Tourism Minister Robert Henderson says tax on the tickets for the Aug. 30 show will repay investment
When it comes to the government spending money on this summer’s Shania Twain concert, Tourism Minister Robert Henderson says it expects to make it back on the tax charged on tickets.
Henderson said the government is committing $250,000 to the concert through the P.E.I. 2014 fund as a sponsor and the nine per cent portion of the HST on ticket sales will repay that investment if the show sells out.
That doesn’t include the spinoffs from visitors to the province who pay for other things like accommodations, he said.
“There’s multiplier effects that can be calculated into this so we’re just trying to keep it very simple, very basic. It’s really the ticket sales where we’ll get our money back on the tax.”
Early ticket sales for the Aug. 30 concert were swift with the almost 4,000 grandstand seats already sold out.
The concert will be held at the Charlottetown Events Grounds with a capacity of 28,000 people.
Ticket prices range from $89.50 to $179.50 and if the concert sells out that will mean about $2.8 million in revenues.
The provincial portion of the HST on those tickets would be more than $250,000.
Although the provincial government is spending $250,000 to sponsor the concert, promoter Donald K. Donald is taking on any financial risks associated with putting on the show.
The concert is one of the centrepieces of Founders Week as part of the P.E.I. 2014 celebrations.
Henderson said if the government hadn’t acted as a major sponsor the concert might not have happened in P.E.I. and the province wouldn’t get the economic benefit.
“That’s the principle behind what we’re looking at being a partner in this significant event for Founders Week and the major concert for Founders Week.”
As for the economic impact of the province’s $5-million contribution to the P.E.I. 2014 fund, Henderson said the government plans to conduct a review after the year is over.
“Obviously the political issues and the public sometimes believes it’s all about parties and concerts and good times but there are significant economic benefits to tourism in this province.”