With the cancellation of Just for Laughs, Montreal festivals are concerned
The cancellation of the Just for Laughs comedy festivals in Montreal and Toronto this year highlights the challenges faced by an industry grappling with rising costs and limited government grants. Consequently, some events are contemplating reductions. In Montreal, organizers are concerned about the city’s ability to maintain its vibrant summer atmosphere and diverse array of free entertainment offerings.
Maintaining free events is crucial for Montreal’s reputation and brand image, according to Suzanne Rousseau, director of Festival International Nuits d’Afrique. She emphasized the importance of preserving these events and finding ways to sustain them amidst financial constraints.
The summer season in Montreal is typically filled with a multitude of events, ranging from Piknic Électronik shows to the Formula 1 Grand Prix and Osheaga music festival. However, the increasing number of festivals in Canada has led to heightened competition for funding, particularly impacting free events that heavily rely on sponsorship revenue.
Despite Quebec’s recent increase in festival funding, the overall federal support has not kept pace with the industry’s evolving needs.
Roy mentioned that the rise in the number of events eligible for federal programs has led to a decrease in funding for long-time recipients. He used to view the increasing number of festivals in Canada as a positive indicator of industry and cultural vitality, but now recognizes that this abundance is exacerbating the issue. Roy emphasized that if resources do not increase, there will come a time when the growth in the number of festivals must come to a halt.
Rousseau and Alain Mongeau, the director of Montreal’s MUTEK festival, have expressed their desire for funding programs to prioritize events that hold substantial cultural significance.
During an interview, Mongeau referred to the post-pandemic inflation as a “mini-shock” to the festival industry in Montreal. He mentioned the necessity of making drastic decisions, stating, “We may have to make significant cuts to our programming. I believe all festivals are considering this.”
Roy cautioned that reductions in funding for Canadian festivals could result in a decline in tourist interest, leading to a broader impact on the economy. For instance, Eric Hamel, the CEO of the Greater Montreal hotel association, attributes the rise in local hotel occupancy rates during the summer months to the festivals and events in the area.
Without these events, Hamel believes that business travelers may shorten their stays and tourists may find fewer reasons to visit the city. Business travelers will attend conferences, complete their tasks, and promptly return home, according to Hamel’s statement on Wednesday.
Roy emphasizes that the economic effects of festivals create a significant return on investment for governments, describing it as a beneficial arrangement.
Andy Nulman, the former CEO of the Just For Laughs festival, mentioned in a recent interview that the festival brought in millions of dollars to Montreal annually. He suggested that management challenges may have contributed to the financial difficulties that led to the cancellation of the 2024 editions and the company seeking protection from creditors. Despite this setback, the company expressed its intention to resume the festivals in 2025.
