Toronto tourism takes $50M hit with loss of race: Layoffs predicted as city loses Grand Prix
Jim Byers & Rick Matsumoto
Thestar.com
Toronto's hospitality industry will take a $50 million hit this summer with the cancellation of the Toronto Grand Prix.
The annual summer racing extravaganza, which began in 1986 as the Molson Indy, attracted tens of thousands of visitors from across the continent.
But sources say the event – which may return in 2009 – fell victim this year to a deal signed between the Indy Racing League and the Champ Car World Series.
Put simply, there wasn't enough room for all the events on both groups' calendars, and the Toronto Grand Prix was sacrificed for the 2008 racing season.
Losing the event will be a huge blow to the city's economy, and could even result in temporary job losses, officials warned last night. But the loss is surviveable, says deputy mayor Joe Pantalone, who heads up Exhibition Place, where the race is centred every summer.
"It would be a hit if we lost the race, but not a fatal hit," Pantalone said. "It would mean less tourism and less international exposure for the city. People see the city's skyline and the CN Tower and the waterfront on TV and it makes Toronto look pretty good."
The deal to unify the two open-wheel race car circuits ends a 12-year battle between the two groups.
Because the Toronto event has been one of the better attended and reliable events on the Champ Car (formerly CART) circuit for years, one source close to the negotiations said Toronto will likely be on next year's schedule.
Duncan Ross, the city's tourism director, said studies have shown the race has an annual impact of $50 million on the city's economy, attracting tens of thousands of paying fans to nearby hotels, bars and malls.
"From a tourism perspective, one thing this event offers is an international and North American broadcast audience," Ross said. "Any chance tourism marketers have for a live TV feed ... is an incredibly positive opportunity. The dynamic images ... have a way of making visitors want to come to the city.
"One of the most important things we can do is to have a diverse calendar with events that appeal to all markets. It's one of the major events we have, along with things like the film festival, Caribana and Pride Day."
Asked if the race would be hard to replace from a tourism standpoint, Ross replied, "Definitely. In a short period of time it would be a challenge. But I think the community would come together to do whatever's possible to be sure something replaces it."
Ross said there could be layoffs, possibly among workers who install seats alongside the race course and such.
But Pantalone said with Toronto in a building boom, many will likely find other work if the 2008 race is cancelled.
"We don't have a full-time staff of construction workers at the Ex," he explained. "But there's no doubt that for the bottom line, it would be a hit. You don't lose a major international attraction without it being a hit."
Tourism Toronto vice president Andrew Weir said he wants to focus on the long term, not just worry about a potential 2008 loss.
"A merger is good for race fans," he said. "It's good for any host city. The audience will be less fragmented (compared to when Champ Car and Indy races ran separately) and that will mean better TV exposure. All the stars of racing will be there, which is what people want to see."
"I think this is a good thing for open-wheel racing, the events, the teams and the drivers," said Charlie Johnstone, CEO of the Toronto Grand Prix. "How it plays out for individual events or teams or drivers, those particulars will still have to be shaken out."
Full details of the pact won't be made public until next week.
Johnstone said the year's hiatus for Toronto could have an adverse affect on fan acceptance for a revival in 2009, but that could be overcome with sustained promotion.
"The only way to do it successfully would be to come back for 2009 at the end of the 2008 season, saying `Here's our title sponsor, here's our support series, our entertainment.'"
