By Tim Jennings
Special to The Globe and Mail
Published March 27, 2024
As a country, we are still recovering.
According to Canada’s Parliamentary Budget Officer’s most recent Economic and Fiscal Outlook, “sluggish growth” will continue to define Canada’s economy this year.
But the issues facing our economy, while complex, are not insurmountable. We do, however, need to think differently about how we tackle them.
Historically, investments in the arts and culture sectors have been missing from our long-term growth strategies. The Arts are often seen as a ‘nice to have’ in policy making, rather than cornerstones of Canadian thought and development, and seldom as the major economic drivers they are.
In its latest outlook, Destination Canada projected that growth in the tourism sector will outpace the overall economy. The Ontario Arts Council also recently published a report showing arts and culture tourists spend three times more than other tourists, helping to generate more jobs, growth and investment into local economies.
As one example, for every dollar spent at the Shaw Festival Theatre, in Niagara, more than seven dollars of additional spending by our patrons is added into local restaurants, wineries, and attractions, with a significant percentage – more than 1/3 – coming from US patrons. This results in over $240 million per year in additive economic activity to the region, a massive amount for any business, and particularly noteworthy for a charity.
In a recent analysis by PwC, an expansion of the Shaw Festival’s capacity and infrastructure could produce an additional half a billion dollars in new economic value in the region over the coming decade and yield a remarkable 15:1 return on investment, as well as save Canadians twice that in social and health benefits generated through its programs.
But The Shaw is far from alone in yielding such remarkable returns for local economies. Cultural attractions across the country draw millions of visitors from Canada and abroad each year and inject hundreds of millions of dollars into host cities through associated spending on food, accommodations, travel, attractions and retail.
Conversely, their disappearance is devastating, not only for local communities but also our broader economy. It’s sadly an impact not fully appreciated until it’s gone. The cancellation of the Just For Laughs Festival in Montreal this year, after over 40 years, is a stark example. The two week long festival contributed roughly $34 million annually to Quebec’s GDP, or the equivalent of over 500 full time jobs, and is now missing from this coming summer.
A dollar invested in this kind organization simply goes much further than in other sectors – not only because these organizations are mostly purpose-driven non-profits and charities who have historically had to do more with less, but also because they have a long track record of bringing the right players together – from private donors, to businesses and other non-profits, to the broader community.
With business and community leaders at the table, the key player now missing is government.
As we continue to face economic uncertainties, we need federal, provincial and our regional governments to recognize cultural infrastructure as a necessary booster of productivity and growth, in an ongoing way, and not an unnecessary expense. One that will bring significant private partnerships to bear to the good of the communities they serve. Investing in cultural projects now will unlock a more prosperous and enlightened future for Canada and for us all.
Tim Jennings is the Executive Director and Chief Executive Officer of The Shaw Festival.
