Businesses are kicking up their heels as Canada's major summertime exhibitions generate millions of dollars worth of revenue this summer across the country.

From the Canadian National Exhibition (CNE) in Toronto to the 10-day Stampede in Calgary, Capital Ex in Edmonton and the Pacific National Exhibition (PNE) in Vancouver, the fairs are proving to be meccas to small business.

The Calgary Stampede is arguably Canada's top fair, attracting tourists from around the world, and is expected to surpass its record of 1,262,518 visitors set last year.

The self-billed Greatest Outdoor Show on Earth, which generated $49.37 million in revenues for its non-profit board last year, often involves major corporate partners, especially oil and gas firms.

Photo courtesy of the Canadian National Exhibition Association
This year's Canadian National Exhibition is expected to attract about 1.45 million visitors for its 18-day run.

The fair business is largely populated by small business, says David Bednar, president of the Canadian Association of Fairs and Exhibitions and general manager of the CNE.

"If the fair didn't exist, someone would want to invent it," he adds.

Bednar says the 129th annual CNE, which runs Aug. 17-Sept. 3, expects to attract about 1.45 million visitors this year.

"A common kind of assumption that's made is that we're quite a tourist draw," says Bednar. "In fact, we're much more of a local attraction. We draw something like 92 per cent of our attendance locally. It's fair to say that fairs right across the country have a similar type of attendance.

"So the effect on business is actually quite local."

A 2003 study on the CNE's economic impact, which has the most recent figures, shows the fair generated $48 million in direct spending and $66 million in local, provincial and federal taxes.

But Bednar adds 2003 was a "particularly bad year" because the 18-day event was reduced to 14 days due to the blackout that swept across Ontario and the northeastern U.S.

This year, the CNE will boast 700 commercial exhibitors and 180 outdoor and indoor concessionaires. Taking games operators into account, the total should approach the 1,000 mark, says Bednar.

The CNE will also hire 1,500 employees while participating businesses will bring the total number of people working at the fair to 4,000-5,000. A major opportunity could emerge for a business next year as the CNE seeks to award a new midway contract in 2008.

Bednar says it may stay with New York-based North American Midway Entertainment - which two years ago acquired Conklin, owned by a family of the same name and a staple of Canadian fairs for more than 60 years - or sign a different company to a five-year deal. Potential new operators are required to attend this year's fair.

"It's something we haven't done since 1993, so it's been a long time," says Bednar. "We're in a changed atmosphere here locally, and I just couldn't see the fair signing another midway contract without going to market.

"We're testing the water to see what's out there."

He says cost was not the determining factor in the CNE's decision to put out a request for proposals on a new five-year deal, which must be approved by Toronto city council, owner of the CNE grounds.

Out west, Tourism Calgary spokeswoman Corrinne Wilkinson says the Stampede generates $300 million in economic benefits annually. For every dollar spent at the fair, $2.80 is spent in the rest of Calgary.

The Stampede also helps fuel 700 other events around the city during and after its run, which this year is July 6-15.

Stampede spokesman Doug Fraser says the $300 million applies to revenue produced throughout the year, but the 10-day fair is the major source.

He says while it's hard to measure the impact on small businesses, the Stampede spreads benefits to firms throughout the city.

Tourism Alberta spokesman Don Boynton agrees the Stampede and Capital EX, formerly known as Klondike Days, succeed in creating spinoffs in other markets.

"We know that events and festivals attract visitors and move people around our regional markets as well," says Boynton. "They're powerful motivators for travel and tourism."

The Stampede sells out Calgary hotels each summer, assisting small tourism operators in smaller communities.

"With that exposure, they see the attractions that are available in smaller areas as well," says Boynton.

Like the Stampede, most of Canada's fairs have strong links to agriculture.

Bednar says the CNE and other exhibitions are struggling to keep up with changes in the post-Second World War era.

"Our stock in trade was the future," he says. "I know it may sound odd, but it's absolutely true that people came to exhibitions to find out what was new.

"That was one of the chief draws and the world has just overtaken that. It started with radio and then it moved on to TV. Now, if you want to find out what's new, you go to Google.

"It has caused a real identity crisis in the industry. For large urban fairs like ours, it has meant that you've got to keep the agriculture as education, and try and figure out the entertainment model that will work for your customer."

He adds the CNE is unique because of its family model.

It allows grandparents, parents and children to visit the site together and then venture off to specific interest areas.

Bus companies are among small firms that benefit from the CNE.

Operators in Ontario and the U.S. have rated the CNE as one of their top tourism spots.

"The CNE is a major attraction for Toronto that gives our members another opportunity to sell Toronto as a destination," says Brian Crow, president of the Ontario Motor Coach Association.

Crow, whose group represents 189 bus and tour companies, says the CNE prompts small operators in other parts of Ontario, New York and Pennsylvania to create travel packages that are based on the exhibition but also take in other events in Toronto.

Meanwhile, Edmonton's newly named fair has drawn scorn from traditionalists in the Alberta capital.

The move was an attempt to break the event's link to the Gold Rush of the mid-1800s and make it appear more modern.

But Bednar says he wouldn't make a similar move.

"The CNE has way too much brand equity in its name to consider that kind of a move," says Bednar. "You could try to change the name of the CNE and the public wouldn't let you."

(Monte Stewart can be reached at monte@businessedge.ca)