Thank you, Mr. Chair.
Members of the committee, good afternoon.
I'll deliver my remarks in both official languages.
My name is Martin Roy. I'm the executive director of Festivals and Major Events Canada, also known as FAME, which represents over 500 festivals and events across the country.
Since 2017, I have repeatedly told the committee about the challenges for promoters supported by Canadian Heritage, be it through the Building Communities through Arts and Heritage program, BCAH, or the Canada Arts Presentation Fund, CAPF. These are more than 1,500 organizations, which can be festivals or event promoters from across the country.
I'd like to thank the committee for its ongoing support. Its recommendations have often echoed our own.
In the last budget, we received partially what we asked for. The government extended again for two years the reinvestment in the CAPF. In 2019-20, the amount was $8 million and this time, the reinvestment is $15.5 million until April 2026.
However, that amount has still not been added to the budget base and as a result in a few months we will once again have to fight for the renewal of that amount as well as for the $7 million allocated to the BCAH program.
It represents 45% of the resources. I cannot begin to tell you how much frustration there is among people on the ground due to this unpredictability and uncertainty. What will happen to all these events if, one day, the amounts are not renewed, and the programs are cut by nearly half? That is not to mention the subsidies that often go down, despite the increase in overall funding. Those who received the maximum amount from the BCAH program prior to the pandemic, which was about $110,000, received about $50,000 this year.
This is the context for the second recommendation in our brief, which calls for top-up amounts to be integrated into the base budgets once and for all. Recommendation two is also related to the first recommendation.
It has been clear for some years now, on the one hand, that Canadian Heritage can no longer meet current needs. On the other hand, economic and tourism programs for festivals and events, whether put forward by the Conservatives in 2009 or by the Liberals before, during and after the pandemic, were, each time, short-term programs. They have alternated between speeding up and slowing down our sector's growth.
In our view, the situation must be remedied by creating a new program dedicated to the growth and attractiveness of Canadian festivals and events, managed by the regional development agencies, with an annual budget of $60 million. Among other things, this program would support a category of festivals and events that are not recognized by Canadian Heritage. It would add other assessment criteria and a new, different grant for those already supported by Canadian Heritage.
This program could include components and levels, and would be tailored to the needs of festivals and events of all sizes with growth potential and the ability to attract more domestic and international tourism.
Within the ecosystem, it would enable a form of upgrade: Festivals and events recognized in Canada would increase their international attractiveness, while others recognized regionally could have a greater impact throughout Canada. It would be in line with strategies aimed at restoring Canada's status as one of the world's most popular destinations and regaining market share.
Grants awarded through this program should be given as a priority for the festival's operations. Attendance, the origin of participants and, ultimately, results achieved would be taken into account. The program should not be targeted at new projects that require investments too many organizations are not able to make.
Support for festivals and events has a multiplier effect on tourism. It has been shown that for every dollar spent by a participant, 25¢ is spent on accommodation and 33¢ is spent on food, not to mention transportation and other expenses. A number of communities and commercial arteries derive, in a single short period of festival or event, revenues that are comparable to those for the entire year, and we must add to that the tax revenues and economic spinoffs.
In 2011, in its evaluation of the marquee tourism events program, the Government of Canada concluded that “the program responded to the need for an immediate economic stimulus to the tourism sector” and “created positive benefits for recipients.” This is what we are suggesting to you to do again today.
Thank you.