Thank you, Mr. Chair, and thank you to the committee for inviting us here today.
The Stratford Festival's executive director, Anita Gaffney, is with me today and is also available to answer any questions.
We would both ask that you think of the Stratford Festival as a business, because it's the way we see ourselves. Ours is a $65-million company that sells its product to the world. This product—unparalleled in North America, with featured artists like Colm Feore, Martha Henry, Maggie Smith and Christopher Plummer—has attracted almost 29 million visitors to southwestern Ontario over the past 67 years.
The Stratford Festival attracts a diverse audience. While it comes from around the world, it is significant that 25% come annually from the United States. These are people who return to Stratford, to Canada, year after year, generation after generation, boosting our tourism economy and proving that when you do something of value it has a lasting impact. In the Stratford Festival's case, that impact is $130 million a year in economic activity, verified by the Conference Board of Canada.
The Stratford Festival was founded in 1952 to save the town from economic disaster when it lost its major industry. It worked, and it continues to work. The festival has grown to become the marquee tourism event in the multi-million dollar tourism industry of southwestern Ontario. It's the largest not-for-profit theatre in North America. It presents 700 performances of 15 productions on four stages. It attracts 500,000 people a year. It employs 1,000 people, creates 2,400 more full-time-equivalent jobs and supports hundreds of small businesses in the region. It drives $55 million in taxes to the three levels of government annually, and has the highest level of earned revenues, at 94%, and the lowest level of government support, at 6%, in the not-for-profit performing arts industry.
Not only is the festival a major attraction, it really does operate as a business. It's also good for business. It is a key attractor used for medical and corporate recruitment, and by regional economic development departments.
When I was the dean at Ivey, I touted the festival quite a bit in my efforts to recruit top talent. I know I was certainly not alone in that. I can attest to the fact that the Stratford Festival is extremely fiscally responsible. I say this as a business leader. It pains all of us to be in this position. It is not our usual manner, and one we will not become accustomed to. However, because of this pandemic, a business model that has worked for decades has been turned on its head. Without ticket sales, the festival's unique ability to be 94% self-funding becomes a unique vulnerability, forcing us to turn to government for its very survival.
The festival's survival is vital. It would not simply be a profound cultural blow to lose the festival. Stratford mayor Dan Mathieson has said it would have a catastrophic impact on the community, causing the loss of more than 3,400 jobs and decimating the downtown core. It is essential to save the festival, and we have taken a number of immediate steps to help stabilize the organization.
We have launched a ticket donation campaign. We have reduced overhead expenses. We have instituted a 50% salary reduction for the executive director and artistic director. We have drawn from our endowment. We have accessed the CEWS. We have accessed a $6-million line of credit from our bank, and we have launched a fundraising campaign to support our recovery.
Even with all of these efforts, there is a shortfall of $20 million. We need the help of government to close this gap. We are committed to raising $12 million in private sector donations, and we ask government to contribute $8 million through a combination of a grant and a loan.
With the support of the government, we can continue to generate jobs, economic activity and tax revenues well into the future. In exchange, we promise a tremendous return on investment, both culturally and economically, and $8 million is after all just 15% of the $55 million in taxes we generate annually.
Granting this urgent request will protect 3,400 jobs, stimulate the regional economy by at least $135 million annually and preserve the international prestige of this world-renowned Canadian theatre.
Thank you very much. We look forward to your questions.