A woman walks by the Just for Laughs festival at the Quartier du Spectacle, Friday, July 16, 2021, in Montreal. The company that operates the Just for Laughs comedy festival says this year's edition will not take place. Groupe Juste pour rire inc. says it is seeking protection from its creditors as it begins formal restructuring. THE CANADIAN PRESS/Ryan Remiorz
The proliferation of festivals across Canada over the years has led to greater demand for funding. And it's the free events that are particularly at risk because they rely on sponsorship revenue that has not kept pace with production and labour costs that have skyrocketed by as much as 40 per cent since the COVID-19 pandemic, says Martin Roy, president of the Regroupement des événements majeurs internationaux, an association of major event organizers in Quebec.
Roy said he once celebrated the growing number of festivals in Canada as a sign of industry and cultural strength, but he now admits that abundance is compounding the problem. "At some point, if the resources are not going up the number of festivals at some point has to stop going up," he said. Such cuts could make Canadian festivals less attractive to tourists, Roy warned, and thus have a more widespread impact on the economy. For example, Eric Hamel, CEO of the Greater Montreal hotel association, in part credits the area's festivals and events with a surge in the local hotel occupation rate during the summer months.
The Just For Laughs festival brought tens of millions of dollars into Montreal every year, Andy Nulman, the event's former CEO, said in a recent interview. He said he suspects management struggles are behind the dire financial situation that led Just for Laughs to cancel its 2024 editions and seek protection from creditors. The company, however, said it hopes to run the festivals again in 2025.
In a statement, the office of Canadian Heritage Minister Pascale St-Onge pointed to the hundreds of millions of dollars the federal government has dedicated to emergency aid programs for festivals and major events since 2019, as well as additional investments in tourism projects.Man accused of using loopholes in ServiceOntario procedures in 'large-scale crime' involving 100+ vehicles