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John Morris is the founder and owner of morriscode, a leading Prince Edward Island web design & development firm that works with organizations to take advantage of multiple forms of technology and enhance their efficiency through online initiatives.
Occasionally John likes to share thoughts and opinions on his blog. When not working on web design, web development, social media strategies or building new websites, this entrepreneur can be found adventuring through PEI's backwoods capturing the beauty of our province.
The Cavendish Beach Music Festival is expecting a crowd of 25,000 people to attend it's concert. Before I get into some obvious reasons of why this concert is good for PEI, here's some information on the concert.
The concert promoters are expecting 25,000 people to attend this three day event. Tickets are $59 for the first day, $79 for the second and third day or a three day pass is available for $159.
Since we are using the numbers provided by the Festival, let's use some conservative assumptions.
Let's say the concert flops and only 23,000 people attend to see Tim McGraw (Afterall Tim McGraw is the big name for this event) on July 11th at $79 and 2,000 get VIP tickets at $191. For conservative assumptions let's assume July 10th and July 12th end up being a total wipe out and no one shows up. I know it's far fetched but let's do it to paint the worst picture possible.
23,000 Adult Passes
2,000 VIP Passes
That's $2,199,000 in revenue for the entire event from just the ticket sales. But somethings not right. PST is suppose to be charged after the GST is added to the ticket price. Meaning, since we tax the tax, the total PST collected is going to be even more, about $29,445 more.
Using our horrible forecast that this show will only attract 25,000 in total, the total PST collected will be $248,445. The province put $200,000 into this concert therefore we are left with the province being in the plus by $48,445 from the PST collected alone.
But, I haven't painted a good picture. The province is actually due to collect more. After all, with all those bookings of cottages, hotels, and campgrounds the province will be collecting PST off those sales as well. Not to mention the income tax which will be collected from those working at this concert or the other economic spin offs.
Using my conservative figures, the province will be increasing their revenue by ensuring this concert goes ahead and that means the additional revenue would be able to go into other things like health care. The net gain of the sales from this concert alone makes it worth while without looking at other taxable income for the province.
And for that I say kudo's to the government for making this event happen. Let's hope the concert promoters continue this and the province funds another separate event next year to ensure the spin offs keep happening and we continue to increase our economy on PEI.
If we had two events like this every year (one near start of summer and one at the end), our tourism industry would no doubt see a huge boost and this would be a major plus to our economy and our province.
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