Caribana is a festival of millions.
Each year, Toronto’s biggest street celebration draws more than one million revelers to the city. And those million festival-goers spend millions of dollars on bottled water, taxi rides, hotel rooms, rotis and souvenirs, boosting the local and provincial economy.
A study, released Tuesday, calculates Caribana’s total economic impact to be $438 million.
The analysis, the most comprehensive look at the festival to date, confirms Caribana has a tremendous economic impact on Toronto, the GTA and Ontario, said study co-author Gervan Fearon, professor of economics at Ryerson University.
The annual celebration of Caribbean culture, now in its 42nd year, creates the equivalent of 6,800 jobs, with 83 per cent in the Toronto area, the study found. The analysis also showed Torontonians spent an average of $327 at the festival, while visitors from outside Canada spent an average of $901.
The more than $400 million in spending at the festival is spread among a wide range of economic sectors, with restaurants and bars topping the list, Fearon said. The report found revelers spent more than $109 million at restaurants and bars, $101 million on accommodation, $64 million on recreation and entertainment, $62 million on clothing and $33 million on transportation.
“People come for the festival, but go out to other venues and take part in other activities,” Fearon said. “The reach is quite significant.”
The economic impact of Caribana exceeds other Toronto festivals, including Pride Week. A 2006 economic impact study of Pride Week found the annual festival pumps $99 million into the regional economy and draws about 436,000 people whose spending supports 648 jobs in Toronto and 161 jobs in other parts of the province.
The TD Canada Trust Toronto Jazz Festival claims a $21 million economic spinoff based on attendance of 500,000. And organizers of the Toronto International Film Festival estimate TIFF has a $135 million economic impact on the city.
Organizers of Scotiabank Caribana commissioned the 2009 Economic Impact Study, which was conducted by Fearon and Carlyle Farrell, a professor at Ryerson University’s Ted Rogers School of Management. The Star is the official newspaper of Scotiabank Caribana.
The study found Caribana generated $198 million in tax revenues in 2009. That same year, the labour income generated by the festival exceeded $260 million.
Toronto, ON, Canada, May 29, 2010 
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