Just for Laughs cancellation a worrying sign for other Montreal festivals

A news crew shoots a report in front of the Just for Laughs theatre is seen Tuesday, March 5, 2024 in Montreal. The company that runs the annual comedy festival has filed for bankruptcy protection. (Ryan Remiorz, The Canadian Press)

The cancellation of Montreal's Just For Laughs 2024 festival after filing for creditor protection is no laughing matter for other industries, according to some in Quebec's tourism industry.

Last week a bailiff seized more than $800,000 in assets from the company that runs Just for Laughs, and on Wednesday, the Toronto edition was also cancelled.

Quebec festival association (REMI) CEO Martin Roy said the free festival model does not work anymore, and the government support hasn't caught up to inflation.

"They organize an event compared to 2019, these days, it costs them 35, 40 per cent more," said Roy. "Just for Laughs, for example, receives or used to receive a million dollars from the tourism department in Quebec, and it's been a million dollars since 2004 because they always receive the maximum at the program."

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Tourism Montreal said there are 120 festivals in Montreal every year, but Just for Laughs is one of the biggest.

Tourism in the city, the organization said, will be impacted.

"Montreal is a festival city," said Tourism Montreal spokesperson Aurelie de Blois. "It's well known all around the world, and it brings up a lot of tourists every year, and it isn't just for tourists. Montrealers participate in this festival. We're very disturbed and disappointed that the festival industry is going through these tough times."

While concern remains, Quebec Restaurant Association vice-president Martin Vezina isn't worried yet.

"I'm not that sure that just one festival will slow down the traffic in the Place des Festivals, maybe for a week," he said.

Quebec Minister of Culture and Communications Mathieu Lacombe posted on X that he's following the situation closely but made no further comment.

Just for Laughs said it hopes to return, perhaps in a smaller format, but the fear is the same economic landscape that hurt the comedy festival could take down others.