits. The results were higher attendance, increased local business levels, and additional tax revenues for all levels of government, even during this recent time of global recession.
We are a growth sector with world-class product, operating in a highly competitive international market. We're not looking for government funds to subsidize our existing budgets. We're seeking a form of public sector venture capital to leverage earned revenue and increase private sector partnerships. This will facilitate incremental growth by augmenting spectacular programming and enhancing promotional events for visitors.
Thank you.