Concert organizer gets tax break

Organizers of September's Black Eyed Peas concerton P.E.I.will keep the provincial sales tax on ticket sales under a special arrangement with the province.

The hip hop artists are scheduled to play during the Labour Day weekend in Alexandra. Tourism Minister Philip Brown told CBC News the province is willing hand over its 10 per cent tax haul because it expects to benefit from the show'seconomic spinoffs.

"If we can get on this map of being able to host a major concert like this, other groups, other promoters will look to this and say there's an opportunity for us there," Brown said.

"The advantage of this type of sponsorship is that we're not up fronting money."

The event could attract close to 20,000 people. At $50 a ticket, the provincial sales tax deal could be worth $100,000 to the organizers.

Brown said the province's sponsorship of the Black Eyed Peas concert is a one-time deal, to prove P.E.I. can host shows of this size. The tourism department is also helping the company plan logistics bygiving advice about what insurance, permits and security are needed for an event this big.

Concert promoters East West Concert Production has a lot of experience putting on big concerts, said Brown, including shows in Parlee Beach and Newfoundland.

Brown says the Black Eyed Peas concert could bring close to $5 million in economic spinoff to
the province.