Bikenomics A Primer on the Economic Impact of in the Capital Region

May, 2015 Page 1 Authentic Place to Visit

People want to visit authentic places Bikenomics they can experience like a local

Capital Region communities want Lifestyle that Attracts to increase local jobs and Cycling and economic activity. Th ey have Tech Talent identifi ed top priorities- draw tourists, attract knowledge workers, economic Tech workers, especially millennials, and support local businesses. Cycling prefer a lifestyle that includes walking is playing a growing role in each of these economic goals. opportunities or biking to To show the local economic impact of cycling, this report highlights key numbers and interviews with business and community leaders in the Capital Region. Prepared with funding from Federal Gas Tax, this report builds on the Pedestrian and Cycling Master Plan, Regional Transportation Plan and local economic development plans.

Surging numbers of people in the region are choosing to bike to work, school and errands. More people are participating in races and events. Businesses are using bikes for Growing Local Bike business delivery. Municipalities are protected bike lanes and multi-use trails. Business owners create jobs and put Business owners, community leaders and money into the local economy elected offi cials are already recognizing the positive impact of cycling on the local economy. With more investment and creativity, there is potential for even Pagemore 2 economic Page 3 growth. is a fundamental 150,000 visitors cycle in the economic driver Capital Region Authentic -District of Sooke annually spend average Place to Capital Region has year-round: $990 per trip Visit pleasure riding EVENTS & RACES

Visitors come for the culture and food CYCLE TOURING of downtown Victoria, the quaint charm of the Gulf Islands and the rugged Mountain biking wilderness of the Juan de Fuca area. Over 3 million visitors spend 24,000 almost a billion dollars each year. PASSENGERS 5% of visitors to Victoria ride bikes WITH BIKES while they are here. In rural areas, PEr year people on bikes are more likely to visit smaller places, stay overnight and spend 85 km more. of regional multi-use For more visitors to enjoy cycling here, 17 it needs to be easy and comfortable to trails explore a new place. Th is means routes that are consistent and separated from traffi c and wayfi nding that connects them to food and drinks and activities. Th e experience of biking to Th etis Lake for a swim or to lunch on Sidney’s waterfront become Sources: photos on Facebook, posts on District of Sooke, Official Community Plan, 2010; Tourism Victoria Exit Survey, 2010, 2014; Local ferry companies, survey, Urban Twitter, and stories to tell Systems, 2014; Capital Regional District, Pedestrian and Cycling Master Plan their friends. Page 4 Page 5 Rob Fawcett, Who to Watch Paul Nursey, Director of Mountain Bike Development, Bear Mountain President and CEO, Tourism Victoria Quebec’s Route Verte Th e province off ers 5,000km bikeway across Rob Fawcett is helping Bear Paul Nursey has seen the great growth in tourism in Quebec. Th e ‘Bienvenue cyclistes!’ certifi ed Mountain Resort become Victoria. He is building on this success by focusing on “Tourists accommodation program has over 450 what motivates people to travel to a destination and a world-class mountain participants that provide bike parking, food how to get more people to choose Victoria. need to know biking destination as a , bike repair and local information. It is key part of their busi- estimated that cyclists on the Route spent $95.4 what local riders ness. For successful tourism economic development, Paul million in 2000. talks about three components: great product, engag- are already Rob was part of Bear ing and eff ective policy. Tourism Victoria Niagra Region promotes the local brand and the diff erent experiential enjoying” Mountain’s recent Canada’s undiscovered cycling mecca has 200 scenic tourism opportunities. Paul sees cycling fi tting into designation as an Offi cial Rob Fawcett routes and trails to diff erent attractions. In recent many of the activities and experiences people want to High Performance Training years it has created the ‘Cycle and Stay Niagra’ have when they come to Victoria. Centre for the Canadian Na- tional Mountain Biking team. Th is builds on the 5,000 network of cycle-friendly Bed and Breakfasts, hired a Cycle Tourism coordinator, and surveyed visiting When looking at the trav- “Cycling spectators who visited Bear Mountain to watch Jump cyclists. el motivations and what is one part Ship, a competitive Freeride Mountain biking event, tourists will seek when they in 2014. choose to travel, Victoria of a tourism Whistler has so much to off er and With a strong history of mountain biking and year Whistler has made a name for itself as the number cycling, be it touring, moun- experience” round riding, Rob sees great potential for more moun- one lift-accessed, downhill mountain biking location tain biking opportunities. He wants circle routes that in the world. Th ey also host cross country bike Mandy Farmer, tain biking or a short jaunt to Paul Nursey can showcase local attractions, like mountains and the trails, recreational paved trails and cycling President and CEO, Accent Inns / Zed the local craft brewery, can be a part of it. waterfront, but he believes more trail building, signs opportunities. Tourism Whistler provides information and marketing is needed. on bike rentals, bike friendly accommodation, a trails Mandy Farmer is taking advantage of the database and listing of bike events. fi nancial opportunity that cycle tour- ism off ers. Th e bike-friendly hotel “Th e chain off ers bike storage in rooms, full sets of mechanic-grade bike focus on Strategy tools, and sponsors a bike rac- cycling has been ing team. Hotel Zed off ers a Enhance the product fl eet of free bikes to visitors. excellent for our •Expand the network of high quality, comfortable protected bike routes Mandy loves cycling but has brand, our image and •Develop circle routes that connect also seen fi rst-hand how it local and regional destinations makes good business sense. for our bottom line” •Develop and formalize mountain bike trails “Cyclists are loyal and support Mandy Farmer you because you support them.” In Step up the marketing Victoria, the provide access to •Implement cycling signs and maps that a variety of activities, from the Gallop- connect people on bikes to , ing Goose to the great vistas in Metchosin, to hotels and activities four-season mountain biking and a growing network •Promote cycling opportunities through of bike lanes in Victoria. With all these opportunities, photos, videos, social media, and Mandy sees that biking improves the visitor experi- tourism marketing material ence, and happy visitors will then share their stories with others.

Page 6 Page 7 884 tech firms in Capital High tech Attracting Region $4.03 billion is our future Tech in economic - City of Victoria impact

Talent Growing the tech sector needs talent, but… ¾ 20% OF CANADA HAS A OF MILLENIALS MILLENIALS DON’T SHORTAGE OF TECH WOULD CHOOSE A Communities HAVE A DRIVER’S across Capital WORKERS COOL CITY ABOVE Region want to attract LICENCE businesses and workers to A GOOD JOB green, knowledge-based and high- tech industries. Th ere is a burgeoning sector with fi rms across the region. Th is growing sector needs to attract talent in order to continue to expand and achieve greater success.

Th e most successful cities across North America are able to attract and retain talented and educated young people. Th ese sought-after workers are less interested in owning cars or housing. Instead, they prefer to live in central locations, rent an apartment, and walk, bike or use transit to get to work. Municipalities that off er vibrant centres with arts and cultural amenities, access to outdoor recreation, and a variety of commuting options, including good bike facilities, appeal Attract tech talent with lifestyle: to young talent. Th is highlights the strong connection between R)1(.)1(5")/-#(! attracting technology workers and cycling. R --5.)5)/.)),5, , .#)(65&#% 5')/(.#(5#%#(! “Th e city of Chicago moved from 10th to 5th of most bike- friendly cities in the country in one year. In the same year, R#,(.5 (., -51#."5, -./,(.-65)Ŀ 5-")*-5(5*/- we moved from 15th to 10th worldwide in the ‘start-up’ R** &#(!5.,(-*),..#)(5)*.#)(-65#(&/#(!5- /, 5#% 5*,%#(! economy. No city worldwide moved that far that fast that quickly. You cannot be for a start-up, high-tech economy )/, -9 and not be pro-bike.” -Chicago Mayor Rahm Emanuel #.35) 5#.),#65,)1#(!5/-#( --5#(5]-5*#.&5#.365hfgg:5  5)()'#5 '*.5) 5." 5, . ,5#.),#5 "5 .),65 hfgj:53(5)&' -6565)).-/#. 5B. "5-"),.! C:5  53(65/./,#-.5B))&5#.3C:5/-5.5/-.85B,#0 ,]-5 Page 8 &# ( -C Page 9 Who to Watch

Vancouver Vancouver has protected bike lanes and a growing cycling mode share. It also has tech companies like “Cycling Hootsuite that highlight their bike culture because is a big part of Dallas Gislason, Economic Development it attracts young, active and socially conscious staff . Offi cer, Greater Victoria Development Hootsuite also believes their staff performs better Victoria. Anything Agency because they bike to work.

that is active, culture, and Dallas Gislason looks at the big picture of economic Portland technology is innovative. development in Greater Victoria to identify ways to Portland has a relaxed culture, outdoor activities, support its growth. For Dallas, the technology including cycling, and a high quality of life that are Dan Tech is an early adopter is a key component. attracting the young and innovative. Th e city is home Gunn, to SurveyMonkey, AboutUs, Dotster and Get Clicky. and going to embrace In addition to the tech industry, Dallas points out that Executive “no matter what your economic interest is you need to San Francisco Director, new things.” attract young people.” He sees how millennials have Th e city off ers employees the urban experience that VIATeC Dan Gunn changing priorities for housing and transportation, and nearby Silicon Valley lacks. It was named the top bike increasingly they are choosing a city and lifestyle be- city with 7.8 miles of bike facility per sq mile, and Dan Gunn leads VIATeC, an industry group involved fore a job. Dallas believes a city hosts Craigslist, Twitter and Airbnb offi ces in the city. Shea Phillips, in investment and promotion of the Greater Victoria that prioritizes walking, Community Manager, Spacestation and technology sector. He highlights the important role cycling and amenities Spacebar the technology industry plays in the local economy will be more attrac- “High-tech is with thriving fi rms and billions in economic impact. tive to talent and our #1 economic driver Shea Phillips is involved in Spacestation and Spacebar, entrepreneurs an innovative co-working space for budding entrepre- On top of highlighting the growing industry, part that drive inno- and one of the selling points neurs and small technology companies. Located at the of VIATeC’s recruitment strategy is showcasing the vation across all foot of Fort St, the downtown location and cycling lifestyle that Victoria off ers. To describe the lifestyle, sectors. of Victoria as a high-tech/ facilities are factors for members attracting employees. Dan talks about the kilometres of bike lanes, num- ber of mountain bike trails and hectares of parkland. entrepreneurial city is bike Most of the tenants of Spacestation and Spacebar live VIATeC’s new Fort Tectoria incubator space provides culture from both a commuter near downtown and walk or bike to the offi ce. “When easy access to this lifestyle with a downtown location Strategies we renovated the space we decided that we needed to and stylish bikes available to borrow. as well as a lifestyle/ provide enough secure space inside to allow as many •Provide employees with secure, indoor bike people as possible to lock up their bikes.” Th e bike leisure perspective.” parking and loaner bikes room easily fi ts 25 bikes and gear. Dallas Gislason •Promote both the urban cycling and mountain Four growing tech companies, biking opportunities as part of the lifestyle Rooof, SendWithUs, Tiny- Victoria has to off er Mob Games and Checkfront, at “Lifestyle Spacestation see the bike storage is very •Develop physical and cultural amenities that room as essential to enable peo- are key to attracting knowledge workers. ple to ride to work. As a Check- important and Build bike facilities, public plazas, and front employee notes, “Everyone arts and culture opportunities. but one walks or bikes to work. cycling is a part We got the offi ce so it was close to transit and easy to bike to - so of it” it’s a selling point.” Shea Phillips Page 10 Page 11 32 Growing independent bike shops Local Bike from Sooke to Saltspring Almost 200 Business 4 X per capita employees the national average

Support for local businesses is a mainstay in the intend to economic development 50% plans of municipalities across $4.5 million the region. Th e majority of direct expand within employment in cycling is provided direct economic by neighbourhood bicycle 3 years shops. impact (wages, rent From Sooke to Sidney to Spring Island, bike businesses provide local and employment, buy local goods and services, and get people riding. Th eir services) focus ranges from mountain bikes, road bikes, to and family bikes and accessories. Many also provide repair services, bike rentals and tours.

Sources: Page 12 Greater Victoria Bicycle Shop survey, Urban Systems, September 2014; Statistics Canada, Canadian Business Patterns Database,Page 13 December 2012 Richard Kirk, Marketing Director, Lochside “Build Who to Watch Cycles better Richard Kirk believes the Victoria area has many infrastructure Oregon elements that support Lochside Cycles, a new urban Bicycling and the bicycle industry is an iconic bicycle and company. He notes and more people aspect of the state’s identity and economy. It includes bicycle manufacturing, wholesale, and that Victoria off ers local infrastructure with regional Susan Stokhof, retail. With over 90 manufacturers, the research, trail networks and bike lanes and the casual, trendy, will ride.” Owner, and recreational cyclist market. development and related to Susan Stokhof Le Vélo Victoria is substantial. As well, 70% of the bicycles and Richard is optimistic about more opportunities in the accessories manufactured in Oregon are exported to city with increasing ridership; more bike lanes and Susan Stokhof is owner of Le Vélo Victoria, a bicycle other states and countries. regional multi-use trails that support a stronger bike retail company that has been operating for two years. culture; and the many pubs, restaurants, coff ee shops, Th e company specializes in stylish bicycle accessories, Quebec including bags, baskets and clothing. She sees a grow- and other destinations within biking distance. He also Quebec hosts a majority of Canada’s bicycle ing opportunity with the urban cycling movement sees local bike-related businesses facing challenges manufacturing industry, including two niche in Victoria, but says there is a need for more bicycle with unsafe cycling conditions when municipalities do companies, BionX (electric bicycles and Arkel infrastructure, especially separated infrastructure to not invest enough in bicycle lanes, bike parking and (panniers). In addition, there are 378 bike shops or prioritize cyclists. supportive facilities. sporting goods retailer across the province. Over half a million bikes were sold in Quebec each year. One challenge Susan saw was the high cost of com- Victoria mercial rent in Victoria, but also saw opportunities for entrepreneurs to open pop-up stores in empty has “many of the storefronts on weekends. To encourage more economic Bicycle Retail Shops development around cycling, Susan identifi ed oppor- ingredients to support a tunities to create car-free spaces (for example, Govern- Th ere is a healthy bicycle retail industry in Greater strong bike culture and it ment Street) and have municipalities work together to Victoria. An on-line survey of the 32 independent connect protected bicycle infrastructure. bicycle retail shops (max. two locations) that operate in is a growing market when the area identifi ed the local employment and economic impact. biking infrastructure is safe, convenient and enjoyable.” Th e survey found that local bicycle retail shops employ 187 people, 94 of whom are year-round full-time em- Richard Kirk ployees. Half of the businesses intend to expand their business over the next three years, expecting to hire an Strategies additional 48 staff members. • Invest in cycling infrastructure that en- In 2013, retail shops contributed a total of $4.5 million courages more people to bike, who then into the local economy through wages, rent and local support local bike businesses goods and services. • Support pop-up/short term retail business Bicycle retail shops also make a social contribution to rental opportunities the economy. Th ey participate in: • Integrate bicycle retail shop informa- • Event sponsorship; tion into cycling route signs and maps • Bicycle and loans; • Volunteer program; and, • Community and high school repair classes.

Page 14 Page 15 People who arrive People who ride by bike spend less per their bikes regularly retail visit but visit more, have up to 32% fewer spending more overall sick days and 55% lower each month health costs

On Indiana’s Cycling is already a part of the Cap- Monon multi-use ital Region’s economy. Tourists are trail, houses sell for an average of 11% more riding bikes, tech companies are using than similar houses the lifestyle, including cycling, to re- further away cruit talent, and bike stores are putting $4.5 million in direct economic impact into the region.

People who Th ere are also more economic benefi ts ride their bikes that have not yet been studied in the regularly have up to region, including retail , building health 52% increased occupancy and property value. Along with retail sales productivity productivity and health benefi ts, there are many positive economic impacts of cycling property value to be enjoyed by individuals, families, busi- nesses and communities. productivity In New York, there occupancy were 49% fewer To fully take advantage of these opportuni- commercial vacancies ties communities across the Capital Region real estate beside Union Square’s protected bike lane need to make strong, targeted investments versus 5% increase in protected bike lanes and other strate- elsewhere gies that will welcome locals and visitors to get on a bike and ride.

In Vancouver, 65% of realtors use bikeways as a selling feature on a home Sources: page 19

Page 16 Page 17 Tourism Other Economic Opportunities

Th e path to and potential of Cycle-tourism in British Retail: Kelly J. Clifton, Sara Morrissey, and Chloe Rit- Acknowledgements Columbia, Aliaa Slkhashb, Prepared for the British ter, “Business Cycles: Catering to the Bicycling Mar- Columbia Cycling Coalition. ket,” TR News 280, 2012: 26-32.; T Fleming, S Turn- er, and L Tarjomi, “Reallocation of road space,” NZ Quebec route verte, economic spin-off Transport Agency research report 530,2013; Clean & http://www.routeverte.com/rv/retombees_e Air , “Bike Lanes, On-Street Parking and Business: A Study of Bloor Street in Toronto’s Annex Niagra Cycle Tourism Neighbourhood,” 2009. http://www.niagaracyclingtourism.com/ Sources Occupancy: Szczepankski , Carolyn, “How Bicycles Tourism Whistler bring business,” Momentum, 2013. http://www.whistler.com/activities/biking/ Property value: Lindsey, Greg, Joyce Man, Seth Pay- Rural cyle tourism Pathlesspedaled ton, and Kelly Dickson, “Property Values, Recreation http://pathlesspedaled.com/bicy- Values, and Urban Greenways,” Journal of Park and cles-and-small-town-america/ Recreation Administration 22, 2004: 69-90.

Attracting technology workers Real estate: Smith, Rachel, “How Bike Lanes can Boost the Economy,” Th is Big City, 2011. Richard Florida http://online.wsj.com/news/articles/SB100008723963 Health: US Department of Health and Human Ser- 90444914904577619441778073340#printMode vices, “Physical Activity Fundamental To Preventing Disease,” 2002. Rahm Emanuel http://gridchicago.com/2012/a-great-day-in-chicago- Productivity: US Department of Health and Human Thank you protected-lanes-open-in-the-heart-of-the-loop/ Services, “Physical Activity Fundamental To Prevent- ing Disease,” 2002. • Capital Regional District • Gas Tax Funding Bike Businesses • Bike shops (retail, rental, tours) in the Capital Regional District Oregon- Oregon Bicycle Industry Regional Economic • Tourism Victoria Signifi cance (2014) • All participants in the tourism forum http://industry.traveloregon.com/wp-content/ • Interviewees: uploads/2014/02/OregonBicycleIndustryReport- Shae Phillips, DanGunn, Dallas Gislason, Rich- Feb2014.pdf ard Kirk, Susan Stokhof, Mandy Farmer, Rob Fawcett and Paul Nursey Quebec- Bicycling in Quebec in 2010 • Bikenomics by Elly Blue (bikenomics.com) http://www.velo.qc.ca/fi les/fi le/vq/VQ_ EV2010_en.pdf

Page 18 Page 19 Bikenomics Capital Regional District with Gas Tax Funding Content by Urban Systems Ltd Layout by Pedal Forward Photos by Ryan Mijker Page 12 photo North Park Bike Shop Front cover of Christina Chan, Heart and Hands Health Collective Contact: Regional and Strategic Planning Capital Regional District 250.360.3160

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