Parties fewer, tone tamer at Calgary Stampede hit by low oil, fires

By Catherine Ngai
CALGARY, July 11 (Reuters) - The Calgary Stampede, the
annual rodeo and networking extravaganza in Canada's energy
heartland, is a tamer affair this year after a two-year slump in
oil prices and wildfires in May that displaced thousands of
people in the country's costliest natural disaster.
Oil and gas producers, who have slashed millions in capital
expenditures and laid off thousands of workers, are cutting back
on everything from advertising to parties at the 10-day festival
which runs to July 17, while spending is down at popular
restaurants.
Extravagance could be frowned upon by investors following
the evacuation of about 90,000 residents in the Fort McMurray,
Alberta, fires and the rebuilding of homes expected to take
months or even years.
The usual big corporate events with free flowing bars have
either been toned down or cancelled.
"Given the economic downturn, we didn't want to throw a
lavish party this year," said John Chambers, chief executive of
investment bank FirstEnergy (NYSE:FE) Capital Corp FE.N , which cancelled
its annual party for the first time in two decades.
"I think people were expecting something more subdued in
this environment, so we thought it was more effective to donate
instead."
FirstEnergy, which has raised more than C$3 million for 50
different charities at its parties over the years, will instead
donate C$100,000 to four organizations, Chambers said.
Canadian Natural Resources Ltd CNQ.TO also cancelled its
party, while Cenovus Energy Inc CVE.TO scrapped its Stampede
event for the second consecutive year, company representatives
said.
At the Stampede, attendance is on target to hit their
average 1.1 million to 1.2 million, said Theresa Howland,
director of consumer marketing and sales.
"We certainly expected to work harder this year to remind
people why they can't miss this event," Howland said. She said
attendance was up on the first two days at the weekend.
Howland said sponsorship revenue was "even compared to 2015"
with lower contributions from the oil and gas sector offset by
new advertisers such as McDonald's Canada. Sales of high-end
infield suites were down, however.
At Cowboys, an establishment that hosts dozens of parties
and bands and is minutes from Stampede grounds, corporate
bookings from the oil and gas sector have fallen by 60 percent
in recent years, said Paul Vickers, majority owner of operator
Penny Lane Entertainment Group.
"We've seen budgets fall a lot because of the soft economy.
If the average guest check last year was $55 a person, it's
probably closer to $38 this year," Vickers said.
The mood for the Stampede was set earlier this year after
the GMC Rangeland Derby Chuckwagon Canvas Auction - a de facto
litmus test on the state of the economy - brought in just shy of
C$2.3 million, nearly $500,000 lower than a year prior, and the
lowest showing since 2010.
"The mood is a bit different this year. Everyone's a little
more conservative with their cash," said Kofi Ahulu, 39, a
long-time attendee. "But, all in all, it's Stampede and that's a
big driver for Calgary."