A fund created by the P.E.I. government in May is helping to bring Cheers star George Wendt to the Island to take a lead role in the Charlottetown Festival's production of Hairspray.

George Wendt is expected to be a big draw for the Charlottetown Festival. (CBC)

The production of the 1960s-era musical will receive $200,000 from the Signature Event Investment fund.

The fund was set up to help put on events that would attract a significant number of tourists to the Island.

The fund could supply up to $300,000 for the event. To qualify, an applicant has to show it will attract at least 10,000 people, and at least 40 per cent of ticket sales should come from off-Island.

"It's all in the numbers. It depends on how good a business plan you have on how much money you trigger," Tourism Minister Robert Vessey told CBC News Wednesday.

The Charlottetown Festival is not the first to dip into the fund. The Cirque du Soleil event at Charlottetown's Summerfest got $250,000. The Cavendish Beach Music Festival will receive almost $500,000 over three years.

Vessey has no qualms about spending the money.

Cirque du Soleil also received money from the fund. (CBC)

"I think people have to realize that tourism is one of the primary industries in this province. It has the most potential for growth," he said.

"Revenues generated from a healthy tourism sector pay for hospital beds, and it pays for education in our province."

Vessey said the $200,000 is for Hairspray only. He isn't sure how much Wendt will be paid.

The fund is part of an evolution of tourism subsidies since a failed Alanis Morissette concert in 2008. The show sold only 3,000 tickets and cost the province more than $400,000. Following that, the province put up $200,000 that promoters could compete for to put on a concert.

Vessey said there is a clause in the new policy that protects the province from any liabilities.

Hairspray will play at the Charlottetown Festival from Sep. 8 to Oct. 9.