For 50 years, the Toronto International Film Festival (TIFF) has been one of the most exciting entertainment events in Toronto. As a charitable cultural organization, TIFF has contributed to building the cultural and economic sectors of Toronto; in 2024, the 11-day festival created $240 million of economic activity and attracted more than 700,000 visitors.
From increased spending on food and drinks to more employment opportunities for workers in the film industry, TIFF has a far-reaching economic impact on Toronto. It is also important to note that the festival relies on hundreds of unpaid volunteers each year who contribute to its operations and success.
Economic spillovers
The revenue TIFF generates encompasses money directly coming from tickets, sponsorships, government grants and other services. It also includes the revenue arising from the spillover economic effects of the festival on other industries. In fact, TIFF encourages enough economic activity to generate $36 million in taxes to municipal, provincial, and national levels of government every year.
Tourism occurring due to TIFF also has large effects — the massive influx of tourists fosters economic growth and prosperity in local communities, with beneficiaries like hotels, restaurants, and the transportation sector. The many dinners, parties, and before and after shows occurring for the celebrities in town for TIFF are especially helpful to clubs and restaurants in Toronto.
The hotel industry greatly benefits, too. The revenue per available room (RevPAR) is a common metric used to measure hotel performance that is calculated by multiplying a hotel’s occupancy rate by its average room rate. Its value in Toronto consistently peaks in September, highlighting TIFF’s strong impact on this industry.
A platform for the City’s film industry
TIFF has placed Toronto in the spotlight as an international hub for film and media production, attracting directors and investors. Many famous shows and movies have been shot in the City — Oscar-winning film Good Will Hunting was filmed on the U of T campus.
In the long run, this translates to more revenue generated through renting parts of the City and equipment out to production companies. The city has also opened many new production facilities, which will help create more jobs in this industry for Toronto residents.
TIFF is an amazing platform to support local filmmakers and help kickstart or fast-track their careers. The organization offers programs such as the Directors’ Lab, which selects 16 Canadian and international directors to receive an impactful career-launching mentorship from world-renowned directors, producers, agents, and top industry experts.
TIFF is making efforts to screen more Indigenous films. The festival’s official lineup includes eight films and two shorts by Canadian Indigenous filmmakers, a record-high in TIFF’s 50-year history. However, this is still a small fraction of the 291 films it is screening in total.
For decades, Indigenous filmmakers were working with minimal funding, according to Kerry Swanson, CEO of the Indigenous Screen Office (ISO) — an advocacy group supporting First Nations, Inuit, and Métis filmmakers. Fortunately, in recent years, ISO and the Canadian government have started allocating funds to support and foster the creative talents of First Nations, signifying another step in reconciliation. This year, they financed Nika and Madison — a film about two Indigenous girls on the run after a dreadful encounter with the police.
Managing TIFF’s environmental impact
While the tourism economy booms during this period, the City of Toronto must tackle the negative impacts. Parts of its budget must be allocated to managing negative effects like traffic jams or high energy consumption.
TIFF is not blind to its environmental effects; each year, it tries new environmental strategies to mitigate them. In 2024, they partnered with Invert, a carbon reduction and removal company, which helps offset carbon emissions of guest travel. This year, TIFF is working with Bullfrog Power to only use renewable energy to power its screenings.
Despite this, the festival has received criticism over the connections of its partners to fossil fuels in the past. In 2023, various members of the film industry signed an open letter to TIFF asking it to cut ties with its sponsor RBC — the bank is one of Canada’s biggest fossil fuel financiers. However, RBC has remained a major sponsor of TIFF.
While the festival is a large driver of economic activity in the city and contributes to its cultural growth, it is important that it continues to take steps to ensure its sustainable future.
