I want to say hello to the members of the Standing Committee on Finance and to Mayor Nenshi.
Festivals and Major Events Canada speaks as the recognized voice of the festivals and events industry in Canada. Today it's a growing coalition of 27 of the country's largest events, including the Stampede here in Calgary, the TIFF in Toronto,
the Festival international de jazz de Montréal and the Festival d'été de Québec,
just to name a few.
Although they accumulate an overall budget of almost $450 million, FAME members form a fragile industry. Most of them are SMEs and NPOs. Their popular success doesn't necessarily translate into financial success, since a lot of them offer free activities and all of them face multiple challenges.
FAME Canada has submitted a brief to the House of Commons Standing Committee on Finance in which it is proposing the creation of a new federal program for the growth of festivals and major events. It has a budget of over $1 million and a capacity for attracting international tourists and/or generating an economic impact in their region. The funding program described here will help meet Government of Canada priorities through increasing the productivity of Canadians in increased labour market participation, training, education, and experience, especially among youth.
Security training in particular is an integral part of FAME's recommendations. Security costs—I don't have to mention them a few days after the terrible Las Vegas shooting—have multiplied, and are now one of the most important expenses for festivals and events. If it were only for this purpose, the program that we suggest would be justified.
Elsewhere, various jurisdictions have understood the importance of investing in festivals and events. Texas alone invests nearly $40 million annually in funds for various events. Australia has come up with the event partnership program. In the U.K., British Arts Festivals Association members get 13% of their revenue from the arts council, while here in Canada FAME gets barely 4% from different federal departments and organizations. An event that I visited this summer, Winnipeg Folklorama, doesn't even receive a cent.
FAME suggests using part of the 150th anniversary budget allocation to start a permanent fund, administered through Canada's regional economic development agencies. The overall objectives include increased attendance and geographic reach, increased tourist visitation and expenditures, and improvement in quality and sustainability of major events in Canada.
Based on the marquee tourism events program, a program that was positively evaluated but ended in 2011, we estimate that a fund of $45 million per year would have a tremendous impact, but we understand the government's financial situation, and of course we could review it. As an example, both Quebec and Ontario have programs in which they invest around $20 million per year.
Tourism plays a crucial role in the Canadian economy. It amounted to $34 billion of the GDP in 2016. I want to focus on the importance of festivals and events in the tourism industry.
As worldwide social phenomena, festivals and events are now considered conversion products that turn a vague intention to visit a destination into concrete travel plans. Last year almost 120,000 tourists visited Montreal mostly or exclusively because of the Montreal international jazz festival. Almost 37,000 were from the United States, and over 42,000 were from other countries. With only a fifth of the grants received by the Formula 1 Grand Prix du Canada, the jazz festival has almost the same economic impact and creates more tax revenue than this famous car race. I could go on and on with such examples.
A number of studies have demonstrated the economic importance of festivals and events. A 2009 study found that 15 of the largest festivals and events attracted 12,600,000 attendees. These festivals and events contributed $650 million to the GDP and created or maintained 15,600 full-time jobs. The analysis also estimated that the 15 events generated $283 million in direct and indirect tax revenue for the three levels of government each year. It has also since been established that each dollar invested by the government pays off 2.5 times in terms of taxes in the same fiscal year.
In conclusion, FAME suggests conducting an economic impact study during the first year of an eventual program and one every three to five years to precisely measure the industry's growth based on the investments made. FAME members are committed to increasing the number of international tourists they attract, knowing that each tourist will spend an average of $1,035 during their stay.
FAME is committed to supporting its members to grow, to professionalize the industry as much as possible, and to represent it extensively.
Thank you.