January, 2009 Harmony Residents Group 1

Benefits of Project Niagara

Project Niagara
Project Niagara is proposing a 17-week summer music festival featuring classical, pops, popular,
jazz, blues, and world music. The festival hopes to attract 260,000 visitors annually.

Using the Ontario Ministry of Tourism’s Tourism Regional Economic Impact Model (TREIM),
Project Niagara has estimated that the construction phase will generate:
1. $106 million in economic activity
2. 500 jobs

Ongoing operations are expected to generate:

1. $93 million in economic activity
2. 707 full time equivalent positions (33 of them permanent)

The feasibility study suggests that Project Niagara will complement “high-end” attractions such as
the Shaw Festival and wineries, and attract a “new type of tourist” to the region.

The Economy
Project Niagara’ feasibility study was completed before the economic downturn. Many experts
have suggested it will take years to recover from the current malaise. A recent Ipsos-Reuters
survey found that 72% of households have cut back on spending, with entertainment and
vacations as the top targets. Therefore, it is logical to conclude that attendance figures and
economic impact are over-stated. In this economic climate, there is further risk that Project
Niagara will fail to attract the $5 million in annual donations it will require to sustain ongoing
operations.

Benefits to Niagara-on-the-Lake
TREIM works at a regional and provincial level; therefore benefits for the town have not been
quantified.

Risks to existing businesses and non-profit organizations include the following:

1. Concert goers will divert spending from other attractions.
2. Concert goers will spend all of their time at the festival site and bypass the town.
3. Project Niagara fundraising will compete with local non-profit organizations.

Tourism Studies
Recent tourism studies have said that:
1. Tourists primarily visit Niagara because of its natural beauty and heritage.
2. One of the region’s primary issues is poor occupancy rates October through June.
3. There is a looming labour shortage in the tourism industry, especially seasonal workers.
4. Degraded infrastructure and traffic concerns are deterrents to visitors.
5. The carrying capacity of the area is strained, threatening both the environment and
quality of life of residents.

The above points suggest:

1. Commercial success may elude Project Niagara.
2. A music festival will exacerbate exiting problems in Niagara’s tourism industry.

For further information, please visit http://harmonyresidentsgroup.blogspot.com/

Harmony Residents Group

Harmony with the Environment Harmony for Niagara-on-the-Lake Residents