Tourism P.E.I.'s deal with NHL draws mixed reaction - Action News
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PEI

Tourism P.E.I.'s deal with NHL draws mixed reaction

Some politicians on P.E.I. are questioning the value of a new deal between the National Hockey League and Tourism P.E.I., while the provincial tourism minister is defending it and a marketing prof thinks it just might work.

Opposition MLAs question return on investment, but prof thinks it could pay off

A tag depicting P.E.I. scenery with the NHL logo and Tourism P.E.I. logo with the words official travel destination.
Opposition politicians are questioning Tourism P.E.I.'s new deal with the NHL, announced Tuesday. (Submitted)

Opposition politicians on P.E.I. are questioning the value of a new deal between the National Hockey League and Tourism Prince Edward Island, while the provincial tourism minister is defending it.

The province announced Tuesdaythat it had entered into a three-year marketing partnership with the league that will see the Island branded as the NHL's official travel destination.

The provincial government is paying the NHL $2.5 million for the first year of the agreement, with an option to back out or renew after that.

"I don't oppose the fact that we need to promote Prince Edward Island," said Liberal MLA Robert Henderson, who was the province'stourism minister from 2011 to 2015."I guess I'd like to know what the return on investment on that [deal] is."

A man in a dark suit and red shirt stands up and poses questions to ministers.
The $2.5 million the province is spending on the deal is more than the health-care recruitment budget, says Liberal MLA Robert Henderson. (P.E.I. Legislative Assembly)

Henderson acknowledged he doesn't know the details of the deal, but questioned spending that much money on it while Islanders struggle with issues such as health-care access.

The MLA, who also served as the province's health minister from 2015 to 2018, pointed out that the $2.5 million cost brings the tourism marketing budget to $8 million for the year, well overthe current $4.7-million budget for health-care recruitment on P.E.I.

"I would argue that maybe if you need to spend more money on something on Prince Edward Island,that would be one thing that we would look at," Henderson said.

Why are we spending unbudgeted funds on something that may actually exacerbate an already existing problem? MLA Peter Bevan-Baker

Green Party MLA Peter Bevan-Baker said the fact that you can't measure how well this type of investment works is a problem.

"It's notoriously difficult to track the impact of a particular investment on something like tourism, because it fluctuates from year to year for a whole bunch of reasons," said Bevan-Baker.

Peter Bevan-Baker
The announcement of the deal feels like 'misplaced priorities', says Green MLA Peter Bevan-Baker. (PE.I. Legislative Assembly)

P.E.I.'s tourism sector is also feeling "tapped out," he said, and he's spoken to tourist providers across the Island who had trouble keeping up with demand last year.

"Why are we spending unbudgeted funds on something that may actually exacerbate an already existing problem, which is that the Island actually isn't able to cater properly to the tourists that want to come here in the first place?"

Bevan-Baker also said that given the ongoing issues around health-care services on P.E.I., the announcement of the deal seemed like "misplaced priorities" at work.

MLAs raise eyebrows at P.E.I. government spending $2.5M on NHL deal

8 months ago
Duration 3:28
Is the $2.5 million price tag on the province's NHL travel partnership worth it? Some opposition MLAs are questioning the cost and the timing. P.E.I.'s tourism minister says the pact will bring millions to the province.

The new deal is targeting NHL fans in Ontario and New England, said Cory Deagle, P.E.I.'s minister of fisheries, tourism, sport and culture.

Deagle said he hasn't seen anycalculations on the expected return on investment, but said the amount of marketing P.E.I. is getting through the deal would typically cost more than $15 million to buy.

"Aligning our Tourism P.E.I. brand with the NHL brand, it's extremely powerful," Deagle said."The fan base for the NHL and the clients for the NHL are the same kind of tourist that we're trying to attract to P.E.I."

Minister of fisheries stands in the legislative assembly.
The province is still investing in areas such as health care and housing, along with tourism, says Tourism Minister Cory Deagle. (Legislative Assembly of P.E.I.)

Deagle said investing in tourism does not mean the provincial government is ignoring other pressing issues.

"We're also investing in health care, housing, and trying to make life a little more affordable for Islanders. But it doesn't mean that we can just stop investing in tourism, which is a huge part of our economy," he said.

Marketing prof thinks deal will pay off

The NHL deal will definitely increase brand awareness for P.E.I., said Sergio Carvalho, a marketing professor at Dalhousie University in Halifax.

"It makes [fans] aware of P.E.I. as a tourist destination and what P.E.I. has to offer," said Carvalho.

He was surprised to learn the deal was worth $2.5 million and thought it would have cost the province much more.

"If they work well with these opportunities, they can profit from it for many years," Carvalho said.

Corrections

  • A previous version of this story had incorrect numbers regarding the tourism marketing budget as it compares to the budget for healthcare recruiting. It also indicated an estimate for the return on investment, when there has been no calculation done on what that will be when the campaign is complete.
    Feb 15, 2024 10:17 AM AT

With files from Steve Bruce and Kerry Campbell