Some 51.5% of Quebec festivals and events did not make a profit or lost money last year. This is according to the latest study by the organization Événements Attractions Québec (EAQ), which brings together several festivals, events and tourist attractions in the province. For this exercise, carried out every two years, the group surveyed 97 of its 273 members.
In the previous study, carried out in 2021, 65.5% of events had recorded a profit. With 48.51% of events having made a profit, the 2023 results therefore recorded a decrease of 17 percentage points.
However, last year, “there was an increase in independent revenue generated either by ticketing or by sponsorship,” notes François-G. Chevrier, general director of EAQ, in an interview with The DutyWhat is leading to the increase in loss-making events is the “rapid rise in production costs,” he explains.
The study found that between 2021 and 2023, total spending on hosting an event or festival more than doubled, increasing by 116.2%. More than half of the spending recorded in 2023 was on programming (28.7%) or site and facility management (22.9%).
Comparatively, between 2021 and 2023, total event revenues saw an overall increase of 92.9%. Last year, 42.4% of the prize pool came from activity revenues (e.g., ticket sales). Sponsorships and grants accounted for 25.3% and 24.6% of revenues, respectively.
The study also sheds light on government subsidies received by Quebec festivals and events. The majority of these (51.4%) come from the provincial government. Regional and municipal authorities provide 28.7% of the subsidies. The federal government provides the remaining 19.9%.
And things are far from rosy for the events that still manage to make a profit. The EAQ study reveals that, “among the festivals and events that recorded a surplus in 2021 and 2023, the profit decreased on average by more than 50%”, which complicates any investment in future projects.
Events are reinventing themselves
What is of concern to the industry is that “the explosion in costs is starting to put pressure on the ability to deliver the same quality of event,” says the EAQ CEO. “We wouldn’t want to end up with stagnant revenues and a decrease in quality, where we have to cut the afternoon, a day, or remove a show,” he illustrates.
“The traffic is there. The challenge is rising costs and inflation,” summarizes François-G. Chevrier.
The effect of this increase in costs has been accentuated by the post-pandemic period, he says. “The shock was quite rapid. There were, at certain times perhaps, losses of expertise in the teams due to the slowdown linked to COVID. So, we may need to replenish our ranks, share best practices, give ourselves a new lease on life.”oomph” ” says the general director of EAQ.
Mr. Chevrier says he is “confident” that the industry will be able to reinvent the formula and get back on the road to profit. “Festivals have always found solutions,” he emphasizes. He and his team have recently looked into the issue of “interfestival coordination,” particularly in order to optimize the path of partners or artists and thus minimize costs related to transportation and logistics.