I recently returned from a lovely trip to Niagara-on-the-Lake, Ontario. After some pampering at the spa, I took a leisurely bike ride, sampled wines at the local wineries and enjoyed an evening of fabulous theatre thanks to the indefatigable Shaw Festival. With an average of 300,000 theatregoers each season, the festival continues to stake its artistic ground in Ontario’s cultural landscape. But it’s not all theatrical fun and games and the Shaw faces its fair share of challenges each year. And it is not alone. Whether it’s an over-saturated market, increased competition for sponsors, fickle attendees, escalating financial costs or inclement weather, the number of obstacles facing festivals today are many. So, how do the Shaw and others avoid festival landmines and achieve success?

Location, location, location

To be situated at the very epicentre of a popular tourist destination can have its advantages…and its disadvantages. “We don’t have an audience base within a five-minute transit ride,” explains Odette Yazbeck, director of public relations of the Shaw Festival. “So not only are we at the whim of arts patrons, we are also susceptible to the tourism market.” And that means feeling the effects of, among other things, SARS, 9/11, the weakening U.S. dollar and higher gas prices. A trip to Niagara is, after all, an investment, one that involves food, accommodations and travel. On the plus side, however, it’s not as if Shaw is located on a secluded island. Rather, it sits in the heart of the historic and beautiful region of Niagara-on-the-Lake. With wineries abundant and growing in popularity, and with the innate attractiveness and appeal of the area, “there are many perks that go along with being in Niagara,” affirms Yazbeck.

Howdy Pardner

One such perk is the unique partnership opportunities that arise from being in a tourist destination. “Partnerships are very important because more and more people are looking for that one-stop shopping,” Yazbeck explains. In response, Shaw offers a variety of package deals, aligning with golf courses, bed and breakfasts and jetboat tour companies. These added incentives for tourists can, understandably, translate into added revenues for any festival – in Niagara or elsewhere.

You scratch my festival’s back, I’ll scratch yours…

And what of sponsors and the revenues they generate? The Toronto International Film Festival knows a thing or two about sponsorships. Run every September by the Toronto International Film Festival Group (TIFFG), a not-for-profit organization, the festival has established itself over the past 30 years as a world-class cinematic event. Aside from government grants, donations and earned revenue, 29% of TIFFG’s funding in 2005 came from sponsors. “Support from new and long-time organizations and corporations is integral and crucial to the success of the festival,” says Naoko Kumagai, senior communications coordinator. And looking to the International Toronto Film Festival as a strategic marketing partner has paid off for everyone. “The relationships are mutually beneficial for our sponsors and for the organization,” Kumagai adds.

As for Shaw, the festival makes a concerted effort to extend its relationships beyond sponsors’ pockets. “Sponsors want to make sure that, fundamentally, we are all of the same philosophy in terms of how to treat our customers,” states Yazbeck. “Our fundraising department invests in building relationships so that they really are like partners; it’s not just an exchange of cash for their logo.”

Establishing partner-like relationships with sponsors seems to be a common practice for successful festivals, be they large or slightly smaller. The Barrie Dragon Boat Festival is an annual event held every August in Barrie, Ontario. Started in 2003 by the Barrie Public Library, it not only provides funding opportunities, it has also helped the institution establish itself as a central hub of the community. In addition to a number of cash sponsors, the festival has some in-kind sponsors as well in the form of local businesses that supply a range of logistics for the festival site. And, as with Shaw, there seems to be a blurring of the lines between sponsor and partner. Development officer, Ann Andrusyszyn, discusses the strong allegiance felt toward their sponsors – some of whom had never even heard of dragon boating – who took a great risk on them their first year. “We feel very close to them and so look at them as partners,” she says.

Sticking out from the crowd

Though a relative newcomer on the festival circuit, the Barrie Dragon Boat Festival was able to raise more than $285,000 in pledges last year. According to Andrusyszyn, the festival’s success in such a short time lies in a unique approach and strong community investment. Each team that joins the festival pays a registration fee that goes directly to the library to help offset costs of the festival. They must then guarantee a certain amount of pledges to charity but, unlike other festivals of its kind, Barrie gives teams the option of pledging to any charity of their choice. “We don’t believe that one charity should suck all the money out of a community,” she says. As a result, in 2005, 44 charities had the fortunate opportunity to reap the financial benefits of the festival. In addition, an inclusive and non-competitive policy ensures that whoever wants to paddle at the festival can. As such, teams last year included those with autism, Down Syndrome and the hearing-impaired. With a growing number of teams registering this year, the festival’s approach seems to be paying off.

The number crunch

Of course, no matter how wonderful and unique the approach, if a festival lacks a sound business plan, its challenges will only escalate. Case in point: the Vancouver Folk Music Festival. The very first note played at this ever-popular festival was back in 1978. At that time, it was one of the first of its kind, a novelty. Today, with festivals and events taking place every weekend, in every municipality and on every corner, the Vancouver Folk Music Festival’s iconic status and legacy proved not enough to sustain it. Apparently an over-emphasis on music and delivering a message, to the detriment of fiscal management, resulted in a high level of accumulated debt. It was so high, in fact, that it almost brought the 29-year old folk festival to a close two years ago.

However, by recently implementing a number of small business principles, the festival hopes to turn its fate around. And what are those principles? “We squeeze every nickel four or five times – until the beaver cries out in pain – and we keep track of every single expenditure,” explains chair of the festival’s board, John Kidder. The festival’s newfound focus on financial responsibility has already seen positive results. “Last year, we turned a $117,000 loss in 2004 to a $117,000 surplus in 2005,” beams Kidder. Though they still have a way to go before reaching sustainability, they are hopeful that with their finances back on track, artistic director Dugg Simpson will soon have the freedom to focus on the festival’s original mission: bringing the music of the people to the people.

Establishing awareness

Bringing music to 30,000 annual spectators is made easier when a festival has already established close to 30 years of stage presence, as with the Vancouver Folk Music Festival. In that length of time, simple word of mouth and local advertising may be enough to maintain a healthy level of awareness. But what of other festivals? How do they ensure they reach the eyes and ears of the target population? “We find that because we have such a huge community buy-in, the enthusiasm is really high,” states Andrusyszyn at the Barrie Dragon Boat Festival headquarters. Media sponsors in the form of a local newspaper, a local TV station and two local radio stations undoubtedly help with awareness. And the general bustle of paddling activity at the city’s waterfront the past few summers has brought in quite a significant level of onlookers and participants.

For larger festivals, media definitely seems to be the medium of choice. “We accredit 800 journalists from around the world,” states Kumagai. “The media sustain and continue to build our organization’s profile locally, nationally and internationally.” Interestingly, though, for the Shaw, word of mouth is playing an ever-increasing role. “It’s huge,” exclaims Yazbeck. Since traveling to Shaw is an investment, both monetarily and organizationally, “what you really want is third party endorsement,” she adds. “You want to hear from your friend whom you trust that they had a rewarding experience, worth all the planning, traffic and gas prices.” Judging by the constant stream of patrons entering Shaw’s theatre doors, the endorsements appear to be strong indeed.

Elisa Birnbaum is a freelance print and broadcast journalist living in Toronto.