MMBC asks Minister Freeland to extend ICAF support

On October 18, 2024, Meetings Mean Business Canada sent a letter to Chrystia Freeland , Deputy Prime Minister and Minister of Finance, asking that the Canadian government extend funding for the International Conventions and Attractions Fund (ICAF) for a further two years at a total additional investment of $33 million. 

The letter was signed by nearly three dozen business events sector leaders.

Friday, October 18, 2024

The Honourable Chrystia Freeland

Deputy Prime Minister and Minister of Finance

90 Elgin Street

Ottawa, Ontario

K1A 0G5

Delivered by email: chrystia.freeland@fin.gc.ca

Subject: Fall Economic Statement 2024 and Budget 2025 Proposal –

Extension of the International Convention Attraction Fund (ICAF)

Dear Minister Freeland,

I am writing to you today on behalf of Meetings Mean Business Canada and the diverse businesses we represent across Canada’s business events sector. We respectfully request your support for our key policy priority that was outlined in the Tourism Industry Association of Canada ’s 2025 Pre-Budget submission to the Standing Committee on Finance. 

In 2023 alone, total tourism spending in Canada reached $113.4 billion. With government revenue from tourism activity equaling roughly 27% of visitor spending each year (i.e., for every $1 of spending, $0.27 is returned in government ROI), this makes tourism a significant contributor to the economic and social fabric of Canada.

Business events, which include conventions, conferences and trade shows, typically account for a significant portion of tourism spending. In Canada, it's estimated that business events represent around 40% of all tourism spending in many regions, particularly in major cities that host many conventions and meetings.

As such, we request the government support a two-year extension of Destination Canada ’s International Convention Attraction Fund (ICAF) with an extra $33 million investment over the two years. 

Since its launch in March of this year, the ICAF has made a significant impact on the attraction of major international conferences to Canada in the years ahead and is expected to deliver a strong return on investment for the federal government.

As of September 30, 2024, ICAF has successfully supported 21 bids for international conventions taking place from 2025 to 2030. These 21 events are expected to attract over 51,700 overnight delegates to Canada, generate $122.2 million in direct economic impact, $8.5 million in federal tax revenue, and support 1,039 full-time equivalent jobs.

With $7.4 million committed through ICAF towards these 21 events, for every $1M invested by Destination Canada for ICAF-won events, it is anticipated to result in $16.4M in direct economic impact, $1.1M in federal tax revenue, support 140 full-time equivalent positions and attract close to 7,000 overnight visiting delegates.

In Toronto alone, the Destination Toronto team has effectively utilized ICAF as a conversion tool, resulting in the anticipated arrival of 26,000 attendees to the Minister’s home riding and an estimated economic impact of $58.3 million.

The data is clear: ICAF is generating a significant boost to Canada’s economy by driving direct economic impacts, creating jobs and increasing federal tax revenue. This impressive performance underscores the program's value in enhancing the country's tourism sector, supporting local communities and driving economic recovery in downtown cores.

We thank you for considering this request. We welcome an opportunity to meet with you and your team to discuss these priorities, and how they can continue to support the Government of Canada’s goals.

Regards,

(Signatories in Annex)

CC: The Right Honourable Justin Trudeau, P.C., M.P., Prime Minister of Canada

The Honourable Soraya Martinez Ferrada, P.C., M.P., Minister of Tourism and Minister Responsible for the

Economic Development Agency of Canada for the Regions of Quebec

______________________________________________

Broader Implications and Benefits

The extension of ICAF funding can contribute to several broader objectives that align with national economic and cultural priorities:

Strengthening Canada’s Global Competitiveness: Extending ICAF funding will allow Canada to continue competing with other major international destinations for high-value conventions and business events. These events often serve as entry points for future investment attraction and partnerships that can benefit a range of industries.

Supporting Regional Economic Development: By facilitating events across diverse regions, ICAF funding helps to spread the economic benefits beyond major cities. This approach supports regional tourism growth and diversifies economic opportunities for smaller communities, which can be pivotal for their development and resilience.

Encouraging Private Sector Engagement: ICAF helps generate interest from private sector partners who recognize the value of business events in Canada. This creates opportunities for further investment and collaboration between government and private stakeholders, expanding the overall impact of each event.

Leveraging Business Events for Cultural Exchange: Business events serve as a platform for promoting Canada’s values, expertise and innovations on a global stage. These gatherings foster cultural exchange and contribute to Canada’s image as an inclusive, innovative and welcoming country.

The early success of ICAF in its inaugural year illustrates the program’s potential to continue driving economic growth, job creation and cultural exchange. Extending its funding would allow Canada to fully capitalize on the advantages of this program, benefiting communities nationwide and supporting long-term resilience in the tourism sector.