Tourism P.E.I.'s deal with the NHL already paying off, provincial officials say

Tourism P.E.I. says its multimillion-dollar partnership with the National Hockey League is already paying off, but some MLAs are skeptical.

The province's deal with the NHL, which saw the Island branded as the league's official travel destination beginning in February 2024, came under scrutiny during a legislative standing committee meeting Thursday.

Tourism officials told the committee that the partnership has generated nearly $32 million in combined marketing value and tourism spending, although an actual return on the investment seemed a bit more difficult to pinpoint.

"Unless you see bums in the seats or you actually see tax revenue generated, that's really your return on investment you have to come up with a little better justification of how we can measure this as a return on investment," said Liberal MLA Robert Henderson.

Tourism officials said they hired an outside firm to calculate the value the province is receiving for its marketing dollars, and they're confident the returns have been worth the cost to P.E.I. taxpayers.

But what that cost amounts to is now the subject of some confusion.

"We did come out with a number in the beginning," said Kent MacDonald, CEO of Tourism P.E.I."It was reflected at that point with [the NHL] that we definitely should not have done that."

The province said originally that it was paying theleague $2.5 million for the first year of the deal. That spending was approved on top of the annual $5.5-million tourism marketing budget.

Tourism officials said they haven't spent more than that, but because of a non-disclosure agreement with the NHL, they can't say exactly how much money is going to the league this year or in future years, if the partnership continues.

Why P.E.I. is now the NHL's official travel destination

8 months ago

Duration 2:04

North American hockey fans can expect to see a slice of Prince Edward Island on their television and computer screens over the next few years. Find out why the Island has been named the official travel destination partner of the National Hockey League.

'The results are showing already'

Both Henderson and Green MLA Peter Bevan-Baker questioned why a non-disclosure agreement is attached to a deal involving public money.

MacDonald said it's the NHL's deal, not the province's, and the league makes similar agreements with its other marketing partners.

"This would never be done if it wasn't going to benefit P.E.I. and all Islanders," he added. "That's why it was done, and the results are showing already."

There's another whole component, which is marketing and the marketing value. Keith Hanson, Tourism P.E.I.

As part of the deal, tourism officials said there's been lots of Island-centric advertising during NHL games, special events highlighting what the province has to offer, and a league partners summit and other meetings that have brought people with a lot of money to Prince Edward Island.

Henderson said all of that brought in only about $1.2 million in tax revenue for the province.

Tourism P.E.I. doesn't think that's a fair assessment.

"I would be hesitant to just say it was a $1.2 million return for the province. I think that's not doing it very much justice," said Keith Hanson, director of research and engagement.

"It is the number that's associated with hosting folks here for that one component of the agreement, but there's another whole component, which is marketing and the marketing value."

The province will have a chance to back out of the deal with the NHL after the first year is up, or negotiate a new deal for year two if it feels the experiment has been worth the investment.

The province says it's working on the plan for year two now.