Report submitted to Toronto International Film Festival Inc. February 2010

Transcription

1 Economic Activity Associated with the Operations of TIFF Report submitted to Toronto International Film Festival Inc. February 2010

2 Acknowledgements Toronto International Film Festival gratefully acknowledges the assistance of its funding partners for this study including the Government of Ontario through the Ontario Ministry of Culture, Ontario Media Development Corporation and the City of Toronto Economic Development Office. February 2010

3 Economic Activity Associated with the Operations of the Toronto International Film Festival Table of Contents Executive Summary Background and Objectives Approach and Methodology Impact of the Toronto International Film Festival Conceptual Approach to Determine Economic Impact of the Festival Tourist Expenditures Sales and Industry Organizations Data Collection Sales and Industry Organizations Expenditures Expenditures of Journalists and News Organizations Summary of TIFF Festival Expenditures Delegate and Non-Delegate Demographics and Comparisons Qualitative Perspectives on the Importance of TIFF Impact of TIFF s Other non-festival Activities Economic Impact of Cinematheque and Sprockets Social and Cultural Impacts of Cinematheque and Sprockets Economic Impact Assessment Structure and Operation of the TREIM Model Economic Impact Model Results for the Festival Economic Impact of TIFF s non-festival Activities Summary Economic Impact of All TIFF s Activities Cultural Impact...39 Appendix A TIFF Delegate Survey Appendix B TIFF Delegate Survey Smaller and Larger Firm Estimates Appendix C Cinematheque Survey Summary Results Appendix D Sprockets Survey Summary Results Appendix E TREIM Model Runs Appendix F Estimated Value of Media Impressions (Cormex) i TCI Management Consultants

4 Economic Activity Associated with the Operations of TIFF Executive Summary Objectives The Toronto International Film Festival Inc. (TIFF) last conducted an economic impact study in At that time, the economic impact of TIFF was estimated to be $67 million 1. The organization has grown significantly since that time in terms of its annual operating budget, scope of activities and attendance. The purpose of this project was to update the economic impact analysis recognizing the significant and increased economic and cultural contribution that TIFF makes to the national film industry and tourism in Ontario through its activities. There are a number of dimensions of economic impact that are profiled in this study. The main categories of this include the impact of the Toronto International Film Festival on the film industry in Canada as well as on tourism in Ontario. Included in this estimate is the anticipated economic impact associated with the partially constructed Bell Lightbox. We have also referenced other aspects of impact such as the imputed value of advertising impressions associated with TIFF s media coverage and the value of volunteer activity. The study also includes qualitative information provided by respondents referencing various aspects of TIFF s programming. The intent of this assessment was to measure the total impact of TIFF over a one-year period. The specific time period under consideration was from September 2008 (the beginning of the 2008 major Toronto International Film Festival event) to August Throughout this report, we use the acronym TIFF to denote the Toronto International Film Festival organization and the term, Festival to denote the major film festival event. Other activities undertaken by TIFF throughout the year are referred to as non-festival events. Approach Conceptually, the main dimensions of economic impact are illustrated in the table on the following page. They include those relating to the Festival itself these include the tourism impacts associated with the Festival from both delegates and non-delegate tourists; the industry impact arising from delegate expenditures, TIFF s operating budget associated with the Festival, as well as the expected value of business transactions in Canada arising from business contracts, distribution agreements and similar types of deals negotiated at the Festival. This latter point recognizes that the Festival is a major gathering point for key deal-makers in the industry and that many deals relating to future productions, both inside and outside Canada are made in Toronto. There are also a number of impacts arising from TIFF s other non-festival related activities. These include events and screening programmes such as Cinematheque and Sprockets; the impacts of TIFF s non-festival related operating budget and construction activity related to TIFF s new home, the Bell Lightbox, during the study period. Additionally, there are a number of imputed values arising from the use of volunteers and from the media impressions that TIFF receives over the course of the year, both for the Festival and other activities. These values are imputed in that they do not represent the transfer of actual dollars in the community, but nonetheless have real value. 1 The Strategic Counsel, A Report to the Toronto International Film Festival Group Identifying the Economic and Cultural Impact of the Toronto International Film Festival Group, June This study included a business impact of $15 million (direct expenditures), tourism impact of $34 million (direct expenditures) and an imputed media impact of $18 million. Because the approach is somewhat different and not as comprehensive as the present study. For example, the value of business deals made as a result of the Festival was not considered. For this reason, we would caution against drawing comparisons with the results from this study. 1 TCI Management Consultants

5 It should be noted that even this fairly comprehensive approach is likely to be conservative. For example, there may be individuals who visit Toronto throughout the year specifically to use TIFF s extensive resource centre whose expenditure is not included here. Similarly, TIFF s country wide screening programme Film Circuit, generates $2 million dollars annually for distributors, exhibitors and community groups across the country, the impact of which is not captured in this study. However this analysis undoubtedly captures the main areas of impact. The main methodology used for the analysis was based on surveys of sales and industry delegates to TIFF as well as online surveys of attendees to Cinematheque and Sprockets. 2 TCI Management Consultants

6 Key Findings The following are a number of categories of economic activity associated with TIFF operations over the course of the year. Not all of these estimates drive economic impact as they represent different perspectives on value. For example, volunteer impact is not a direct expenditure, but an estimate of the value of volunteer hours if it had been purchased. Similarly, media impact is an imputed value is not a direct expenditure, but rather an estimate of the value of media exposure if it had been purchased. Thus neither volunteer impact nor media value can be treated as inputs to an economic impact model in the way that, say, actual tourist expenditures can, as these represent real dollars spent in the community that are then re-circulated within the economy. Despite these caveats, the total value of TIFF is clearly very large in all of the areas considered. The table below summarizes the main economic impacts of TIFF and its activities. TIFF Toronto International Film Festival (see Section 3 of the report) TIFF Other (non-festival activities) (see Section 4 of the report) TIFF Total Activity / Type of Impact Impact Component Direct Expense ($ millions) Economic Impact in Ontario (GDP Generated) ($ millions) (A) Visitor (non-delegate) expenditures $ $9.700 Festival (B) Delegate expenditures (travel, events, personal) $ $ (C) TIFF operating budget for Festival $ $ (D) Expected impact on film industry as a result of business transactions $ $ Economic Impact of (E) Sum of above four categories (A + B Festival Subtotal + C + D) $ $ Volunteer Impact of (F) Imputed value of labour from Festival volunteer hours $0 $1.139 Media Impact of Festival (G) Imputed advertising value from media impressions $0 $ Cinematheque Ontario (H) Visitor expenditures $0.063 $0.058 Sprockets (I) Visitor expenditures $0.041 $0.037 TIFF operating budget (J) TIFF operating budget (non-festival (non-festival activities) activities) $3.622 $3.411 Bell Lightbox construction (K) Construction impact during period $ $ TIFF Economic Impact of (L) Sum of above four categories (H + I + other (non Festival) J + K) activities $ $ Volunteer Impact of other (M) Imputed value of labour from $0 $0.148 (non-festival) activities Media Impact of other (non- Festival) activities TIFF Economic Impact (includes operating and capital expenses) volunteer hours (N) Imputed advertising value from media impressions $0 $4.422 (TCI est.) (O) Sum of shaded cells (E + L) $ $ TIFF Volunteer Impact (P) Sum of (F + M) $0 $1.287* TIFF Media Impact (Q) Sum of (G + N) $0 $29.322* GRAND TOTAL VALUE OF ALL ECONOMIC ACTIVITY ($ millions) $ * treated as GDP for the purpose of this assessment Key findings shown in the previous table include: Total economic impact of the Festival is $97.3 million of GDP generated in Ontario. 3 TCI Management Consultants

7 Total economic impact of all TIFF operations and activities over the course of the year measured is $131.7 million of GDP generated in Ontario. This includes the impact of the Bell Lightbox construction during the period which accounted for $30.8 million of economic impact. The estimated imputed value of media impressions is $29.3 million in advertising value. The imputed value of volunteer hours is $1.3 million. The grand total of all economic activity is $162.3 million including economic impact of TIFF s activities, and imputed values associated with the media impressions TIFF receives as well as the labour value of its volunteers. Using the Province s TREIM model, the table below summarizes the components of economic impact associated with the total spending for the Festival and non-festival components of TIFF s economic impact. (Note again, that these estimates exclude the imputed value of volunteer time and media impressions). Total Festival Impact Total Impact non- Festival Activities Total TIFF Impact Initial Expenditure ($ million) $ $ $ Total GDP Generated ($ million) $ $ $ Employment Created (jobs FTJE*) 1, ,365 Associated Labour Income ($ million) $ $ $ Federal Taxes ($ million) $ $8.340 $ Provincial Taxes ($ million) $ $6.870 $ Municipal Taxes ($ million) $0.330 $1.453 $1.783 All Taxes ($ million) $ $ $ Following are the key conclusions: The total TIFF economic impact of $131.7 million is significant and includes the impacts from TIFF operations ($100.8 million (rounded) in added GDP: comprised of $97.3 million from the Festival and $3.4 million from other activities over the course of the year) and its construction budget ($30.8 million in added GDP) during the study period. The employment created by all TIFF s activities is an impressive 2,365 jobs. The associated labour income as a result of all TIFF s activities is $90.7 million. The total taxes generated by TIFF are $61.2 million of which $34.0 million is federal, $25.4 million is provincial and $1.8 million is municipal. In addition to these quantitative economic results, TIFF delegates as well as visitors to Cinematheque and Sprockets have provided a wealth of qualitative feedback expressing their high levels of satisfaction with TIFF events and acknowledging their valuable contribution to the Canadian film industry and Canada s cultural landscape. Respondents in our Festival delegate survey noted TIFF s importance to them for the following: The importance of TIFF as a venue for networking (important to 37% of small organization delegates and 53% of large organization delegates) 4 TCI Management Consultants

8 Launching a film (important for 24% of large organization delegates 2 ) Seeing films (18% of small organization delegates) Meeting international industry partners (important for 19% of large delegate organizations) It is clear that TIFF has now matured internationally and is in the top tier of international film festivals. (Most delegates acknowledge that it is in the top five festivals worldwide.) Large and smaller industry delegates view it as a critically important marketplace to engage in industry networking and to facilitate business transactions. The Festival is a high profile event that is highly valued by visitors and delegates. Further, TIFF s many activities throughout the year such as Cinematheque and Sprockets are highly valued as a unique source for Canadian culture around the world, as valuable venues for presenting rich experiences of cinema and as an important venue for promoting underrepresented films and filmmakers. 2 Large organizations were a group sampled in our study which was identified by TIFF marketing staff as being those having the largest industry presence and influence. 5 TCI Management Consultants

9 1. Background and Objectives The Toronto International Film Festival Inc. (TIFF) last conducted an Economic Impact Study together with Strategic Counsel in 2002, with the results published in At that time, the economic impact of the Festival was estimated to be $67 million 3. TIFF had been using these figures for the past several years, and given the growth of its operating budget and activities during this time, the need to refresh this data had become increasingly necessary to provide stakeholders with a more accurate picture of TIFF s overall impact on the economy and to clearly communicate the significant role the organization plays in the cultural life of the Province and the vitality of the local and national film industry. Although this last study included a media valuation component, budget constraints limited the scope of the data collected, with international and broadcast media not included in the final figures. Given the unique positioning of TIFF as the only Canadian media arts exhibition organization with an international profile of its magnitude engaged in year-round exhibition, education and professional development activities through a multi-divisional organizational structure, TIFF believed it was important to undertake its own study. In fact, the organization s flagship event, the Toronto International Film Festival (the Festival), is one of the few cultural events taking place in Canada that consistently attracts a dedicated group of repeat visitors coming specifically for the event from out-of-province on an annual basis. As a result, the Festival is truly an economic driver with significant impact on the cultural tourism and film industries, bringing benefits that would not occur otherwise. The intention of this research is to enable TIFF to provide an accurate estimate of its economic impact and to provide a valuation of its activities as a key organization and ambassador for the province s entertainment and creative cluster on both the domestic and international stage. In addition to refreshing the economic, tourism and media impact information collected from the 2003 study, this study provides an opportunity for TIFF to collect baseline data in relation to the operation and programming of Bell Lightbox, a major public cultural institution which is expected not only to be a tourist attraction when in opens in 2010, but also a key facility for the Province s media arts cluster. The information collected provides a basis for comparing the impact of TIFF s activities on the provincial economy and cultural landscape before and after the establishment of one of Canada s major cultural facilities and includes data that could be used for trend analysis that would show how the economic effect of TIFF programmes is evolving and growing over time. The intent of this assessment is to measure the total impact of TIFF over a one-year period including both its main film festival as well as other activities TIFF is engaged in. The specific time period under consideration was from September 2008 (beginning with the 2008 Festival) to August Following a competitive tendering process, TCI Management Consultants was selected to undertake the economic impact analysis. The Ontario Ministry of Culture, Ontario Media Development Corporation (OMDC) and the City of Toronto Economic Development Department generously funded the study. 3 The Strategic Counsel, A Report to the Toronto International Film Festival Group Identifying the Economic and Cultural Impact of the Toronto International Film Festival Group, June This study included a business impact of $15 million (direct expenditures), tourism impact of $34 million (direct expenditures) and an imputed media impact of $18 million. Because the approach is somewhat different, we would caution against drawing comparisons with the results from this study. 6 TCI Management Consultants

10 2. Approach and Methodology Conceptually, the main dimensions of economic impact associated with TIFF include those relating to the Festival itself these include the tourism impacts associated with the Festival from both non-industry visitors and industry delegates. There is also the impact on the Canadian film industry as a result of expected business transactions (e.g., negotiations of distribution agreements, etc.) initiated at the Festival. There are also smaller impacts arising from the tourist visits associated with the other activities TIFF manages including Cinematheque and Sprockets. For the purposes of the study, a tourist is defined as a visitor from outside the City of Toronto (or former Metropolitan Toronto). Additionally, there are a number of imputed values arising from the use of volunteers and from the media impressions that TIFF generates. This study focuses on TIFF s two annual film festivals and its main year round screen programme, Cinematheque. It should be noted that even this fairly comprehensive approach is likely to be conservative. For example, there may be individuals who visit Toronto throughout the year specifically to use TIFF s extensive resource centre whose expenditure is not included here. Similarly, the impact of Film Circuit, which generates over $2 million annually for exhibitors, distributors and community groups across the country, has not be measured because of the scope of the programme. However this analysis undoubtedly captures the main areas of impact. The main activities undertaken to conduct the analysis included: Review of background documentation including previous 2003 economic impact study undertaken by Strategic Counsel for TIFF as well as a number of internal documents and reports. Surveys of a representative sample (210 organizations or 17%) of 1,208 firms and organizations at TIFF classified as sales and industry who represented 3,172 delegates visiting from outside Toronto the bulk of these surveys were conducted using personal interviews with delegates at the TIFF Festival; this information was supplemented with information from telephone interviews with larger delegate organizations following the Festival itself. Types of expenditures made by delegates included travel, events (e.g., dinners, parties) hosted in Toronto during the Festival, and personal expenditures. We designed and administered online surveys of 128 respondents who have attended Sprockets Toronto International Film Festival for Children and 639 respondents familiar with or who have attended Cinematheque. Results from the delegate surveys were used to derive conclusions about both the impacts of the Festival on the film industry in Canada as a result of the probability of business contracts or deals arising from purchases or distribution agreements initiated, signed or agreed to as a result of the Festival and which would result in spending in Canada. Further, the survey was used to determine industry expenditures undertaken by delegates in Ontario. Our study also made use of a tourism impact study of TIFF undertaken by TNS Canadian Facts for the Ontario Ministry of Tourism 4. This study focused on the 2008 Festival itself and was used to obtain tourism expenditures by non-delegates. Using the tourism expenditures associated with the Festival (delegates and non-delegates), these were used as inputs into the Province s Tourism Regional Economic Impact Model (TREIM). The TREIM model was also used to determine the economic impact in Ontario associated with the capital expenditures on construction of the Bell Lightbox over the study period, the impact of the TIFF operating budget as well as the impacts of Cinematheque and Sprockets as a result of visitor spending. 4 TNS Canadian Facts, Tourism Economic Impact of Ontario Festivals and Events: The Toronto International Film Festival Key Findings, presented to Ontario Ministry of Tourism and the TIFF Organization, January 22, TCI Management Consultants

11 Volunteer hours were obtained from the TIFF study, 2008 Report on Volunteers. We also reference a study undertaken by Cormex Research 5 which determines an imputed advertising value associated with media impressions as a result of the main TIFF festival. In the economic impact analysis we have adhered to the principle of incrementality throughout; properly undertaken, economic impact analysis measures only incremental (or new) expenditure taking place in a region as a direct result of the event or activity and which would not have otherwise occurred if the event had not taken place. The period of study chosen for the analysis was September 2008 to August In the balance of the report, Section 3 addresses the impacts of the Festival, undertaken in September Section 4 addresses the impacts of other activities undertaken by TIFF such as Cinematheque and Sprockets over the course of the rest of the year. 5 Cormex Research, Toronto International Film Festival 2008: An Audit of Canadian and international media coverage, July 1 September 23, TCI Management Consultants

12 3. Impact of the Toronto International Film Festival 3.1 Conceptual Approach to Determine Economic Impact of the Festival Both tourist and industry expenditure need to be considered in order to get a complete picture of the impact and benefit of the Festival. To do this, both injections of new expenditure into the economy are input to an economic impact model, which calculates the amount of re-circulation within the economy, and determines the total amount of benefit: The aggregate economic impact of the film festival occurs as a result of two injections of expenditure into the Toronto, Ontario and Canadian economies that otherwise would not occur. These are: 1) Tourist Expenditure: This is the expenditure of individual visitors and tourists who come to Canada and Ontario to view the movies shown at the Festival, partake in certain events, etc. If the Festival was the sole or predominant reason for their visit to Toronto, then all of their expenditure can be attributed to the Festival; if the Festival was only one of a number of reasons they visited Toronto, then only part of their expenditure can be so attributed. 2) Industry Expenditure: the Toronto International Film Festival is one of the top international film festivals where the film industry congregates to discuss possible partnerships, make business deals such as distribution agreements, and celebrate the industry. The expenditure of the industry in Toronto and Canada is quite separate from the expenditure of tourists. There are two types of expenditure from industry that must be recognized: actual and expected expenditures: A) Actual expenditure is money spent at the Festival by industry that otherwise would not have been spent. There are three categories of actual expenditure: 1) what companies spend in order to send their delegates and representatives to the Festival; 2) what companies spend in putting on galas, events, parties, etc.; and 3) the personal expenditures of delegates while in Toronto. There are two types of organizations represented as industry ; these are 1) sales and industry firms (i.e. those in the film and related businesses); and 2) news organizations and journalists. The expenditures 9 TCI Management Consultants

13 of each were estimated separately. Firms in the sales and industry category typically have expenses in all three categories; those news organizations and journalists typically have sales in just categories 1) and 3) above. B) Expected expenditure is money that companies in the sales and industry category expect to spend in Canada as a result of successful business transactions, sales or deals that are conducted at the Festival. Typically, these deals would involve signing a distribution agreement for a film(s); however, they could include a number of different business transactions related to the film industry. The analysis took into account the probability of the deal being completed successfully and analyzed the results of this deal expenditure in Canada. This expected expenditure recognizes that TIFF acts as an industry forum where people expect to network and discuss various business arrangements. The extent to which these business transactions would happen in any event, regardless of whether TIFF is held or not, is unknown, although direct feedback from attendees at the Festival indicates that TIFF is an extremely important venue for business deals. Clearly, when surveying delegates and companies about actual and expected expenditures, the actuals are much more tangible and certain; expected expenditures, because they will take place in the future, are less certain and more subject to contingency. Expected expenditures accordingly have a less-than-100%-certain characteristic about them (whereas, of course, actual expenditures which have already occurred are 100% certain). Accordingly, the estimate of expenditure must take a weighted approach into account: in other words, a deal that was expected to result in $100,000 of additional expenditure in Canada, yet according to the respondent had only a 50% chance of being concluded, would have a weighted value of $50,000. (In reality either the deal will go ahead in which case the expenditure in Canada will be $100,000 or it will not, in which case Canadian expenditure will be $0. Of course, there is another possibility, which is that the terms of the deal change from what was discussed at TIFF and actual expenditure may be something else altogether.) In any event, the $50,000 figure described above is our best possible estimate of the total expenditure in Canada that would be associated with that particular deal. TIFF retained TCI Management Consultants to measure the overall economic impact of the Festival (including both the tourism and industry impacts of the Festival and other activities organized throughout the year). To this end, TCI incorporated the results of the TNS-Global study (which measured tourist that is, non-delegate expenditure) and conducted its own analysis of the industry impact of the Festival in order to determine the economic impact of the Festival overall. The following section provides more details of how the tourist and industry data was collected and analyzed. We begin first with the calculation of the tourist expenditures. 3.2 Tourist Expenditures The data in this section is derived from the TNS study undertaken for the Ministry of Tourism investigating tourist expenditures to the September TIFF Film Festival event. A visitor is defined as any attendee outside the City of Toronto, i.e., the former Metropolitan Toronto, Census Division 20). Estimates of the total audience size in the TNS study were derived from three main sources of information to provide a base measure; specifically: Ticket sales for all screenings: 379,545 Number of films viewed per person per Festival visit The 2008 delegate list The following are key facts from the TNS study: 1. Total non-delegate visitors: 14, TCI Management Consultants

14 2. Total TIFF visitor parties (NB: a visitor party can include more than 1 person; the parties will therefore be fewer than the number of visitors): 11, Total average spend by non-delegate visitors during their time in Toronto while at the Festival: $1,149 The table below shows the analysis undertaken to derive non-delegate (tourist) visitor spending to the Festival using a combination of TNS and TCI data. (In order to undertake the analysis, the delegate organizations attending the Festival from outside Toronto are subtracted from the total number of visitor parties. This provides the total number of non-delegate (tourist) visitor parties to which an average expenditure can be applied.) Smaller organizations Larger organizations Total (1) Number of delegate organizations 1, ,034 (2) Est. percent attending Festival (TCI and TNS estimate) 97% 100% 97% (3) Delegate organizations attending Festival 1, ,856 (4) Estimated outside Toronto (TCI estimate from survey) 85% 85% 85% (5) Number of delegate organizations attending from outside Toronto ((3)*(4)) 1, ,683 Using the total number of visitor delegates attending from outside Toronto, the following are the steps taken to derive non-delegate visitor spending: Total (6) Total parties (TNS) 11,241 (7) Total non-delegate visitor parties (= (6) (5)) 9,558 (8) Ave. spend of non-delegate visitor party (from TNS) $1,149 (9) Total non-delegate (tourist) visitor spend ((7)*(8)) $10,981,585 Therefore the estimated total non-delegate (tourist) visitor expenditure is $ million. 3.3 Sales and Industry Organizations Data Collection Some 1,208 firms and organizations classified as sales and industry were represented by 3,172 delegates. Recognizing the differential expenditure patterns of large and smaller organizations, the survey of these companies and delegates was split into a large firm sample and a smaller firm sample. This was done to achieve a more representative and accurate estimate. Large firms were a sample identified by the Festival Sales and Industry Office staff in order to include organizations that are known to have a significant industry presence and influence. In the large firm sample, 253 larger firms which were identified by TIFF were sent an survey, and were followed up where required by telephone interviews. These firms tended to be those with larger representation (delegates) at the Festival, and may not have been represented in the delegate guide and were unlikely to have been captured in onsite sampling. The was sent by Cameron Bailey, Co-Director of the Festival, in order to convey to these larger organizations the importance and significance of the survey. (It was felt that an overture by a senior and recognized TIFF official, who had an existing rapport with many of the delegates, would be more likely to generate a response from these organizations than an approach by the consultants directly. Further, to conduct an interview with these organizations required our interviewers to conduct some due diligence within the organization to identify the appropriate respondent for an interview.) For the smaller organizations, (i.e., those not on TIFF s list of larger organizations) in-person surveys of delegates at the festival, plus follow up telephone calls and s, were employed as the means of 11 TCI Management Consultants

15 obtaining information. While the information collected was identical, responses were carefully screened to ensure that there was no duplication or overlap in the response. There were various mechanisms employed to collect data from delegates and companies attending and benefiting from the Festival. These were: an on-site survey of delegates asking them about expenditures, potential deals being negotiated, etc. follow-up telephone surveys of delegates and companies (in many cases, a contact made with a delegate at the Festival resulted in a subsequent appointment for a telephone interview) follow-up surveys of delegates and companies (undertaken by means of an online survey) separate and telephone surveys of larger companies in the industry who may have attended or benefited from the Festival. Any potential duplication of the larger firms with the delegate survey (which tended overwhelmingly to be small and medium-sized firms) was tracked and would be eliminated; however, no such duplication was encountered. As a result of these efforts, a reasonably representative sample of the industry was obtained. Our estimates of the size and representativeness of this sample is as follows: Companies/Organizations Participating in TIFF Delegates Represented at TIFF Number Represented at TIFF (Population) Sample Surveyed % Representativeness 1, % 3, % Data from TNS, who were surveying visitors to the Festival as well as delegates after their visit to the Festival, reported that approximately 3% of delegates that they interviewed did not actually attend the Festival. (This was not found in the TCI work, as the survey of smaller firm delegates was conducted using an actual interview at the Festival, or in some cases a subsequent interview after a business card had been collected. In any event, all those smaller firm delegates interviewed by TCI had actually been in attendance at the Festival.) However, in order to generate a more accurate estimate of smaller firm delegate expenditures, the delegate-related expenditures have been reduced by 10%. Larger firms were much more likely to ensure that delegates were in attendance and so these numbers have not been discounted at all. Throughout the survey, the consultants monitored the representativeness of the survey in terms of the types of respondents being surveyed (industry, distributors, filmmakers, film commissions, other festivals, etc.). There were no major gaps or omissions identified as the survey progressed. The sample results were then weighted up to the estimate of total population in order to determine total actual and expected expenditures (a procedure that essentially multiplies the sample average by the population total to arrive at an estimate of total expenditures.) 12 TCI Management Consultants

16 3.4 Sales and Industry Organizations Expenditures The table below shows the responses received from each of these sub-surveys. The differences between the larger organization and smaller organization samples are intuitively reasonable: smaller organizations send fewer delegates on average to TIFF than larger organizations (1.3 for smaller organizations; 3.4 for larger ones) because of this, smaller firms on average spend less (about 1/3 the amount) on travel-related expenses for their delegates, even though they spend approximately the same amount per delegate (actually slightly less, but just so) delegates from smaller firms spend less in Toronto on personal items (e.g. gifts, souvenirs, etc.) fewer smaller firms host galas, parties and events - and when they do they spend less on average then larger firms fewer smaller firms are involved in deal-making that could result in additional expenditures in Canada, and those deals on average are smaller (less than half the size of deals made by larger firms) However, due to the number of smaller firms their combined impact is significant and exceeds that of the larger firms. 13 TCI Management Consultants

17 Sales and Industry Expenditures Smaller Organizations Larger Organizations All Organizations (A) No. of Organizations 1, ,034 (B) Associated Delegates at the Festival 2, ,172 (C) Average Number of Delegates per Organization at the Festival (B/A) DELEGATE-RELATED EXPENDITURES (D) Average Total Expenditure per Organization on Travel $5,831 $16,541 $7,163 Expenses for Delegates (E) Average Expenditure by Organizations per Delegate on $4,485 $4,865 $4,588 Travel Expenses (D/C) (F) Personal Expenditure of Delegates $578 $1,242 $758 ORGANIZATION-RELATED EXPENDITURES (G) % of Organizations Reporting Hosting Parties and Events 12.9% 44.4% 16.8% (H) Estimated Number of Organizations Hosting Parties and Events (I) Average Event-Related Expenditure for Organizations $5,845 $9,426 $7,013 Hosting Events (J) Average Expenditure for all Organizations on Events (H*I)/A $754 $4,172 $1,179 (K) % of Organizations Reporting Negotiating Deals at TIFF 8.9% 26.0% 11.1% (L) Estimated Number of Firms Involved in Negotiating Contracts (M) Weighted Average Expected Expenditure in Canada for each Organization Making Deals as a $299,221 $440,000 $331,515 Result of Deals Made (N) Weighted Average Expected Expenditure in Canada for all Organizations (including those with no Deals) as a Result of Deals Negotiated $26,718 $114,783 $36,672 The information from the table above is further analyzed in order to obtain estimates of actual and expected industry expenditures which are summarized below. The detailed calculations are available in Appendix B. 14 TCI Management Consultants

18 Using the sample survey information shown in the previous table, it is thus possible to estimate the top line expenditures of all smaller and larger firms, (i.e., weighting up from the sample results to develop an estimate for the entire population). Area of Expenditure (A) Companies Total Travel Expenditure in Canada (B) Event-Related Company Expenditure (C) Personal Delegate Expenditure Smaller Firm Estimates Larger Firm Estimates Total Estimate ($ millions) $6.763 Million $3.484 Million $ $1.344 Million $1.056 Million $2.400 $1.083 Million $1.005 Million $2.088 (D) Expenditures of Journalists and News Organizations (see section 3.5) $1.464 Subtotal Companies Actual Expenditure (A+B+C+D) $ (E) Operating Budget of TIFF related to Festival $ (F) Additional expected expenditure in Canada as a result of business deals. $ Million $3.960 Million $ ESTIMATED FESTIVAL-RELATED ACTUAL EXPENDITURE IN CANADA (A+B+C+D+E) DEAL-RELATED EXPECTED EXPENDITURE IN CANADA (F) ESTIMATED TOTAL FESTIVAL EXPENDITURE IN CANADA (A+B+C+D+E+F) $ $ $ Because of their much greater number, the cumulative impact of the smaller firms above is substantial (nearly $43 million) and greater than that of the larger firms ($4 million). Clearly the contribution of smaller firms to the economic impact of the Festival is impressive and important. The above top line results in terms of actual and expected expenditure in Canada of sales and industry organizations associated with the Festival in September are summarized in the following table. Actual Expenditure ($ millions) a) Total travel-related expenditure of companies $ b) Event-related company expenditure $2.400 c) Personal expenditures of delegates $2.088 d) Expenditures of journalists and news organizations (Section 3.4) $1.464 Subtotal Actual Delegate Expenditure $ e) Operating budget of TIFF for Festival $ Total Actual Industry Expenditure $ Expected Expenditure Total Expected Industry Expenditure $ Total Industry Expenditure $ TCI Management Consultants

19 Three comments are important in understanding the expected expenditure figure above. First, this represents an estimate of the additional expenditure that is expected to accrue to Canada as a result of the deals done. (Our survey revealed a number of large deals being done where only a small proportion or none of the expenditure resulting from the deal would accrue to Canada in these situations, the Festival is simply the venue at which the deal is done.) Many of the larger film companies based outside Canada were in this situation. Of course most or all of the deals done by smaller firms who tended to be Canadian and operate closer to home will result in expenditure in Canada. A second comment relates to methodology. In calculating the average for deals done, and the expected value accruing to Canada, two outliers were removed from the analysis and then added back in at the end, after the totals were calculated. The reason for this was that the two very large deals would have vastly skewed the average expected value per deal to be a much higher number than was felt reasonable. The outliers were two deals, both just under $10 million, that were assigned a 75% chance of proceeding. In order to develop what was felt to be a more reasonable and representative average, these two deals were removed from the database and then the average expected expenditure per deal was calculated. After this, the expected value of the two deals (total weighted by 75%) was then simply added back into the total. This procedure thus captured the large value of the anomalous deals, yet did not allow them to distort the averages to unrealistically high numbers. A third factor simply re-states what was stated earlier: the expected expenditure analysis assumes that the deals discussed would not take place but for the Festival. This is unlikely, as some deals would have been in preliminary discussion stages before the Festival, and others not concluded until after the Festival. Having said that, there is no doubt that the Festival is an important venue and event at which deals are further nurtured and formulated. We heard of some deals during our interviews that likely would not have been made at all had the participants not been brought together by the Festival. Accordingly, we conclude that the expected expenditure impacts should be strongly associated with the Festival, if not caused by it. In contrast, actual expenditures can be wholly directly attributed to the Festival. 16 TCI Management Consultants

20 3.5 Expenditures of Journalists and News Organizations According to TIFF records, in addition to sales and industry delegates, there were also 1,080 journalists registered at the Festival in 2008, representing 360 news organizations. Here, the only incremental expenditure that would go into the economic impact model would be the expenditures made by journalists from outside Toronto while in Toronto covering the Festival. Our survey findings and resulting estimates of expenditure of all journalists are as follows: A) Number of news organizations not based in Toronto 309 B) Average travel expenses in Canada for news organizations not based in Toronto, during Festival (this represents approximately 3 delegates per news organization) C) Total incremental expenses of news organizations not based in Toronto, during Festival (A x B) D) Average personal expenses for journalists not based in Toronto, during Festival $3,090 $955,000 $550 E) Total number of journalists covering Festival 1,080 F) % of journalists not living in Toronto 85.7% G) Number of journalists covering Festival, not living in Toronto (E x F) 926 H) Total personal expenses for journalists not based in Toronto, during Festival (D x G) I) Total incremental expenditure of journalists and news organizations (C + H) $509,000 $1,464, Summary of TIFF Festival Expenditures As discussed, for the Festival, there are two types of economic impact. The first is actual expenditures that have resulted from the real purchases that have been made by tourists and industry related to the Festival. These are directly measurable and relatively certain. The second category is expected expenditures which occur on the industry side of the business; these are the expenditures that are reportedly expected to be made in Ontario and Canada in the near future as a result of the negotiations undertaken and contracts or business deals done at the Festival. As these relate to hypothetical future expenditures, they are less certain than the actual expenditures (which, by the time the surveys have been undertaken, are largely already spent). Expected expenditures also tend to be much larger than actual expenditures since they relate to budgets for major film projects that tend to dwarf the comparatively modest expenditures associated with a few days spent in Toronto. Our estimates of the expected expenditures have taken into account the estimated probability that a given business deal will proceed as well and is thus a weighted probability estimate. The following table incorporates each of the tourist and industry actual and expected expenditures. 17 TCI Management Consultants

21 The Actual and Expected expenditure estimates are shown below, followed by the results of the economic impacts resulting from these expenditures. Category Actual Tourist Expenditure Assumptions - 46,159 total attendees - 11,241 total estimated visitor parties - 9,558 non-delegate (tourist) visitor parties - times average expenditure of $1,149 for non-delegate parties = total tourist expenditure of $ million Direct Expenditure Amount ($millions) $ (A) a) Total travel-related expenditure of companies see text $ b) Event-related company expenditure - see text $2.400 c) Personal expenditures of delegates - see text $2.088 d) Expenditures of journalists and news organizations - see Actual Industry Expenditure Section 3.5 $1.464 Subtotal Actual Delegate Expenditure $ e) TIFF operating budget for Festival $ Total Actual Industry Expenditure $ (B) Total Actual Expenditure $ Total Expected Expenditure - see text $ (C) Total Actual and Expected Expenditure (A+B+C) $ Other dimensions of economic impact associated with the non-festival activities are addressed in Section 4 of this report. The following summarizes the key expenditure categories associated with the Festival. Impact Category (1) Actual Tourist Expenditure (excluding industry) (2) Actual Industry Expenditure Definition Actual expenditures of non-delegate tourists to Toronto attributable to TIFF including those of industry delegates. Actual expenditures of business delegates and the companies they represent at the Festival from travel, parties and events, and delegate s own personal expenditures. Value in Canada ($millions) direct expenditure in Ontario of $ million direct expenditure in Ontario of $ million (3) Actual TIFF Operating Budget for Festival The TIFF actual expenditures related to the 2008 Toronto Film Festival event; (note: this excludes other TIFF activities) actual operating expenses of $ million Total Direct Expenditures 18 TCI Management Consultants Total actual expenditures in Canada arising from tourists, industry and TIFF operating budget associated with the Festival. sum of three components above = $ million In addition, there are expected expenditures that will result in expenditure in Canada and Ontario as a result of negotiations undertaken and resulting business deals and agreements made at TIFF. The estimates of the total value of this expenditure associated with the 2008 Festival are:

22 Expected Industry Expenditure plus expected expenditures ($57.54 mil.) arising as a result of business deals negotiated at TIFF Expected expenditures in Canada of $ million Adding the actual and expended industry expenditures associated with the Festival produces a total direct expenditure of $105 million. Total Tourist and Industry Expenditure related to Festival Total tourist, actual and expected industry expenditures associated with the Festival Actual and Expected expenditures in Canada of $ million The above values will be used as inputs to calculate the economic impacts in Section 5 of this Report. 19 TCI Management Consultants

23 3.7 Delegate and Non-Delegate Demographics and Comparisons The TNS study of the tourism impact of the 2008 Festival for the Ontario Ministry of Tourism included a series of comparable questions which were asked of both delegate and non-delegate visitors to TIFF. The TNS survey included a sample of 686 non-delegate visitors and 62 industry delegates. The sample size of industry delegates is somewhat smaller than the sample used to calculate industry expenditures and the results should be treated with caution. However, the demographic comparisons of delegates with non-delegates from the TNS survey 6 are of interest and are summarized briefly below. A comparison of the ages of delegates to non-delegates shows that delegates tend to be clustered (66%) in the 25 to 44 age bracket. The non-delegates tend to be older with over half older than 45 years of age. Age Delegates Non-Delegates years 2% 11% years 66% 36% 45 years or older 32% 53% Total 100% 100% Detailed age breakdowns are shown below. Ages Delegates and Non-Delegates The table below shows that delegates watch more than twice the number of films compared with non-delegates. They travel with relatively fewer members of the household and spend more time away from home than nondelegates. Trip Characteristics Delegates Non-Delegates Ave. no. of films viewed No. of household members in party Ave. no of nights away from home Data for this section is from detailed data tabulations from the TNS survey. 20 TCI Management Consultants

24 The table below shows the place of residence for both delegates and non-delegates from the TNS survey. A large portion (61%) of non-delegates is from Ontario, followed by New York State with 7%. For delegates, 5% were from Ontario. 21% were from New York State and 19% from Ontario. Place of Residence Delegates Non-Delegates BC 11% 1% Quebec 11% 3% Ontario 5% 61% Other Canada 3% 5% Total Canada 31% 70% New York State 21% 7% California 19% 3% Florida 5% 1% North Carolina 3% 0% Texas 3% 0% Other US 18% 18% Total US 69% 30% The TNS sample did not appear to have any delegates whose residence was outside Canada or the US 7. In contrast, the TCI survey had a relatively high sample of delegates (38%) whose head office was outside Canada or the US as shown below. Office Location Delegates Toronto/GTA 15% Other Canada 12% USA 35% Outside Canada or USA 38% As is expected, the main reason for the trip for delegates from the TNS survey was TIFF and for business purposes. Main Reason for Trip Delegates Non-Delegates TIFF 95% 81% Business 79% 4% Both delegates and non-delegates are loyal audiences and very likely to return to Toronto next year. However, delegates are not likely to return to Toronto or Ontario other than for TIFF compared to non-delegates which are more likely to return for non-tiff reasons. This lack of engagement of delegates with the broader region may present an opportunity to increase tourism visits to other parts of the region and Ontario for delegates, particularly if the delegates are traveling with other members of the household who may be less engaged in the Festival than the business delegate. Very Likely to Delegates Non-Delegates Return to TIFF next year 87% 80% Return to Toronto region for reasons other than TIFF - next 2 years 26% 66% Return to Ontario for reasons other than TIFF - next 2 years 13% 51% 7 Again, we urge caution in the interpretation of the results due to the small sample size for delegates. 21 TCI Management Consultants

25 The chart below shows both delegates and non-delegates have quite high levels of education. Fully 83% of delegates have a bachelor s degree or higher. The equivalent figure for non-delegates is 69%. (The comparable figure for the Ontario population overall is approximately 20% (2006 Census)). Educational Achievement Delegates and Non-Delegates 22 TCI Management Consultants

26 In part because of their high levels of education achieved, the chart below shows both delegates and non-delegates have very high household incomes. Almost half the delegates have household incomes of $100,000 or more. Household Income Delegates and Non-Delegates 23 TCI Management Consultants

27 The chart below shows a comparison of delegates and non-delegates perceptions of TIFF on a number of attributes, using a 1 to 10 scale, where 1 is poor and 10 is excellent. Generally non-delegates have similar perceptions to those of delegates. However, delegates (compared to non-delegates) are: more satisfied with the process of ordering and obtaining tickets for films. less critical of the process of ordering and obtaining tickets for films less likely to view TIFF as a suitable for the whole family less critical of the process of lining up and accessing theatres to view films. less satisfied with the ease of getting to various theatres Perspectives on TIFF Delegates and Non-Delegates 24 TCI Management Consultants

28 As shown below, on balance, both delegates and non-delegates tend to rate their overall level of satisfaction with TIFF quite highly. Overall Satisfaction with TIFF Delegates and Non-Delegates 3.8 Qualitative Perspectives on the Importance of the Festival As part of the TCI survey, Festival delegates were given an open-ended opportunity to provide feedback on the Festival and for Toronto generally. The following provides a summary of the most common qualitative responses for each of the delegates from small and large organizations. The most commonly identified themes of respondents related to industry networking and the Festival as a venue to facilitate business transactions: The importance of TIFF as a venue for networking (important to 37% of small organization delegates and 53% of large organization delegates) Launching a film (important for 24% of large organization delegates) Seeing films (18% of small organization delegates) Meeting international industry partners (important for 19% of large delegate organizations) TIFF Small Delegate Experience TIFF small firm delegates overall found attendance at the Festival was very helpful to their business. The greatest reason they identify for attendance is networking. They had a range of individual issues and comments, but many felt that the Festival needed to become more centralized. Many delegates did not feel qualified to comment on Toronto as a business environment per se, but reported traffic as the only significant issue negatively affecting their experience in the City. Small firm delegates were also asked to assess the extent to which they felt that participating in the film Festival enhanced their business. They were given a one to five scale, with 1 representing Not at all, up to 5, To a very great extent. The average response was quite affirmative, 4.13 of TCI Management Consultants

29 Small firm delegates were asked to elaborate on the ways in which participating in the Festival helped their business. Grouping their open-ended responses into 18 categories of comments, we gathered the most common benefits of attendance. As many delegates find multiple uses for the Festival, their open comments often covered multiple categories. The following are the most commonly identified business benefits of TIFF attendance: 37% of delegates identified networking. 18% identified seeing films. 12% identified asserting a presence in the film industry. 10% identified meeting with sellers and distributors. 10% identified making contact with associates and colleagues in person. Small firm delegates were asked to make suggestions as to how the Festival could improve itself. Their suggestions were very diverse. As many delegates made numerous suggestions, their full answers often covered many varied categories. The following are the most commonly made suggestions and comments. 24% had idiosyncratic suggestions or unique issues (e.g., there should be a video library of year s films easily accessible for industry delegates; invite networking delegates to P&I [Press and Industry] screenings; give all films a second P&I screening; give pass priority to long term goers; talent should attend P&I screenings; want an on-site business facility; difficult to get to a public screening with a P&I pass; public tickets should cost less, etc.) 15% of delegates suggested centralizing the Festival, feeling it had become too geographically spread out. 11% suggested adding more P&I screenings in the evening. 11% suggested that TIFF create more venues for networking. 8% found the TIFF website or schedule confusing (e.g., it s hard to buy tickets on-line). 8% felt that their passes were too limited. 8% answered by praising TIFF or asserting they were content with everything (e.g., well organized, good job!, etc.). Small firm delegates were asked to make suggestions as to how the City of Toronto could improve itself as a support environment for business in film. Interestingly, fewer than half of the number who felt qualified or compelled to make suggestions about the Festival felt the same way about the city. Anecdotally, many described that their experience of the city consisted almost exclusively of the Festival seeing films and frequenting the cafes, restaurants and bars within proximity of the screening venues. Suggestions and comments made were divided into 13 categories. The following are the most commonly made suggestions and comments. 18% had a generalized positive comment about the City (e.g., a film friendly town; good diverse city; good pedestrian based city; City reflects diversity of films it brings in; clean city, etc.) 18% had a generalized negative comment about the City (e.g., need better signage in City and TTC; need opportunities for more networking in Toronto; hostile customs at airport; Festival is losing its intimacy; too expensive at hotel; etc.) 15% made an idiosyncratic suggestion for the City (e.g., more affordable non-profit screening venues; provide City-owned bikes; don t gouge everyone with heightened Festival rates (comment directed to retailers, services, etc.); provide guidance on where to eat; weekly luncheons to promote various domestic and international industries in Toronto; ban smoking on outside patios, etc.) 11% complained of excessive road construction, traffic or congestion. 8% felt there should be more support from the city for public transit. 8% felt the city should do more to support TIFF, the Bell Lightbox and film, generally. 26 TCI Management Consultants

30 TIFF Large Delegate Experience Large delegates were asked the same series of questions. Overall, they reported TIFF to be an extremely important business venue. They identified meeting with sellers and distributors as their main goal at TIFF. Their greatest suggestion was to extend the P&I screening schedule later into the evening. Their experience of Toronto tended to be almost entirely Festival-based, and here they offered more suggestions for TIFF itself. As to the extent to which they felt participation in the Festival enhanced their business, their overall satisfaction was extremely high, averaging 4.37 of 5. The chart below shows a comparison of the degree (1 to 5 scale) that large and small delegates agree with the statement, Participation in TIFF helps my business. Generally, there is high agreement with both groups. Participation in TIFF Helps My Business (1 to 5 scale) Large and Small Delegates As with smaller firms, the large firm delegates were asked to elaborate on the ways in which attending the Festival helped their businesses. As above, the results were placed into relevant categories. The following are the most often identified ways in which the Festival helps large firms. 29% of delegates identified meeting with sellers and distributors. 24% identified networking. (note: networking and meeting account for 53%) 24% identified launching a film. 19% identified meeting with international business partners. 14% identified seeing films for buying. As above, the large firm delegates were asked to make suggestions as to how the Festival could improve itself. The following are the most often made suggestions and comments. 27% of delegates suggested adding more P&I screenings in the evening. 13% suggested having shuttle buses to run between venues. 13% felt that their passes were too limited. 13% felt that TIFF was the best or amongst the best run major Festivals. 27 TCI Management Consultants

31 As above, the large firm delegates were asked to make suggestions as to how the City of Toronto could improve itself as a business in film environment. Given that these delegates had a greater likelihood of representing firms from abroad, the effect of knowing Toronto only as a TIFF venue was amplified. Large firm delegates had little to say about Toronto as a business environment, but did offer further suggestions on improving the Festival. Several notable comments and suggestions include: I love the fact that you opened up the AMC theatres. It really helps to get more audience. Formally establish a venue for Industry meetings, rather than the foyer of Sutton Hotel. The Festival is very well organized and is generous in the level of support offered to sales agents in terms of covering flights and hotel rooms. TIFF starts to empty out by the 2nd Thursday and seems to need an adrenaline boost for its final weekend. One idea is that the Festival (as a true hub for world cinema) could create an event to energize the second half of TIFF -- possibly a World Cinema Summit where the temperature of the international industry is taken at a one day Symposium by key international players attending TIFF. Maybe this could be tied to a series of awards for outstanding World Cinema appearing at the Festival? Clearly, the Festival is valued highly by delegates from both small and large organizations, particularly for the networking, buying and selling opportunities afforded by their participation in the Festival. 28 TCI Management Consultants

32 4. Impact of TIFF s Other non-festival Activities 4.1 Economic Impact of Cinematheque and Sprockets Beyond the Festival itself, TIFF is also engaged in a number of other important events and year-round screening programmes. For the purposes of this study, we focused on Cinematheque and Sprockets Toronto International Film Festival for Children. TIFF Cinematheque is a year-round screening programme dedicated to presenting the history of world cinema on the big screen in carefully curated retrospectives. From mid-october to mid-august, the Cinematheque Ontario offers an ambitious selection of approximately 395 screenings in one of the city's finest cinema facilities, Jackman Hall in the Art Gallery of Ontario. Programmes include director retrospectives, special guest appearances, national and regional cinema spotlights, and thematic series. Cinematheque Ontario is membership-driven and relies on support from individuals, foundations, corporations, and all levels of government funding to maintain its high standard of excellence. Each year tickets are sold for a diverse selection of classic and contemporary films showcasing Canadian and international cinema, including archival material and many new prints. Sprockets is a programme dedicated to featuring films that represent the best in contemporary international children's cinema. Whether documentary, drama or animation, Sprockets brings together the best films for youth from Canada and around the world, providing the opportunity for visitors to ask directors questions about their work, and engage in hands-on film-craft activities. All films are shown in their original language with English subtitles which will be read aloud by an experienced reader unless otherwise indicated. To survey participants of both these programmes in order to obtain information that would enable the calculation of economic impact, we used TIFF s correspondence lists and conducted an online survey of attendees to each of Cinematheque and Sprockets. In all, 639 respondents completed the Cinematheque survey and 128 respondents completed the Sprockets survey. Copies of the survey responses are presented in Appendices C and D. The expenditures from attendees visiting from outside the City of Toronto for each event was obtained through the following analysis: Cinematheque Sprockets Total attendees (tickets scanned) 20,547 13,491 Ave. party size Total no. of parties 8,884 3,006 Ave. party expenditure $54.01 $74.76 Total expenditures $479,799 $224,730 Proportion of parties outside City 13.2% 18.3% Total estimated visitor expenditures from outside City $63,457 $41,126 Two other components of expenditure for TIFF which need to be included in the analysis of non-festival activities are, first, the TIFF operating budget for non-festival activities which is $3.622 million; and, second, the Bell Lightbox construction expenditures during the study period which were $ million. (Both items of information were provided by TIFF.) 29 TCI Management Consultants

33 All these TIFF expenditures that relate to activities other than the Festival itself are summarized below: Cinematheque Visitor Expenditures Sprockets Visitor Expenditures Actual expenditures of visitors from outside Toronto Actual expenditures of visitors from outside Toronto direct expenditure in Ontario of $0.063 million direct expenditure in Ontario of $0.041 million Further, the TIFF operating budget for non-festival activities needs to be included. TIFF operating budget TIFF operating budget associated with non-festival activities. direct expenditure in Ontario of $3.622 million In addition to the impacts referenced above, TIFF is undertaking a significant capital investment of $140 million associated with the completed construction of the Bell Lightbox. According to TIFF, the portion of this capital budget that was expended over the study period for project construction was approximately $48.96 million. Bell Lightbox construction during TIFF expenditures in Ontario relating to the construction of the Bell Lightbox, the organization s new home base direct expenditure in Ontario of $ million Adding the above impacts of non-festival activities results in a further $3.73 million of expenditures and a total of $52.68 million when the construction impacts are included. Total Expenditure Related to TIFF Activities Other than Festival Total Cinematheque, Sprockets, TIFF non-festival operating budget and Bell Lightbox construction during year. Direct expenditures in Canada of $ million These expenditures are used as inputs to the economic impact analysis addressed in Section TCI Management Consultants

34 4.2 Social and Cultural Impacts of Cinematheque and Sprockets Respondents who completed the survey providing feedback on Cinematheque are very well educated as is the case with visitors to TIFF. The chart below shows the profile of those who attended Cinematheque. Fully 37% have post graduate degrees and an additional 46% have a bachelor s degree or equivalent as their highest level of educational attainment. (As indicated in Section 3.7, the equivalent figure for Ontario is approximately 20%). Educational Attainment of Cinematheque Attendees 31 TCI Management Consultants

35 There is a high level of satisfaction with Cinematheque with 76% of attendees rating their feelings regarding their last visit as very satisfied. Still 45% of respondents made suggestion on how Cinematheque could be improved. Comments on how Cinematheque could be improved fell into a number of key categories: Complaints about too many films from the same few countries A desire for more Canadian programming More lectures and introductions More forms of payment accepted, and easier online ticket buying Shorter line-ups More limited runs and repeat screenings Almost half (47%) are members of Cinematheque. Visitors to Cinematheque also rated the series very highly on a number of social and cultural dimensions which are profiled in the chart below. It is notable that: fully 87% of attendees believe Cinematheque is very valuable as a unique source for Canadian culture around the world 87% believe Cinematheque to be very valuable as a venue for presenting enriched experiences of cinema 76% see it as very valuable venue for promoting underrepresented films and filmmakers. Ratings of Social and Cultural Impact of Cinematheque by Attendees 32 TCI Management Consultants

36 Those who attended Sprockets also rated the series very highly. A total of 84% indicated they were very satisfied with Sprockets overall. Still, Sprockets attendees had suggestions on improvements that could be made, generally their suggested improvements speak to ways they can see more films at Sprockets. Two of three (66%) made suggestions on improving the film selection, which generally fit into three categories: More films for children under three, and teenagers/pre-teens Showing more of the School programme films on the weekend Bringing back the second family weekend Half (50%) of attendees felt pricing could be improved. Additional comments indicated pricing was reasonable, but there were concerned about price increases and attendees wanted to see more package options. Ratings of Social and Cultural Impact of Sprockets by Attendees As shown above, Sprockets attendees find the series to be enriching on a number of dimensions. 92% find Sprockets very valuable as a unique source for Canadian culture around the world 90% believe Sprockets to be very valuable as a venue for presenting enriched experiences of cinema. 33 TCI Management Consultants

37 5. Economic Impact Assessment 5.1 Structure and Operation of the TREIM Model The economic impact model used in this assessment was specifically created by the Ontario Ministry of Tourism for use in modeling the benefits associated with the tourism industry in the province. Known as the Tourism Regional Economic Impact Model (TREIM), it enables the assessment of the economic impacts of a given development at the level of the province overall, or at a regional level. Economic impact analysis essentially examines the positive effects created in an area as a result of an injection of new expenditure. New expenditure in an economy provincially or regionally is in turn re-spent on goods and services within the jurisdiction under consideration, and several rounds of expenditure take place before the effect dissipates. (This dissipation takes place eventually as inevitably some goods and services are purchased from outside the area under consideration, and the purchasing power leaks away elsewhere.) Economic impact analysis is a methodology of tracking and measuring these successive rounds of expenditure in order to determine the total value of the economic benefit that a new tourism development creates in an area. TREIM considers three types of new expenditure in an economy. These are: 1) the construction of a new facility, which tends to be a one-time injection of investment into a region, over a defined period of time (which may be more than one year). The Bell Lightbox facility is a significant example. 2) the operations of a new venture, in terms of its purchase of employment, goods and services in the jurisdiction under consideration the economic impacts of these operations of the business tend to occur year after year, and are thus typically measured on an annual basis. The expected expenditure estimates, insofar as they represent industry investment in new productions are considered as being this category of expenditure. 3) the expenditures of visitors who are either drawn into the area where they otherwise would not have visited (so-called destination visitors ) or those who are already in the area but who extend their stay (and resulting expenditure) for some period of time as a result of the new attraction or development. The actual expenditures measured, given that they are largely retail-type expenditures (i.e. for finished goods and services as opposed to investment) are considered to be this type of expenditure. One other slight difference in terms of how these two types of expenditure are treated relates to the time period under examination (which is one of the variables that the TREIM model takes into account.) Actual expenditures are assumed to have taken place in 2008 for the Festival and in 2009 for Cinematheque and Sprockets (as of course they did). Expected expenditures are assumed to take place in (Even though some will have occurred in 2008, the model does not allow for impact to be calculated over a split year. Accordingly, 2009 is taken as a more likely time period in which most of the expenditures will be made.) Benefits measured There are several measures of economic benefit calculated by TREIM; the ones of greatest focus in this assessment are: Gross Domestic Product (GDP): a measure of the total value of all goods and services that are produced within the jurisdiction under consideration, measured at current market prices, that is associated with the initial injection of expenditure - a common way of understanding GDP is the total amount of wealth that is produced in an economy, so in economic impact analysis this is the total amount of wealth created in the area as a result of the injection of expenditure 34 TCI Management Consultants

38 Employment: the total number of jobs, measured in full-time job equivalents (FTJEs), associated with the total GDP created this accounts for full and part-time work, seasonal employment, and self-employed Labour income: the total amount of income associated with the aforementioned employment Taxes: associated with all rounds of expenditure, estimated at the federal, provincial and municipal levels 5.2 Economic Impact Model Results for the Festival In the following estimates of impact, the Ontario Government s TREIM (Tourism Regional Economic Impact Model) model was used. Actual expenditures were able to be estimated for Toronto, and were used as inputs to the model. However, expected expenditures were not able to be estimated so exactly, and so it was assumed that these would be spent in Ontario generally. Accordingly, the impact associated with expected expenditures is only expressed at the provincial level. Also, it was assumed that these expenditures would take place in 2009, whereas actual expenditures had, of course, taken place in These assumptions are also taken into account by the model. The model results for the economic impact of the TIFF Festival is shown below: Economic Impact of TIFF Festival in Ontario TIFF Visitor Expenditures TIFF Delegate Expenditures Tiff Operating budget for Festival Expected Industry Impact Total Festival Impact Initial Expenditure ($ million) $ $ $ $ $ Total GDP Generated ($ million) $9.700 $ $ $ $ Employment Created (jobs FTJE*) ,127 1,928 Associated Labour Income ($ million) $6.207 $9.141 $ $ $ Federal Taxes ($ million) $2.706 $3.985 $4.976 $ $ Provincial Taxes ($ million) $2.121 $3.124 $3.478 $9.805 $ Municipal Taxes ($ million) $0.030 $0.044 $0.067 $0.189 $0.330 All Taxes ($ million) $4.857 $7.152 $8.521 $ $ * Full Time Job Equivalents It may seem counter-intuitive that the total economic impact (in terms of GDP) is less than the original expenditure that generated it (which was over $100 million). This situation arises because part of the initial expenditure is immediately excluded from the economic impact analysis as it includes the cost of goods sold. In an economy like Canada s, which is so tightly enmeshed with that of the US (and globally as well), there is a relatively high degree of leakage outside the country. Thus a high proportion of any expenditure is in effect discounted to take this leakage into account (and this effect is built into the TREIM model through the input-output tables upon which it is based). As a simple example, imagine a Canadian retailer who has imported an item costing him $40. He re-sells that item to a tourist for $100. However, all of the $100 does not enter into the economic impact model, because $40 that the retailer spent acquiring the item must be subtracted first. So, despite the tourist expenditure of $100, only $60 actually enters into the economy to be re-circulated and eventually accounted for in total economic impact. Thus there is no inherent reason to assume that the final estimates of impact will be larger that the original expenditure estimates. 35 TCI Management Consultants

39 The total GDP generated by the Festival, as shown earlier, is thus: Economic Impact Economic Value of the TIFF Festival GDP generated in Ontario of $ million Imputed Value of Volunteer Time and Media Exposure In addition, using TIFF s report 8 on the impact of its volunteers, there is an imputed value of $1.14 million associated with the large numbers of individuals who volunteer their time to help the Festival. Volunteer Impact Imputed value of 52,583 volunteer hours associated with the Festival. Labour value of volunteer hours $1.139 million Finally, there is the estimated value of media publicity in Canada of $24.9 million associated with the public exposure and media coverage of the Festival. Media Impact Imputed value of 278 million media impressions in Canada in equivalent advertising value 9. (Cormex Research) (Note: total value worldwide including international impressions is $33.1 million) Advertising value of media impressions in Canada of $24.9 million 8 TIFF, 2008 Report on Volunteers. 9 Cormex Research, Toronto International Film Festival 2008: An Audit of Canadian and international media coverage, July 1 September 23, TCI Management Consultants

40 5.3 Economic Impact of TIFF s non-festival Activities The economic impact model for TIFF s non-festival related activities including Cinematheque and Sprockets, TIFF s non-festival related operating budget and the construction of the Bell Lightbox facility is shown below. Cinematheque Sprockets TIFF Operating budget for other Activities Bell Lightbox construction Total Impact non-festival Activities Initial Expenditure ($ million) $0.063 $0.041 $3.622 $ $ Total GDP Generated ($ million) $0.058 $0.037 $3.411 $ $ Employment Created (jobs FTJE*) Associated Labour Income ($ million) $0.040 $0.024 $2.441 $ $ Federal Taxes ($ million) $0.016 $0.010 $0.884 $7.430 $8.340 Provincial Taxes ($ million) $0.013 $0.008 $0.618 $6.232 $6.870 Municipal Taxes ($ million) $0.001 $0.000 $0.012 $1.440 $1.453 All Taxes ($ million) $0.029 $0.019 $1.513 $ $ Full Time Job Equivalents The following summarizes the key dimensions of impact of TIFF s non-festival activities: Economic Impact Economic Value of the non-festival Related TIFF activities GDP generated in Ontario of $ million In addition, using TIFF s report 10 on the impact of its volunteers, there is an imputed value of $0.15 million associated with the large numbers of individuals who volunteer their time to help at non-festival events such as Cinematheque and Sprockets. Volunteer Impact Imputed value of 6,813 volunteer hours associated with other activities over the course of the year $0.148 million Finally, using the data from the Cormex report 11, we have estimated the value of media publicity in Canada of $4.4 million associated with the public exposure and media coverage of non-festival related publicity that TIFF generates. 10 TIFF, 2008 Report on Volunteers. 11 Cormex Research, Toronto International Film Festival 2008: An Audit of Canadian and international media coverage, July 1 September 23, TCI Management Consultants

41 Media Impact Estimated value of media impressions associated with non-festival activities (TCI estimate based on Cormex Research) Advertising value of media impressions in Canada of $4.422 million 5.4 Summary Economic Impact of All TIFF s Activities The table below summarizes the results of the economic impact of both the Festival and non-festival related activities from sections 5.2 and 5.3. The total TIFF economic impact of $131.7 million is significant and includes the impacts from TIFF operations and its construction budget during the study period. Total Festival Impact Total Impact non- Festival Activities Total TIFF Impact Initial Expenditure ($ million) $ $ $ Total GDP Generated ($ million) $ $ $ Employment Created (jobs FTJE*) 1, ,365 Associated Labour Income ($ million) $ $ $ Federal Taxes ($ million) $ $8.340 $ Provincial Taxes ($ million) $ $6.870 $ Municipal Taxes ($ million) $0.330 $1.453 $1.783 All Taxes ($ million) $ $ $ Economic Impact Economic Value of Total TIFF activities of $100.8 million in operations and $30.8 million construction impact during the study period GDP generated in Ontario of $ million In addition, using TIFF s report 12 on the impact of its volunteers, there is an imputed value of $1.29 million associated with the large numbers of individuals who volunteer their time to help the Festival. Volunteer Impact Imputed value of total volunteer activity associated with TIFF over the course of the year $1.287 million (comprised of $1.139 million of value associated with the Festival, and $0.148 million with other activities over the year) Finally, there is the estimated value of media publicity in Canada of $29.3 million associated with the public exposure and media coverage of the Festival. 12 TIFF, 2008 Report on Volunteers. 38 TCI Management Consultants

42 Media Impact Imputed value of total year-long media impressions in Canada in equivalent advertising value. Advertising value of media impressions in Canada of $29.3 million 5.5 Cultural Impact As noted throughout this report, the Toronto International Film Festival is now in the top tier in terms of international film festivals and is considered an essential event for large and small industry companies and delegates to participate in. The Festival provides a wealth of networking opportunities which allow buyers and sellers an important venue to discuss and consummate various business transactions. Feedback from industry delegates indicates as a group they are highly satisfied with the opportunity the Festival provides as a venue for international networking; for undertaking film launches; for viewing a wide selection of diverse films; and as a venue for meeting international industry partners. Further, the Festival is clearly very important as the preeminent Canadian venue for Canada s filmmakers to expose their films to an international audience in a highly public and festive environment. Visitors to and attendees of TIFF s other key events such as Cinematheque and Sprockets also indicated high levels of satisfaction with these important events. They noted the importance of these events as a source for Canadian culture and film; as a unique source for Canadian culture around the world; as a form for raising and discussing important social and cultural issues; as a means of promoting underrepresented films and filmmakers and as a means of serving Toronto s diverse communities. 39 TCI Management Consultants

43 TIFF CONFIDENTIAL DELEGATE SURVEY 1. Name of Delegate: Appendix A TIFF Delegate Survey TCI USE ONLY: Date Time started Time ended Interviewer initials 2. Name of Company: 3. Number of Delegates from Company at the Festival: 4. Type of operation and head office location (check whichever most appropriate): City of Toronto Base of Operations (home office) Elsewhere in Ontario Elsewhere in GTA Elsewhere in Canada International Suppliers * Production Distribution Sales Theatres Broadcasters Education Sector Government Film Commissions Film Festivals Interest / Advocacy Groups Other, n.e.s. Independent Delegates * Suppliers = agents, publicists, finance arrangers, entertainment lawyers, caterers, transportation providers, musicians specializing in scoring for movies, screenwriters, costume providers, etc. 5. If your head office is not in Toronto or the GTA, do you have an office in Toronto or the GTA? no yes, in City of Toronto yes, elsewhere in GTA A - 1 TCI Management Consultants

44 6. Is this personally your first visit to TIFF? yes no: how many times before?: 7. Did your company host any TIFF-related events in the period before, during or after the Festival? If so briefly describe event(s). Before (say date to date) During (say date to date) Afterwards (say date to date) 8. A) Has your company arranged to have any talent present at the Festival in order to generate media coverage and/or encourage sales? no yes Please briefly describe: B) What is your best guess as to how having talent present will stimulate sales? Percentage increase Value of additional business $ % A - 2 TCI Management Consultants

45 9. Can you estimate your company s total expenditure in Toronto (i.e. the Greater Toronto Area) for travel: Travel Transportation to Toronto area $ Transportation in Toronto area $ Accommodation $ Meals $ Other: what (if event skip to next question) $ Total Travel $ 10. (If company hosted event in Q.7) Excluding any travel you mentioned, can you estimate your company s total expenditure in Toronto (i.e. the Greater Toronto Area) for sponsoring the event(s). Room and/or facility rentals $ Food and beverage catering $ Promotional materials & gifts $ Talent (at event) $ Event planner $ Other: what? $ Total Event $ 11. Has your company been or will be reimbursed by TIFF for any of the expenses indicated above that your company has incurred? If so, please indicate any such reimbursement below: Category Amount ($) $ $ Total $ 12. Has TIFF provided you with any complimentary services ( comps ) for which you otherwise would have to pay? If so, please indicate any such comps below: Item Estimated Value (if possible) 13. Apart from any corporate expenses, can you estimate your own personal expenditures in Toronto (i.e. the Greater Toronto Area) during your stay? Please estimate expenditures in the following categories: Accommodation $ Food $ A - 3 TCI Management Consultants

46 Transportation $ Gifts $ Other: what? $ Total Personal $ 14. Was your company involved in discussion or signing of any business agreements (e.g., licensing, distribution agreements, sales, etc.) as a result of your participation in TIFF that otherwise might not have occurred? (Remember this questionnaire is CONFIDENTIAL.) no yes go to Question 20, below go to Question 16, below 15. Can you briefly describe the nature of these business arrangements, and how much additional corporate expenditure and revenues in Canada they may represent over the coming year? Brief description of deal or business arrangement Estimated additional expenditure in Canada over coming year as a result of deal: by your company by business partner(s) by your company (A) $ $ $ $ Estimated additional revenue in Canada over coming year as a result of deal: by business partner(s) (B) $ $ $ $ (C) $ $ $ $ A - 4 TCI Management Consultants

47 16. If the business agreement is contingent or tentative, what is your estimate of the probability of these expenses and revenues being incurred in the next year? % 17. On a more general note, can you estimate the extent to which you feel participation in the Festival might enhance your business, on the following scale (circle most appropriate): 1 not at all 2 to a very small extent 3 to some extent 4 to a moderate extent 5 to a very great extent 6 can t say / don t know 18. Can you elaborate upon the ways in which participation in the Festival enhances your business? 19. Do you have any suggestions in terms of how the Toronto International Film Festival can improve itself? 20. Do you have any suggestions in terms of how Toronto generally can improve as a support environment for doing business? THANK YOU VERY MUCH FOR YOUR PARTICIPATION! A - 5 TCI Management Consultants

48 Appendix B TIFF Delegate Survey Smaller and Larger Firm Estimates Top Line Summary of Smaller Firm Expenditures Area of Expenditure (A) Companies Total Expenditure as a Result of Attendance at TIFF (paid for by company) (B) Event-Related Event Expenditures by Delegate Firms (C) Personal Expenditures of Delegates (paid for personally) (D) Deals Done: resulting in additional expenditure in Canada Sample Parameters from Delegate Survey - average reported for all companies was $5,831 - all was spent in Canada except for airfare for tickets purchased from non-canadian airlines - average non-canadian air fare purchase per company was $1,916 = Average company expenditure in Canada was $3, % of delegates represented companies that hosted events (23 of 179) - average reported expenditure per event was $5,845 - average reported for all delegates was $ % of companies reported involvement in deals - average anticipated amount of expenditure (excluding outliers) weighted against probability of going ahead was $299,221 Weighting Factors - 1,781 smaller firms - 1,781 smaller firms - implies 230 companies held parties - times average expenditure of $5,845-2,312 delegates representing small firms. - 1,933 based outside Toronto - 1,781 smaller firms - implies 159 deals done - times average weighted expenditure per deal of $299,221 - re-including weighted outlier deals (1X$6,000,000) Total Estimate ($ millions) $6.973 ($6.763 after discounting for delegate nonattendance*) $1.344 $1.117 ($1.083) after discounting for delegate nonattendance) $ ESTIMATED ACTUAL TIFF-RELATED EXPENDITURE ALREADY IN CANADA (A+B+C) DEAL-RELATED EXPECTED EXPENDITURE IN CANADA (D) ESTIMATED TOTAL TIFF EXPENDITURE IN CANADA (A+B+C+D) $9.190 $ $ * TNS estimates from their survey work that 3% of registered delegates did not actually attend the Festival; we assume that these are all smaller firm delegates. B - 1 TCI Management Consultants

49 Top Line Summary of Larger Firm Expenditures Area of Expenditure (A) Companies Total Expenditure as a Result of Attendance at TIFF (paid for by company) (B) Event-Related Company Expenditure (C) Personal Expenditures (D) Canadian Deals Done: Sample Parameters from Delegate Survey - average reported for all companies was $16, all was spent in Canada except for airfare for tickets purchased from non- Canadian airlines - average non-canadian air fare purchase per delegation was $2,771 = therefore total average purchase in Canada is $13,771 - average reported for all companies was $9, % of large firms reported spending on events. - average reported for all large firm delegates was $1, % of large firms reported involvement in Canadian deals - average anticipated amount of expenditure if deal went ahead was $550,000 - average reported probability of deal going ahead was 80% - weighted average expenditure per deal = $440,000 Weighting Factors large firms large firms - implies 112 firms held parties large firms delegates representing larger firms from outside Toronto large firms - implies 9 Canadian deals - times average weighted expenditure per deal of $440,000 ESTIMATED ACTUAL TIFF-RELATED EXPENDITURE IN CANADA (A+B+C) DEAL-RELATED EXPECTED EXPENDITURE IN CANADA (D) ESTIMATED TOTAL TIFF EXPENDITURE IN CANADA (A+B+C+D) Total Estimate ($ millions) $3.484 $1.056 $1.005 $3.960 $5.545 $3.960 $9.505 B - 2 TCI Management Consultants

50 Appendix C Cinematheque Survey Summary Results TCI Management Consultants

51 Appendix C Cinematheque Survey Summary Results C - 1 TCI Management Consultants

52 C - 2 TCI Management Consultants

53 C - 3 TCI Management Consultants

54 C - 4 TCI Management Consultants

55 C - 5 TCI Management Consultants

56 C - 6 TCI Management Consultants

57 C - 7 TCI Management Consultants

58 C - 8 TCI Management Consultants

59 C - 9 TCI Management Consultants

60 C - 10 TCI Management Consultants

61 C - 11 TCI Management Consultants

62 C - 12 TCI Management Consultants

63 C - 13 TCI Management Consultants

64 C - 14 TCI Management Consultants

65 C - 15 TCI Management Consultants

66 Appendix D Sprockets Survey Summary Results TCI Management Consultants

67 Appendix D Sprockets Survey Summary Results D - 1 TCI Management Consultants

68 D - 2 TCI Management Consultants

69 D - 3 TCI Management Consultants

70 D - 4 TCI Management Consultants

71 D - 5 TCI Management Consultants

72 D - 6 TCI Management Consultants

73 D - 7 TCI Management Consultants

74 D - 8 TCI Management Consultants

75 D - 9 TCI Management Consultants

76 Appendix E TREIM Model Runs Note: Some of the expenditures and resulting economic impacts in the Final Report have been prorated slightly from the original TREIM model runs. TCI Management Consultants

77 The Economic Impact of TIFF Festival 2008 Delegate Visitor Expenditures in Ontario in 2008 This report was generated by the Ontario Ministry of Tourism s TREIM model. December 9, 2009

78 Note: The Ministry of Tourism does not take any responsibility for inputs that the user has provided, nor for the interpretation of the results. 1. Introduction This report provides an estimate of the economic impact that The Economic Impact of TIIFF 2008 Delegate Visitor Expenditures in Ontario in 2008 is expected to have on Ontario s economy, in terms of Gross Domestic Product, employment and taxes generated. The analysis is based on the following information the user has provided to the MTR s Tourism Regional Economic Impact Model: Total Spending of $16,199,000 by origin visitors for Activity (or Event) of Type Any Cultural Activity Visitors Origin Spending % Ontario 80.00% Rest of Canada 6.00% USA 12.00% Overseas 2.00% Total % Given that the detailed breakdown of the spending on category, such as transportation, accommodation, etc. is not available from the user, the TREIM utilized the average expenditure of visitors in Ontario with characteristics closest to those provided by the user from Statistics Canada s 2004 Canadian Travel Survey and the International Travel Survey to generate the detailed spending as follows ( in dollars ): Travel Services $0 Public Transportation $1,333,760 Private Transportation - Rental $248,482 Private Transportation - Operation $2,192,139 Local Transportation $172,113 Accommodation $3,368,314 Food & Beverage - At Stores $1,000,538 Food & Beverage - At Restaurants/Bars $3,435,351 Recreation & Entertainment $2,145,408 Retail - Clothing $1,458,678 Retail - Other $844,217 Total $16,199,000 1

79 The user also has selected the following parameters: The visits take place in Ontario in 2008 Induced impacts of household spending are included Induced impacts of business investment are included The economic environment is as follows: Baseline Ontario Real GDP 3.15% 2.84% 1.89% 1.66% 2.11% (%change) Ontario CPI 1.88% 2.19% 1.76% 2.53% 1.84% (%change) Ontario Population 1.28% 1.14% 1.02% 0.69% 0.78% (%change) Ontario 6.77% 6.59% 6.27% 6.52% 6.38% Unemployment Rate Government of Canada 3 month T- Bill Rate 2.21% 2.72% 4.03% 4.45% 4.78% 2

80 2. Summary of Findings Table 1. Economic Impacts of The Economic Impact of TIIFF 2008 Delegate Visitor Expenditures in Ontario in 2008 in Ontario in 2008 ( in dollars ) Ontario Total Visitors Spending $ 16,199,000 Gross Domestic Product (GDP) Labour Income Direct $ 8,129,300 Indirect $ 3,040,331 Induced $ 3,114,451 Total $ 14,284,081 Direct $ 5,063,401 Indirect $ 2,074,017 Induced $ 2,003,255 Total $ 9,140,672 Employment (Jobs) Direct Taxes Total Taxes Direct 160 Indirect 41 Induced 39 Total 239 Federal $ 2,233,217 Provincial $ 2,032,199 Municipal $ 15,430 Total $ 4,280,846 Federal $ 3,984,516 Provincial $ 3,123,544 Municipal $ 44,215 Total $ 7,152,275 3

81 Table 2. Economic Impacts of The Economic Impact of TIIFF 2008 Delegate Visitor Expenditures in Ontario in 2008 in Ontario on GDP by industry ( in dollars ) Industry Impact on Ontario Direct GDP Total GDP Crop and Animal Production $ 28,841 $ 76,119 Forestry, Fishing and Hunting $ 481 $ 11,401 Mining and Oil and Gas Extraction $ 0 $ 24,440 Utilities $ 0 $ 239,415 Construction $ 0 $ 313,095 Manufacturing $ 355,302 $ 1,058,214 Wholesale Trade $ 209,362 $ 575,404 Retail Trade $ 636,070 $ 1,148,935 Other Transportation and $ 729,475 $ 1,019,735 Warehousing Ground Passenger Transportation $ 143,894 $ 179,237 (excl. Rail) Information and Cultural Industries $ 56,444 $ 376,093 Other Finance, Insurance, Real $ 0 $ 1,157,812 Estate and Renting and Leasing Car Renting and Leasing $ 136,552 $ 171,037 Owner Occupied Housing $ 0 $ 422,160 Professional, Scientific and $ 0 $ 444,823 Technical Services Other Administrative and Other $ 0 $ 223,974 Support Services Travel Agencies $ 0 $ 0 Education Services $ 3,684 $ 17,434 Health Care and Social $ 0 $ 109,024 Assistance Arts, Entertainment and $ 763,786 $ 843,799 Recreation Accommodation Services $ 2,275,758 $ 2,326,854 Food & Beverage Services $ 1,094,129 $ 1,206,639 Other Services (Except Public $ 11,343 $ 185,330 Administration) Operating, Office, Cafeteria, and $ 0 $ 0 Laboratory Supplies Travel & Entertainment, $ 0 $ 0 Advertising & Promotion Transportation Margins $ 0 $ 0 Non-Profit Institutions Serving $ 59,031 $ 156,541 Households Government Sector $ 71,461 $ 230,587 Net Indirect Taxes on Production $ 0 $ 16,305 Total $ 8,129,300 $ 14,284,081 4

82 Appendix: Gross Domestic Product (GDP): value of goods and services produced by labour and capital located within a country (or region), regardless of nationality of labour or ownership. This GDP is measured at market prices. Tourism GDP refers to the GDP generated in those businesses that directly produce or provide goods and services for travelers. Direct impact: refers to the impact generated in businesses or sectors that produce or provide goods and services directly to travelers, e.g. accommodations, restaurants, recreations, travel agents, transportation and retail enterprises etc. Direct impact on GDP, employment and tax revenues is also called tourism GDP, tourism employment and tourism tax revenues. Indirect impact: refers to the impact resulting from the expansion of demand from businesses or sectors directly produce or provide goods and services to travelers, to other businesses or sectors. Induced impact: refers to the impact associated with the re-spending of labour income and /or profits earned in the industries that serve travelers directly and indirectly. Employment: refers to number of jobs, include full-time, part-time, seasonal employment, as well as both employed and self-employed. Federal tax revenues: include personal income tax, corporate income tax, commodity tax (GST, gas tax, excise tax, excise duty, air tax and trading profits) and payroll deduction that collected by the federal government. Provincial tax revenues: include personal income tax, corporate income tax, commodity tax (PST, gas tax, liquor gallonage tax, amusement tax and trading profits) and employer health tax that collected by Ontario provincial government. Municipal tax revenues: include business and personal property taxes that collected by the municipalities. Collection, however, does not follow immediately the consumption or production of goods and services in a municipality by visitors (as is the case with GST or personal income taxes). Rather, these taxes show the percent of the total property taxes collected by a municipality that can be attributed to tourism because of tourism s contribution to the economic activity of the municipality and hence its tax base. Industry: The industry follows Statistics Canada s 1997 North America Industry Classification System (NAICS) Input-Output small aggregation industry classification. 5

83 The Economic Impact of TIFF Operation Budget 2009 in Ontario in 2009 This report was generated by the Ontario Ministry of Tourism s TREIM model. December 9, 2009

84 Note: The Ministry of Tourism does not take any responsibility for inputs that the user has provided, nor for the interpretation of the results. 1. Introduction This report provides an estimate of the economic impact that The Economic Impact of TIFF TIFFG Operating Budget 2009 is expected to have on Ontario s economy, in terms of Gross Domestic Product, employment and taxes generated. The analysis is based on the following information the user has provided to the MTR s Tourism Regional Economic Impact Model: User Input Total amount of Operational Expenses $24,017,000 Facility (operation) type Recreation & Entertainment Number of Jobs 0 Given that the detailed breakdown of operational cost by items, e.g. cost of goods sold, other operating expenses, etc. is not available from the user, the TREIM utilized Statistics Canada s Ontario 2003 Input-Output Table to generate the distribution of operational cost of facilities with characteristics closest to those provided by the user as follows ( in dollars ): Cost of goods sold $0 Food products $0 Alcoholic beverages $0 All other merchandise $0 Other operating expenses $23,512,496 Office and all other supplies $2,231,261 Salaries, wages $9,377,537 Commission paid $0 Employee benefits $936,193 Sub-contract laundry, cleaning and maintenance $1,851,582 Legal, accounting and other professional fees $1,107,829 Marketing, advertising and promotion $1,388,687 Travel (transportation, accommodation, food, entertainment) $41,609 Rent or lease $501,904 Repair and maintenance $218,445 Insurance $1,539,518 Heat, light, power and water $410,885 Telephone, fax and internet fees $213,244 Depreciation $1,223,293 Royalties and franchise fees $0 Property tax and business tax, licenses and permits $504,504 All other operating expenses $1,966,006 Non operating expenses $504,504 Interest expenses $0 Sales Taxes $504,504 Total operating expenses $24,017,000 Gross Output $26,327,837 Note: Gross Output (incl. imports) equals Total Revenue less Grants and Subsidies or Total Operating Expenses plus profits. 1

85 The user also has selected the following parameters: The operation takes place in Ontario in 2009 Induced impacts of household spending are included Induced impacts of business investment are included The economic environment is as follows: Baseline Ontario Real GDP 2.84% 1.89% 1.66% 2.11% 2.73% (%change) Ontario CPI 2.19% 1.76% 2.53% 1.84% 1.96% (%change) Ontario Population 1.14% 1.02% 0.69% 0.78% 0.87% (%change) Ontario 6.59% 6.27% 6.52% 6.38% 5.98% Unemployment Rate Government of Canada 3 month T-Bill Rate 2.72% 4.03% 4.45% 4.78% 4.77% 2

86 2. Summary of Findings Table 1. Economic Impacts of The Economic Impact of TIFF TIFFG Operating Budget 2009 in Ontario in 2009 ( in dollars ) Ontario Total Revenue $ 26,327,837 Gross Domestic Product (GDP) Labour Income Direct $ 13,952,278 Indirect $ 3,383,235 Induced $ 5,282,718 Total $ 22,618,230 Direct $ 10,313,730 Indirect $ 2,448,819 Induced $ 3,423,758 Total $ 16,186,308 Employment (Jobs) Direct Taxes Total Taxes Direct 353 Indirect 53 Induced 64 Total 471 Federal $ 3,487,387 Provincial $ 2,526,416 Municipal $ 34,552 Total $ 6,048,355 Federal $ 5,859,646 Provincial $ 4,095,476 Municipal $ 78,926 Total $ 10,034,048 3

87 Table 2. Economic Impacts of The Economic Impact of TIFF TIFFG Operating Budget 2009 in Ontario on GDP by industry ( in dollars ) Industry Impact on Ontario Direct GDP Total GDP Crop and Animal Production $ 0 $ 33,206 Forestry, Fishing and Hunting $ 0 $ 8,982 Mining and Oil and Gas Extraction $ 0 $ 21,813 Utilities $ 0 $ 289,011 Construction $ 0 $ 498,051 Manufacturing $ 0 $ 693,155 Wholesale Trade $ 0 $ 444,208 Retail Trade $ 0 $ 1,206,358 Other Transportation and $ 0 $ 240,962 Warehousing Ground Passenger Transportation $ 0 $ 57,917 (excl. Rail) Information and Cultural Industries $ 0 $ 465,893 Other Finance, Insurance, Real $ 0 $ 1,407,809 Estate and Renting and Leasing Car Renting and Leasing $ 0 $ 41,587 Owner Occupied Housing $ 0 $ 723,941 Professional, Scientific and $ 0 $ 611,065 Technical Services Other Administrative and Other $ 0 $ 317,532 Support Services Travel Agencies $ 0 $ 25,114 Education Services $ 0 $ 19,876 Health Care and Social $ 0 $ 164,469 Assistance Arts, Entertainment and $ 13,482,174 $ 13,612,354 Recreation Accommodation Services $ 0 $ 75,379 Food & Beverage Services $ 0 $ 161,682 Other Services (Except Public $ 0 $ 302,015 Administration) Operating, Office, Cafeteria, and $ 0 $ 0 Laboratory Supplies Travel & Entertainment, $ 0 $ 0 Advertising & Promotion Transportation Margins $ 0 $ 0 Non-Profit Institutions Serving $ 0 $ 161,566 Households Government Sector $ 0 $ 209,263 Net Indirect Taxes on Production $ 0 $ 26,369 Total $ 13,952,278 $ 22,618,230 4

88 Appendix: Gross Domestic Product (GDP): value of goods and services produced by labour and capital located within a country (or region), regardless of nationality of labour or ownership. This GDP is measured at market prices. Tourism GDP refers to the GDP generated in those businesses that directly produce or provide goods and services for travelers. Direct impact: refers to the impact generated in businesses or sectors that produce or provide goods and services directly to travelers, e.g. accommodations, restaurants, recreations, travel agents, transportation and retail enterprises etc. Direct impact on GDP, employment and tax revenues is also called tourism GDP, tourism employment and tourism tax revenues. Indirect impact: refers to the impact resulting from the expansion of demand from businesses or sectors directly produce or provide goods and services to travelers, to other businesses or sectors. Induced impact: refers to the impact associated with the re-spending of labour income and /or profits earned in the industries that serve travelers directly and indirectly. Employment: refers to number of jobs, include full-time, part-time, seasonal employment, as well as both employed and self-employed. Federal tax revenues: include personal income tax, corporate income tax, commodity tax (GST, gas tax, excise tax, excise duty, air tax and trading profits) and payroll deduction that collected by the federal government. Provincial tax revenues: include personal income tax, corporate income tax, commodity tax (PST, gas tax, liquor gallonage tax, amusement tax and trading profits) and employer health tax that collected by Ontario provincial government. Municipal tax revenues: include business and personal property taxes that collected by the municipalities. Collection, however, does not follow immediately the consumption or production of goods and services in a municipality (as is the case with GST or personal income taxes). Rather, these taxes show the percent of the total property taxes collected by a municipality that can be attributed to tourism because of tourism s contribution to the economic activity of the municipality and hence its tax base. Industry: The industry follows Statistics Canada s 1997 North America Industry Classification System (NAICS) Input-Output small aggregation industry classification. 5

89 The Economic Impact of TIFF Cinematheque Economic Impact in Toronto Metropolitan Municipality in 2009 This report was generated by the Ontario Ministry of Tourism s TREIM model. December 8, 2009

90 Note: The Ministry of Tourism does not take any responsibility for inputs that the user has provided, nor for the interpretation of the results. 1. Introduction This report provides an estimate of the economic impact that TIFF - Cinematheque Ontario Economic Impact is expected to have on Ontario s economy, in terms of Gross Domestic Product, employment and taxes generated. The analysis is based on the following information the user has provided to the MTR s Tourism Regional Economic Impact Model: Total Spending of $83,861 by origin visitors for Activity (or Event) of Type Festivals/Fairs Visitors Origin Spending % Ontario 90.00% Rest of Canada 5.00% USA 4.00% Overseas 1.00% Total % Given that the detailed breakdown of the spending on category, such as transportation, accommodation, etc. is not available from the user, the TREIM utilized the average expenditure of visitors in Toronto Metropolitan Municipality with characteristics closest to those provided by the user from Statistics Canada s 2004 Canadian Travel Survey and the International Travel Survey to generate the detailed spending as follows ( in dollars ): Travel Services $0 Public Transportation $289 Private Transportation - Rental $194 Private Transportation - Operation $7,891 Local Transportation $2,362 Accommodation $14,812 Food & Beverage - At Stores $3,607 Food & Beverage - At Restaurants/Bars $23,648 Recreation & Entertainment $14,649 Retail - Clothing $12,917 Retail - Other $3,491 Total $83,861 1

91 The user also has selected the following parameters: The visits take place in Toronto Metropolitan Municipality in 2009 The impact is to be shown for Toronto Metropolitan Municipality and for Rest of Ontario Induced impacts of household spending are included Induced impacts of business investment are included The economic environment is as follows: Baseline Ontario Real GDP 2.84% 1.89% 1.66% 2.11% 2.73% (%change) Ontario CPI 2.19% 1.76% 2.53% 1.84% 1.96% (%change) Ontario Population 1.14% 1.02% 0.69% 0.78% 0.87% (%change) Ontario 6.59% 6.27% 6.52% 6.38% 5.98% Unemployment Rate Government of Canada 3 month T- Bill Rate 2.72% 4.03% 4.45% 4.78% 4.77% 2

92 2. Summary of Findings Table 1. Economic Impacts of TIFF - Cinematheque Ontario Economic Impact in Toronto Metropolitan Municipality in 2009 ( in dollars ) Toronto Metropolitan Municipality Total Visitors Spending $ 83,861 Rest of Ontario Gross Domestic Product (GDP) Direct $ 38,919 $ 3,040 Indirect $ 9,585 $ 7,916 Induced $ 7,779 $ 8,183 Total $ 56,283 $ 19,139 Labour Income Direct $ 25,311 $ 2,309 Indirect $ 6,646 $ 5,398 Induced $ 4,914 $ 5,142 Total $ 36,872 $ 12,848 Employment (Jobs) Direct 1 0 Indirect 0 0 Induced 0 0 Total 1 0 Direct Taxes Federal $ 10,728 $ 724 Provincial $ 10,269 $ 518 Municipal $ 77 $ 7 Total $ 21,073 $ 1,249 Total Taxes Federal $ 16,593 $ 4,163 Provincial $ 13,426 $ 3,117 Municipal $ 159 $ 686 Total $ 30,177 $ 7,966 3

93 Table 2. Economic Impacts of TIFF - Cinematheque Ontario Economic Impact in Toronto Metropolitan Municipality on GDP by industry ( in dollars ) Industry Impact on Toronto Metropolitan Municipality Impact on Rest of Ontario Direct GDP Total GDP Direct GDP Total GDP Crop and Animal Production $ 31 $ 73 $ 47 $ 219 Forestry, Fishing and Hunting $ 0 $ 6 $ 1 $ 45 Mining and Oil and Gas Extraction $ 0 $ 25 $ 0 $ 80 Utilities $ 0 $ 784 $ 0 $ 506 Construction $ 0 $ 1,034 $ 0 $ 381 Manufacturing $ 629 $ 1,635 $ 1,055 $ 4,166 Wholesale Trade $ 695 $ 1,656 $ 382 $ 1,516 Retail Trade $ 3,779 $ 5,401 $ 0 $ 1,148 Other Transportation and $ 653 $ 1,199 $ 306 $ 1,013 Warehousing Ground Passenger Transportation $ 1,273 $ 1,376 $ 362 $ 461 (excl. Rail) Information and Cultural Industries $ 306 $ 1,139 $ 30 $ 930 Other Finance, Insurance, Real $ 0 $ 4,044 $ 0 $ 2,648 Estate and Renting and Leasing Car Renting and Leasing $ 106 $ 177 $ 0 $ 104 Owner Occupied Housing $ 0 $ 1,415 $ 0 $ 411 Professional, Scientific and $ 0 $ 1,238 $ 0 $ 1,266 Technical Services Other Administrative and Other $ 0 $ 656 $ 0 $ 588 Support Services Travel Agencies $ 0 $ 0 $ 0 $ 0 Education Services $ 25 $ 65 $ 0 $ 33 Health Care and Social $ 0 $ 300 $ 0 $ 264 Assistance Arts, Entertainment and $ 5,090 $ 5,332 $ 95 $ 286 Recreation Accommodation Services $ 10,674 $ 10,785 $ 299 $ 469 Food & Beverage Services $ 6,988 $ 7,259 $ 539 $ 881 Other Services (Except Public $ 47 $ 589 $ 0 $ 393 Administration) Operating, Office, Cafeteria, and $ 0 $ 0 $ 0 $ 0 Laboratory Supplies Travel & Entertainment, $ 0 $ 0 $ 0 $ 0 Advertising & Promotion Transportation Margins $ 0 $ 0 $ 0 $ 0 Non-Profit Institutions Serving $ 403 $ 714 $ 0 $ 147 Households Government Sector $ 488 $ 973 $ 0 $ 377 Net Indirect Taxes on Production $ 0 $ 45 $ 0 $ 647 4

94 Total $ 38,919 $ 56,283 $ 3,040 $ 19,139 5

95 Appendix: The Economic Impact of Visits in Toronto Metropolitan Municipality and other Ontario regions: since no Ontario region is economically self-sustaining, in order to produce the goods and services demanded by its visitors, it will need to import some goods and services from other regions. As such, some of the economic benefits of the visitors' spending in Toronto Metropolitan Municipality will spill over to other Ontario regions, such as the one you have selected as "additional". If the second column of Table 1 contains only zeros, then that means that Toronto Metropolitan Municipality does not trade with that region. Gross Domestic Product (GDP): value of goods and services produced by labour and capital located within a country (or region), regardless of nationality of labour or ownership. This GDP is measured at market prices. Tourism GDP refers to the GDP generated in those businesses that directly produce or provide goods and services for travelers. Direct impact: refers to the impact generated in businesses or sectors that produce or provide goods and services directly to travelers, e.g. accommodations, restaurants, recreations, travel agents, transportation and retail enterprises etc. Direct impact on GDP, employment and tax revenues is also called tourism GDP, tourism employment and tourism tax revenues. Indirect impact: refers to the impact resulting from the expansion of demand from businesses or sectors directly produce or provide goods and services to travelers, to other businesses or sectors. Induced impact: refers to the impact associated with the re-spending of labour income and /or profits earned in the industries that serve travelers directly and indirectly. Employment: refers to number of jobs, include full-time, part-time, seasonal employment, as well as both employed and self-employed. Federal tax revenues: include personal income tax, corporate income tax, commodity tax (GST, gas tax, excise tax, excise duty, air tax and trading profits) and payroll deduction that collected by the federal government. Provincial tax revenues: include personal income tax, corporate income tax, commodity tax (PST, gas tax, liquor gallonage tax, amusement tax and trading profits) and employer health tax that collected by Ontario provincial government. Municipal tax revenues: include business and personal property taxes that collected by the municipalities. Collection, however, does not follow immediately the consumption or production of goods and services in a municipality by visitors (as is the case with GST or personal income taxes). Rather, these taxes show the percent of the total property taxes collected by a municipality that can be attributed to tourism because of tourism s contribution to the economic activity of the municipality and hence its tax base. Industry: The industry follows Statistics Canada s 1997 North America Industry Classification System (NAICS) Input-Output small aggregation industry classification. 6

96 The Economic Impact of TIFF Sprockets Economic Impact 2009 in Toronto Metropolitan Municipality in 2009 This report was generated by the Ontario Ministry of Tourism s TREIM model. December 8, 2009

97 1. Introduction This report provides an estimate of the economic impact that TIFF - Sprockets Economic Impact is expected to have on Ontario s economy, in terms of Gross Domestic Product, employment and taxes generated. The analysis is based on the following information the user has provided to the MTR s Tourism Regional Economic Impact Model: Total Spending of $41,109 by origin visitors for Activity (or Event) of Type Festivals/Fairs Visitors Origin Spending % Ontario 90.00% Rest of Canada 5.00% USA 4.00% Overseas 1.00% Total % Given that the detailed breakdown of the spending on category, such as transportation, accommodation, etc. is not available from the user, the TREIM utilized the average expenditure of visitors in Toronto Metropolitan Municipality with characteristics closest to those provided by the user from Statistics Canada s 2004 Canadian Travel Survey and the International Travel Survey to generate the detailed spending as follows ( in dollars ): Travel Services $0 Public Transportation $142 Private Transportation - Rental $95 Private Transportation - Operation $3,868 Local Transportation $1,158 Accommodation $7,261 Food & Beverage - At Stores $1,768 Food & Beverage - At Restaurants/Bars $11,593 Recreation & Entertainment $7,181 Retail - Clothing $6,332 Retail - Other $1,711 Total $41,109 1

98 The user also has selected the following parameters: The visits take place in Toronto Metropolitan Municipality in 2009 The impact is to be shown for Toronto Metropolitan Municipality and for Rest of Ontario Induced impacts of household spending are included Induced impacts of business investment are included The economic environment is as follows: Baseline Ontario Real GDP 2.84% 1.89% 1.66% 2.11% 2.73% (%change) Ontario CPI 2.19% 1.76% 2.53% 1.84% 1.96% (%change) Ontario Population 1.14% 1.02% 0.69% 0.78% 0.87% (%change) Ontario 6.59% 6.27% 6.52% 6.38% 5.98% Unemployment Rate Government of Canada 3 month T- Bill Rate 2.72% 4.03% 4.45% 4.78% 4.77% 2

99 2. Summary of Findings Table 1. Economic Impacts of TIFF - Sprockets Economic Impact in Toronto Metropolitan Municipality in 2009 ( in dollars ) Toronto Metropolitan Municipality Total Visitors Spending $ 41,109 Rest of Ontario Gross Domestic Product (GDP) Direct $ 19,078 $ 1,490 Indirect $ 4,699 $ 3,880 Induced $ 3,813 $ 4,011 Total $ 27,590 $ 9,382 Labour Income Direct $ 12,408 $ 1,132 Indirect $ 3,258 $ 2,646 Induced $ 2,409 $ 2,520 Total $ 18,075 $ 6,298 Employment (Jobs) Direct 0 0 Indirect 0 0 Induced 0 0 Total 1 0 Direct Taxes Federal $ 5,259 $ 355 Provincial $ 5,034 $ 254 Municipal $ 38 $ 3 Total $ 10,330 $ 612 Total Taxes Federal $ 8,134 $ 2,041 Provincial $ 6,581 $ 1,528 Municipal $ 78 $ 336 Total $ 14,793 $ 3,905 3

100 Table 2. Economic Impacts of TIFF - Sprockets Economic Impact in Toronto Metropolitan Municipality on GDP by industry ( in dollars ) Industry Impact on Toronto Metropolitan Municipality Impact on Rest of Ontario Direct GDP Total GDP Direct GDP Total GDP Crop and Animal Production $ 15 $ 36 $ 23 $ 107 Forestry, Fishing and Hunting $ 0 $ 3 $ 0 $ 22 Mining and Oil and Gas Extraction $ 0 $ 12 $ 0 $ 39 Utilities $ 0 $ 385 $ 0 $ 248 Construction $ 0 $ 507 $ 0 $ 187 Manufacturing $ 308 $ 801 $ 517 $ 2,042 Wholesale Trade $ 341 $ 812 $ 187 $ 743 Retail Trade $ 1,852 $ 2,648 $ 0 $ 563 Other Transportation and $ 320 $ 588 $ 150 $ 497 Warehousing Ground Passenger Transportation $ 624 $ 674 $ 177 $ 226 (excl. Rail) Information and Cultural Industries $ 150 $ 559 $ 15 $ 456 Other Finance, Insurance, Real $ 0 $ 1,982 $ 0 $ 1,298 Estate and Renting and Leasing Car Renting and Leasing $ 52 $ 87 $ 0 $ 51 Owner Occupied Housing $ 0 $ 694 $ 0 $ 201 Professional, Scientific and $ 0 $ 607 $ 0 $ 620 Technical Services Other Administrative and Other $ 0 $ 322 $ 0 $ 288 Support Services Travel Agencies $ 0 $ 0 $ 0 $ 0 Education Services $ 12 $ 32 $ 0 $ 16 Health Care and Social $ 0 $ 147 $ 0 $ 130 Assistance Arts, Entertainment and $ 2,495 $ 2,614 $ 47 $ 140 Recreation Accommodation Services $ 5,232 $ 5,287 $ 147 $ 230 Food & Beverage Services $ 3,426 $ 3,558 $ 264 $ 432 Other Services (Except Public $ 23 $ 289 $ 0 $ 192 Administration) Operating, Office, Cafeteria, and $ 0 $ 0 $ 0 $ 0 Laboratory Supplies Travel & Entertainment, $ 0 $ 0 $ 0 $ 0 Advertising & Promotion Transportation Margins $ 0 $ 0 $ 0 $ 0 Non-Profit Institutions Serving $ 198 $ 350 $ 0 $ 72 Households Government Sector $ 239 $ 477 $ 0 $ 185 Net Indirect Taxes on Production $ 0 $ 22 $ 0 $ 317 Total $ 19,078 $ 27,590 $ 1,490 $ 9,382 4

101 Appendix: The Economic Impact of Visits in Toronto Metropolitan Municipality and other Ontario regions: since no Ontario region is economically self-sustaining, in order to produce the goods and services demanded by its visitors, it will need to import some goods and services from other regions. As such, some of the economic benefits of the visitors' spending in Toronto Metropolitan Municipality will spill over to other Ontario regions, such as the one you have selected as "additional". If the second column of Table 1 contains only zeros, then that means that Toronto Metropolitan Municipality does not trade with that region. Gross Domestic Product (GDP): value of goods and services produced by labour and capital located within a country (or region), regardless of nationality of labour or ownership. This GDP is measured at market prices. Tourism GDP refers to the GDP generated in those businesses that directly produce or provide goods and services for travelers. Direct impact: refers to the impact generated in businesses or sectors that produce or provide goods and services directly to travelers, e.g. accommodations, restaurants, recreations, travel agents, transportation and retail enterprises etc. Direct impact on GDP, employment and tax revenues is also called tourism GDP, tourism employment and tourism tax revenues. Indirect impact: refers to the impact resulting from the expansion of demand from businesses or sectors directly produce or provide goods and services to travelers, to other businesses or sectors. Induced impact: refers to the impact associated with the re-spending of labour income and /or profits earned in the industries that serve travelers directly and indirectly. Employment: refers to number of jobs, include full-time, part-time, seasonal employment, as well as both employed and self-employed. Federal tax revenues: include personal income tax, corporate income tax, commodity tax (GST, gas tax, excise tax, excise duty, air tax and trading profits) and payroll deduction that collected by the federal government. Provincial tax revenues: include personal income tax, corporate income tax, commodity tax (PST, gas tax, liquor gallonage tax, amusement tax and trading profits) and employer health tax that collected by Ontario provincial government. Municipal tax revenues: include business and personal property taxes that collected by the municipalities. Collection, however, does not follow immediately the consumption or production of goods and services in a municipality by visitors (as is the case with GST or personal income taxes). Rather, these taxes show the percent of the total property taxes collected by a municipality that can be attributed to tourism because of tourism s contribution to the economic activity of the municipality and hence its tax base. Industry: The industry follows Statistics Canada s 1997 North America Industry Classification System (NAICS) Input-Output small aggregation industry classification. 5

102 The Economic Impact of TIFF Impact of Bell Lightbox 2008 Expenditures in Toronto Metropolitan Municipality in 2008 This report was generated by the Ontario Ministry of Tourism s TREIM model. December 8, 2009

103 1. Introduction This report provides an estimate of the economic impact that TIFF - Economic Impact of Bell Lightbox, 2008 Expenditures is expected to have on Ontario s economy, in terms of Gross Domestic Product, employment and taxes generated. The analysis is based on the following information the user has provided to the MTR s Tourism Regional Economic Impact Model: Investment/Capital Expenditures of $48,957,222 in a facility (operation) of type Recreation & Entertainment. Given that the detailed breakdown of investment by category, such as machinery and equipment, furniture and fixtures, etc. is not available from the user, the TREIM utilized Statistics Canada s Ontario 2003 Input-Output Table to generate the distribution of Investment of facilities with characteristics closest to those provided by the user as follows (in dollars): Buildings and Renovations $21,975,035 Machinery and Equipment $12,576,703 Furniture and Fixtures $4,001,693 Transportation Equipment $3,860,792 Other Supplies $2,623,857 Other Services $3,919,141 Total $48,957,222 The user also has selected the following parameters: The investment takes place in Toronto Metropolitan Municipality in 2008 The impact is to be shown for Toronto Metropolitan Municipality and for Rest of Ontario Induced impacts of household spending are included Induced impacts of business investment are included The economic environment is as follows: Baseline Ontario Real GDP 3.15% 2.84% 1.89% 1.66% 2.11% (%change) Ontario CPI 1.88% 2.19% 1.76% 2.53% 1.84% (%change) Ontario Population 1.28% 1.14% 1.02% 0.69% 0.78% (%change) Ontario 6.77% 6.59% 6.27% 6.52% 6.38% Unemployment Rate Government of Canada 3 month T- Bill Rate 2.21% 2.72% 4.03% 4.45% 4.78% 1

104 2

105 2. Summary of Findings Table 1. Economic Impacts of TIFF - Economic Impact of Bell Lightbox, 2008 Expenditures in Toronto Metropolitan Municipality in 2008 ( in dollars ) Toronto Metropolitan Municipality Total Capital Spending $ 48,934,671 Rest of Ontario Gross Domestic Product (GDP) Direct $ 14,562,229 $ 1,650,844 Indirect $ 3,196,603 $ 4,079,697 Induced $ 3,355,392 $ 3,994,654 Total $ 21,114,223 $ 9,725,194 Labour Income Direct $ 9,835,603 $ 1,021,396 Indirect $ 2,228,269 $ 2,712,434 Induced $ 2,127,146 $ 2,432,989 Total $ 14,191,018 $ 6,166,819 Employment (Jobs) Direct Indirect Induced Total Direct Taxes Federal $ 3,517,331 $ 340,953 Provincial $ 3,531,167 $ 241,376 Municipal $ 991,909 $ 2,905 Total $ 8,040,407 $ 585,233 Total Taxes Federal $ 5,387,445 $ 2,043,016 Provincial $ 4,717,690 $ 1,514,289 Municipal $ 1,030,747 $ 408,814 Total $ 11,135,882 $ 3,966,119 3

106 4

107 Table 2. Economic Impacts of TIFF - Economic Impact of Bell Lightbox, 2008 Expenditures in Toronto Metropolitan Municipality on GDP by industry ( in dollars ) Industry Impact on Toronto Metropolitan Municipality Impact on Rest of Ontario Direct GDP Total GDP Direct GDP Total GDP Crop and Animal Production $ 0 $ 18,352 $ 0 $ 90,515 Forestry, Fishing and Hunting $ 0 $ 4,045 $ 0 $ 34,694 Mining and Oil and Gas Extraction $ 0 $ 92,409 $ 0 $ 79,604 Utilities $ 0 $ 152,799 $ 0 $ 206,694 Construction $ 9,423,664 $ 9,846,818 $ 0 $ 196,846 Manufacturing $ 389,705 $ 980,010 $ 1,245,349 $ 3,266,721 Wholesale Trade $ 3,704 $ 621,203 $ 8,413 $ 709,273 Retail Trade $ 0 $ 534,633 $ 0 $ 475,099 Other Transportation and $ 0 $ 180,718 $ 0 $ 302,537 Warehousing Ground Passenger Transportation $ 0 $ 22,869 $ 0 $ 34,683 (excl. Rail) Information and Cultural Industries $ 56,597 $ 328,483 $ 19,141 $ 395,867 Other Finance, Insurance, Real $ 916,615 $ 2,070,032 $ 217,401 $ 1,310,718 Estate and Renting and Leasing Car Renting and Leasing $ 0 $ 29,707 $ 0 $ 48,450 Owner Occupied Housing $ 0 $ 570,451 $ 0 $ 206,973 Professional, Scientific and $ 333,616 $ 910,257 $ 112,830 $ 764,051 Technical Services Other Administrative and Other $ 140,046 $ 394,226 $ 47,364 $ 332,292 Support Services Travel Agencies $ 0 $ 18,103 $ 0 $ 15,177 Education Services $ 0 $ 14,288 $ 0 $ 13,994 Health Care and Social $ 0 $ 104,610 $ 0 $ 110,394 Assistance Arts, Entertainment and $ 0 $ 66,088 $ 0 $ 71,050 Recreation Accommodation Services $ 0 $ 30,280 $ 0 $ 56,376 Food & Beverage Services $ 0 $ 77,683 $ 0 $ 111,570 Other Services (Except Public $ 0 $ 149,715 $ 0 $ 153,409 Administration) Operating, Office, Cafeteria, and $ 0 $ 0 $ 0 $ 0 Laboratory Supplies Travel & Entertainment, $ 0 $ 0 $ 0 $ 0 Advertising & Promotion Transportation Margins $ 0 $ 0 $ 0 $ 0 Non-Profit Institutions Serving $ 0 $ 114,983 $ 0 $ 64,541 Households Government Sector $ 0 $ 188,127 $ 0 $ 166,107 Net Indirect Taxes on Production $ 965,846 $ 991,600 $ 0 $ 390,538 5

108 Total $ 14,562,229 $ 21,114,223 $ 1,650,844 $ 9,725,194 6

109 Appendix: The Economic Impact of Investment in Toronto Metropolitan Municipality and other Ontario regions: since no Ontario region is economically self-sustaining, in order to produce the goods and services demanded by its visitors, it will need to import some goods and services from other regions. As such, some of the economic benefits of the business spending in Toronto Metropolitan Municipality will spill over to other Ontario regions, such as the one you have selected as "additional". If the second column of Table 1 contains only zeros, then that means that Toronto Metropolitan Municipality does not trade with that region. Gross Domestic Product (GDP): value of goods and services produced by labour and capital located within a country (or region), regardless of nationality of labour or ownership. This GDP is measured at market prices. Tourism GDP refers to the GDP generated in those businesses that directly produce or provide goods and services for travelers. Direct impact: refers to the impact generated in businesses or sectors that produce or provide goods and services directly to travelers, e.g. accommodations, restaurants, recreations, travel agents, transportation and retail enterprises etc. Direct impact on GDP, employment and tax revenues is also called tourism GDP, tourism employment and tourism tax revenues. Indirect impact: refers to the impact resulting from the expansion of demand from businesses or sectors directly produce or provide goods and services to travelers, to other businesses or sectors. Induced impact: refers to the impact associated with the re-spending of labour income and /or profits earned in the industries that serve travelers directly and indirectly. Employment: refers to number of jobs, include full-time, part-time, seasonal employment, as well as both employed and self-employed. Federal tax revenues: include personal income tax, corporate income tax, commodity tax (GST, gas tax, excise tax, excise duty, air tax and trading profits) and payroll deduction that collected by the federal government. Provincial tax revenues: include personal income tax, corporate income tax, commodity tax (PST, gas tax, liquor gallonage tax, amusement tax and trading profits) and employer health tax that collected by Ontario provincial government. Municipal tax revenues: include business and personal property taxes that collected by the municipalities. Collection, however, does not follow immediately the consumption or production of goods and services in a municipality (as is the case with GST or personal income taxes). Rather, these taxes show the percent of the total property taxes collected by a municipality that can be attributed to tourism because of tourism s contribution to the economic activity of the municipality and hence its tax base. Industry: The industry follows Statistics Canada s 1997 North America Industry Classification System (NAICS) Input-Output small aggregation industry classification. 7

110 Appendix F Estimated Value of Media Impressions (Cormex) Replicated here is the Executive Summary of the Cormex Report on the value of media impressions created by TIFF As mentioned in the text, as this value does not represent actual expenditure data, but rather the associated value of media impressions, this information does not enter into the economic impact model. TCI Management Consultants

111 Toronto International Film Festival 2008: An audit of Canadian and international media coverage July 1 September 23, 2008