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The artistic program for Project Niagara has been described as classical, pops, popular,
jazz, and world. Proponents have stated that such a festival would enhance Niagara-on-
the-Lake’s reputation as an arts and cultural destination.
The approaching bicentennial of the War of 1812 has provided the impetus for the clean
up of the former DND rifle range. Parks Canada expects to use revenues from the
proposed festival to construct and maintain a presentation centre commemorating the
Battle of Fort George.
The Shaw Festival generates $59m in revenue to local businesses annually. The festival
itself lost $927,000 in 2007, with attendance of 265,648.
Another point of reference is the Tanglewood Festival, which adds $50m (U.S.) to the
Berkshire economy each year. Our understanding is that ticket sales cover less than half
the operating costs for Tanglewood, and that endowments make up the rest. As well as
classical music, the Tanglewood Festival includes contemporary, rock music, and a three
day jazz festival.
Although the Blossom Festival itself focuses on classical and pops music (weekends only
during July and August), the site is used for rock and country music concerts at other
times. Ravinia also includes rock, blues and country music in its programming.
Canada’s attractiveness as a tourist destination for Americans has been in decline for
several years. 9/11, SARS, border crossing delays, fuel prices and the U.S. economy
have all contributed to this decline. A U.S. government report showed a 2.3% drop in
visits and a 3.4% decline in spending between 2005 and 2006. Statistics Canada reported
13.7 million same-day visits by Americans in 2006, a 12.5% drop from 2005, which was
the previous all-time low. Specifically in Niagara, U.S. visits declined 39% between
2001 and 2006, with visits from all countries declining by 35%.
As of April, gas prices had risen on average 22% in the past year, and are expected to
reach $2.00/litre by 2012. In a recent AOL survey, 60% of Americans indicated they are
looking for ways to trim travel costs. A Siena Research Institute poll showed 80% of
New Yorkers plan to vacation closer to home due to rising gas costs. Michigan State
University forecasts (Michigan) tourism to drop 2% in 2008 due to rising fuel costs. The
Ontario Ministry of Tourism predicts an 8.6% decrease in U.S. visitors in 2008.
Project Niagara’s feasibility study has not been made public, so its projections of
economic viability are not available. Project Niagara has stated they believe they will
draw their audience from the same demographic as the Shaw Festival, and expect many
Our Analysis
Using the Shaw Festival as an example, we can assume Niagara would indeed derive
economic benefit from a music festival. As Project Niagara expects Shaw patrons to
“add on” a concert during their visit, and as many concert goers are likely to bring a
picnic, we can expect the net economic contribution to be less than the Shaw festival.
We believe the proposed music festival should start small, and grow only after it has
established economic viability and a world-class reputation. As explained elsewhere, we
also believe the proposed festival should be located at a site other than the Parks Canada
property on Lakeshore Road, where the environment, impacts to residents such as traffic
and noise, and costs to the Town and Region are less of a concern.
If the proposed music festival does proceed on the Lakeshore Road property, we want
Parks Canada to take steps (through the lease agreement or some similar means) to ensure
that artistic programming remains consistent with that described by Project Niagara in its
concept presentation. It should restrict both the types of music and decibel levels. We
would also expect Town Council to support such restrictions with appropriate noise by-
laws. In addition, we would expect Town Council to ensure the festival pays municipal
taxes (or payments in lieu), and is in no way subsidized by NOTL ratepayers.
Sources of Information
Blossom Festival website
CBC News website
http://www.detnews.com
The Fort-Worth Star-Telegram
http://www.nydailynews.com
http://www.newsday.com
Niagara Advance
Ontario Ministry of Tourism website
Ravinia website
The St. Catharines Standard
Shaw Festival website
U.S Embassy Report
Tanglewood Festival website
The Toronto Star
The Town Crier