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I've considered the Ottawa Festival in the past but have always ended up going to Montreal. But I can tell you that Ottawa would seem to be a great place for a festival and make a very nice trip that would include both the festival and some sites.
I found Ottawa to be a very beautiful city with enough to see and do to easily fill up 4 or 5 days. The Parliament and Library are impressive. The Rideau Canal is nice to walk. There is a very nice museum across the river in Hull called the Canadian Museum of Civilization. You can tour various other government buildings, residences, take a boat ride on the Ottawa River. The By Ward market area is very nice with a market, shops, restaurants, street entertainers - that sort of thing.
The best attraction, or at least my favorite, is the Nataional Gallery of Canada. Very nice world class museum.
If your budget allows, stay at the Chateau Laurier.
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