Tourism Minister Robert Henderson says tax on tickets for the August 30 show offset investment
When it comes to the government to spend money on Shania Twain concerts this summer, Tourism Minister Robert Henderson says he hopes to be back on the tax bills.
Henderson said the government is committing $ 250,000 to the concert through the 2014 PEI fund sponsor and nine percent portion of the HST on the sale of tickets that investment will pay if the show runs.
That does not include the spin- offs of visitors to the province to pay for other things like housing, he said.
“There is a multiplier effect that can be calculated in this, so we’re just trying to keep it very simple, very basic.’S really ticket sales, where we will tax money.”
Sale of tickets early on August 30 concert were immediate, with nearly 4,000 grandstand seats already sold.
The concert will be held in Charlottetown Events Land with a capacity of 28,000 people.
Prices range from $ 89.50 to $ 179.50 and if the concert is exhausted will mean about $ 2.8 million in revenue.
The part of the province of HST on inputs would be over $ 250,000.
Although the provincial government is spending $ 250,000 to sponsor the concert promoter Donald K. Donald is assuming the financial risks associated with putting on the show.
The concert is one of the centerpieces of Founders Week 2014 PEI as part of celebrations.
Henderson said if the government had not acted as a major sponsor of the concert could not have happened in PEI and the province could not get the economic benefit.
“That’s the principle behind what we’re looking to be a partner in this significant event for Founders Week and the biggest concert of the Founders Week.”
In terms of economic impact of $ 5 million contribution from the province to fund the PEI 2014, Henderson said the government plans to conduct a review after the year ends.
“Obviously, the political problems and the public sometimes thinks it comes to parties and concerts and good times, but there are significant for tourism economic benefits of this province.”