Canadian venue owners say one of the biggest issues they face is continued weakness in that nation’s currency, especially vis-à-vis the U.S. dollar.
This complicates booking American acts and making revenue guarantees to artists in U.S. dollars. As of August, it took about CA$1.30 to equal one American dollar. This is down 20 percent from five years ago, when the two currencies were trading almost at parity.
The Canadian dollar, known as the loonie after the loon bird on the dollar coin, has fallen almost 10 percent over the past year against the U.S. dollar due to tensions over trade deals with the U.S. and as the greenback has been strengthening against most major world currencies.
If the Canadian currency continues losing value, that means ticket prices have to go higher or venues would have to cede more revenue to artists’ demands.
“It’s tougher this year than in the past,” said Dan Glick, senior director of concerts and events for Evenko, which books for Montreal’s MTelus and Corona Theatre. “There are situations where an act is expecting a certain amount in U.S. dollars and if we don’t feel we’re able to get there with the ticket price we think is best, then they may pass and come back.”
Kevin Donnelly, senior vice president of venues and entertainment for True Sports Entertainment, which owns and operates Bell MTS Place and Burton Cummings Theatre in Winnipeg, agreed, saying, “We have lost acts for sure. There have been tours that routed or called for avails and you try to make it work, but you know through the process the guarantee in U.S. funds transferred into Canadian tips the cart upside down — it pushes prices too high or is above what we can offer them.”
And Donnelly is not hopeful this situation will change anytime soon: “Talent fees are not going down in America, and we’re asked to meet that.”
Andrew Nash, general manager of the Abbotsford Centre in British Columbia says the math is easy to figure out, but doesn’t always add up to a successful show: “When you tack on 30 percent or more (to ticket prices in Canadian dollars), that’s how many tickets you have to sell or the price has to be higher. At what point does that ticket price become so outrageous the customer isn’t going to purchase it?”
The exception seems to be Canada’s top ticket taker of the past year: Scotiabank Arena in Toronto. Melissa Bubb-Clark, head of music partnerships and live entertainment with the arena’s owner and operator, Maple Leaf Sports & Entertainment, said, “We’re super-sensitive to our fans, but I don’t believe it’s affected our business. I think Toronto may be somewhat insulated more than smaller markets.”
There aren’t many currency hedges, but Abbotsford’s Nash is trying to tap into a market where the exchange rate may be an enticement — just a few miles south of the venue: “I can literally see the (U.S.) border from the building. We do market in the area, Americans make up about 5 to 8 percent of (our) fans depending on the show (and) their money is worth 30 percent more.”