Tourism Charlottetown denied annual city grant

Tourism Charlottetown Inc. will not get its annual grant this year from the city.

The city made the decision after Tourism Charlottetown announced it's getting out of the event planning business and let go its events staff.

CBC News has learned the $114,000 grant will instead remain in city coffers.

'It's really important that somebody picks up the banner.' —Don Cudmore, TIAPEI

The city and the Tourism Industry Association of Prince Edward Island are hoping private-sector operators will come forward to put on events such as the Jack Frost Festival and Summerfest, that were organized by TCI.

"We'd like to see private business or another organization take the lead on these," said Charlottetown city councillor Jason Coady, who chairs the city's economic development and tourism committee.

"And if we could help out, you know, submit a proposal and tell us what we could do and council could have a look at it."

Tourist operators rely on these larger events, said Don Cudmore, executive director of TIAPEI.

"These festivals and events that happen in Charlottetown, or other places on P.E.I., but particularly we're talking about Charlottetown here, are important to the tourism sector," said Cudmore.

"I talk to operators all over Prince Edward Island that tell me how important these events are to them. They drive business to places other than Charlottetown — plus Charlottetown — so it's really important that somebody picks up the banner. You don't realize how important it is until you don't have it, but we hope we don't get to the situation where we don't have these events."

Coady said the money will be put in a holding account.

"If a private business or separate entity out there that wants to come and maybe provide some of the events that TCI provided last year, the money is already available to help them out."

However, the city is considering reducing the amount of money it sets aside for special events, said Coady.

He wouldn't say how much less might be in the budget, but it could be as little as $80,000 dollars.

Money will likely be given out on a case-by-case basis to organizations that want to put on special events.

The city budget will be released on March 28.

No one from TCI was available Friday for an interview.

TCI also receives about $500,000 from the city's hotel room tax. That deal expires at the end of this month and Coady says the city is talking about also making changes there.

The Hotel Association of P.E.I., which is part of the negotiations, said TCI needs the funding for general promotion of the city and to bring in meeting and conventions.

"We are now building a convention centre on the Island," said Zubair Siddiqui, president of the association.

"We want to make sure our meeting and convention focus moving forward is very much in line to where we feel the opportunities are."

While TCI works with funding partners to plot its future course, groups like TIAPEI said the province needs to ensure events like Summerfest go ahead.

Coady said the city is moving ahead with a Canada Day festival that will likely include a mainstage concert lineup from a private promoter, similar to last year's festival.

It's not clear yet if anyone will step up to take on the popular Jack Frost Festival next year.