The latest survey conducted by the association Évènements Attractions Québec (EAQ) among around a hundred of its members reveals that 51.5% of festivals and events recorded a deficit in 2023. A situation considered worrying given the overall increase in revenues.
These results were made public on Monday by Évènements Attractions Québec as part of its Financial portrait of Quebec festivals and events.
That year, in 2023, revenue sources increased overall by 92.9%. Whether it was revenue from activities such as ticketing or the sale of food and merchandise (42.4%), sponsorship revenue (25.3%) or subsidies (24.6%), all revenues were up.
The EAQ explains the deficit of the majority of the approximately 100 members surveyed of its association (out of 295 members) by the high inflation rate, which meant that in the summer of 2023, costs increased more quickly than revenues.
Programming costs, including artist fees, permit acquisition and production costs (28.7%), as well as site and facility management costs, including security (22.9%), administration costs (17.9%) and communication and promotion costs (10%): in total, costs increased by 116.2% compared to 2021.
Patrick Kearney, who directs the Santa Teresa festival, as well as the Regroupement des festivals régionaux artistiques indépendants (REFRAIN), which has 122 festivals, believes that the results of the survey reflect reality.
“That’s what we see on the ground,” he says. “Festival-goers are there, ticket revenues are up, subsidies from different levels of government are up too, but I would say it’s more difficult with sponsors. Yes, we have some, but when we lose a major sponsorship, it’s not true that we find ten to replace it, because yes, the current economic context is difficult.”
Establishment of a national summit
The survey also reveals that among the festivals and events that recorded a surplus (48.5%), profits decreased by an average of more than 50%. A situation that worries the general director of Events Attractions Quebec, François-G. Chevrier, who would like to set up a national summit of festivals and events with the Regroupement des évènements majeurs internationales (REMI) in order to find possible solutions.
“The sector must rethink its models by drawing inspiration from best practices, here and elsewhere,” believes Mr. Chevrier.
While increased government support seems essential, the solution cannot be simply to ask for more subsidies; it also requires identifying innovative and sustainable ways to support the development and growth of festivals. This will require close collaboration with governments, the private sector and civil society.
François-G. Chevrier, General Manager of Events Attractions Quebec
Patrick Kearney agrees with the idea of a summit or a “broader” national discussion on the future of festivals.
“There are several topics that need to be addressed. Because it’s true that we can’t just ask for more money. For example, what is the role of the private sector in financing festivals? Why doesn’t Couche-Tard sponsor a major festival? We also need to address the issue of pooling resources. We’re going to have to think about sharing services or making joint purchases to be more efficient. We need to address these topics with all the stakeholders in the sector.”
The president of REFRAIN also notes that there is a lack of data on the financial situation of festivals. “We need a more precise picture of the financial situation of all festivals. Because at the moment, we have surveys, data that are fragmentary, but we need a complete picture.”
Patrick Kearney believes that the various levels of government need to be involved in the discussion. “Governments were quick to find financial support for ComediHa! to organize a comedy festival this summer, so I think they can help find solutions for all festivals. Because the Montreal Street Arts Festival is as important as ComediHa!”
Martin Roy, who heads REMI, believes that better consultation with the community would benefit festivals, even though, he points out, several initiatives are underway. “The Chamber of Commerce of Metropolitan Montreal (CCMM) is organizing a forum on the performing arts and culture in October, the Quartier des Spectacles Partnership is working on festivals, Tourisme Montréal is working on a study, so there are a lot of things going on at the moment.”
Financing the free shutters
However, the survey figures corroborate what Martin Roy has been repeating since the end of the pandemic: expenses are increasing faster than income.
PHOTO CHARLES WILLIAM PELLETIER, ARCHIVES SPECIAL COLLABORATION
REMI President Martin Roy
The epicentre of the problems are festivals and events that have free components. Components that are funded through subsidies and sponsorships. And we know very well that these sums of money have not increased in the same proportion as expenses, which have increased by 30 to 40%.
Martin Roy, president of REMI
What worries Martin Roy is that in order to make their festivals profitable, directors often have to “cut their programming,” and therefore make significant cuts. According to him, “a range of measures must be put in place. But,” he adds, “we cannot avoid the debate on the contribution of certain funders, who have not indexed their financial assistance for eight or ten years.”
The head of culture at the City of Montreal, Ericka Alneus, acknowledges that the current economic context, with a high inflation rate, is “worrying” for festivals. “That is why we continue to collaborate with organizers, the private sector, partners in the tourism and cultural sectors, as well as other levels of government to find innovative and sustainable solutions, beyond an increase in public subsidies,” she responded in writing to The Press.
“I welcome any initiative that allows us to find solutions in a concerted manner, including that of a national forum,” added Mr.me Alneus, while specifying that she will be present at the Strategic Forum organized by the CCMM, and that she will take part in the discussions organized by the Quartier des Spectacles Partnership. “Montreal festivals are at the heart of the city’s identity and international reputation. That is why the City invested more than $8.5 million last year to support these events and continues to show ingenuity to support them even more.”
Finally, at the office of the Ministry of Culture and Communications, Minister Mathieu Lacombe says he is “monitoring” the situation closely and “working” with the cultural community.
“We are very attentive to the issues they are experiencing [les festivals] throughout Quebec, he responded in a written communication to The Press. We are working with community representatives and donors to find sustainable solutions. We have always been there to support them and we will continue to do so. But everyone has to participate. We are confident that other partners will also hear the call of these festivals.
The question of a national summit or forum should be raised again at the annual conference of Events Attractions Quebec, which will take place in Lévis on November 5 and 6.