Ucluelet Economic Development Strategy

FINAL REPORT

April 2012

Prepared by:

Vann Struth Consulting Group Inc. www.vannstruth.com

For:

TABLE OF CONTENTS

EXECUTIVE SUMMARY ...... IV 1. INTRODUCTION ...... 1 What is Economic Development? ...... 1 Economic Development Vision ...... 2 Scope of a Local Economic Development Strategy ...... 2 Study Process ...... 3 2. ANALYSIS AND CONSULTATION ...... 4 2.1. Economic Analysis Summary ...... 4 2.2. Community Survey Summary ...... 9 2.3. Ucluelet Harbour ...... 13 2.4. Ucluelet’s Competitive Position ...... 22 2.5. Priority Analysis of Economic Development Opportunities ...... 24 3. ECONOMIC DEVELOPMENT FUNCTION AND PARTNERSHIPS ...... 29 3.1. Structuring an Economic Development Function ...... 29 3.2. Economic Development Partners ...... 33 4. STRATEGIES ...... 35 Goal #1: Realign Economic Development Structure and Tools ...... 37 Strategy 1. Realign economic development function according to strategic priorities and budget...... 37 Strategy 2. Create and operate business retention & expansion (BRE) program...... 38 Strategy 3. Use communication tools to engage local community and outsiders about Ucluelet opportunities...... 40 Strategy 4. Maintain information and promotional tools ...... 41 Strategy 5. Establish ongoing working relationship and partnerships with neighbouring First Nations...... 42 Strategy 6. Establish ongoing working relationship and partnerships with neighbouring communities, the provincial and federal governments, and local community organizations...... 43 Strategy 7. Participate in regional economic development initiatives where appropriate...... 44 Strategy 8. Develop and maintain regular points of contact for Mayor and Council and the business community...... 45 Goal #2: Invest in Ucluelet’s Human Potential ...... 46 Strategy 9. Pursue a new post‐secondary educational facility and/or research institute...... 47

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Strategy 10. Increase connection between educational institutions and the business community...... 48 Strategy 11. Develop business resource package, including referral service, to support entrepreneurs and small businesses ...... 49 Strategy 12. Continue to support the redevelopment of Tofino General Hospital and the expansion of public health services in Tofino and Ucluelet...... 50 Strategy 13. Continue to support arts, cultural, sport and other services and programs aimed at supporting a high quality of life ...... 51 Strategy 14. Continue to ensure a range of housing choice in the market...... 52 Goal #3: Enhance Physical Infrastructure for Economic Development ...... 53 Strategy 15. Ensure sufficient supply of employment land and encourage sufficient development of commercial space ...... 53 Strategy 16. Support continued improvement to regional transportation infrastructure...... 54 Strategy 17. Ensure community access to state‐of‐the‐art telecommunications infrastructure..... 55 Goal #4: Capitalize on Harbour‐Related Opportunities ...... 56 Strategy 18. Secure funding to undertake a renewal of key harbour infrastructure...... 56 Strategy 19. Retain and expand the network of marine‐related support services...... 58 Strategy 20. Support the commercial fishing, aquaculture and processing sectors in the development of new and higher‐value seafood products...... 59 Strategy 21. Expand the pedestrian and tourist connection to the harbour...... 60 Strategy 22. Support the expansion of other marine‐related commercial activities...... 61 Goal #5: Pursue Targeted Economic Development Opportunities ...... 62 Strategy 23. Support growth of the tourism sector...... 63 Strategy 24. Support the expansion of forestry and wood products manufacturing...... 64 5. IMPLEMENTATION AND PERFORMANCE MONITORING ...... 65 Annual Work Plan ...... 65 5.1. Implementation Summary ...... 66 5.2. Performance Monitoring ...... 67 Part 1. Measuring economic development projects ...... 67 Part 2. Monitoring Overall Economic Conditions ...... 68 APPENDIX A: UCLUELET ECONOMIC ANALYSIS REPORT ...... 71 A‐1: Community Overview ...... 73 A‐2: Population Growth and Demographics ...... 77 A‐3: Labour Force ...... 83 A‐4: Employment Profile ...... 87

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A‐5: Housing and Development ...... 92 A‐6: Property Taxation ...... 97 A‐7: Tourism ...... 99 APPENDIX B: UCLUELET COMMUNITY SURVEY REPORT ...... 103 Living in Ucluelet ...... 103 Economy ...... 106 Economic Development ...... 110 Community Development...... 118 Categorizing the Respondents ...... 124 APPENDIX C: PRIORITY ANALYSIS OF ECONOMIC DEVELOPMENT OPPORTUNITIES ...... 126 Opportunities ...... 127 Evaluation Criteria ...... 129 Rating System ...... 130 Rating the Opportunities ...... 131 Summary of Evaluation Results ...... 146 APPENDIX D: ECONOMIC DEVELOPMENT MODELS IN BC ...... 148 APPENDIX E: RESEARCH SOURCES ...... 156

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EXECUTIVE SUMMARY

The Ucluelet Economic Development Strategy has been prepared to guide economic development initiatives in the community. The ultimate goal is helping to create a more prosperous local economy that yields quality employment and business opportunities while providing the means to support excellent public amenities and services.

STUDY PROCESS

Vann Struth Consulting Group Inc. was retained by the District of Ucluelet in the fall of 2010 to complete three related projects: the community economic analysis (Appendix A), a community survey (Appendix B), and an economic development strategy. Additional financial support for the project was provided by the Ucluelet Harbour Authority (UHA) so that some additional time and focus could be applied to harbour‐related issues.

ECONOMIC ANALYSIS

Key conclusions from the economic analysis include:

. Population has been relatively stable in the last 30 years, with periods of moderate decline and growth (including from 2005 to the present). . There is a youthful adult population, with significantly more residents in the prime working‐age years of 25‐54. . Median employment incomes are lower than BC average, largely due to seasonality. . Total community income is mainly reliant on employment, which is consistent with the younger age profile. Very high labour force participation rates also reflect the youthful population. . There are a high number of college graduates and relatively fewer university graduates. There is a strong cluster of arts and communications graduates. . Like most BC communities, Ucluelet building permit values have been significantly higher since 2004. Housing prices are less than Tofino but higher than some other similar communities. . Municipal property taxes and charges are competitive with similar municipalities. . Tourism is down in BC and Vancouver Island but faring better in Ucluelet.

COMMUNITY SURVEY

Key conclusions from the community survey include:

. Residents are satisfied with quality of life in the community and greatest satisfaction by far is with trails. . The local economy is perceived in worse shape than 5 years ago, but there is significant optimism for the future.

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. An estimated 60% of everyday spending by local residents is in Ucluelet. Residents desire more affordable food and clothing and a greater variety of goods and services. . Ucluelet's sense of community is the main selling feature to outside businesses. Seasonality is the main challenge. . Tourism is viewed as the most important future industry. . Expanding employment and helping existing businesses are top economic development priorities.

UCLUELET'S COMPETITIVE POSITION

Based on all of the background research and analysis, the following summarizes the key economic development strengths and weaknesses of Ucluelet.

Strengths:

 Lifestyle and natural beauty.  Summer tourist traffic to the West Coast creates a substantial market for tourism ventures.  Youthful, active labour force with high education levels compared to similar communities.  Access to natural resources (fish, wood, waves, minerals) and support for responsible, sustainable use of these resources.  Demonstrated ability to attract people, as many of Ucluelet's current residents are relative newcomers to the community.  Quality, affordable municipal infrastructure (such as the water system).  Excellent marine infrastructure with a natural harbour and well‐developed harbour facilities and support services.  History and culture (including First Nations).  Strong sense of community (referred to by residents as “like a big village”).  Local government commitment and support for economic development, as shown by the long‐ standing operation of the UEDC and the support for this Economic Development Strategy.

Weaknesses:

 Transportation limitations with dangerous highway route and limited air and sea links.  Highly seasonal tourism market impacts the viability of year‐round tourist‐oriented businesses and amplifies the seasonal nature of Ucluelet's other core industries of fishing and forestry.  Housing affordability was identified as a major challenge in the community survey.  Relatively small population and local market area limits the viability of some local‐serving businesses.  Limited health services with the local hospital in Tofino and its steady loss of services over time.  Prevalence of low‐paying jobs leading to under‐employment and making it difficult to keep highly‐educated people in the community.  Under‐utilized and in some cases run‐down commercial space.

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PRIORITY OPPORTUNITIES

A detailed analysis was undertaken on some of the opportunities that had been identified through the consultation process and previous studies. The analysis considered how well each opportunity fits with Ucluelet’s characteristics, the benefits that each opportunity would provide to Ucluelet, as well as the degree to which the opportunity can be influenced by the Ucluelet economic development office.

The opportunities that score highest are in Ucluelet’s existing strengths ‐ fishing, tourism and forestry, as well as the emerging opportunity of post‐secondary education. These results support an important principle that is often overlooked ‐ that the greatest benefit of economic development initiatives is often helping to maintain and strengthen existing leading industries, rather than focusing on something new. Ucluelet's traditional leading industries will continue to evolve, but they are very likely to remain among the leading industries well into the future.

STRATEGIES

The Ucluelet Economic Development Strategy is organized into five overriding goals:

1. Realign economic development structure and tools. This goal provides the framework for implementing an ongoing economic development program in Ucluelet. 2. Invest in Ucluelet’s human potential. These strategies focus on people in three ways: (i) providing more options to improve skills and education, (ii) enhancing the resources available to help local companies and entrepreneurs find new ways to create jobs and business opportunities, and (iii) continuing to support the critical services and amenities that make Ucluelet a desirable place for talented people to live and work. 3. Enhance physical infrastructure for economic development. This goal is aimed at creating and supporting favourable conditions for economic development and has strategies focused on employment‐supporting land, transportation infrastructure and telecommunications. 4. Capitalize on harbour‐related opportunities. These strategies provide additional focus on the harbour and cover both physical infrastructure issues as well as marine industries. 5. Pursue targeted economic development opportunities. These strategies highlight several areas of both existing and potential opportunity in Ucluelet and direct addition focus to those areas.

There are 24 individual strategies that fit under these five goals. Each is assigned a priority level (High, Medium, Lower). All strategies are important (or else they would not be included) but the following six strategies are considered most important.

. Strategy 1. Realign economic development function according to strategic priorities and budget. The structure of economic development in Ucluelet is being re‐examined in connection with this strategy process and a decision on the preferred organizational structure and funding levels is required. The duties and responsibilities of this position will vary depending on how much and how quickly Council wishes to move forward with implementation.

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. Strategy 18. Secure funding to undertake a renewal of key harbour infrastructure. Several key upgrades that have been identified include solving the challenge of excessive wear on the Otter Street ("52 Steps") dock from large vessels, dredging in the Inner Boat Basin to expand the navigable area, adding a floating breakwater to provide more shelter to moorage at the Outer Boat Basin, and multiple ideas for expanding the amount of moorage space through reconfiguring the current docks, adding more fingers at the Outer Boat Basin, establishing new facilities on public land further inside the Inlet, etc.

. Strategy 9. Pursue a new post‐secondary educational facility and/or research institute. Pursuing a post‐secondary educational facility and/or research institute is one of the highest‐ scoring economic development opportunities analyzed in Appendix C. Such an institution would likely be affiliated with an established university, college or research institute and the programs offered would likely relate in some way to the community or surrounding area (e.g., forestry or fishing, environmental resource management, tourism, oceanography, rainforest research, etc.). Expanding the range of post‐secondary options in Ucluelet would not only provide more opportunities for local residents to be educated at home, it will create new high‐quality jobs and attract skilled workers and students to the community.

. Strategy 11. Develop business resource package, including referral service, to support entrepreneurs and small businesses. This need not be a formal document, but rather a collection of links and information sources that can be posted online, emailed to inquiring parties, or printed as the situation requires. Topics to be covered would include regulatory requirements, access to financing, business planning guidance, market research services, training programs (e.g., WorldHost training for tourism employees), succession planning, and potentially many more.

. Strategy 5. Establish ongoing working relationship and partnerships with neighbouring First Nations. The recently finalized Maa‐nulth Treaty covers five Vancouver Island First Nations, including two close neighbours of Ucluelet, the Yuu‐tluth‐aht (Ucluelet) and Toquaht. The treaty provides certainty over the ownership of land and resources in the area and has given each First Nation significant capital with which to invest in improving their economies and standards of living. There are possible partnership between the District and its First Nations neighbours that should be fostered through ongoing communication of economic development plans and opportunities.

. Strategy 6. Establish ongoing working relationship and partnerships with neighbouring communities, the provincial and federal governments, and local community organizations. As a small municipality, Ucluelet has limited resources to devote to economic development. Greater success will be achieved by leveraging partnerships with other organizations locally, in the Alberni‐Clayoquot and Vancouver Island regions, and within the provincial and federal governments.

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1. INTRODUCTION

The recommended strategies and actions follow from a comprehensive review and analysis of Ucluelet's economic competitiveness, key trends affecting the local economy, and the demographic characteristics of the local population and labour force. Several different types of consultation were employed in order to capture community input, including a detailed in‐person survey, a public workshop, and interviews with key informants both within and outside Ucluelet.

WHAT IS ECONOMIC DEVELOPMENT?

A practical definition of economic development is provided by the International Economic Development Council (the emphasis is added):

The main goal of economic development is improving the economic well being of a community through efforts that entail job creation, job retention, tax base enhancements and quality of life.

While each of the items highlighted above are aspects of economic development, they are really just means to an end. A larger local tax base and more well‐paying jobs are certainly desirable in their own right, but more importantly they provide the means for Ucluelet residents and the community as a whole to individually and collectively improve quality of life, however that is defined by each person.

This more holistic approach is similar to initiatives such as the United Nations’ Human Development Index, which has three key dimensions ‐ health (long and healthy lives), access to knowledge (schooling) and standard of living (incomes). Even though economic development is outwardly focused mainly on the third dimension ‐ improving incomes and therefore material standards of living ‐ the true purpose is much better reflected in the UN's definition of human development, as expressed by Mahbub ul Haq (1934‐1998), the founder of the Human Development Report (emphasis is added):

The basic purpose of development is to enlarge people's choices…. People often value achievements that do not show up at all, or not immediately, in income or growth figures: greater access to knowledge, better nutrition and health services, more secure livelihoods, security against crime and physical violence, satisfying leisure hours, political and cultural freedoms and sense of participation in community activities.

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ECONOMIC DEVELOPMENT VISION

Economic development is not a stand‐alone activity ‐ it should complement and support other community aspirations. This is expressed through the community vision in Ucluelet's Official Community Plan (OCP):

Ucluelet’s built and natural environment respects, above all, the outstanding diverse natural habitat and optimizes recreational opportunities for its citizens and its visitors. Ucluelet residents enjoy a high quality of life built upon a sustainable and diversified local economy.

SCOPE OF A LOCAL ECONOMIC DEVELOPMENT STRATEGY

Modern economies are immensely complex, with supply chains and personal networks linking Ucluelet to actions and events occurring around the world. Of the many factors that influence economic development in Ucluelet, only a limited number are under the control or influence of local companies, individuals and public agencies. The federal and provincial governments have greater influence in some areas, but most influential of all are market forces beyond the control of anyone.

The emphasis in this document is on strategies and actions to be implemented primarily at a local level (and sometimes beyond the local area through partnerships and lobbying efforts) to enhance local economic development. This is true regardless of how the District of Ucluelet chooses to deliver economic development services in the future (an issue addressed in more detail in Section 3.1).

Unlike some other economic development strategies, this document is not highly focused on specific sectors. The reason is that future developments in the economy are unpredictable and it is better to be prepared for a wide variety of potential opportunities than to focus on selected areas that may or may not be realized, and possibly missing other opportunities at the same time.

That being said, there is a high likelihood that some of the current and historic economic pillars of Ucluelet’s economy ‐ notably the fishing industry (including fish processing), forestry and tourism ‐ will remain important into the future. It is therefore wise to continue to make investments in order to maintain and build upon strengths in these areas, with an added focus on select areas like education and continuing to push for higher‐value production across all sectors. (After all, the only way for incomes to sustainably rise over time is for the value produced per worker to also increase).

The other important feature of this Strategy is the very limited focus on investment attraction. The pursuit of companies who will relocate or move operations to a community is always the most high‐ profile aspect of economic development, but is almost always a minor part of total job creation and growth in a community, while at the same time being the most expensive and highest‐risk initiative in an economic development program.

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There can also be a negative psychological effect to the focus on attracting outside investment. It suggests that the solution to economic challenges always comes from outside the community, that if the community can only get the attention of the outside world, it will be "rescued". This detracts from a community's focus on what it can do for itself and may obscure the fact that most job creation and economic growth is generated by individuals and businesses that have already chosen to make the community their home and are therefore already committed to its success.

This Strategy focuses much more on the conditions for economic development in Ucluelet and ensuring they are as favourable as possible, as well as focusing on Ucluelet's citizens as the primary source of the new business ideas and improvements that will drive the local economy forward. External investment may be needed to capitalize on some opportunities, but pursuing that investment is a secondary focus.

STUDY PROCESS

The survey was conducted with the assistance of two interviewers, who conducted in‐person interviews from January to March 2011. Most of the research and analysis for the community economic analysis was conducted during the same time frame.

A workshop was held with District Council and Staff in April 2011 that presented the results of the economic analysis and survey and discussed issues to be addressed in the strategy. Additional meetings with community members, including representatives of the Ucluelet Harbour Authority and former staff and advisory committee members of the Ucluelet Economic Development Corporation (UEDC) were conducted on the same trip.

A workshop with the public and 2nd workshop with Council were held in May 2011.

A draft version of the strategy was presented and discussed with Council at the Annual General Meeting of the UEDC in July 2011. The report was then completed as a final draft report in October 2011 and subsequently received in final form by District Council in April 2012.

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2. ANALYSIS AND CONSULTATION

The creation of a comprehensive economic development strategy requires an in‐depth understanding of the background context for economic development in Ucluelet.

The context includes prevailing economic conditions in Ucluelet and beyond, the community's relative strengths and weaknesses as a business location, the particular opportunities that are judged most beneficial for the community to pursue, and the general public's level of support for various types of initiatives.

All of these topics are addressed in this chapter of the report, although in several cases the full analysis is contained in the appendices with only a summary in the chapter.

2.1. ECONOMIC ANALYSIS SUMMARY

As a precursor to the creation of Ucluelet's Economic Development Strategy, a detailed Economic Analysis of the community was completed. The purpose of the analysis was to collect a wide range of information on the economy of Ucluelet and the surrounding area and to distill from it useful information on trends, issues, opportunities and relative advantages and disadvantages.

The full study is contained in this report as Appendix A, starting on page 67. Some of the key findings that helped to inform the strategies are summarized below.

POPULATION GROWTH AND DEMOGRAPHICS

. Steady population. Ucluelet Population & Share of ACRD, 1956‐2011 Ucluelet's population has (Source: Statistics Canada Census) 1,800 12% been relatively stable 1,658 1,627 1,593 1,595 1,559 1,600 1,512 1,487 since the 1981 Census, 10% with periodic periods of 1,400 1,180 moderate decline (loss of 1,200 8% 1,054 1,018 roughly 200 residents 1,000 6% 782 5.2% 5.1% 5.2% from the mid 1990s to mid 800 4.9% 5.0% 5.1% 4.8%

2000s) followed by 600 520 3.7% 3.7% 4% 3.2% periods of growth (2006 to 3.0% 400 2.3% 2011). 2% 200

0 0% 1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011 Ucluelet % of ACRD Ucluelet

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. Youthful adult population. Ucluelet's Population by Age Groups, Ucluelet & BC, 2006 population is substantially (Source: Statistics Canada Census) younger than BC overall, with 49.3% significantly more residents in 43.5% the prime working‐age years of 25‐54 and far fewer senior citizens. There are only slightly more children than the BC 16.5% 15.8% 14.6% average, however, as a very high 13.1% 13.4% 12.3% 13.4% percentage of adult residents 8.1% have never been married (either legally or common‐law). Age 0‐14 Age 15‐24 Age 25‐54 Age 55‐64 Age 65+ BC Ucluelet . Appealing location for BC residents. Ucluelet has a demonstrated history of attracting new residents from elsewhere in BC. This suggests the community is attractive for its quality of life but also that large‐scale economic opportunities would be able to successfully attract workers from elsewhere, if necessary.

. Small immigrant presence. Compared to similar communities, Ucluelet has relatively few immigrants and relatively few residents with non‐English mother tongues.

. Median employment income is lower, but mainly due to seasonality. Median income from full‐ time, full year jobs in Ucluelet is comparable to the BC average, but there are fewer of those jobs due to the seasonal nature of the local economy.

. Ucluelet is mainly reliant on employment income. A higher share of total personal income in Ucluelet is from employment and a smaller share from retirement‐related pensions and investments. This is largely due to the younger age profile in the community.

LABOUR FORCE

. Very high labour force participation rate. Ucluelet's labour force participation rate is far higher than the BC average, largely due to the younger age profile in the community. This is a benefit to economic development due to the larger number of potential workers for a community of this size.

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. High number of college Highest Educational Attainment, Age 25‐64, 2006 graduates, low number of (Source: Statistics Canada Census) 12.4% university graduates. Ucluelet's Less than high school 15.4% overall level of post‐secondary 25.9% High school graduation completion is just below the BC 27.1% 12.0% average and is higher than many Apprenticeship/trades 16.5% comparable communities. There 19.6% BC College are a large number of graduates 22.3% Ucluelet 6.1% with college certificates and University below bachelor 3.7% diplomas and relatively few with 24.1% University bachelor+ graduate university degrees. 15.4% 61.8% Total post‐secondary . Strong cluster of arts and 58.0% communications graduates. Among residents with post‐secondary credentials, Ucluelet is more than 2.5 times as likely as BC overall to have graduates who studied "visual and performing arts and communications technologies".

. Occupational clusters related to fishing, forestry and tourism. Relative to BC overall, Ucluelet has a large number of residents who work in occupations in primary industry, "processing, manufacturing & utilities", and management. The high number of managers is related to tourism, with the large number of middle and senior managers in accommodation and food services.

EMPLOYMENT PROFILE

. Ucluelet‐based jobs are concentrated in goods‐producing sectors, especially seafood manufacturing. Jobs in goods‐producing sectors were 70% more plentiful in Ucluelet than in BC in 2006 (relative to total employment). This was mostly due to seafood manufacturing, which was nearly 67 times larger in Ucluelet.

. Sectors that are not well‐represented in Ucluelet include retail trade; professional, scientific and technical services, which is associated with small firms and independent professionals that are often relatively footloose with respect to their business location; and health care and social assistance.

HOUSING AND DEVELOPMENT

. Like most BC communities, Ucluelet building permit values have been significantly higher since 2004. Values fluctuate significantly year‐to‐year so the implications of the credit market crisis and subsequent slowdown in the global economy starting in 2008 are not yet clear.

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. Housing prices less than Tofino, Assessed Value of Representative House, 2011 but higher than some other (Source: Ministry of Community, Sport & Cultural Development) Gold River $126,857 similar communities. Ucluelet's Valemount housing prices are lower than Port Hardy the BC average and significantly Port McNeill Golden less than Tofino's, but are higher Lake Cowichan than some other similar‐sized Rossland Vancouver Island and resort Radium Hot Springs Ucluelet $305,147 communities. The same pattern Harrison Hot Springs holds true for housing rents. Osoyoos Fernie Invermere Gibsons Tofino $715,575

PROPERTY TAXATION

. Municipal property taxes and Ratio of Business to Residential Tax Rate, 2011 charges are competitive. (Source: Ministry of Community, Sport & Cultural Development) Port McNeill 1.50 Ucluelet’s non‐residential Osoyoos assessment base, average Rossland residential taxes and charges, Gold River Valemount and level of business taxes Radium Hot Springs compared to residential taxes Fernie are all in the mid‐range Golden Ucluelet 2.80 compared to similar Invermere communities. Gibsons Lake Cowichan Port Hardy Tofino Harrison Hot Springs 3.50

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TOURISM

. Tourism is down in BC and Vancouver Island Room Revenue & Room‐Nights Vancouver Island. At the (Source: Ministry of Jobs, Tourism and Innovation) Room Revenue provincial level, employment 5,000 ($millions) $344 4,500

and gross domestic product $333 Thousands Millions $318 $304 $303 $299 4,000 (GDP) in tourism both declined $289

$263 $268 Room‐nights 3,500 in 2009. Within the Vancouver $253 $234 $241 (thousands) 2,753 3,000 Island market, room revenue has 2,540 2,595 2,569 2,437 2,417 2,267 2,333 2,349 2,500 declined for three consecutive 2,173 2,147 2,000 years (2008‐2010) while hotel 1,500 occupancy rates were below 1,000 60% in 2009 for the first time 500 this century. 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

. Ucluelet is faring better than Room Revenue in Ucluelet and Tofino ($ millions) the region. Room revenue in (Source: BC Stats) Tofino $37.7 Ucluelet was flat in 2008 when $36.8 $35.3 the global recession started, but $34.3 Millions $32.1 $32.3 has resumed growing in the last $30.0 2 years. Highway traffic counts $26.9 $22.6 also show sustained activity in $20.2 Ucluelet's tourism sector. $17.6 Tofino, on the other hand, has Ucluelet seen room revenue decline for $8.4 $6.0 $6.1 $6.6 $4.9 $5.5 three consecutive years, $3.5 $4.0 $2.1 $2.6 $2.9 following the same trend as the region. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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2.2. COMMUNITY SURVEY SUMMARY

This Economic Development Strategy was completed while the District of Ucluelet was updating its Official Community Plan (OCP). A detailed survey was commissioned to provide community input into both the OCP and this Strategy.

The survey collected feedback on living and working in Ucluelet, the local economy, and priorities for the community’s future. Two interviewers were hired by the District to conduct in‐person interviews with Ucluelet residents from January to March 2011. The survey was also distributed by mail to all Ucluelet homes. Results of the community planning‐related questions were shared with the OCP consultants in April 2011 in order to be incorporated into the final community plan.

The complete survey report is contained in Appendix B, starting on page 103. The key results as they relate to the economic development strategy are summarized below.

LIVING IN UCLUELET

. Employment most common draw to Ucluelet. The most common reason for respondents to initially move to Ucluelet is for a job (35%), followed by quality of life (26%). Notably only 9% have lived in Ucluelet since childhood.

. Ucluelet residents are satisfied Satisfaction Ratings with quality of life in the community and greatest Trails 4.6 Overall satisfaction 4.0 satisfaction by far is with trails. Parks 3.6 Parks and recreation programs Rec programs/services 3.4 and services scored next highest Schools 3.2 Arts/cultural amenities 3.1 for satisfaction. Housing Rec facilities 3.1 availability and affordability Housing availability 3.0 generate more dissatisfaction Health care 2.7 Variety of local goods 2.7 than satisfaction, along with Rental housing availability 2.7 health care and the variety and Rental housing affordability 2.6 value of local goods. (Note the Value of local goods 2.5 rating scale ranged from 5 for Housing affordability 2.4 "very satisfied" to 1 for "very dissatisfied".

ECONOMY

. Local economy perceived in worse shape than 5 years ago. Only 10% feel that it is somewhat or much better while 43% feel it is somewhat or much worse. The changes in Ucluelet's economy are more likely to be attributed to factors beyond local control (31% place greater weight on

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external factors while 14% lean toward local factors). The largest number of respondents (43%) places an equal balance on local and external factors.

. Significant optimism for the future. Compared to the generally negative view of Ucluelet's economy in the last 5 years, there is significant optimism for the next 5 years. Only 8% of respondents feel the economy will be in worse shape while almost half (48%) feel it will be better.

. Greater satisfaction with personal employment/business situations. A majority of respondents (53%) are satisfied with their current employment and/or business situation. But there is a sizable group of people (21%) who are dissatisfied, most of whom report having difficulty getting enough work or they feel that most available jobs are relatively low‐paid service positions.

. An estimated 60% of everyday Location of Ucluelet Retail Spending spending by local residents is in Elsewhere (Estimated) Mail‐order/ 5% Ucluelet. The next most Online common locations are Port 3% Alberni (17%) and Nanaimo Nanaimo (10%). The survey did not 11% distinguish between higher‐ Ucluelet spending and lower‐spending 60% households, so as long as it can be assumed that lower‐spending Port Alberni and higher‐spending households 17% are dividing their shopping in Tofino similar ways then these results 4% are a valid approximation of where total Ucluelet retail spending is located.

. Affordable food, clothing and greater variety of goods and services desired by residents. Respondents were asked what items or services "should" be available in Ucluelet. Food and clothing items were the most common responses.

ECONOMIC DEVELOPMENT

. Sense of community is the main selling feature. When asked the best selling features to attract a business to Ucluelet, respondents cited various aspects of community spirit, values and atmosphere, as well as lifestyle and natural beauty as the main selling points.

. Seasonality is the main challenge. The most common challenge identified in the survey is seasonality, which affects the two primary industries of fishing and tourism. Various responses also addressed the issue of location, transportation and shipping and travel costs. Others made

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reference to the community not being large enough to create the customer base to support businesses.

. Tourism viewed as most important future industry. Tourism was mentioned most often as the important industry in Ucluelet in the next 5 years, followed by fishing, forestry and arts and culture. When asked to look 20 years into the future, the same industries were mentioned most often, with additional mentions of energy and education.

. Expanding employment and Ranking of Economic Development Priorities helping existing businesses are top priorities. Attracting tourists Expanding employment 4.4 Helping existing businesses 4.4 and increasing the supply of Attracting tourists 4.3 affordable housing are other top Increasing affordable housing 4.3

priorities. Attracting more Helping entrepreneurs 4.1

seasonal residents is the only Expanding goods/services 4.1

option ranked below medium. Attracting business 3.9 (Note the rating scale ranged Improving amenities 3.9 from 5 for "very high priority" to Expanding population 3.6 1 for "not a priority at all"). Expanding trained workers 3.5 Helping with exporting 3.3 Attracting seasonal residents 2.8

COMMUNITY DEVELOPMENT

The community development responses and detailed comments were provided to the OCP consultants as input into the finalized community plan.

. Changes in last 5‐10 years viewed positively. A majority of respondents (55%) have a positive view of the changes in Ucluelet in the last 5‐10 years. Only 14% have a negative view.

. Affordable most desired change. When asked for the major change they would most like to see in the next 5 years, affordable housing was the most common response, followed by a variety of other community amenities (including a swimming pool, ice rink, arts‐related facilities and amenities, trail expansion, a movie theatre, and more and better local goods and services providers). Looking out 20 years, generally the same things were mentioned as well as a hospital.

. Heavy support for vibrant village core. An overwhelming majority of respondents (90%) feel it is extremely or very important to have a vibrant village core.

. Strong support for water use restrictions, if necessary. About three‐quarters of respondents are in favour of water restrictions, although many commented that they would support them

11 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

only if necessary and that activities like lawn watering are unnecessary but other options like more rain water collection and the installation of water meters should also be considered.

. Mixed views on safety of Summary Ucluelet's roads. There is a wide Extremely or very concerned 39% range of opinion on the safety of (4, 5 rating)

Ucluelet's roads. When asked Somewhat concerned 26% which roads or locations are most (3 rating) Slightly or not concerned concerning, the most mentioned 34% (1, 2 rating) spot is the intersection of Peninsula Road and Main Street.

12 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

2.3. UCLUELET HARBOUR

As noted in the introduction, additional financial support for the project was provided by the Ucluelet Harbour Authority (UHA). The harbour is one of the defining features of Ucluelet and a fundamental pillar of the community's economy. The additional funding provided by UHA allows for some additional focus on the harbour at several points throughout this report.

This section provides some background information on harbour operations and main lines of business, as well as some of the key opportunities and challenges that form the basis for Harbour‐specific strategies later in the report.

BACKGROUND

Ucluelet's natural harbour has provided shelter from the ocean for thousands of years, first for many First Nations in the area and later for European settlers and Japanese fishermen.

The major industrial users of the harbour have evolved over the years (sealing and whaling are no longer practiced) to reach the current situation where commercial fishing remains the largest industry, complemented by a wide variety of other users:

. commercial tourism charters for Source: Google Maps whale‐watching or sport fishing, . institutional users like the Coast Guard, . transportation services like the seasonal passenger ferry to Port Alberni, . recreational users, including those who permanently moor their boats in Ucluelet, visiting recreational boaters arriving elsewhere for temporary moorage, as well users arriving by land for all manner of water‐based activities, including kayaking, scuba diving, and sailing.

Like many communities on the BC coast, Ucluelet's main harbour facilities were originally operated by the federal Department of Fisheries and Oceans (DFO)'s Small Craft Harbours division. It was transferred to local control with the establishment of the Ucluelet Harbour Authority (UHA) in 2006.

13 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

There are three main facilities operated by the UHA, two of which remain designated as federal Small Craft Harbours:

1. The Small Craft Harbours Ucluelet West facility, which includes the Inner Boat Basin and Outer Boat Basin (see the area labeled "Boat Basin" in the map to the right). This area is referred to in District of Ucluelet statistics on the next page as "Small Craft Harbours" 2. Whiskey Dock, which is the main dock adjoining Village Square near the District of Ucluelet offices (labeled as Government Wharf in the map to the right). 3. Otter Street Dock, known locally as "52 Steps", which is also a Small Craft Harbours facility (on the map, this is the dock at the foot of Otter Street, just above the large "Ucluelet Harbour" label).

There are various other private docks located throughout the harbour, many of which are used for other commercial purposes. Source: Long Beach Maps The District of Ucluelet, through the UHA, has a dual interest in the success of the harbour. It has a financial interest through the operation of UHA facilities that generate revenue from various types of harbour users, and it has a broader interest in supporting and expanding the efficient and safe use of the harbour by all those who use it for commercial or recreational purposes. It is these big‐picture economic development benefits that are more important from an economic development perspective, provided the harbour generates sufficient revenues to operate sustainably.

The main sources of revenue for Ucluelet Harbour Authority are shown in Harbour Revenue by Type $180,000

Table 1 (and summarized in the chart to LiveAboard $160,000 the right). In 2010, recreational users Charter provided 52% of total revenues, $140,000 followed by commercial fishing (27%), $120,000 Commercial charters (18%) and "live‐a‐boards", $100,000 which are house boats (3%). In each of $80,000

the years from 2008 to 2010, the Small $60,000

Craft Harbour facility has generated 86‐ $40,000 Recreation

87% of these revenues, with 8‐10% from $20,000 the Otter Street dock (52 Steps) and 4‐ $0 5% from Whiskey Dock. 2008 2009 2010

14 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Table 1. Ucluelet Harbour Revenue by Location and Type, 2008‐2010

Revenue Type and Location 2008 2009 2010 2009‐2010 Growth Charter $22,542 $22,702 $30,432 34.0% .....52 Steps $0 $0 $0 ‐ .....Small Craft Harbour $19,534 $22,702 $27,280 20.2% .....Whiskey Dock $3,008 $0 $3,151 ‐ Commercial Fishing $43,836 $49,018 $45,324 ‐7.5% .....52 Steps $586 $1,946 $4,172 114.4% .....Small Craft Harbour $39,160 $42,675 $37,533 ‐12.1% .....Whiskey Dock $4,089 $4,397 $3,620 ‐17.7% LiveAboard $10,604 $9,843 $4,754 ‐51.7% .....52 Steps $6,464 $8,132 $0 ‐100.0% .....Small Craft Harbour $4,140 $1,711 $4,754 177.8% .....Whiskey Dock $0 $0 $0 ‐ Recreation $80,075 $88,844 $87,200 ‐1.8% .....52 Steps $5,878 $6,186 $9,464 53.0% .....Small Craft Harbour $74,146 $79,823 $77,221 ‐3.3% .....Whiskey Dock $51 $2,834 $516 ‐81.8% Total $157,056 $170,407 $167,710 ‐1.6%

52 Steps Total $12,927 $16,264 $13,635 ‐16.2% Small Craft Harbour Total $136,981 $146,911 $146,788 ‐0.1% Whiskey Dock Total $7,148 $7,232 $7,287 0.8% Source: District of Ucluelet

ROLE IN UCLUELET ECONOMY

It is not an exaggeration to state that the natural harbour in Ucluelet Inlet is the reason that the community of Ucluelet was established in its current location. The natural beauty of the area would inevitably attract people, but the industrial foundations of the community were laid by the sheltered, deepwater access used as a base for fishing, forestry and other activities.

The composition of Ucluelet's economy has evolved along with the rest of the world economy toward much greater reliance on services‐producing employment rather than goods‐producing employment. The harbour remains, however, probably the single most important foundation of the Ucluelet economy.

Employment statistics from the 2006 Census can be used to illustrate the scope of fishing‐related employment impacts in Ucluelet and area. These statistics are dated and fish processing will fluctuate from year to year depending on the size of the catch, quota restrictions and other factors, but even if the exact numbers have changed the sector maintains a similar profile within the Ucluelet economy.

15 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

There were 25 jobs in fishing and 140 jobs Fishing Employment Impacts, 2006 in seafood manufacturing based in Direct Jobs 1 165 Ucluelet as of the 2006 Census . In (Ucluelet)

economic impact terms, this is referred to Indirect Jobs 100 as the "direct" impact of commercial (ACRD) 2 Induced Jobs fishing. BC Stats calculations of local 30 (ACRD) employment multipliers shows that every Total Employment 295 direct job in fishing and seafood Impact manufacturing supports an additional 0.6 "indirect" jobs in the local area (where local is defined as the Alberni‐Clayoquot Regional District). These 100 indirect jobs are in companies that provide supplies and services to the direct industries, such as boat repair and maintenance shops, fuel and suppliers providers, trucking and off‐loading firms, utilities and ice makers, and public sector monitors and regulators.

In addition, the direct and indirect jobs put more money into the hands of the employees and owners of these firms. That money is then spent on all of the regular parts of a household budget, including food, clothing, housing, recreation, etc. This is the "induced" impact and according to BC Stats, over the long term amounts to an additional 30 jobs in the Alberni‐Clayoquot region that are ultimately reliant on fishing and fish processing in Ucluelet. The direct, indirect and induced impacts combine for nearly 300 jobs in the region.

A 2010 study3 of the economic impact of the groundfish trawl fishery in BC calculated impacts on a regional basis, grouping Port Alberni and Ucluelet together as "Vancouver Island West". The combined impacts in these two locations include 407 person‐years of employment, total wages paid of nearly $15 million per year, and revenue of more than $30 million, most of which is spent in the area on supplies. The split between Ucluelet and Port Alberni is not known as both communities are home port for some vessels and earn revenue from maintenance and services, although on‐shore processing has been consolidated in Ucluelet with the move of Port Fish's equipment from Port Alberni.

This is the second largest regional impact in BC (behind only Metro Vancouver), accounting for about 22% of the provincial employment impact. Given Ucluelet's small size, the scale of fishing‐related activity is by far the most significant as a share of the community's economy compared to any other fishing community in the province.

1 Employment by sector in Ucluelet can be found in Appendix A: Ucluelet Economic Analysis Report, in Table 15 (page 79) and Table 16 (page 80). 2 BC Stats (March 2009), British Columbia Local Area Economic Dependencies: 2006. 3 GSGislason & Associates Ltd. (June 2010), Economic Impacts from a Reduced Groundfish Trawl Fishery in British Columbia, prepared for BC Ministry of Environment.

16 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

This is supported by Census employment Fishing/Fish Processing Share of Total Jobs, 2006 as well, where the 165 direct jobs in (Source: Statistics Canada Census) fishing and fish processing accounted for Greater Victoria 0.2% Metro Vancouver 0.3% 17.5% of total jobs in Ucluelet in 2006 Comox Valley 0.5% (see Table 16 on page 91). Nanaimo & Area 0.6% Campbell River & Area 0.9% Ucluelet is compared to some other Port Alberni 1.8% prominent BC fishing communities in the Queen Charlotte City 1.9% Port McNeill 4.6% chart to the right. Only Masset is above Port Hardy 6.4% 10% in its share of total jobs in fishing Tofino 7.6% and fish processing. Prince Rupert & Area 8.4% Masset 12.9% In addition to the fishing‐related Ucluelet 17.5% employment, Ucluelet's harbour is also a vital part of the community's tourism sector. A wide variety of charter vessels cater to tourists, providing whale watching, recreational fishing, guided tours of the Broken Group Islands, and other activities. Many other tourists arrive by land or sea and use the harbour for recreational activities ranging from sailing to kayaking to scuba diving.

BC Stats estimates that about 300 jobs in Ucluelet are direct tourism jobs4. If it is conservatively estimated that one‐third of Ucluelet's total tourist spending is attracted by one of the harbour uses, this means that 100 direct tourism jobs are reliant on the harbour. (These jobs would be distributed across hotels and motels, restaurants and pubs, retail stores, local transportation providers, tour guides and other recreational services, and any other businesses that receive direct payment from tourists).

Similar to the calculations above for Harbour‐based Tourism Job Impacts, 2006 fishing‐reliant jobs, it is also possible to (assuming 1/3 of Ucluelet tourism is harbour‐based) calculate the indirect and induced jobs in Direct Jobs 100 tourism. The multipliers are significantly (Ucluelet) Indirect Jobs smaller, but an estimated 15 additional 5 (ACRD) jobs in the region are supported by the Induced Jobs 10 assumed 100 direct jobs in harbour‐based (ACRD)

tourism. Total Employment 115 Impact There are other sectors beyond commercial fishing and tourism that also use the harbour, but based on fishing and tourism alone there are literally hundreds of jobs in Ucluelet that are based on the operations of the harbour. This supports the notion that maintaining and expanding harbour uses is vital to Ucluelet's current and future economic development.

4 This is based on Ucluelet having 80 jobs in accommodation services and a ratio of 3.8 direct tourism jobs per accommodation services job. See page 22 of BC Stats (March 2009), British Columbia Local Area Economic Dependencies: 2006.

17 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

The other key insight from the economic impact calculations of fishing‐reliant jobs and tourism‐reliant jobs is that the indirect and induced impacts of fishing are far more significant. To the extent that there are capacity constraints in the harbour and multiple users are clamouring for more space, there is no question that from an economic development perspective, maintaining commercial fishing viability is of greater importance. Tourism is also very important and an essential part of Ucluelet's economic development future, but the higher incomes and greater local purchases by commercial fishing operators and fish processors have a much greater impact on the local economy.

REGIONAL AND GLOBAL CONTEXT

The future of the Ucluelet harbour will be affected by trends and events occurring regionally and around the world.

COMMERCIAL FISHING

Within the commercial fishing sector, the long‐run trend stretching back several decades is shrinkage in the number of commercial fishing vessels and a massive change in the types of fish species that dominate the industry. As recently as 1990, salmon accounted for 55% of the value of the commercial catch ‐ in recent years that figure has dropped below 10%. Rising in the place of salmon has been new species that were previously under‐utilized, such as the various groundfish species (including hake). In terms of total landed value of seafood in BC, more than half is now based on farmed salmon.

These massive shifts have occurred partly due to declining availability of some fish stocks and the regulatory restrictions imposed by Fisheries and Oceans Canada in order to conserve, as well as increased competition from other seafood producers around the world and changing economic conditions that affect demand for products from countries like Japan.

In Ucluelet, the primary fish species currently being processed is hake, which is a high‐volume, low‐value fish5 regulated through the BC Integrated Groundfish Management Program, which uses a quota system to allocate the catch. Going back to the 1980s, the only processing done for BC‐caught hake was on "factory ships" that processed the fish at sea. Shore‐based processing started in the 1990s primarily for surimi (fish paste) that was exported to Asia for use in various processed fish products.

Competition from lower‐cost producers of similar white fish products elsewhere in the world, as well as an international trade problem connected to mad cow disease (because surimi used a beef‐plasma binding agent), meant that production shifted away from surimi toward higher‐value headed and gutted hake. This is currently a major product in Ucluelet, along with frozen fillets of hake and other groundfish like arrowtooth flounder and now sardines (pilchards). Hake processing on the west coast of Vancouver

5 According to catch statistics from the BC Ministry of Environment, hake accounted for 56% of total groundfish landings by volume in 2009, but just 13% of the landed value. Other species, particularly halibut and sablefish, are caught in much lower volume but yield greater value.

18 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Island has been consolidated in Ucluelet with the purchase of Port Fish in Port Alberni by the parent company of Ucluelet Harbour Seafoods Ltd. and the subsequent move of some of its equipment to Ucluelet.

The significant shifts in fish processing in Ucluelet in the last 20 years are indicative of the need to continually adapt to changing natural and market conditions. Hake stocks can vary significantly from year to year, affecting the amount of fishing and on‐shore processing that occurs. Looking to the future, hake is still a low‐value fish and while some value‐added processing occurs in Ucluelet, it will always be a challenge for producers in a high‐cost location like BC to stay competitive in world markets with what is largely a commodity product. The challenge for Ucluelet and its commercial fishing sector is to continually explore new opportunities, particularly higher‐value opportunities that will support Canadian‐level wages. Examples include identifying niche markets for fresh fish sales ‐ such as salmon and prawns ‐ that tie into the tourism sector.

TOURISM

Regarding marine‐based tourism, growth prospects are affected by the overall state of the tourism market on Vancouver Island as well as factors that are specific to recreational boating (for those who would arrive in Ucluelet by water). As discussed in the Economic Analysis report (Appendix A), tourism overall is down in BC and Vancouver Island in the last few years, largely due to depressed economic conditions worldwide but particularly in the United States. Ucluelet appears to be faring better than the region overall, but the prognosis for tourism growth remains challenging.

Marine tourism is not immune from the larger trends that are depressing tourism. Large recreational boats that might visit Ucluelet as part of a trip to the west coast of Vancouver Island are typically expensive to operate, so rising fuel costs are also a concern. On the positive side, one of the themes in the consultation for this project is that Ucluelet's tourism assets are not well‐appreciated and there remains untapped potential. The attractiveness of the Broken Group Islands and Ucluelet's role as a launching point for more visits is one example of marine‐related potential.

VANCOUVER ISLAND HARBOURS

Harbours throughout Vancouver Island are adapting to changing conditions in marine industries. The commercial fishing fleet has contracted significantly and is consolidating in the harbours that provide the best combination of proximity to prime fishing grounds and necessary support services. Fish processing is still a major employer in some communities, but it too is much more consolidated than in the early history of the Pacific fishery when virtually every community had its own cannery.

Quite a number of harbours have either recently upgraded their facilities or are in the process of doing so, aided by funding available through the federal government's Economic Action Plan as well as organizations like Island Coastal Economic Trust. Many of these projects are expanding moorage space to allow more room for transient recreational vessels as the growth of marine tourism is viewed as an

19 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

excellent way to diversify the coastal economy. Opportunities to service recreational boaters are much higher on the east coast of Vancouver Island as it is closer to the major population centres in the BC Lower Mainland and Washington state, and it offers more protected boating than the open west coast of the Island.

Several harbours, notably Nanaimo and Campbell River, have also invested significantly in infrastructure to accommodate cruise ships. Many other projects include at least some element of creating a closer link between harbour activities and shore‐based tourism. Examples are creating space for dockside fish sales, developing walkways or viewing areas where visitors can observe the working harbour, designating an area where recreational anglers can drop in a fishing line, or in some cases (e.g., Port McNeill) the creation of significant new public park space adjacent to the harbour for performances and events that could tie into a maritime theme.

OPPORTUNITIES AND CHALLENGES

The overriding challenge facing the Ucluelet Harbour is maintaining infrastructure and services that support all of the marine‐related industries that are vital to the community's economy. There is a bit of chicken‐and‐egg situation in that potential exists to pursue expanded activity in some industries, but too much growth would stress already taxed infrastructure. For example, large vessels tying up at Whiskey Dock and at the Otter Street dock ("52 Steps") are causing additional wear and tear on the docks that would be avoided if a better space was available. The opportunities and challenges outlined below address both sides of this dilemma.

OPPORTUNITIES

Expanded commercial fishing activity. Most of the big‐picture trends that affect the total amount of commercial fishing activity off the BC coast are beyond Ucluelet's direct influence, but through the continued provision of support services, supplies, and opportunities to offload, Ucluelet can maintain and expand its share of commercial fishing activity. This is also true for expanded aquaculture operations in the area.

Expanded seafood processing and other value‐enhancing activities. Ucluelet has a long history as a seafood processing community and the focus in terms of fish species and manufacturing product has shifted many times. Eventually either natural or market conditions will require another shift, something that ideally the community and the companies involved are ready for.

Beyond seafood processing, there are other innovations that can increase the wholesale value of fish leaving Ucluelet. Examples include flash freezing at sea, increased use of technology to find fish and reduce bycatch, improvements to offloading efficiency, etc. Like all BC resource industries, the commercial fishery will struggle to compete globally based on price. The solution is to continually push for higher‐value production that is in demand for its quality, not its price, and can therefore support well‐paying jobs.

20 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Expanded marine‐based tourism. There are two components to this: (i) visiting boaters who stop in Ucluelet for temporary moorage and purchase supplies and services and may partake in local tourist activities, and (ii) tourists arriving by land who participate in the huge variety of marine‐based tourist activities, including a fish market, a harbour taxi, guided activities like charters or independent adventure tourist activities like kayaking.

Expanded floatplane service. Floatplanes do not currently fly from Ucluelet on a scheduled basis. Charter flights can land in the harbour and there is a floatplane docking area at Whiskey Dock. The market viability of expanded floatplane service is unclear, but typically floatplane service is a benefit for business connections (Vancouver, Victoria, Nanaimo) and tourism.

CHALLENGES

Capacity constraints. The inner boat basin at the Small Craft Harbours site is where most of the permanent moorage is located. It is a mix of recreational and commercial vessels (as well as the Canadian Princess Resort and house boats) and is very congested, particularly in the high season.

Physical condition of Harbour facilities. There is a concern that 52 Steps and the Whiskey Dock are both absorbing excessive wear and tear through the pounding of large vessels that are using those facilities for lack of a more suitable alternative.

Access to financial resources. Harbour facilities require regular upkeep, which sometimes means sizable undertakings like the maintenance dredging of the harbour to improve maneuverability into the Inner Boat Basin and the inner part of 52 Steps. Another example is replacing the floating breakwater at the Outer Boat Basin that provides shelter from damaging waves. Such items are difficult for a community the size of Ucluelet to sustain on its own without charging uncompetitive rates to harbour users.

Coordinating demands of all user groups. There is only a limited amount of space in Ucluelet Inlet and harbour facilities can accommodate a limited amount of moorage and traffic at any point in time. If growth continues in one or more of the harbour user groups there will inevitably be competition over the limited space that is available and planned expansions would need to be accelerated.

21 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

2.4. UCLUELET’S COMPETITIVE POSITION

This section of the report summarizes the key strengths and weaknesses of the Ucluelet economy. It is based on the extensive background research and analysis that is summarized in Sections 2.1 to 2.3, as well as consultation sessions with District Council, staff and the general public.

The competitive analysis leads directly into many of the strategies in this report. Some strategies are aimed at mitigating a community weakness while others will capitalize on community strengths. Specific economic development opportunities are addressed in the following section 2.5.

STRENGTHS

. Lifestyle and natural beauty, cited by many survey respondents as the community's best selling feature.

. Summer tourist traffic to the West Coast, creating a substantial market for new tourism‐ oriented ventures.

. Youthful, active labour force with high education levels compared to similar communities.

. Access to natural resources (fish, wood, waves, minerals) and support for responsible, sustainable use of these resources.

. Demonstrated ability to attract people, as many of Ucluelet's current residents are relative newcomers to the community.

. Quality, affordable municipal infrastructure (such as the water system). This is a particular strength compared to Tofino, which has serious water supply issues during the summer.

. Excellent marine infrastructure with a natural, sheltered harbour and a variety of harbour facilities and well‐developed support services.

. History and culture (including First Nations). Ucluelet is not a place that is manufactured to appeal to tourists but rather an authentic community that remains rooted in traditional industries while welcoming visitors and new activities.

. Strong sense of community (referred to by residents as “like a big village”).

. Local government commitment and support for economic development, as shown by the long‐ standing operation of the UEDC and the support for this Economic Development Strategy.

22 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

WEAKNESSES

. Transportation limitations with dangerous highway route and limited air and sea links. Highway 4 link to Port Alberni is a narrow, mountainous route to the east side of Vancouver Island, where goods or people traveling off‐Island must rely on expensive BC Ferry service.

The Long Beach Airport near Tofino has regularly scheduled flights to and from Vancouver, but only on very small planes. There is no regularly scheduled floatplane access to Ucluelet.

. Highly seasonal tourism market impacts the viability of year‐round tourist‐oriented businesses and amplifies the seasonal nature of Ucluelet's other core industries of fishing and forestry.

. Housing affordability was identified as a major challenge for Ucluelet in the community survey. It is an advantage relative to Tofino and housing prices are lower than the BC average, but prices are higher than in some other similar BC communities.

. Ucluelet’s relatively small population and local market area limits the viability of some local‐ serving businesses.

. Limited health services with the local hospital in Tofino and its steady loss of services over time (e.g., obstetrics), as well as the lack of seniors' options.

 Prevalence of low‐paying jobs leading to under‐employment and making it difficult to keep highly‐educated people in the community.

. Under‐utilized and in some cases run‐down commercial space. Consultation on this issue provided very mixed messages with some people saying there is ample space available, but others saying the opposite. The reality is likely that space is available, but may not be to the standard desired by some potential tenants.

23 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

2.5. PRIORITY ANALYSIS OF ECONOMIC DEVELOPMENT OPPORTUNITIES

This section of the report summarizes the detailed analysis of potential economic development opportunities for Ucluelet found in Appendix C (starting on page 126). The analysis falls well short of a formal feasibility analysis, but nevertheless provides a consistent and semi‐rigorous evaluation of each opportunity.

The rationale for this type of analysis is that Ucluelet’s economic development function has limited resources – both financial and human – and should therefore focus its efforts on the opportunities that appear most likely to create the greatest economic benefits to the community.

The analysis is only a guideline as there are many opportunities not included here and much uncertainty about future events and new opportunities that may emerge. But it does provide a way of thinking about opportunities in a strategic way, recognizing that not all opportunities are created equal and that things like the potential benefit and the likelihood of success should be considered before dedicating scarce economic development resources.

The analysis addresses the following questions:

1. How well does each opportunity fit with Ucluelet’s characteristics? This question considers Ucluelet from the industry’s point of view.

2. What are the benefits that each opportunity would provide to Ucluelet residents, businesses and the community at large? This question considers each opportunity from Ucluelet’s point of view.

3. To what extent can this opportunity be realized through the efforts of the local economic development function? The modern economy is immensely complex and is affected by a multitude of factors, some of which are local but many are provincial, national and global in scope.

OPPORTUNITIES

The list of opportunities to be evaluated is based on previous economic development reports and initiatives (especially a community economic forum held in March 2010), as well as consultation for the economic development strategy. A full list of opportunities is potentially limitless, but the following are a good sample of the most discussed ideas (listed in no particular order):

24 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

a. Wood products manufacturing, building on improved local access to quality wood fibre. b. Logging and related forest maintenance activities (brush piling, road and trail maintenance, etc.)

2. Harbour‐related business expansion, including attracting more permanent and seasonal activity in all of the major lines of business. a. Seafood products manufacturing, especially higher‐value products. b. Commercial fishing and aquaculture, including using Ucluelet as a home port and offloading site.

3. Lifestyle‐oriented personal services (including health‐related, such as spas or naturopathic health centres, but not core public health services).

4. Post‐secondary educational facility or research institute, likely affiliated with an established institution.

5. Various tourism development opportunities, including businesses relating to: a. Outdoor recreation or culinary, educational, historic or cultural tourism. b. Conferences. c. Pocket cruises, which are smaller cruises with a passenger count ranging from several dozen to at most several hundred.

6. Artists cooperative, providing gallery space for displaying and selling locally‐produced art, and possibly also including studio space for renting or sharing.

25 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

EVALUATION CRITERIA

The first set of evaluation criteria are the Location Factors and are viewed from the perspective of the potential target industries.

1. Labour Force. Reflects the quality and availability of a suitable labour force and the local advanced education and training possibilities (if required).

2. Real Estate. Reflects the suitability of Ucluelet’s available land and leasable space.

3. Access to Markets. Reflects how easily a Ucluelet‐based business can access its target market.

4. Access to Resources. Reflects how easily a Ucluelet‐based business can access the resources it requires to operate. These may be physical resource, like the raw materials for a manufacturing business, or necessary support services.

5. Infrastructure. Reflects the suitability of Ucluelet’s telecommunications and utilities infrastructure.

6. Quality of Life. Reflects the fit between the Ucluelet lifestyle and the typical requirements of owners and workers in each possible opportunity.

The next criteria are the Economic Impact Factors and are viewed from Ucluelet’s perspective. In order to justify an investment of time and money in an economic development initiative, there needs to be some expectation of a reasonable payoff to the community.

7. Employment Impact. Opportunities that would provide more new jobs in Ucluelet are rated higher. But the number of direct jobs is not the whole story as different industries will support varying amounts of “spinoff” employment.

8. Job Quality. All else being equal, higher‐paying jobs are clearly better, but jobs that provide a wider range of opportunities for Ucluelet residents to utilize their skills should also be valued more highly.

The final factor is a type of reality check.

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SUMMARY OF EVALUATION RESULTS

Table 2 provides the results of the evaluation of each opportunity. Please see Appendix C for a detailed discussion of each opportunity and the explanation for each rating.

The analysis is based on various assumptions and estimates, so small differences between opportunities should not be considered significant. It is fair to say, however, that opportunities that scored highly across multiple dimensions should be regarded as better opportunities than those that scored poorly in most areas.

Table 2. Summary of Priority Analysis

Location Score Economic Impact Score Economic Development OVERALL (max is 12) (max is 7) Influence (max is 2) RATING Opportunity (1) (2) (3) (1 x 2 x 3) 2a. Seafood manufacturing 8 4 1 32 2b. Commercial fishing/ aquaculture 6 5 1 30 4. Educational or research facility 2 6 2 24 1a. Wood manufacturing 3 5 1 15 1b. Logging & Related 3 4 1 12 5a. Various tourism 6 4 0.5 12 3. Lifestyle services 4 3 0.5 6 6. Artists cooperative 3 2 1 6 5b. Conferences 5 1 1 5 5c. Pocket cruises 3 1 1 3 8. Lifestyle entrepreneurs 1 5 0.5 2.5 7. Wave & green energy 1 2 1 2

Some overall conclusions:

. The sectors that score highest are Ucluelet’s existing strengths ‐ fishing, tourism and forestry, as well as the emerging opportunity of post‐secondary education. These results support an important principle that is often overlooked ‐ that the greatest benefit of economic development initiatives is often helping to maintain and strengthen existing leading industries, rather than focusing on something new. Ucluelet's traditional leading industries will continue to evolve, but they are very likely to remain among the leading industries well into the future.

. By suggesting that commercial fishing and aquaculture should remain a high priority, part of the economic benefit will be the preservation of existing jobs rather than strictly expanding employment. From an economic impact point of view, a job saved is just as valuable as a job added.

27 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

. Looking strictly at the economic impact factors (employment and job quality), the educational/research facility has the highest score, followed by the lifestyle entrepreneurs (tied with commercial fishing and wood manufacturing). The education and entrepreneur opportunities best represent the “knowledge‐based” economy and both are worthwhile targets, but many communities are pursuing the same opportunities.

. The benefits of a more significant post‐secondary presence would go far beyond the employment impacts shown here, including social benefits of having more options for youth to stay in the community and the bigger‐picture economic benefits of enhancing local human potential and the ability to capitalize on opportunities. It is therefore recommended that a post‐ secondary facility and/or research institute be one of Ucluelet’s external targets.

. The artists’ cooperative does not score particularly highly on pure economic grounds, but there may be valid non‐economic reasons to do with supporting the arts and enhancing local quality of life that would lead the District to support such an initiative.

. Several of the specific tourism‐related opportunities, such as conferences and pocket cruises, scored poorly based mainly on their very modest economic impacts. These opportunities may be part of the overall growth of tourism in the community, but it is not recommended that the District expend considerable resources pursuing these particular opportunities at this time.

. A similar rationale should be used for the lifestyle entrepreneurs (“lone wolves”) ‐ they will be part of Ucluelet’s diversifying economy in the future, but are difficult to reach through marketing programs and are also not recommended as a priority target at this time.

. The wave energy/green energy opportunity does not score well on this analysis because of its modest economic impacts and the fact that most of the standard location factors (e.g., labour force, real estate, quality of life) are not relevant. It is possible that this analysis takes too narrow a view of the green energy opportunity ‐ perhaps by securing an investment in a pilot project, a related post‐secondary facility or research institute would be more likely to locate in Ucluelet. If there is continued private‐sector interest in putting an energy project in Ucluelet or in the Community Forest, those interests should be assisted. But pursuing energy projects as a major focus does not appear to be the best use of limited resources.

28 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

3. ECONOMIC DEVELOPMENT FUNCTION AND PARTNERSHIPS

This chapter of the report provides some background information on the organizations and partnerships that will be responsible for implementing the individual strategies found in Chapter 4. The District of Ucluelet is the driving force behind local economic development, but much greater success can be achieved through partnerships with other organizations both locally and outside Ucluelet.

First, section 3.1 provides information on possible structures for the municipally‐funded economic development function.

3.1. STRUCTURING AN ECONOMIC DEVELOPMENT FUNCTION

Many municipalities in British Columbia provide funding for a local economic development function and each of them structures it a little bit differently. Some have an economic development person or department as part of their staff, while others create an arms‐length society or corporation that provides economic development services on a fee‐for‐service basis. Municipalities may also contract with an individual or an unrelated organization (e.g., Chamber of Commerce, Community Futures office) to provide some or all economic development services. In other cases the municipality may enter into formal or informal partnerships with other organizations in pursuit of some economic development objective.

Ucluelet has used a combination of approaches in the past. The Ucluelet Economic Development Corporation (UEDC) was established in 2000 as a District‐owned corporation to be used as a vehicle for economic development. As an external corporation, it was able to enter into partnerships and joint ventures aimed at diversifying the economy after downturns in fishing and forestry in the 1990s.

The Economic Development Officer (EDO) position has not always worked under the UEDC, however. For most of the first decade of the UEDC’s existence the EDO was employed by the District, either as a sole function or later as one of the responsibilities of the District Chief Administrative Officer (CAO). More recently the EDO was a part‐time contract position, with other responsibilities handled by the Mayor, Council and CAO. The UEDC Board is the Ucluelet District Council while there is also a UEDC Advisory Committee made up of business owners and other community members.

Some additional background information on economic development structures in BC, looking primarily at the "in‐house" versus "arms‐length" models, can be found in Appendix D (starting on page 148). That analysis had the following conclusions:

1. There is no single best model of local economic development.

29 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

2. Each local government must take into consideration their objectives for economic development, the range of services that are already being provided by other agencies, the amount of available funding, and potential partners.

3. The “in‐house” model of economic development remains the most common organizational structure for BC local governments, but there is a trend toward more arms‐length organizations.

4. An increasing number of communities are leveraging local government investment in economic development by sharing overhead costs with other organizations, or by pooling funding with adjacent jurisdictions.

5. The regional nature of the BC economy suggests that economic development is often better suited to a regional approach than a single‐community approach. Past experience suggests, however, that the geographic size of the region cannot be too large.

6. Co‐location with other organizations enhances collaborative economic development planning and reduces unnecessary overlap of services.

7. A positive relationship with the local business community is essential to the success of any economic development program. This relationship often works better when the economic development office is located outside of local government (even if it remains a department of the local government).

8. Communication with local government is essential for arms‐length organizations to ensure continued support and coordination of activities.

SMALL COMMUNITY COMPARISON

The experience of other BC communities provides useful context in considering the next steps for Ucluelet. A 2009 survey by the Union of BC Municipalities (UBCM)6 showed that among communities with a population under 5,000, fully three‐quarters (75%) either had no EDO position or a part‐time role (less than one full time equivalent). A further 21% had 1‐2 FTEs while only 2% had more than 2 FTEs.

The most recent membership survey conducted by the Economic Development Association of BC (EDABC)7 included 20 responses from economic development offices that covered a single municipality. Of these, 18 (90% of the total) were employed by the municipality while 2 (10%) were employed by arms‐length organizations. In several of the municipal cases, the EDO’s office is physically located outside municipal hall (e.g., shared space with a Community Futures office or Chamber of Commerce). Although the question was not asked in the survey, in at least several cases the EDO is a municipal

6 Union of British Columbia Municipalities (November 2010), UBCM 2009 Economic Development Survey of Local Governments. 7 Vann Struth Consulting Group Inc. (September 2010), 2010 EDABC Membership Survey ‐ Final Report, prepared for Economic Development Association of British Columbia.

30 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

employee but there also exists an arms‐length organization (like the UEDC) for the purposes of partnerships, funding applications, etc.

Of the 7 respondents from communities with less than 5,000 population, all 7 were employed by the municipality. These 7 respondents were examined more closely as they are the most comparable sample of communities to Ucluelet’s situation. Several of these communities were also contacted directly to provide additional insight on their structure. The general characteristics of this group include:

. Core funding in 2010 was in the range of $80,000 to $260,000 per year. The average was around $140,000. o Most communities fund economic development from general revenue. In one case the economic development position is entirely funded by revenue from their Community Forest.

. In a given year budgets may be expanded considerably through a grant for a specific project. Grant sources may include the federal and provincial governments, one of the regional Trusts (e.g., Island Coastal Economic Trust) or another source.

. In all 7 communities the economic development department includes just a single economic development professional, although one has a part‐time support staff shared with another department.

. Only 4 of the 7 communities have a full‐time economic developer ‐ in the other 3 cases the EDO has additional responsibilities in another department.

. The approximate breakdown of expenditures is: o 55% for salaries and benefits o 18% for tourism‐related activities o 16% for marketing (note the tourism budget above likely also includes some marketing) o 11% for other activities.

. The survey respondents were asked about the following range of possible economic development activities ‐ the number undertaking each type of activity is shown in parentheses: o Business attraction/marketing: 7/7 o Business retention & expansion: 7/7 o Real estate development: 5/7 o Workforce development: 4/7 o Workforce recruitment: 3/7 o Small business assistance: 2/7 o Entrepreneurship: 1/7

31 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

o When asked about other activities, 2 respondents mentioned tourism development and marketing while other items mentioned were infrastructure development, grant writing and project management.

IMPLICATIONS FOR UCLUELET

Given the information summarized above on economic development structures and the experience of similarly‐sized communities in BC, there remain several separate but related issues to be addressed.

1. The level of commitment to economic development. The first decision for Ucluelet Council is how much of a financial commitment should be made to economic development. The majority of BC communities of Ucluelet’s size fund less than a full‐time EDO position and many provide no funding at all. Financial resources are limited so Council will need to consider the recommended priorities of this Economic Development Strategy and determine how much and how quickly they wish to move ahead.

2. The location of the EDO position, which at this point is likely a choice between an employee (or contract position) located externally with the UEDC or working within the District. In either case, there is no reason that the UEDC cannot continue to exist as a vehicle for certain projects that are better handled (or legally required) to be at arms‐length to the municipality.

3. The amount of additional contracted services or partnerships. In addition to the core economic development position, the District may wish to provide additional economic development services through contract arrangements with other individuals, organizations or companies. This is possible regardless of whether the core EDO position is full‐time or part‐time, a staff position, or a contractor. One example on a larger scale is the Central Okanagan Economic Development Commission, which has three core staff members plus full‐time contractors with their own portfolios (film, agriculture, business retention, and high technology/young professionals).

Regardless of the decisions that are made, there should be a renewed commitment to involve the business community and other interested community members in a meaningful advisory capacity. This advisory group should reflect the evolving nature of Ucluelet’s economy and ideally would involve representatives from a variety of industries and perspectives.

The intent is not to create a situation where the economic development function works at cross‐ purposes to the District, but that the economic development function has a close link with evolving economic conditions and opportunities.

There is no single “right” model for economic development. Highly effective EDOs have worked in various types of organizational structures in BC communities, suggesting that the keys to success are more closely related to personal initiative, the strength of partnerships, the support of local government and the community at large, and the involvement of the local business community.

32 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

3.2. ECONOMIC DEVELOPMENT PARTNERS

A successful economic development strategy is not implemented in isolation. It requires the participation and buy‐in from multiple organizations and segments of the community, each supporting a common goal and working together to achieve it.

In addition to the District of Ucluelet, other local organizations that are possible partners in implementing some aspects of this Strategy include:

1. Ucluelet Chamber of Commerce. The Chamber represents the local business community, is heavily involved in planning and organizing major events in the community and operates the two local Visitor Information Centres. It is the logical partnering organization for initiatives involving the business community at large.

2. Tourism Ucluelet. It is currently separating from the Chamber of Commerce to become a stand‐ alone destination marketing organization for Ucluelet and area.

3. Ucluelet Harbour Authority. The UHA is responsible for managing the Small Craft Harbour facilities in Ucluelet as well as the Whiskey Dock adjacent to Village Square and should be involved in any harbour or fisheries‐related initiative.

4. Yuu‐tluth‐aht (Ucluelet) First Nation. The Yuu‐tluth‐aht Nation is Ucluelet's closest neighbour, located just across Ucluelet Inlet in the village of Ittatsoo as well as in other nearby settlements. The Nation has created the Ucluth Development Corporation to capitalize on economic development opportunities for the Band.

5. Toquaht First Nation. The Toquaht Nation is also located in close proximity to Ucluelet and is already partnering with the District on ownership of the Barkley Community Forest.

6. Alberni‐Clayoquot Regional District. The ACRD provides some funding toward the budget for the City of Port Alberni's Economic Development Officer to support projects that benefit the region. The District of Ucluelet is also currently providing a small amount of funding to this position, so the strategies in the Chapter 4 will identify possible areas where the regional role can be of assistance to Ucluelet.

7. District of Tofino and/or City of Port Alberni. There are clearly economic issues of common interest for Ucluelet and Tofino that would benefit from a joint approach, such as regional transportation issues. There may be other issues that require a larger regional approach that would include the City of Port Alberni or possibly other communities on Vancouver Island (such as initiatives relating to ferries, for example).

33 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

8. School District No. 70 (Alberni). Education is an essential part of economic development and there are partnership opportunities between Ucluelet and the local school.

9. North Island College. NIC operates Ucluelet's a college campus in Ucluelet and is a logical partner for expanding the post‐secondary presence in the community and creating close ties between business training and education needs and post‐secondary providers.

10. Community Futures Alberni‐Clayoquot. Community Futures has an office in Ucluelet and operates several programs helping to transition the unemployed into self‐employment and providing financing for small businesses.

11. Ucluelet Aquarium Society. The Aquarium, which is currently in the midst of a major expansion, is a significant asset not only to Ucluelet's range of tourist products but also for its linkages with advanced research.

12. Pacific Rim Arts Society. PRAS is a non‐profit society dedicated to supporting and encouraging participation in arts and culture in Ucluelet and Tofino.

13. Iisaak Forest Resources. As the major forest company in the area, Iisaak is a logical partner for Ucluelet in any forestry‐related initiative.

14. Barkley Community Forest. The Community Forest will be co‐owned by the District of Ucluelet and the Toquaht First Nation and will likely require economic development assistance to fully realize local economic benefits (for Ucluelet and neighbouring First Nations).

In addition to those listed above, other governments and government agencies at the local, regional, provincial and federal level are also possible partners for given initiatives. Some of the more likely partners include the Rural BC Secretariat, the BC Ministry of Jobs, Tourism and Investment, Western Economic Diversification, and Fisheries and Oceans Canada.

34 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

4. STRATEGIES

The Ucluelet Economic Development Strategy is organized into five overriding goals:

1. Realign economic development structure and tools

2. Invest in Ucluelet’s human potential

3. Enhance physical infrastructure for economic development

4. Capitalize on harbour‐related opportunities

5. Pursue targeted economic development opportunities

Goal #1 will provide the framework for implementing an ongoing economic development program in Ucluelet.

Goal #2 and Goal #3 are both aimed at creating and supporting favourable conditions for economic development, regardless of the specific industry. The difference is that Goal #2 is focused on the human dimension while Goal #3 relates to the physical condition of the community.

Goal #4 covers the harbour‐related strategies, some of which relate to the physical infrastructure of the harbour while others relate to specific marine industries.

Finally, Goal #5 highlights several areas of both existing and potential opportunity for Ucluelet and directs additional focus to those areas.

Under each strategy there is a discussion of the background and rationale for the strategy, followed by several actions that summarize the steps involved in implementation.

The exact structure of Ucluelet's economic development function remains to be determined, so the "lead responsibility" for each strategy is assigned to either Staff or Council, or in some cases both. It may turn out that the "staff" work is taken up by a future full‐time or part‐time economic development position or contractor, or duties could be assigned to other staff on a case‐by‐case basis.

In addition, under each strategy there is an indication of "Time Requirement". This provides an approximation of the burden each strategy will place on the staff or Council time and will help Council determine the appropriate level of resources to dedicate to economic development. The levels are:

. Minimal (perhaps the occasional meeting and contribution of work) . Moderate (likely ongoing involvement in some way, but not excessive at any particular time)

35 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

. Significant (larger projects that may require dedicated effort for a period of time and may require ongoing involvement thereafter)

Partnerships with other organizations are important in achieving the maximum benefit from an economic development program. Suggestions are provided under each strategy of organizations that are logical partners (these organizations are listed in Section 3.2). Of course it will be possible for other partners to be added. In particular many of the strategies could feature the involvement of neighbouring First Nations, but it would be presumptuous to assume their involvement at this stage.

Finally, each strategy is assigned a priority level: High, Medium or Lower. All strategies are important (otherwise they wouldn't be included at all), but this designation shows which strategies are believed to be most important to enhancing Ucluelet's economic development. The District has limited resources to put toward economic development and must therefore make choices about where to allocate its limited resources.

The Implementation Plan (Chapter 5) will aggregate all of the individual strategies according to lead responsibility and priority level, showing at a glance the number and priority of the strategies that ideally require an EDO. Tracking the results of the strategies is addressed in Chapter 6 (Performance Monitoring Program).

36 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

GOAL #1: REALIGN ECONOMIC DEVELOPMENT STRUCTURE AND TOOLS

The first goal of the Ucluelet Economic Development Strategy is to ensure that a framework is in place to successfully implement an ongoing economic development program.

Ucluelet has had an economic development function for many years so some of the recommended items under Goal #1 are already in place to some degree. The Strategy encourages and supports their continuation and recommends additional actions and tools as part of an overall program.

Strategy 1. Realign economic development function according to strategic priorities and budget.

Upon adoption of this Economic Development Strategy, there is a need to realign Ucluelet’s economic development function. As discussed in detail in Section 3.1, the structure of economic development in Ucluelet is being re‐examined in connection with this strategy process and a decision on the preferred organizational structure and funding levels is required.

The duties and responsibilities of this position will vary depending on how much and how quickly Council wishes to move forward with implementation of this Economic Development Strategy and any other economic development priorities. In addition to the responsibilities outlined under each strategy, the person or group responsible for economic development would create annual work plans, based in part on the Implementation Plan (Chapter 5) and new priorities and opportunities that will emerge over time. They would also be responsible for reporting on the results of their initiatives, using some or all of the recommended measurements in the Performance Monitoring Program (Chapter 6).

The best economic development officials and organizations are almost always very active in their communities and are constantly discussing ideas and gathering intelligence by interacting with their local business community, other community organizations, regional and provincial partners, economic development colleagues, and potential clients and investors from elsewhere. They are relied upon to provide an economic development perspective on local government policies and to serve as a liaison between local government and the business community, which may occur through an Economic Advisory Committee.

Actions . Establish a clearly defined economic development position and budget, based on the resources required to implement this Strategy and subject to budget limitations. This includes determining the best organizational model, considering the information provided in Section 3.1 and Appendix D.

Lead Responsibility Time Requirement Partnerships Priority Staff/Council None . None (to make original decision). High . May require partners (e.g., for joint services) depending on approach taken.

37 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 2. Create and operate business retention & expansion (BRE) program.

In most communities, the majority of job growth is created by the expansion of established companies. It is therefore important to ensure that issues affecting Ucluelet’s businesses are identified and addressed on an ongoing basis.

A business retention and expansion (BRE) program is designed to fit this purpose. The typical BRE program is based on a regular schedule of in‐depth interviews with business owners and operators, with the purpose of continually monitoring business conditions, providing assistance to companies looking to expand, and receiving advance notice of companies in distress. Aggregating company responses across a variety of industries and company sizes provides insight into common competitive issues and important trends in the local economy, and gives the local economic development office the information needed to create programs and initiatives that will truly make a difference. The program also enhances the business climate within the community by increasing the responsiveness of local government to economic development issues.

In larger communities the BRE program is often a major initiative requiring literally hundreds of hours of staff or contractor time per year. In Ucluelet, a BRE program would be more modest (partly because of the smaller number of companies) and is really just formalizing the regular interactions that an EDO should have with the business community on an ongoing basis. Rather than casually speaking with businesses on an intermittent basis, setting up a BRE program and schedule would require the EDO to be somewhat more organized in talking to major businesses on a regular basis and systematically monitoring issues and challenges. A typical schedule might involve talking in some depth to the largest companies twice per year, with a longer list of smaller companies or companies in priority areas included at least once every 2‐3 years.

Many BC communities have recently started using an online software package called ExecutivePulse to manage the program. A provincial license is held by the Economic Development Association of BC (EDABC) that significantly reduces the cost to communities and this may be an option for Ucluelet to consider.

The results of the BRE program are used to inform many other aspects of the economic development program. Issues that are raised through the company interviews may lead to the development of needed training courses or workshops, new lobbying efforts, support for more serviced land or other types of infrastructure, the development of incentive programs to encourage more investment by local companies (e.g., revitalization tax exemptions), or many other options. Aggregating results across different sectors may uncover common issues that would not otherwise become known.

The most challenging aspect of BRE programs is the time commitment. As noted above, the Ucluelet program is envisioned to be relatively small, with probably no more than 1‐3 interviews on average per month. It is possible, however, for Ucluelet to become part of larger initiatives, perhaps on a regional

38 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

basis or to help create a larger local program in partnership with the Chamber of Commerce or other interested organizations.

Actions . Investigate the extensive literature on BRE programs to establish an initial list of target companies and key questions. . Consult with other communities and regions in BC that have also developed regional BRE programs to determine best practices (e.g., Okanagan communities). . Develop schedule of interviews, targeting large or fast‐growing firms for annual interviews, with companies in other industries on a less‐frequent schedule. . Purchase BRE software tool to help shape BRE interview questions and develop protocols with partners regarding confidentiality, data entry, and other project management issues.

Lead Responsibility Time Requirement Partnerships Priority Staff Significant . Chamber of Commerce Medium . Alberni‐Clayoquot RD . Possibly other community and regional organizations

39 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 3. Use communication tools to engage local community and outsiders about Ucluelet opportunities.

The intent of this strategy is to ensure that the work of the economic development program in Ucluelet is well‐understood and supported by the local community, and that information on the local economy, demographics, and economic development opportunities is readily available for interested outsiders.

These aims can be partly achieved through effectively communicating the creation of this Economic Development Strategy. Many economic development initiatives require long‐term focus and perseverance and therefore must be well understood and supported by the community. Regular communication and reporting of activities and results is integral to sustaining this support.

The approach to communications should be to establish a regular pattern of sharing information through various channels, including the economic development section of the District website, a stand‐ alone economic development website or blog, a newsletter (email only), or social media (Facebook, Twitter, etc.). The plan should also include regular updates to community profile information, including current facts on the local economy, labour force, population and demographics, as well as specific business development opportunities that arise over time.

Actions . Update economic development components of the District of Ucluelet website and ensure a clear link to this information is visible on the homepage. Also request that a link to this information be displayed prominently on the websites for Tourism Ucluelet and other relevant partner organizations (e.g., Ucluth Development Corporation). . Ensure the economic development website (either part of the District website or a stand‐alone site) is structured to allow the EDO to make easier and more frequent updates of news and information. . Institute tools to regularly send information to partners and members (options include an email newsletter, a blog through the economic development website, a Facebook page, Twitter feed, etc.). Ideally multiple channels are used to broadcast content to maximize the number of people hearing about Ucluelet on a regular basis. . Develop regular schedule of contacting other community organizations, neighbouring First Nations and municipalities, senior levels of government, and other relevant regional and provincial organizations to share information and ensure Ucluelet’s strengths and opportunities are widely known.

Lead Responsibility Time Requirement Partnerships Priority EDO Moderate . Tourism Ucluelet and Chamber of Medium Commerce . Other organizations promoting Ucluelet (for tourism or any purpose)

40 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 4. Maintain information and promotional tools

This strategy is concerned with the packaging of information on Ucluelet that will serve as the content for the communications activities mentioned in the previous strategy.

A community profile in both pdf form and as individual webpages is available in Ucluelet but is now quite dated. This package needs to be updated and should contain basic demographic and other statistical profile information, with links to the more detailed information available through Statistics Canada, BC Stats and other sources. The emphasis should be on information that is specific to Ucluelet and not widely available elsewhere, including:

. Commercial development opportunities (provided this information is updated on a regular‐ enough basis that it is not chronically out of date). . Leading employers (public and private sectors). . Transportation infrastructure. . Travel times to major centres, airports, ferry routes, border crossings, universities, etc. . Local utilities and infrastructure, including water, sewer, and telecommunications. . Quality of life information such as housing costs, parks, health services, schools, churches, etc.

Creating a glossy, printed version of the profile is not recommended. Rather the information can be distributed online as a downloadable PDF file that can be printed for hard‐copy distribution when necessary. This keeps costs lower and allows for more frequent updates, including customizing the information for specific purposes (such as a trade show where the participants would be interested in more detailed information on a particular topic).

The data package can be supplemented with marketing messages that highlight the available opportunities. These may be incorporated into the same document, or developed as a series of stand‐ alone pieces that focus on specific opportunities and provide supporting information. All economic development materials should be consistent with District branding and emphasize Ucluelet’s competitive advantages.

Actions . Undertake a research program to develop community profile information (funding may be available through the federal Community Investment Support Program ‐ CISP) . Upload the new information to the economic development website (as noted in the previous strategy, this will either continue to be part of the District website or a separate site). Include links to other information sources, downloadable versions of any promotional documents that are created, maps, and key contacts. . Regularly maintain and update the profile information as new data becomes available. Lead Responsibility Time Requirement Partnerships Priority EDO Significant . Ucluelet Chamber of Commerce Medium . Tourism Ucluelet

41 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 5. Establish ongoing working relationship and partnerships with neighbouring First Nations.

The Maa‐nulth Treaty covering five Vancouver Island First Nations came into effect on April 1, 2011. Two of the five Nations ‐ the Yuu‐tluth‐aht (Ucluelet) and Toquaht ‐ are close neighbours of Ucluelet (and have land and offices within the municipality). The treaty provides certainty over the ownership of land and resources in the area and has given each First Nation significant capital with which to invest in improving their economies and standards of living.

The Ucluelet band has created the Ucluth Development Corporation, which “is responsible for creating economic development opportunities for the government of the Yuu‐tluth‐aht First Nation focusing on sustainable development in their Treaty Settlement Lands. These lands are located on the Southwest Coast of Vancouver Island, BC, Canada, in and around the community of Ucluelet.”8

The District of Ucluelet has partnered with the Toquaht First Nation in a Community Forest (referred to as Barkley Community Forest). The Toquaht lands are primarily to the east of the Ucluelet Nation’s on the shores of Barkley Sound and extending to the north. Their band office is located in Ucluelet.

Actions . Establish and maintain a regular pattern of communication with each First Nation to understand their economic development plans and identify ways for Ucluelet to support and partner in initiatives, where appropriate.

Lead Responsibility Time Requirement Partnerships Priority EDO/Staff Moderate . Yuu‐tluth‐aht, Toquaht and other High First Nations

8 Ucluth Development Corporation website (www.ucluth.ca), retrieved May 26, 2011.

42 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 6. Establish ongoing working relationship and partnerships with neighbouring communities, the provincial and federal governments, and local community organizations.

As noted in multiple places throughout this report, the greatest success for economic development in Ucluelet will be achieved through the combined efforts of many organizations in addition to the District of Ucluelet.

These organizations are identified under each strategy if they are the logical partner for a given initiative. In addition, however, the EDO should make it a priority to maintain regular channels of communication with all of the local, regional, and federal/provincial partners identified in Section 3.2. They include:

. Ucluelet Chamber of Commerce . Tourism Ucluelet . District of Tofino . City of Port Alberni . Alberni‐Clayoquot Regional District . Community Futures Alberni‐Clayoquot . Provincial government (including Rural BC Secretariat and the BC Ministry of Jobs, Tourism and Investment) . Federal government (including Western Economic Diversification and Fisheries and Oceans Canada)

Actions . Participate in formal and informal networking and information sharing forums. . Ensure the economic development office is subscribed to all possible newsletters, distribution lists, social media accounts, etc. for partner organizations. . Make a regular effort to touch base with partners and share information and ideas.

Lead Responsibility Time Requirement Partnerships Priority EDO/Staff Moderate . All organizations identified above High

43 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 7. Participate in regional economic development initiatives where appropriate.

It is often beneficial for smaller communities like Ucluelet to participate in regional initiatives, both as a cost‐saving measure and to expand their presence in the marketplace. The potential for regional initiatives is somewhat limited for Ucluelet as there are only two other municipalities in the Alberni‐ Clayoquot Regional District. Tofino does not have a local economic development function (but may still be interested in some partnerships, depending on the issue) and Port Alberni is a fair distance away. The unincorporated areas and surrounding First Nations communities are relatively sparsely populated.

Regardless, Ucluelet should stay in regular contact with economic development‐related organizations in those other communities and participate in regional initiatives where Ucluelet is likely to benefit. A small amount of annual funding is provided to the regional economic development officer based in Port Alberni, but in general it is better to commit time and money to specific projects that fit with Ucluelet’s objectives rather than provide regular funding for an undefined purpose and uncertain benefit. These opportunities may not come at a regional district level but through an Island‐wide organization like Vancouver Island Economic Alliance (VIEA).

A recent example is the Leadership Vancouver Island program. Ucluelet and Tofino are partnering with the provincial government’s Rural Secretariat to offer this leadership development program on the West Coast for local business people. The intent is to improve their personal capacity as business leaders, which will lead to more successful businesses and more local economic development.

Actions . Maintain ongoing dialogue with regional municipalities and other organizations in the Alberni‐ Clayoquot RD and Vancouver Island to identify possible partnership opportunities. . Participate financially in joint initiatives only when the project aligns with Ucluelet’s objectives.

Lead Responsibility Time Requirement Partnerships Priority EDO Moderate . Alberni‐Clayoquot Regional District Lower . Regional municipalities in ACRD and Vancouver Island . VIEA . Vancouver Island Economic Developers Association (VIEDA)

44 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 8. Develop and maintain regular points of contact for Mayor and Council and the business community.

Ucluelet’s future economic potential will be enhanced through regular communication between District Council and the business community. Council becomes better informed about ongoing issues in the local economy and has the opportunity to discuss investment and job creation opportunities directly with business leaders.

It is therefore recommended that the District create a regular forum for interaction between Council and the business community. There are a variety of possible formats for such an event, but a common approach in other communities it to have an annual “Economic Development Summit” that brings together Council, District staff, business people and other interested members of the community. There could be a guest speaker to talk about some topical issue of interest to the community, a presentation on economic development achievements of the past year, updates from the local business leaders themselves on successes and/or challenges in their sectors, and even a celebration of business achievements.

To foster even closer ties, a quarterly or semi‐annual “Mayor’s Luncheon” could be held that would be a simple opportunity for informal networking and sharing of information between Council and local businesses. The Chamber of Commerce is a logical partner in these events.

There could also be an economic development component of other community events, providing an opportunity for Council to provide updates on economic development initiatives to the broader community. Examples include community festivals and events, visits to schools, and a variety of other public events.

Actions . Organize an initial Mayor’s Luncheon, Economic Development Summit or similar event with the cooperation of Council and local business organizations. . Determine a schedule and format that maximizes the value of the event to all participants. . Seek sponsorship and cost‐sharing partnerships with local businesses and business organizations.

Lead Responsibility Time Requirement Partnerships Priority EDO/Staff Moderate . Chamber of Commerce Medium . Council . Local businesses

45 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

GOAL #2: INVEST IN UCLUELET’S HUMAN POTENTIAL

The entire point of doing an economic development strategy is to enable the people of a community to achieve a better standard of living. For many people, this means getting better, higher‐paying jobs. And better, higher‐paying jobs usually require higher levels of education and/or more specialized skills.

The economic analysis showed that among similar communities, Ucluelet's population is relatively young and well‐educated, but the survey results showed that many people are unable to find jobs that they feel match their skills and education. The strategies under Goal #2 address these issues in three ways: first, by providing Ucluelet residents with more options to improve their skills and education; second, by enhancing the resources available to help local companies and entrepreneurs find new ways of using those skills to create jobs and business opportunities; and third, by continuing to support the critical services and amenities that make Ucluelet a desirable place for talented people to live and work.

Focusing on local people also ties in with the notion, as discussed in the Introduction, that most future job creation and business growth will come from existing businesses and entrepreneurs. People that are already in Ucluelet are already invested in the community and committed to its long‐term success. Goal #2 focuses on unlocking their potential.

46 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 9. Pursue a new post‐secondary educational facility and/or research institute.

Pursuing a post‐secondary educational facility and/or research institute is one of the highest‐scoring economic development opportunities analyzed in Appendix C. Although the exact parameters for such an institution are not known, it would likely be affiliated with an established university, college or research institute. The programs offered would likely relate in some way to the community or surrounding area, such as a program relating to forestry or fishing, environmental resource management, tourism, oceanography, rainforest research, etc. Or another option could be a trades training program, again possibly relating to forestry or construction or another local connection.

Expanding the range of post‐secondary options in Ucluelet would not only provide more opportunities for local residents to be educated at home, it will create new high‐quality jobs and attract skilled workers and students to the community. There is a good possibility to leverage some of Ucluelet's other assets, such as unused accommodation space in the off‐season (winter) and, at least initially if space is required, using empty school classrooms.

Interest has been expressed by some institutions in the past and some activity has occurred, such as the involvement of University of Guelph scientists with the Ucluelet Aquarium.

Actions . Initiate and/or continue discussions with institutions that have previously been in contact with Ucluelet to identify realistic options and requirements to make a deal . Promote Ucluelet's desire to attract a facility to other institutions and Provincial officials . Explore options for Provincial support in view of the commitment in the BC Jobs Plan (unveiled in September 2011) to increase the provincial international student population by 50% in the next four years.

Lead Responsibility Time Requirement Partnerships Priority EDO/Staff Significant . Ucluelet Aquarium Society High

47 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 10. Increase connection between educational institutions and the business community.

It is a classic labour market conundrum that there are unemployed people, who want to work, and there are companies with job vacancies that want to hire people, but the two groups just don't match up. This dilemma will never be completely solved, but there are steps that can be taken to bring the demand and supply for workers into closer alignment.

Another factor to consider is future labour shortages as the population ages. Ucluelet is fortunate that its resident labour force is still relatively young, but the community is aging along with the rest of the Canadian population and labour shortages are likely to become more prominent in the future.

Whether as part of a formal BRE program (as recommended in Strategy 2) or simply through everyday interactions, Ucluelet's economic development function should monitor labour market needs and regularly share this information with local educational institutions (North Island College and the School District). It is not realistic for education and training programs to adjust instantaneously to changing labour market needs, but over time programs should adapt as much as possible and sometimes it is possible to organize shorter‐term training sessions to fill a specific need.

The other key aspect of this strategy is encouraging entrepreneurialism among current residents, particularly youth. Youth entrepreneurship can help keep young people in the community as they create their own opportunities. Programs such as Junior Achievement teach entrepreneurial and financial management skills to students as young as Grade 5. (Junior Achievement BC’s most recent annual report shows involvement with two schools in Port Alberni, but not in Ucluelet). A key element in any entrepreneurship program is involving the local business community, through Chambers of Commerce, other business organizations or individual businesses, as guest speakers, judges for business plan contests, mentors, etc.

Actions . Through Business Retention and Expansion (BRE) program (or simply through regular interactions with businesses), maintain an ongoing file on skill needs in the community and regularly communicate this information to local educational institutions. . Encourage business organizations, or individual businesses, to engage with educational institutions to institute entrepreneurialism programs.

Lead Responsibility Time Requirement Partnerships Priority EDO Moderate . North Island College Lower . School District No. 70 (Alberni) . Ucluelet Chamber of Commerce

48 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 11. Develop business resource package, including referral service, to support entrepreneurs and small businesses

Encouraging entrepreneurship and small business growth is an important dimension of local economic development. However, the type of individual counseling and one‐on‐one assistance that aspiring entrepreneurs and small businesses require is usually beyond the resources of a small economic development office.

Alternatively, there are organizations and resources that are dedicated to this task. The challenge is connecting those who need assistance to the available resources, particularly if they are not located in Ucluelet.

What is suggested is the development of a resource guide for inquiring entrepreneurs and small businesses to ensure they are referred to the resources that they require. This need not be a formal document, but rather a collection of links and information sources that can be posted online, emailed to inquiring parties, or printed as the situation requires. Many other communities in BC have created similar guides (e.g., Venture Kamloops has an excellent compilation of resources) and given that many of the non‐local information sources are the same, Ucluelet can benefit from work done elsewhere and simply adapt these guides to its own purposes. Other local organizations, particularly the Chamber of Commerce and Community Futures, also provide support services to local businesses so coordination is required to prevent unnecessary duplication of effort.

Topics to be covered would include regulatory requirements, access to financing, business planning guidance, market research services, training programs (e.g., WorldHost training for tourism employees), succession planning, and potentially many more. The guide would be a living collection of information that could be continually updated and enhanced over time.

Actions . Consult with local and regional business‐serving organizations to identify existing resources and gaps. . Compile lists of resources and links, organized by topic, for posting online and distributing by other means as required. . Create a more prominent link to BizPaL on the Ucluelet website (this is an online guide that shows, for a given type of business, all relevant permits and licenses that are required for all levels of government)

Lead Responsibility Time Requirement Partnerships Priority EDO Significant . Ucluelet Chamber of Commerce High . Community Futures Alberni‐ Clayoquot

49 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 12. Continue to support the redevelopment of Tofino General Hospital and the expansion of public health services in Tofino and Ucluelet.

Health services are included in the Economic Development Strategy because they are an important aspect of quality of life, which is necessary to attract and retail people to the area. Only 24% of respondents to the community survey were satisfied with the level of health services and improvements (including Ucluelet getting its own hospital) were identified as some of the changes that respondents want to see in the community in the next 20 years.

Tofino General Hospital is in need of redevelopment and there are concerns that the range of services available are diminishing over time (e.g., loss of obstetrics). There have been discussions about creating a Community Health Network for the Alberni‐Clayoquot region (including Port Alberni and Bamfield), which would provide a mechanism for planning health services and encouraging preventive measures.

Suggesting any specific health‐related initiative is beyond the scope of this strategy, but it is important to continue pressing to retain and improve health services in Ucluelet and the Tofino‐Ucluelet corridor.

Actions . Continue working with the District of Tofino and other community organizations to lobby for a redeveloped Tofino General Hospital and other improvements to health services in the area.

Lead Responsibility Time Requirement Partnerships Priority Staff Minimal . District of Tofino Medium . Many other community and business organizations

50 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 13. Continue to support arts, cultural, sport and other services and programs aimed at supporting a high quality of life

Similar to the previous strategy on health services, maintaining high‐quality arts, cultural, sport and other services and programs is important to maintaining a high quality of life for local residents. Amenities and events in these areas are also an important component of Ucluelet's attractiveness to tourists.

The community survey showed an exceptionally high level of satisfaction with Ucluelet's trails and also more satisfaction than dissatisfaction with parks, recreation programs and facilities, and arts and culture amenities. There were many comments in the survey about additional facilities and amenities that at least some residents would like to see (such as a swimming pool and skating rink), but the financial feasibility of such large facilities would require much further study.

The creation of an arts cooperative is an idea that emerged through the community survey and subsequent consultation and was included in the analysis of economic development opportunities in Appendix C. It is not recommended strictly on economic development grounds, but there may be broader community objectives for supporting the arts that would include support for such an initiative.

Recommending specific arts and culture or recreational initiatives is beyond the scope of this strategy, but it is important to continue supporting such programs and initiatives that enhance Ucluelet's quality of life.

Actions . Continue working toward the creation of a Recreation Master Plan. . Continue supporting arts and culture organizations and events in the community.

Lead Responsibility Time Requirement Partnerships Priority Staff Minimal . School District No. 70 (Alberni) Medium . Pacific Rim Arts Society . Other community arts and sports organizations

51 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 14. Continue to ensure a range of housing choice in the market.

Housing prices is the topic that generated the greatest dissatisfaction among respondents to the community survey. This is a common issue in communities throughout BC with the rapid rise of house prices in the last decade.

The District of Ucluelet has responded to this issue with the creation of a Ucluelet Affordable Housing Committee and by enacting several policies to encourage the development of affordable housing units (including requiring a percentage of new housing developments be set aside for affordable units, creating density bonus provisions for constructing affordable units, and the creation of Permanent Affordable Housing (PAH) units, which use restrictive covenants to keep prices and rents below market rates). The new Official Community Plan also contains a series of recommended affordable housing policies.

While the survey results show the importance of housing affordability as an issue for current Ucluelet residents, it appears from the limited data that is available that Ucluelet's prices are in the mid‐range of similar communities and are substantially lower than Tofino prices. This means that attracting skilled workers or entrepreneurs to Ucluelet may not be seriously impacted by high housing prices, especially as prices remain lower than larger urban areas in the province.

Nevertheless, it is important to continue to pay attention to this issue and to take steps to ensure a wide variety of housing choices are available to accommodate a socio‐economically diverse population, including families and young working adults. This includes a variety of housing types (single family homes, multi‐family townhomes or apartments) at a variety of sizes and densities to appeal to different price points in the market.

Working to keep housing affordable will make it easier for Ucluelet to retain and expand its permanent population, which would improve the viability of many of the shopping and services options that residents would like to see (as identified in the community survey).

Actions . Continue working to create and maintain affordable housing options in the community through the Ucluelet Affordable Housing Committee and by implementing OCP affordable housing policies. . Encourage the development of a wide range of housing options to meet market demand for various housing types and price points.

Lead Responsibility Time Requirement Partnerships Priority Staff Minimal . Housing developers Medium

52 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

GOAL #3: ENHANCE PHYSICAL INFRASTRUCTURE FOR ECONOMIC DEVELOPMENT

Goal #3 addresses the physical conditions that affect economic development. These are general characteristics of the community that are not specific to any particular sector.

Harbour‐related physical infrastructure is addressed under Goal #4, which contains all Harbour‐related strategies.

Strategy 15. Ensure sufficient supply of employment land and encourage sufficient development of commercial space

New and expanding businesses in Ucluelet need a physical location on which to operate that is suitable for their requirements in terms of size, level and type of servicing, permitted uses, proximity to important amenities or transportation routes, etc. Ucluelet's new Official Community Plan (OCP) designated two main areas for non‐harbour industrial uses (on Seaplane Base Road and Forbes Street) and there appears to be ample space available for Ucluelet's industrial development requirements in the near future.

Commercial development is focused on Peninsula Road, the Village Centre area including Main Street, and selected other areas within the community. There were conflicting messages received in the project consultation about the suitability of current commercial space, suggesting that space is available but may not be considered of sufficient quality for some users.

Actions . Monitor the availability of industrial and commercial space (through a BRE program, informal discussions with local businesses and community members, etc.). . If availability becomes a challenge, work with land owners and developers to expand supply.

Lead Responsibility Time Requirement Partnerships Priority EDO/Staff Minimal . Ucluelet Chamber of Commerce Lower . Individual businesses and property developers

53 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 16. Support continued improvement to regional transportation infrastructure.

The vast majority of personal and commercial traffic coming to the Ucluelet/Tofino corridor is traveling on Highway 4 from Port Alberni, which is a winding, narrow mountain highway. Many respondents to the community survey are concerned about the condition of this route (even though the survey question was intended to deal only with Ucluelet's internal roads).

The Long Beach Airport is located 24 km east of Ucluelet and is owned by the Alberni‐Clayoquot Regional District. It has regularly flights to Vancouver and regularly hosts private aircraft. There is significant potential to upgrade services as there is currently no lighting system, no air traffic control, and a need to upgrade the runways, drainage system and access road. The airport is therefore at risk of regular weather‐related closures. On the positive side a new terminal building was completed in 2010 but there remains significant potential to improve regional access through further upgrades.

According to a regional analysis of airport issues9, an upgraded Long Beach Airport could directly target the corporate and private air travel markets as a link with the high‐end resorts in the region. This would have an obvious connection to investment attraction as a significant number of "high‐end" tourists would also be potential business investors in the area.

Actions . Continue to encourage and support the Alberni‐Clayoquot Regional District in making upgrades to the airport. . Provide support in attracting additional services and airline users to the airport.

Lead Responsibility Time Requirement Partnerships Priority EDO/Staff Minimal . Alberni‐Clayoquot Regional District Medium . District of Tofino . Tourism Ucluelet

9 InterVISTAS Consulting Inc. (June 2008), Vancouver Island and Sunshine Coast Region Air Transportation Outlook, prepared for Vancouver Island Economic Developers Association (VIEDA).

54 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 17. Ensure community access to state‐of‐the‐art telecommunications infrastructure

Having a state‐of‐the‐art telecommunications system is a basic requirement for any knowledge‐based industry and is rapidly becoming essential for all industries.

As part of developing an updated community profile of Ucluelet's economic development assets, a comprehensive description of fibre optic connections in Ucluelet should be compiled. This would include a map of where lines are located and identification of any areas of the community with varying costs and ability to connect to fibre.

Cell phone service is also an important factor for business purposes. It was not raised as a concern in the consultation for this report, although coverage is very sporadic on Highway 4 between Port Alberni and Ucluelet.

Actions . Compile up‐to‐date description of fibre optic availability in Ucluelet and make information available through a community profile and/or to interested parties. . If necessary, combine with other interested parties to approach utilities about improving telecommunications services. . Similarly monitor the status of other telecommunications services (e.g., cell phone coverage) and work with utilities to improve services, as required.

Lead Responsibility Time Requirement Partnerships Priority EDO/Staff Minimal . Ucluelet Chamber of Commerce Lower . School District No. 70 (Alberni) . Alberni‐Clayoquot Regional District

55 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

GOAL #4: CAPITALIZE ON HARBOUR‐RELATED OPPORTUNITIES

Goal #4 pulls together all of the harbour‐related strategies. This is the second main section in the report that provides additional focus on harbour issues (after section 2.3), reflecting the additional funding provided to this project by the Ucluelet Harbour Authority.

Apart from the specific strategies that follow, it is important to make the statement through this Economic Development Strategy that commercial fishing and other marine industries activities are not just part of Ucluelet's history, but will continue to be an important part of a strong local economy well into the future.

Strategy 18. Secure funding to undertake a renewal of key harbour infrastructure.

Like all large pieces of infrastructure, the harbour requires ongoing maintenance and repair. But there are several larger upgrades or improvements that have been identified by the Ucluelet Harbour Advisory Commission (HAC). These include:

. Solving the challenge of excessive wear on the Otter Street ("52 Steps") dock from large vessels. This facility has been designated a "core fishing harbour" and is maintained by Small Craft Harbours as part of its mandate to support the commercial fishing sector. Solutions may include relocating the SCH facility or creating an alternative site for the large vessels. . Dredging in the Inner Boat Basin to expand the navigable area, particularly through the narrow opening into the Basin, although this would be difficult. . Addition of a floating breakwater to provide more shelter to moorage at the Outer Boat Basin. . Planned development of Seaplane Base area. . Moving smaller vessels (recreational and charter) to small lagoon northwest of current Small Craft Harbours (bordered by Harbour Crescent). . Developing an offloading, tie‐up and net repair facility off Seaplane Base Road. This would have the further benefit of moving heavy truck traffic to a site closer to the edge of the community with quicker access to the highway. . Multiple ideas for expanding the amount of moorage space through reconfiguring the current docks, adding more fingers at the Outer Boat Basin, establishing new facilities on public land further inside the Inlet, etc.

These large capital expenditures are typically done only with funding support from Small Craft Harbours (SCH) or some other source. SCH has a responsibility to maintain commercial fishing infrastructure, so developing a proposal that allows SCH to continue to fulfill its mandate while also addressing some of Ucluelet's other challenges is a possible way forward.

56 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Actions . Collaborate with the Harbour Advisory Commission and harbour users to prioritize the needed upgrades and develop a plan to secure funding support.

Lead Responsibility Time Requirement Partnerships Priority Staff Significant . Ucluelet Harbour Authority High . Harbour users

57 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 19. Retain and expand the network of marine‐related support services.

This strategy refers to things like marine repair and maintenance facilities, fuel providers, ice and other marine goods suppliers, offloading and trucking firms, cold storage, and public services like catch monitors and the Coast Guard. Commercial fishing vessels require these types of services whether they use Ucluelet as their home port or whether they are visiting Ucluelet temporarily while fishing nearby. If any critical services are lost, vessels may choose to offload their catch at a harbour where services are available or switch their home port elsewhere.

A recent report on the BC Trawl Fishery10 argued that the infrastructure supported by the trawl fishery (which makes up a larger share of Ucluelet's economy than any other coastal community) is also vital for other commercial fisheries (e.g., salmon) as well as First Nations and recreational fisheries that would not be able to support these vital services on their own.

Actions . Include marine‐related support services businesses as a component of a future business retention and expansion (BRE) program. . Should the need arrive in the future (due to a business closure, for example), work to attract marine service providers to ensure that Ucluelet provides as complete a set of marine services as possible. . Support the continued presence of a Coast Guard base in Ucluelet.

Lead Responsibility Time Requirement Partnerships Priority Council/Staff Moderate . Ucluelet Harbour Authority Lower . Commercial fishing and marine‐ related companies . Ucluelet Chamber of Commerce

10 GSGislason & Associates Ltd. (June 2010), Economic Impacts from a Reduced Groundfish Trawl Fishery in British Columbia, prepared for BC Ministry of Environment.

58 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 20. Support the commercial fishing, aquaculture and processing sectors in the development of new and higher‐value seafood products.

As discussed in Section 2.3, the ongoing challenge for resource‐based manufacturing in an advanced economy like Canada's is to create higher and higher‐value products. Only high‐value products can support higher wages, but even more important, higher‐value products are distinguished in the global market by their quality, but by price. Lower‐value commodity products compete on price, putting Canada into direct competition with other commodity suppliers around the world, most of whom will have a lower cost structure.

The role of the economic development office is to help the existing commercial fishing, aquaculture and processing sectors stay abreast of new information on markets and technologies, or connect the local operators to relevant experts in government or industry associations. Local operators should be encouraged to experiment with new ideas as higher‐value products may emerge from any point in the production cycle. It could be a large change, such as demand for a new species that is not currently valued, or small changes that make fish fresher (such as flash freezing at sea) or reduce costs (such as improving offloading technology). It is important above all to not be complacent with the current state of the industry as it will inevitably change.

Actions . Consult regularly with current seafood processors and commercial fishing and aquaculture operators to stay abreast of their needs and requirements. . Investigate the feasibility of providing assistance with the purchase of fishing quota or licenses. . Ensure that the economic development office subscribes to a wide variety of information sources on the industry and is aware of the resources that are available through senior levels of government, industry associations, academia, etc. and connect local operators to these resources as much as possible.

Lead Responsibility Time Requirement Partnerships Priority Council/Staff Significant . Industry associations, government Medium agencies, research institutes and others involved in seafood

59 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 21. Expand the pedestrian and tourist connection to the harbour.

One of the defining features of Ucluelet as a tourist destination is that it remains an authentic fishing community. Ucluelet's early history, starting with the First Nations residents of the area and continuing through European settlement, is closely tied to the sheltered harbour.

There is potential to build upon this heritage to make the harbour more of a tourist attraction in its own right. The recently updated Official Community Plan encourages the development of walking trails and viewpoints throughout Village Square and other areas adjacent to the waterfront. The establishment of dockside fish sales and continued growth in various tourist commercial services (e.g., boat tours, whale‐ watching) will draw people to the waterfront.

There is also potential for growth in industrial and historical/cultural tourism. Industrial tourism allows visitors to observe and learn about current or past industrial practices, such as commercial fishing and fish processing. Historical/cultural tourism could build upon many fascinating aspects of Ucluelet's history, including First Nations history, the Japanese presence, the historical development of commercial fishing and much more.

Actions . Continue to develop pedestrian access and viewpoints of the harbour. . Encourage the development of pedestrian and tourist experiences at the harbour, such as fish sales and industrial or historical tours, provided they are done safely and to not infringe on commercial operations.

Lead Responsibility Time Requirement Partnerships Priority Staff Minimal . Ucluelet Harbour Authority Medium . Commercial fishing and processing operators . Tourism Ucluelet

60 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 22. Support the expansion of other marine‐related commercial activities.

There are a variety of other commercial users of the harbour that are important contributors to Ucluelet's economy. Most notable are the tourist‐oriented commercial recreation companies that provide services like fishing charters, whale‐watching and touring cruises, and adventure sports. Transportation is another potentially significant industry with the seasonal passenger ferry to Port Alberni (the Frances Barkley) and the float plane dock.

As Ucluelet's tourism sector continues to grow over time, demand for marine‐related activities is sure to expand as well. In order to accommodate this expansion, the Harbour Authority must ensure that sufficient capacity is in place and conflicts are not introduced with commercial fishing and other harbour users. From an economic development perspective, preserving the viability of commercial fishing and related activities should be the top priority as their overall economic impact is greatest. This is despite the fact that from a purely financial point of view, the Harbour Authority will earn more money from moorage from recreational and other non‐fishing uses.

Ucluelet's west coast location means there are fewer touring recreational vessels that will stop in Ucluelet compared to the sheltered east side of Vancouver Island. Nevertheless tourists arriving in Ucluelet on their own boats contribute to the local economy through purchases of fuel and marine services, as well as the regular tourist expenditures in restaurants, retail and perhaps even accommodation and recreation (depending on the length of their stay). Providing additional moorage space to accommodate transient vessels, particularly in the high season, should be considered.

Establishing a fresh fish market and improving and promoting the boat launch (which could be a launching point for trips to the Broken Group Islands) are other tourism‐related opportunities.

Expanded floatplane service is another potential growth area. There is space for floatplane docking at Whiskey Dock, but an improved facility has been discussed as part of an overall revamping of harbour infrastructure. Floatplane service would make it easier and faster for some tourists to visit resorts in Ucluelet and is also a boon for business connections and for any other potential users willing to pay to avoid the time and inconvenience of driving.

Actions . As harbour infrastructure is renewed and expanded over time, ensure that space is provided for growth in commercial recreation and transient recreational moorage. . Explore the feasibility of expanded floatplane service for the harbour. . Support the efforts of Tourism Ucluelet to promote the marine‐based recreation as a key component of Ucluelet's tourism sector.

Lead Responsibility Time Requirement Partnerships Priority Council/Staff Moderate . Ucluelet Harbour Authority Lower . Ucluelet Chamber of Commerce . Tourism Ucluelet

61 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

GOAL #5: PURSUE TARGETED ECONOMIC DEVELOPMENT OPPORTUNITIES

As noted in the Introduction, targeting specific economic sectors is not a prominent feature of this Economic Development Strategy. Rather, most of the individual strategies are focused on improving the overall conditions for local economic growth, regardless of the sector.

However, the priority analysis of economic development opportunities in Appendix C showed several areas that combine significant economic benefits for Ucluelet with a strong probability of success. Two of these target areas have already been covered ‐ the attraction of a new post‐secondary educational institution or research facility was included under Goal #2 (Invest in Ucluelet's Human Potential) while seafood processing and other marine‐related opportunities were included under Goal #4 (Capital on Harbour‐Related Opportunities).

62 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 23. Support growth of the tourism sector.

Tourism is a huge part of Ucluelet's economy and was the top choice of respondents to the community survey as the most important sector in supporting the community's future economy.

Tourism marketing is the responsibility of Tourism Ucluelet, which is in the process of establishing itself as a stand‐alone destination marketing organization after previously being a committee of the Chamber of Commerce. There are two Visitor Information Centres that are operated by the Chamber. That leaves the involvement of the economic development office in tourism expansion primarily in new product development and supporting existing tourism‐oriented businesses.

Continued growth of tourism in Ucluelet will require the development of new attractions and activities and the renewal of existing attractions. This includes various service‐oriented businesses, retailers, restaurants, recreation companies, etc. that will appeal to tourists but also cater to local residents. As Ucluelet's attractiveness relies heavily on the spectacular natural surroundings, there is a strong need to ensure that new developments preserve the area's natural attractiveness and are consistent with Ucluelet's authentic village character.

The discussion of opportunities through the consultation for this project and in previous studies included a wide variety of tourism‐related business development ideas. The priority analysis of opportunities in Appendix C did not rate these opportunities particularly highly, largely because the economic benefits of any one idea are likely to be limited and because the opportunities are already widely known (meaning there is no need to spend resources promoting opportunities). The exception would be significant new resort‐style developments, which have been discussed in the past in Ucluelet and would have a much more significant impact. Apart from these larger development, many of the strategies in this report that address the general conditions for local business development will be of benefit to small tourism‐oriented businesses.

The other important issue that was consistently raised with respect to tourism is job quality. As many of the jobs are in the service sector, they tend to be lower‐paying with lower skill requirements. The key to higher wages is creating a higher value product or service (the same as in all industries). In tourism this is usually done through a superior level of service or providing more spectacular experiences.

Actions . Continue to support tourism promotion and servicing provided by Tourism Ucluelet and the Ucluelet Chamber of Commerce. . Provide support to the development of tourist‐oriented events, attractions and businesses. . Encourage and support an annual meeting of all tourism stakeholders in the community. Lead Responsibility Time Requirement Partnerships Priority Staff Moderate . Tourism Ucluelet Medium . Ucluelet Chamber of Commerce

63 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Strategy 24. Support the expansion of forestry and wood products manufacturing.

Forestry has a long history in the Ucluelet area but has been in long‐term decline as a source of local income and employment for at least several decades. This has been caused by the overall struggles of the BC coastal forest industry and the environmental upheaval and long subsequent examination of the role of forestry in Clayoquot Sound since the mid 1990s.

In 2011, however, there are multiple signs pointing to a local rebirth in forestry. The logging tenures in the area are now almost exclusively under the control of local First Nations through Iisaak Forest Resources. The Barkley Community Forest, which will be jointly owned by the District of Ucluelet and the Toquaht First Nation, is nearing operation after nearly a decade of work to bring it into being. The sum impact of these changes is that logging is now under local control and there is a strong desire to maximize the value of the area's wood resources, which means expanding the amount of wood processing and value‐added manufacturing that occurs in the area. Market conditions are improving somewhat with expanded exporting to China, although the continued collapse of the US housing market is still a significant impediment to growth.

Logging obviously occurs outside Ucluelet and it is not clear whether new wood products manufacturing sites would be in Ucluelet or not. In either case the industry should be supported by Ucluelet's economic development office as it will employ Ucluelet residents and will likely patronize goods and services providers in Ucluelet.

Actions . Work with prospective wood products manufacturers to create viable manufacturing operations, helping with issues that may include land requirements, transportation, labour training, identifying markets, etc. . Leverage the District of Ucluelet's involvement in Barkley Community Forest to support new manufacturing operations.

Lead Responsibility Time Requirement Partnerships Priority Council/Staff Significant . Iisaak Forest Resource Medium . Barkley Community Forest . Alberni‐Clayoquot Regional District . First Nations

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5. IMPLEMENTATION AND PERFORMANCE MONITORING

This chapter of the report explains how the District should go about implementing the Economic Development Strategy.

The Strategy has been designed to accommodate whatever level of resources Council ultimately decides to dedicate to economic development. The highest‐priority items should be covered even with a smaller commitment, while a larger commitment would enable more strategies to be covered in a shorter period of time.

ANNUAL WORK PLAN

It is recognized that priorities will change over time as new opportunities and challenges emerge. It is therefore suggested that an annual work plan be developed for the economic development function that specifies the major projects for the year as well as the ongoing programs and initiatives that will be maintained.

The work plan should identify the time requirement, budget allocated and partners for each project, with a brief description of what will be done. It is also important to specify a measurable outcome for each strategy, a topic that will be addressed in detail in Section 5.2.

At the conclusion of each year there should be a report on the results of the economic development work plan, summarizing the successes (or failures) in meeting the goals in the work plan and why things may have turned out differently than expected. The release or presentation of this report is ideally suited for an annual economic development event, such as those recommended under Strategy 8 (page 45). Further details on this topic will also be covered in Section 5.2.

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5.1. IMPLEMENTATION SUMMARY

The entire Economic Development Strategy is summarized below. Note the year ranges shown for each priority level are approximate and will depend on the level of resources available.

High Medium Lower Strategies by Lead Responsibility (Time Requirement in Parentheses) Priority Priority Priority (Year 1‐2) (Years 2‐4) (Years 3+) Economic Development Officer (EDO) Strategy 11. Develop business resource package, including referral service, to support entrepreneurs ✔ and small businesses (Significant) Strategy 2. Create and operate business retention & expansion (BRE) program. (Significant) ✔ ✔ Strategy 20. Support the commercial fishing, aquaculture and processing sectors in the development of ✔ ✔ new and higher‐value seafood products. (Significant) Strategy 24. Support the expansion of forestry and wood products manufacturing. (Significant) ✔ ✔ Strategy 4. Maintain information and promotional tools (Significant) ✔ ✔ Strategy 3. Use communication tools to engage local community and outsiders about Ucluelet ✔ ✔ opportunities. (Moderate) Strategy 10. Increase connection between educational institutions and the business community. ✔ (Moderate) Strategy 19. Retain and expand the network of marine‐related support services. (Moderate) ✔ Strategy 22. Support the expansion of other marine‐related commercial activities. (Moderate) ✔ Strategy 7. Participate in regional economic development initiatives where appropriate. (Moderate) ✔ EDO or District Staff Strategy 18. Secure funding to undertake a renewal of key harbour infrastructure. (Significant) ✔ Strategy 9. Pursue a new post‐secondary educational facility and/or research institute. (Significant) ✔ Strategy 5. Establish ongoing working relationship and partnerships with neighbouring First Nations. ✔ ✔ ✔ (Moderate) Strategy 6. Establish ongoing working relationship and partnerships with neighbouring communities, ✔ ✔ ✔ the provincial and federal governments, and local community organizations. (Moderate) Strategy 8. Develop and maintain regular points of contact for Mayor and Council and the business ✔ ✔ community (Moderate) Strategy 21. Expand the pedestrian and tourist connection to the harbour. (Minimal) ✔ ✔ Strategy 23. Support growth of the tourism sector. (Moderate) ✔ ✔ Strategy 16. Support continued improvement to regional transportation infrastructure. (Minimal) ✔ ✔ Strategy 15. Ensure sufficient supply of employment land and encourage sufficient development of ✔ commercial space (Minimal) Strategy 17. Ensure community access to state‐of‐the‐art telecommunications infrastructure (Minimal) ✔ District Staff (non‐EDO) and/or Council Strategy 1. Realign economic development function according to strategic priorities and budget. (None) ✔ Strategy 12. Continue to support the redevelopment of Tofino General Hospital and the expansion of ✔ ✔ public health services in Tofino and Ucluelet. (Minimal) Strategy 13. Continue to support arts, cultural, sport and other services and programs aimed at ✔ ✔ supporting a high quality of life (Minimal) Strategy 14. Continue to ensure a range of housing choice in the market. (Minimal) ✔ ✔

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5.2. PERFORMANCE MONITORING

Performance monitoring in economic development is a difficult subject because the desired outcomes ‐ more jobs, higher incomes, etc. ‐ are always influenced by a multitude of factors. Just because a community adds 50 new jobs in a year does not mean the economic development office has done a good job (nor does the loss of 50 jobs mean the economic development office has done a poor job). Overall economic conditions, the quality of business decisions, the rise or decline of new competitors, changes in the regulatory environment, weather conditions or natural disasters, and just plain luck may all have a role in what transpires.

It is far easier to measure the inputs to an economic development project, such as the number of companies interviewed in a business retention program, or the number of copies of a promotional document that are distributed, or the number of hits on an investment website. But these types of indicators do not necessarily translate into the things that are really desired (more jobs, higher incomes, etc.).

The recommended approach is a two‐part performance monitoring report:

1. Measure specific inputs for economic development projects and programs, and where possible, measure outputs as well.

2. Monitor overall economic conditions in the community.

The results should be reported on an annual basis, possibly in conjunction with the next year's economic development work plan. A feedback loop is generated where the decision to proceed on a project comes from Council, is then executed, and the results are brought back to Council/Committee for review and as input into the next round of initiatives.

PART 1. MEASURING ECONOMIC DEVELOPMENT PROJECTS

Each project or ongoing program that is included in the annual economic development work plan should include, if possible, a measurable goal.

The simplest type of goal is a yes/no checkmark on whether or not the project is completed. An example might be the completion of a business resource package for entrepreneurs and small businesses that compiles resource materials and links to further information and assistance. The measurable might simply be whether or not the package is completed.

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If a subsequent action is to put the package online and promote its existence through local and regional businesses organizations, the measurable might be more specific and relate to the number of website pageviews or downloads.

Sometimes it is possible to directly measure an important economic development output. For example, the strategy to expand local wood products manufacturing might have the economic development officer actively promoting the availability of timber from the Community Forest. By responding to inquiries and providing assistance to companies in finding suitable industrial space and getting established, it could reasonably be concluded that the newly created jobs in that company were the direct output of the strategy.

It is important in establishing goals to be realistic and to ensure that the tracking of results is not overly time‐consuming. Performance measurement is important, but it should be a significant distraction from the focus on actually executing the strategy.

The annual report on the results of the economic development program should show where goals were met or where they fell short, with a brief explanation of each.

PART 2. MONITORING OVERALL ECONOMIC CONDITIONS

The monitoring of overall economic conditions in Ucluelet will give the economic development officer (as well as other interested parties) insight into the overall health of the Ucluelet economy, whether conditions are improving or deteriorating, which sectors are doing well, how Ucluelet compares to other communities, etc.

Unfortunately there is limited data available for a small community like Ucluelet on an annual basis. Much more data is available every five years with the release of Census results.

There are three main types of data that can be reported:

1. External data generated by reputable sources such as Statistics Canada, BC Stats, and various senior government departments. The advantage of external data is the regularity and consistency of the data over time, which supports trend analysis and allows for direct comparisons between Ucluelet and other communities.

2. Internal data such as business licenses, building permit values, harbour revenues and other data generated by the District or other organizations in the region.

3. Project‐specific data. Usually the project‐specific results would be reported under Part 1 (Measuring Economic Development Projects) but sometimes results can be used as an indicator of overall economic conditions. The best example of this is the results of a business retention and expansion (BRE) program. It is reasonable, for example, to report the percentage of

68 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

companies interviewed who intend to hire new workers in the next year, compared to the number of companies who said this in the previous year.

The types of data that are analyzed in Appendix A of this report can be updated over time. Some other possible topics, with data sources and update frequency, are shown in Table 3.

Table 3. Possible Economic Monitoring Topics and Data Sources

Topic Data Set Source Frequency Employment Number of jobs in Ucluelet, Statistics Canada Census Every five years Growth and number of jobs in key sectors Diversification Average employment income Statistics Canada Census, or Every five years Canada Revenue Agency (Census), Annual taxfiler data reported by BC (approximately, BC Stats Stats) Population and Population estimates BC Stats, Statistics Canada Annual (BC Stats), Business Growth Census Every five years (Census) Building permits of each type District of Ucluelet or BC Monthly (District), (residential, commercial, industrial, Stats (for data on Annual (BC Stats) institutional) comparable municipalities) Business license counts District of Ucluelet Monthly or Annual Business establishment counts BC Stats Annual Housing Prices Average assessed value of BC Ministry of Community, Annual representative house Sport and Cultural Development Tax Base Balance Share of residential assessment District of Ucluelet or BC Annual and property tax revenue Ministry of Community, Sport and Cultural Development (for data on comparable municipalities) Workforce Workforce educational attainment Statistics Canada Census Every five years education

Business retention Number of companies planning Ucluelet BRE Program (if Annual or as and expansion expansions (and contractions), established) required (BRE) anticipated job openings for the measurements next year, and other ad hoc information collected through the BRE program

Tourism‐related Visitor Information Centre counts Ucluelet Chamber of Monthly or as Commerce required

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Topic Data Set Source Frequency Highway traffic counts BC Ministry of Monthly, Annual Transportation and Infrastructure Room revenue BC Stats Annual

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APPENDIX A: UCLUELET ECONOMIC ANALYSIS REPORT

The results provide important background information for many of the specific initiatives that are recommended in the Economic Development Strategy. They were also presented to Council and the public at several consultation sessions as a starting point for discussing economic challenges and opportunities.

DATA SOURCES

Statistical data was collected from reputable sources, including Statistics Canada, BC Stats and other government agencies, as well as the District of Ucluelet itself. Prior studies that addressed aspects of the Ucluelet or regional economy were also reviewed for relevant data and information.

Note that the analysis was originally completed in 2011, prior to the release of the 2011 Census population results. The report was updated early in 2012 to include the initial 2011 Census results, which included only total population. All other analysis still relies on the 2006 Census.

BENCHMARKING

In order to generate the greatest possible insight from the data, Ucluelet was benchmarked against 14 other BC communities that share certain characteristics.

These comparisons show Ucluelet not just relative to BC or the Vancouver Island/Coast region, but against a peer group of similarly‐sized communities. The benchmarking approach provides a much deeper understanding of the community's characteristics, key trends, and relative strengths and weaknesses.

The criteria for selecting the benchmark group include:

. Community population between 1,000 and 5,000. Ucluelet's estimated 2010 population was about 1,600 so this criterion ensures that the comparable communities are similar in size or slightly larger.  Not part of a Census Metropolitan Area (CMA) or Census Agglomeration (CA). This criterion ensures that Ucluelet is not compared to small communities located on the outskirts of larger areas, like Highlands (part of the Victoria CMA) or Cumberland (part of the Courtenay CA).

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 Located on Vancouver Island OR the mainland coast OR is a BC Resort Municipality. The final criterion limits the group of comparable communities to those that are broadly similar to Ucluelet either in location (on Vancouver Island or with a coastal location) or similar in terms of their reliance on the tourism sector (one of BC's official Resort Municipalities11).

The comparison group includes the following communities:

1. Ucluelet (Vancouver Island, coastal location, Resort Municipality) 2. Tofino (Vancouver Island, coastal location, Resort Municipality) 3. Port Hardy (Vancouver Island, coastal location) 4. Port McNeill (Vancouver Island, coastal location) 5. Gold River (Vancouver Island, coastal location) 6. Lake Cowichan (Vancouver Island) 7. Gibsons (coastal location) 8. Fernie (Resort Municipality) 9. Golden (Resort Municipality) 10. Invermere (Resort Municipality) 11. Radium Hot Springs (Resort Municipality) 12. Valemount (Resort Municipality) 13. Rossland (Resort Municipality) 14. Osoyoos (Resort Municipality) 15. Harrison Hot Springs (Resort Municipality)

11 The BC Resort Municipality Initiative allows communities with a high degree of reliance on tourism to share an agreed percentage of additional hotel room tax for investment in tourism development projects.

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A‐1: COMMUNITY OVERVIEW

Ucluelet is a community of about 1,600 people located on the west coast of Vancouver Island. Of 161 incorporated municipalities in the province of British Columbia, Ucluelet ranked 118th in estimated population in 2010.

It is one of three municipalities in the Alberni‐Clayoquot Regional District (along with Port Alberni and Tofino). Several hundred people also live in the unincorporated settlement of Millstream

just outside Ucluelet's boundaries, and the Source: RE/MAX Mid‐Island Realty community is also located in close proximity to several First Nations Reserves, including the Yuu‐tluth‐aht (directly across Ucluelet Inlet) and Toquaht.

Road connections are via Highway 4 from Port Alberni, which connects to the Island Highway near Qualicum Beach on the east coast of Vancouver Island. The Island has no fixed connection to the mainland of North America, so most people traveling by automobile arrive via ferry ‐ ferries provide linkages through Nanaimo (to Horseshoe Bay and Tsawwassen in Metro Vancouver) or Schwartz Bay near Victoria (to Tsawwassen). Other ferries provide connections to Washingon State (from Greater Victoria) and other locations on the mainland (Comox ferry to Powell River, Port Hardy ferry to various Central Coast locations and Prince Rupert).

The Long Beach Airport located near Tofino provides air service to Ucluelet with several scheduled flights per day to Vancouver and additional charter air service. Floatplanes land regularly in Tofino and additional visitors may arrive by water from locations throughout the coast.

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POPULATION GROWTH WITHIN REGIONAL CONTEXT

According to the Statistics Canada Ucluelet Population & Share of ACRD, 1956‐2011 Census, Ucluelet's population (Source: Statistics Canada Census) 1,800 12% expanded by more than 1,000 1,658 1,627 1,593 1,595 1,559 1,600 1,512 1,487 people from 1956 to 1981 before 10% leveling off. Population fell from 1,400 1,180 1996 to 2006 and then grew again 1,200 8% 1,054 1,018 from 2006 to 2011. 1,000 6% 782 5.2% 5.1% 5.2% 800 4.9% 5.0% 5.1% 4.8%

Table 40 shows that regional 600 520 3.7% 3.7% 4% 3.2% population in the Alberni‐ 3.0% 400 2.3% Clayoquot Regional District also 2% 200 expanded from 1956 to 1971 0 0% before fluctuating slightly over the 1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011 next 35 years. Ucluelet has had Ucluelet % of ACRD Ucluelet about one in twenty regional residents since 1981.

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Table 4. Population, Ucluelet and Region, 1956‐2006

Alberni‐ Vancouver Island/ Year Ucluelet Clayoquot RD Coast Region British Columbia 1956 520 22,723 277,092 1,398,464 1961 782 25,921 312,059 1,629,082 1966 1,054 28,700 356,758 1,873,674 1971 1,018 31,747 404,048 2,184,621 1976 1,180 32,174 465,239 2,466,608 1981 1,593 32,558 517,536 2,744,467 1986 1,512 30,341 537,174 2,883,367 1991 1,595 31,224 611,654 3,282,061 1996 1,658 31,652 678,526 3,724,500 2001 1,559 30,345 687,991 3,907,738 2006 1,487 30,664 727,422 4,113,487 2011 1,627 31,061 759,366 4,400,057 Growth (with average annual growth rates in parentheses) 1956‐1966 534 (7.3%) 5,977 (2.4%) 79,666 (2.6%) 475,210 (3.0%) 1966‐1976 126 (1.1%) 3,474 (1.1%) 108,481 (2.7%) 592,934 (2.8%) 1976‐1986 332 (2.5%) ‐1,833 (‐0.6%) 71,935 (1.4%) 416,759 (1.6%) 1986‐1996 146 (0.9%) 1,311 (0.4%) 141,352 (2.4%) 841,133 (2.6%) 1996‐2006 ‐171 (‐1.1%) ‐988 (‐0.3%) 48,896 (0.7%) 388,987 (1.0%) 1956‐2006 967 (2.1%) 7,941 (0.6%) 450,330 (1.9%) 2,715,023 (2.2%) 2006‐2011 140 (1.8%) 397 (0.3%) 31,944 (0.9%) 286,570 (1.4%) Source: Statistics Canada

The Alberni‐Clayoquot region (shown as the shaded area in the Vancouver Island/Coast picture to the right) is highly reliant on the traditional resource sectors of forestry and fishing, as well as tourism. As resource sector employment has declined over time (both due to challenging economic conditions and efficiency improvements that require far fewer workers to achieve the same output), the regional population has stayed relatively flat.

The Vancouver Island/Coast region as a whole has grown nearly as fast as the province, with average annual growth rates for every period back to 1956 consistently just below the provincial growth rate.

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USE OF CENSUS DATA

Although the Census provides the basic data behind much community and regional analysis, it must be noted that Census population figures are always slightly smaller than the true population. Some people are inevitably missed in each Census (and a much smaller number are counted more than once).

Statistics Canada refers to this as “net Census undercoverage” and it is typically 3‐4%. That explains why the annual population estimates produced by BC Stats are always higher than the Census figures for the same time period. These annual estimates for Ucluelet and comparable communities are reported in the next section.

Even with the undercount issue, and the fact that the latest Census results are now more than 5 years old, this report will still make extensive use of Census information. It is the usually the only source of detailed community‐level data and has the advantage of being collected in a consistent manner over many years and across many communities. While the 2006 Census results can provide no insight into growth and change in Ucluelet since that time, the data that describes the type of people and housing and industries in Ucluelet changes more slowly over time and still provides a reasonable snapshot of community characteristics.

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A‐2: POPULATION GROWTH AND DEMOGRAPHICS

POPULATION GROWTH

As noted above, Census population Population Growth Rates, Ucluelet & BC, 1997‐2010 figures always under‐represent the true (Source: BC Stats) 8% population in an area. An alternative is BC Stats annual population estimates, 6%

which are based on indicators like the 4% number of BC Hydro connections and 2% Old Age Security recipients. 0%

Ucluelet has consistently had annual ‐2% growth rates lower than the BC average ‐4% but has been much closer to provincial growth since 2006. Relative to the ‐6% benchmark group of communities, Ucluelet Growth Rate BC Growth Rate Ucluelet has usually been in the bottom third, other than the last few years when it has ranked in the middle. The fastest‐growing places in the benchmark group are resort communities in the BC Interior.

Table 5. Estimated Population and Growth Rates, with Benchmark Rank, 1996‐2010

Estimated Ucluelet Ucluelet BC Benchmark Rank* Year Population Growth Rate Growth Rate (Among 15 Communities) 1996 1,729 1997 1,690 ‐2.3% 1.9% 12th 1998 1,637 ‐3.1% 0.9% 11th 1999 1,615 ‐1.3% 0.7% 11th 2000 1,619 0.2% 0.7% 7th 2001 1,580 ‐2.4% 0.9% 13th 2002 1,504 ‐4.8% 0.5% 15th 2003 1,463 ‐2.7% 0.6% 12th 2004 1,557 6.4% 0.8% 1st 2005 1,522 ‐2.2% 1.0% 12th 2006 1,522 0.0% 1.1% 11th 2007 1,545 1.5% 1.6% 7th 2008 1,577 2.1% 1.7% 7th 2009 1,593 1.0% 1.7% 11th 2010 1,605 0.8% 1.6% 5th 1996‐2010 ‐124 ‐0.5% 1.1% 9th 2006‐2010 83 1.3% 1.7% 7th *Highest growth rate is ranked 1st. The benchmark group is explained on page 71. Source: BC Stats

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POPULATION BY AGE

Ucluelet's population can be shown by age Population by Age Groups, Ucluelet & BC, 2006 groups that roughly match the various (Source: Statistics Canada Census) stages of life: 49.3%

43.5% . Age 0‐14: Children. . Age 15‐24: Young adults finishing their education and beginning the transition to the work force. 16.5% 15.8% 14.6% . Age 25‐54: Prime working‐age adults. 13.1% 13.4% 12.3% 13.4% . Age 55‐64: Pre‐retirement adults 8.1% nearing the end of their working years and transitioning to retirement. Age 0‐14 Age 15‐24 Age 25‐54 Age 55‐64 Age 65+ . Age 65+: Retired adults. BC Ucluelet

Compared to BC, Ucluelet has substantially more citizens in the prime working‐age years of 25‐54 and significantly fewer senior citizens. A similar pattern is evident compared to the benchmark group of similar communities. Ucluelet ranks 2nd in the percentage of residents aged 25‐54, but 12th in the percentage of senior citizens.

Table 6. Population by Age Groups, with Benchmark Rank, 2006

Ucluelet Ucluelet Share of BC Share of Benchmark Rank* Age Groups Population Population Population (Among 15 Communities) Age 0‐14 235 15.8% 16.5% 10th Age 15‐24 200 13.4% 13.1% 6th Age 25‐54 735 49.3% 43.5% 2nd Age 55‐64 200 13.4% 12.3% 7th Age 65+ 120 8.1% 14.6% 12th *Highest percentage in each age group is ranked 1st. The benchmark group is explained on page 71. Source: Statistics Canada

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A similar picture emerges when looking Median Age of the Population, 2006 at median age (this is the age where (Source: Statistics Canada Census) exactly half the population is older and Osoyoos 58.8 Gibsons 50.2 half is younger). Ucluelet's median age of Harrison Hot Springs 49.8 36.4 years in 2006 was significantly Radium Hot Springs 45.3 Lake Cowichan 44.5 younger than BC's and only Tofino had a Gold River 44.3 younger population among the Valemount 42.3 Rossland 41.9 benchmark group. The Ucluelet‐Tofino Invermere 41.3 corridor is clearly a highly attractive area Fernie 41 Port Hardy 38.9 for younger adults and the area also has Golden 37.3 easily the highest percentage of adults Port McNeill 36.5 Ucluelet 36.4 who have never been married (either Tofino 34.2 legally or common‐law). BC 40.8

MIGRATION AND IMMIGRATION

Despite Ucluelet having a younger‐than‐ Mobility Five Years Prior to 2006 Census average population, the combination of (Source: Statistics Canada Census) low birth rates and the continued aging 53.4%

of the Baby Boom generation mean that 43.6% ultimately the only way for communities to maintain or grow their population is 25.9% 24.5% to attract new residents. Mobility status 23.4% data from the last Census shows that 13.6%

Ucluelet's population is more transient 4.3% 4.3% 5.3% 1.4% than the BC average (only 44% were still living in the same home as 5 years prior). Non‐movers Moved within Moved within BC Moved from Moved from same community elsewhere in outside Canada Canada About a quarter of the population had BC Ucluelet simply moved within Ucluelet, but it is clearly an attractive destination for people who previously lived elsewhere in BC (24.5% had moved from another BC community whereas only 13.6% of total BC residents moved within BC). About 4% of the population had moved from elsewhere in Canada (same as the BC average) while only 1.4% had moved to Ucluelet from outside the country, but this ranked 4th among the benchmark group.

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Table 7. Population by Mobility over Previous Five Years, 2006

Ucluelet Ucluelet Share BC Share of Benchmark Rank* Mobility Status Population of Population Population (Among 15 Communities) Non‐movers 615 43.6% 53.4% 14th Moved within same community 365 25.9% 23.4% 4th Moved within BC 345 24.5% 13.6% 3rd Moved from elsewhere in Canada 60 4.3% 4.3% 12th Moved from outside Canada 20 1.4% 5.3% 4th *Highest percentage in each group is ranked 1st. The benchmark group is explained on page 71. Source: Statistics Canada

Despite ranking 4th in the benchmark Immigrants as Share of Population, 2006 group for attracting new residents from (Source: Statistics Canada Census) outside Canada, Ucluelet's overall Valemount 4.4% Ucluelet 7.7% percentage of international immigrants Port McNeill Gold River in its total population (7.7%) is still quite Fernie small relative to both the BC average and Radium Hot Springs Port Hardy the comparable communities. While Lake Cowichan there is no "optimal" percentage of Invermere Tofino immigrants for economic development, Rossland immigrant communities often provide a Golden Osoyoos greater diversity in language skills and Gibsons Harrison Hot Springs 24.8% may support business linkages to their BC 27.5% countries of origin. There are also cultural benefits through enhancing diversity in local arts, food, etc.

Not surprisingly with relatively few Non‐English Mother Tongue, 2006 immigrants, Ucluelet also has a similar (Source: Statistics Canada Census) ranking in the number of residents with Port McNeill 5.0% Rossland a non‐English mother tongue. The most Gold River common non‐English mother tongues in Fernie Ucluelet 9.4% Ucluelet are French (35 persons), Port Hardy Gibsons German (25) and Tagalog (Filipino) with Lake Cowichan 15 people. Invermere Valemount Radium Hot Springs The non‐English languages that are Tofino Harrison Hot Springs spoken by Ucluelet residents (but may Golden not be mother tongues) include French Osoyoos 19.2% (105 persons), Spanish (50) and German BC 29.3% (35).

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INCOME

12 Median employment earnings in Median Employment Earnings, 2005 Ucluelet were 7% lower than the BC (Source: Statistics Canada Census) Osoyoos $15,792 median in 2005. This difference vanishes Harrison Hot Springs when considering only those who were Lake Cowichan Tofino employed full‐time for the full year. Gold River What this suggests is that Ucluelet's full‐ Radium Hot Springs Ucluelet $23,923 year/full‐time jobs are well‐paying, but Valemount there are relatively few of them as much Port Hardy of the economy (primarily fishing and Golden Fernie tourism) is seasonal. Gibsons Rossland Invermere Compared to the benchmark group, Port McNeill $33,776 Ucluelet's median earnings rank 9th, but BC $25,722 improve to 6th for those employed full‐year, full‐time.

Table 8. Employment Income, Age 15+ (includes only those with income), 2005

Ucluelet Benchmark Rank* Income Type Ucluelet BC Relative to BC (Among 15 Communities) Median employment earnings $23,923 $25,722 ‐7.0% 9th Median earnings from full year, full time employment $42,507 $42,230 +0.7% 6th *Highest value in each group is ranked 1st. The benchmark group is explained on page 71. Source: Statistics Canada Employed Full Year/Full Time, 2005 (Source: Statistics Canada Census) Only 44.2% of Ucluelet's employed Gold River 33.5% residents in 2005 worked full time for the Rossland Lake Cowichan full year, below the BC average of 46.5% Osoyoos and ranking 6th in the benchmark group. Harrison Hot Springs Tofino Although Ucluelet had the highest rate of Gibsons FY/FT workers of the comparison Port Hardy Port McNeill communities on Vancouver Island. The Ucluelet 44.2% seasonal nature of fishing, forestry and Golden Invermere tourism means that the rates of FY/FT Valemount employment are lower in the benchmark Fernie communities than in larger urban Radium Hot Springs 51.9% BC 46.5% centres.

12 Median earnings are used rather than the average because they are a better reflection of "typical" earnings. The median is the point at which half of all incomes are lower and half are higher. Averages can be skewed by a few very high incomes.

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The sources of a community's total Income by Source, 2008 income are closely related to (Source: Canada Revenue Agency tax returns) Osoyoos 49% 44% 8% demographics. Ucluelet residents Harrison Hot Springs 61% 32% 8% received 76% of their reported income Lake Cowichan 64% 26% 10% Radium Hot Springs 66% 30% 5% from employment (including self‐ Gibsons 69% 26% 6% employment) in 2008, which is above Invermere 69% 26% 5% Gold River 74% 19% 7% the BC average of 72%. This is not Rossland 74% 20% 5% Valemount 75% 19% 6% surprising given the large number of Ucluelet 76% 18% 6% working‐age adults in Ucluelet and the Fernie 78% 18% 4% Golden 80% 15% 5% relatively small number of retirees. Tofino 80% 15% 5% Port Hardy 81% 14% 5% Port McNeill 83% 11% 5% Income from pensions and investments BC 72% 22% 6% is closely associated with retirement and Employment (including self‐employed) Pension/Investment Other Ucluelet's 18% share of income from these sources is lower than the BC average and far below some of the more population retirement locations like Osoyoos. (In the Island/Coast region, Parksville, Qualicum Beach, and the Gulf Islands are all over 40% income from pensions and investments).

In terms of average income per tax return, Ucluelet improved its ranking from 13th to 11th compared to the benchmark group from 2000 to 2008. Average annual income growth of 3.3% ranked 7th.

Table 9. Income by Source, 2000‐2008

Benchmark Rank* Benchmark Rank* Ucluelet (Among 15 Ucluelet (Among 15 Income Type 2000 Communities) 2008 Communities) Total Reported Income $35,220,000 $55,968,000 % from Employment 64.5% 9th 66.9% 8th % from Pension 9.0% 11th 9.5% 10th % from Investment 6.6% 7th 8.7% 7th % from Self‐Employment 6.4% 3rd 8.6% 2nd % from Other Sources13 13.5% 1st 6.2% 5th Average Income per Tax filing $25,338 13th $32,922 11th Average Annual Income Growth 3.3% 7th *Highest value is ranked 1st. The benchmark group is explained on page 71. Source: Canada Revenue Agency tax files, compiled by BC Stats using Statistics Canada data

13 Other income includes government social assistance payments, rental income and other miscellaneous income like alimony.

82 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

A‐3: LABOUR FORCE

LABOUR FORCE PARTICIPATION

Labour force participation rates measure Labour Force Participation Rate, 2006 the percentage of people age 15 or older (Source: Statistics Canada Census) who are in the labour force (meaning Osoyoos 43.8% Harrison Hot Springs they are either employed or actively Gibsons Lake Cowichan seeking work). They are lower in Gold River communities with older populations Rossland Golden because the likelihood someone is in the Fernie labour force declines as they age. It also Invermere Port Hardy reflects an economy's strength as the Tofino availability of jobs will pull people into Valemount Radium Hot Springs the labour force. Port McNeill Ucluelet 82.1% BC 65.6% Ucluelet participation of 82.1% in 2006 is remarkably high compared to the BC rate of only 65.6% and it ranks highest among the benchmark group of communities. This high labour force participation rate is a clear advantage for economic development in Ucluelet relative to similarly‐sized communities that have far fewer potential workers.

EDUCATIONAL ATTAINMENT

The skills possessed by the local labour Highest Educational Attainment, Age 25‐64, 2006 force are one of the most important (Source: Statistics Canada Census) 12.4% factors in a community's ability to attract Less than high school 15.4% or expand higher‐value economic 25.9% High school graduation activity. 27.1% 12.0% Apprenticeship/trades 16.5% Compared to BC, Ucluelet has more 19.6% BC College graduates with apprenticeship or trades 22.3% Ucluelet 6.1% training and more college diploma or University below bachelor 3.7% certificate graduates. There are fewer 24.1% University bachelor+ graduate university graduates in Ucluelet and 15.4% 61.8% overall the 58.0% of those aged 25‐64 Total post‐secondary with some post‐secondary training is 58.0% reasonably close to the provincial rate of 61.8%.

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Relative to the benchmark group of Post‐Secondary Credentials, Age 25‐64, 2006 communities, Ucluelet generally ranks in (Source: Statistics Canada Census) Valemount 44.7% the middle, with a high ranking of 4th in Gold River the number of college graduates. The Golden Lake Cowichan overall ranking is 6th for total post‐ Port Hardy secondary graduates. Osoyoos Radium Hot Springs Harrison Hot Springs Tofino Ucluelet 58.0% Fernie Gibsons Port McNeill Invermere Rossland 75.1% BC 61.8%

Table 10. Highest Educational Attainment, Age 25‐64, 2006

Ucluelet Ucluelet Share BC Share of Benchmark Rank* Educational Attainment Residents of Population Population (Among 15 Communities) Less than high school 145 15.4% 12.4% 7th High school graduation 255 27.1% 25.9% 9th Apprenticeship/trades 155 16.5% 12.0% 7th College 210 22.3% 19.6% 4th University below bachelor 35 3.7% 6.1% 10th University graduate (bachelor or higher) 145 15.4% 24.1% 6th Total post‐secondary 545 58.0% 61.8% 6th *Highest percentage in each group is ranked 1st. The benchmark group is explained on page 71. Source: Statistics Canada

MAJOR FIELD OF STUDY

For those with post‐secondary Major Field of Study, Age 15+, 2006 education, the most common fields of (Source: Statistics Canada Census) Education 4.0% study are the same in both Ucluelet and 3.3% Visual and performing arts; and 2.2% BC BC: business/management/public communications technologies 5.7% Ucluelet Humanities 3.0% administration and 2.4% Social and behavioural sciences and law 5.2% architecture/engineering/related 5.3% Business; management and public 10.8% technologies. administration 9.8% Physical and life sciences and 1.9% technologies 0.0% Mathematics; computer and 1.9% Ucluelet has slightly fewer post‐ information sciences 0.0% Architecture; engineering; and related 11.4% secondary graduates overall so in most technologies 9.8% Agriculture; natural resources and 1.3% fields there are slightly fewer graduates conservation 1.6% Health; parks; recreation and fitness 7.4% in Ucluelet compared to BC. The main 7.7% Personal; protective and transportation 3.0% services 1.6%

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exception is visual and performing arts and communications technologies, which is about 2.5 times as common for Ucluelet residents. This field includes fine arts like painting and sculpture, music and other performing arts like dance and theatre, as well as communications fields like radio, television and journalism. It is notable that this apparent concentration in artistic fields is not reflected in industry or occupational data, suggesting that most Ucluelet residents with training in these fields are not actively utilizing them in their work.

It also must be noted that the Census results are rounded to the nearest 5 people, so the zero results for "physical and life sciences and technologies" and "mathematics, computer and information sciences" may not literally be true. It is accurate to conclude, however, that in 2006 there were little or no post‐ secondary graduates in these fields in Ucluelet.

Table 11. Major Field of Study, Age 15+, 2006

Ucluelet Ucluelet Share BC Share of Benchmark Rank* Post‐secondary Field of Study Residents of Population Population (Among 15 Communities) Education 40 3.3% 4.0% 12th Visual and performing arts, and communications technologies 70 5.7% 2.2% 1st Humanities 30 2.4% 3.0% 6th Social and behavioural sciences and law 65 5.3% 5.2% 2nd Business, management and public administration 120 9.8% 10.8% 3rd Physical and life sciences and technologies 0 0.0% 1.9% 12th Mathematics, computer and information sciences 0 0.0% 1.9% 9th Architecture, engineering, and related technologies 120 9.8% 11.4% 14th Agriculture, natural resources and conservation 20 1.6% 1.3% 10th Health, parks, recreation and fitness 95 7.7% 7.4% 5th Personal, protective and transportation services 20 1.6% 3.0% 14th *Highest percentage in each group is ranked 1st. The benchmark group is explained on page 71. Source: Statistics Canada

85 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

LABOUR FORCE BY OCCUPATION

The occupational profile of Ucluelet Labour Force by Occupation, 2006 residents differs considerably from BC (Source: Statistics Canada Census) 10.5% Management averages. While the largest occupational 15.9% 17.1% BC group is sales and service (same as BC), Business, finance & administration 11.9% Ucluelet 6.3% Natural and applied sciences Ucluelet has considerably more workers 2.5% 5.5% in management, primary industry and Health 2.0% "processing, manufacturing & utilities". Social science, education, government 8.1% service & religion 8.0% 3.5% The latter two are clearly related to the Art, culture, recreation & sport 1.0% 25.3% community's fishing and forestry sectors, Sales and service 26.9% while the large number of managers is 15.5% Trades, transport & equipment 16.9% due partly to tourism, with the large 3.9% Primary industry 8.0% number of middle and senior managers 4.2% Processing, manufacturing & utilities in accommodation and food services. 6.0%

Occupations that are significantly less common among Ucluelet residents include natural and applied sciences, "art, culture, recreation & sport", "business, finance & administration", and health. The relative lack of employment in art, culture and recreation shows a disconnect with the large number of residents who have post‐secondary credentials in those fields.

Table 12. Experienced Labour Force14 by Occupation, 2006

Ucluelet Ucluelet Share BC Share of Benchmark Rank* Occupation Residents of Population Population (Among 15 Communities) Management 160 15.9% 10.5% 3rd Business, finance & administration 120 11.9% 17.1% 7th Natural and applied sciences 25 2.5% 6.3% 14th Health 20 2.0% 5.5% 13th Social science, education, government service & religion 80 8.0% 8.1% 5th Art, culture, recreation & sport 10 1.0% 3.5% 14th Sales and service 270 26.9% 25.3% 8th Trades, transport & equipment 170 16.9% 15.5% 11th Primary industry 80 8.0% 3.9% 7th Processing, manufacturing & utilities 60 6.0% 4.2% 7th Total 1,005 100.0% 100.0% *Highest percentage in each group is ranked 1st. The benchmark group is explained on page 71. Source: Statistics Canada

14 Experienced Labour Force includes (1) the employed, plus (2) the unemployed who lost their jobs in the 17 months prior to the Census date. In other words, it does not include those just entering the labour force who had never been employed, or those who last worked more than 17 months previously.

86 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

A‐4: EMPLOYMENT PROFILE

EMPLOYMENT AND LABOUR FORCE BALANCE

This section on employment differs from the previous section on labour force because it refers to jobs that are physically based in Ucluelet, whereas the previous section focused on people who live in Ucluelet.

Ucluelet does not have significant commuting in or out for work (relative to communities in large urban areas) but there is some regular commuting with Tofino and Port Alberni, with the surrounding rural areas, with neighbouring First Nations, and occasionally other more distant locales. A further 15% of employed Ucluelet workers have "no fixed place of work", which is common in industries like construction, transportation and forestry where the actual work site is continually changing.

Table 13 shows the balance between employed Ucluelet residents and jobs physically based in Ucluelet, based on occupation. For most occupation groups, there is very good balance. There are an extra 45 trades, transport & equipment workers who live in Ucluelet, but given the nature of their work, many are continually moving and are not based in any single location. The only occupational group where Ucluelet imports a significant number of workers is manufacturing, which is undoubtedly related to fish plant workers who travel to the community from Port Alberni or elsewhere. Even though the data is from 2006, the results still seem like a reasonable description of the current situation.

Table 13. Occupational Balance in Ucluelet, 2006

Employed Ucluelet Jobs in Net Exports of Workers to Other Occupation Residents Ucluelet Communities OR "No Fixed Place of Work" Management 160 145 15 Business, finance & administration 120 130 ‐10 Natural and applied sciences 25 25 0 Health 20 10 10 Social science, education, government service & religion 80 90 ‐10 Art, culture, recreation & sport 10 20 ‐10 Sales and service 270 240 30 Trades, transport & equipment 170 125 45 Primary industry 80 45 35 Processing, manufacturing & utilities 60 110 ‐50 Total 1,005 950 55 Source: Statistics Canada

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COMMUTING FLOWS AND WORKING AT HOME

Statistics Canada reports commuting flows where at least 20 people are living in one location and working in another. There are five jurisdictions that meet this criterion for sending at least 20 workers to Ucluelet, as shown in Table 14. Electoral Area C of the Alberni‐Clayoquot Regional District (ACRD), which includes the unincorporated community of Millstream just outside Ucluelet's municipal boundary, has 75 workers employed in Ucluelet. Port Alberni, the Ittatsoo Reserve just across the harbour from Ucluelet, and Nanaimo are also home to at least 25 Ucluelet workers while Ucluelet sends less than 20 workers to each of these locations.

The only community where Ucluelet sends out more workers than it receives is Tofino ‐ 110 Ucluelet residents work in Tofino while only 35 Tofino residents work in Ucluelet.

Table 14. Ucluelet Commuting Flows, 2006

Location Commuting to Ucluelet Commuting from Ucluelet Tofino 35 110 Alberni‐Clayoquot Area C 75 <20 Port Alberni 45 <20 Ittatsoo Reserve (Ucluelet First Nation) 45 <20 Nanaimo 25 <20 Ucluelet (not at home) 555 555 Ucluelet (home‐based) 85 85 No fixed place of work ‐ 140 Total 950 1,005 Source: Statistics Canada

Ucluelet's rate of working at home was Working at Home, 2006 exactly the same as the province rate (Source: Statistics Canada Census) Port Hardy 3.8% (9.0%) in 2006. This ranked 6th in the Lake Cowichan benchmark group with Tofino easily the Gold River Golden highest at 18%. Port McNeill Valemount Rossland Fernie Invermere Ucluelet 9.0% Harrison Hot Springs Radium Hot Springs Gibsons Osoyoos Tofino 18.0% BC 9.0%

88 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

EMPLOYMENT BY SECTOR

Table 15 shows employment in Ucluelet by the standard NAICS (North American Industrial Classification System) sectors. These are jobs that have a fixed place of work in Ucluelet, so will not include, for example, forestry workers who work in the woods surrounding Ucluelet.

There has been significant upheaval in the global economy since 2006 and these figures have undoubtedly changed somewhat. They remain, however, the best snapshot of the industrial structure of Ucluelet's economy.

In addition to simply showing the number of jobs, Table 15 also shows the "job concentration" in Ucluelet compared to BC. This shows that manufacturing jobs are nearly twice as plentiful in Ucluelet compared to BC overall. Accommodation and food services is similarly concentrated. The high rating for arts, entertainment and recreation is almost entirely based on 50 jobs in "heritage institutions". The table also indicates how Ucluelet's concentration in each sector ranks against the benchmark group. Ucluelet ranks 1st in manufacturing, information and cultural industries (which includes newspapers and telecommunications) and administrative and support industries (including travel agents and waste management).

Ucluelet's retail sector is significantly smaller than the BC average and ranks last among the benchmark group. Professional, scientific and technical services are also under‐represented ‐ this sector is associated with small firms and independent professionals that are often relatively footloose with respect to their business location. Health care and social assistance is understandably a smaller sector in Ucluelet with the local hospital located in Tofino.

89 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Table 15. Employment by Sector (Place of Work in Ucluelet), 2006

Share of Ucluelet Job Benchmark Rank* Ucluelet‐ Ucluelet Share of Concentration (Among 15 Sector Based Jobs Jobs BC Jobs (BC = 1.00)15 Communities) Agriculture, forestry, fishing and hunting 55 5.8% 2.9% 2.03 8th Mining and oil and gas extraction 0 0.0% 0.8% 0.00 ‐ Utilities 0 0.0% 0.5% 0.00 ‐ Construction 50 5.3% 3.8% 1.38 7th Manufacturing 175 18.5% 9.4% 1.96 1st Goods‐Producing Sectors 280 29.6% 17.4% 1.70 3rd Wholesale trade 15 1.6% 4.4% 0.36 7th Retail trade 70 7.4% 12.6% 0.59 15th Transportation and warehousing 35 3.7% 4.4% 0.84 5th Information and cultural industries 30 3.2% 2.6% 1.22 1st Finance and insurance 35 3.7% 4.4% 0.84 2nd Real estate and rental and leasing 15 1.6% 2.5% 0.63 10th Professional, scientific and technical services 10 1.1% 7.9% 0.13 14th Management of companies and enterprises 0 0.0% 0.2% 0.00 ‐ Administrative and support, waste management and remediation services 45 4.8% 3.4% 1.41 1st Educational services 70 7.4% 7.5% 0.98 6th Health care and social assistance 35 3.7% 10.7% 0.35 13th Arts, entertainment and recreation 55 5.8% 2.4% 2.48 4th Accommodation and food services 165 17.5% 8.9% 1.96 8th Other services (except public administration) 30 3.2% 5.2% 0.61 13th Public administration 50 5.3% 5.5% 0.96 5th Services‐Producing Sector 660 69.8% 82.6% 0.85 13th Total 945 100.0% 100.0% 1.00 *Highest percentage in each group is ranked 1st. The benchmark group is explained on page 71. Source: Statistics Canada

15 “Job Concentration” (also called a Location Quotient) measures the size of each sector in Ucluelet compared to BC overall. Values higher than 1 mean the sector has relatively more employment locally compared to BC, while values lower than 1 mean the sector has relatively less local employment. This is used as a general indicator of which sectors have a comparative advantage in Ucluelet.

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Table 16 is identical to the last table except it reorganizes the employment data into more intuitive groupings. The "fishing sector", for example, groups fishing with seafood manufacturing. This shows just how large fishing‐related activity is in Ucluelet relative to BC. The "job concentration" numbers show that fishing jobs are more than 30 times as plentiful in Ucluelet compared to BC overall, while seafood manufacturing jobs are nearly 67 times as plentiful.

The tourism‐related accommodation and food services are separated in this table. Accommodation services in particular are highly concentrated relative to BC, but both rank only in the mid‐range of the benchmark group (which includes other resort communities).

Data for the forest sector is shown in the table, but given that much of the activity occurs outside of Ucluelet's municipal boundaries, this particular table does not provide the best measurement of that sector.

Table 16. Employment in Custom Sectors (based on Place of Work), 2006

Share of Ucluelet Job Benchmark Rank* Ucluelet‐ Ucluelet Share of Concentration (Among 15 Sector Based Jobs Jobs BC Jobs (BC = 1.00) Communities) Forest Sector 10 1.1% 4.0% 0.26 11th …..Forestry 0 0.0% 0.8% 0.00 ‐ …..Wood & Paper Manufacturing 10 1.1% 3.2% 0.33 6th Fishing Sector 165 17.5% 0.3% 56.60 1st …..Fishing 25 2.6% 0.1% 30.47 2nd …..Seafood Manufacturing 140 14.8% 0.2% 66.83 1st Agriculture & Food 30 3.2% 3.0% 1.04 3rd …..Agriculture 20 2.1% 1.9% 1.09 4th …..Food Manufacturing (except Seafood) 10 1.1% 1.1% 0.95 3rd General (Non‐Resource) Manufacturing 20 2.1% 4.2% 0.50 5th Accommodation services 80 8.5% 1.9% 4.43 7th Food Services 85 9.0% 7.0% 1.28 9th …..Full‐service restaurants 45 4.8% 3.6% 1.31 8th …..Limited‐service restaurants & other 10 1.1% 3.0% 0.36 12th …..Drinking places 15 1.6% 0.4% 3.76 5th Source: Statistics Canada, industry groupings by Vann Struth Consulting Group

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A‐5: HOUSING AND DEVELOPMENT

BUILDING PERMITS

Building permit values are an indicator of Ucluelet Building Permit Values, 2000‐2010 ($000) future construction activity and generally (Source: BC Stats) rise and fall with the strength of the overall economy. Permit values fluctuate $27,374 significantly from year to year in smaller communities, depending on the timing of when large projects are permitted (such as 2006 in Ucluelet with the permitting of $9,721 Black Rock Resort). It is therefore better

to view permit values over multi‐year $3,723 $3,426 $2,913 2,614 $1,421 periods to accurately assess trends. $38 $173 $38 $4,583

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 In Ucluelet, permit values jumped up significantly in 2004 and have stayed at a much higher level since that time than in any previous year. The credit market crisis and subsequent slowdown in the global economy starting in 2008 will affect the rate of development, but given the large fluctuations from year to year the implications of these events are not yet clear from the data.

Table 17. Building Permit Values in Ucluelet, 2000‐2010

Benchmark Rank* Year Building Permit Values Building Permit Values per Capita (Among 15 Communities) 2000 $1,421,000 $878 6th 2001 $38,000 $24 12th 2002 $173,000 $115 12th 2003 $38,000 $26 13th 2004 $2,913,000 $1,871 9th 2005 $4,583,000 $3,011 6th 2006 $27,374,000 $17,986 1st 2007 $3,723,000 $2,410 7th 2008 $3,426,000 $2,172 8th 2009 $9,721,000 $6,102 1st 2010 2,614,000 $1,629 6th Total 2001‐2005 $7,745,000 $5,047 9th Total 2006‐2010 $46,858,000 $30,299 3rd *Highest value in each year is ranked 1st. The benchmark group is explained on page 71. Source: Statistics Canada (compiled by BC Stats)

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In order to standardize the comparison Total Building Permit Values per capita, 2006 ‐2010 of building permit values to other (Source: BC Stats) Valemount communities, the per capita permit Port McNeill $2,052 values were calculated over the entire Harrison Hot Springs 2006 to 2010 period. Gold River Port Hardy Lake Cowichan By this comparison Ucluelet ranks as the Golden 3rd highest, although much of this is due Gibsons Tofino to the very high values in a single year Fernie (2006). Table 17 shows that from 2001‐ Radium Hot Springs Rossland 2005 Ucluelet ranked 9th in per capita Ucluelet $30,299 permit values. Naturally the resort Osoyoos communities are the ones that have Invermere $47,523 recently seen rapid rates of development activity.

HOUSING STOCK

As of 2006, 36% of Ucluelet's private Owned vs. Rented Dwellings, 2006 dwelling stock was rented, higher than (Source: Statistics Canada Census) Tofino 62% 37% the provincial average of 30%. Only Ucluelet 64% 36% Tofino had a higher share of rental Port Hardy 68% 31% Golden 72% 28% housing at that time. Port McNeill 72% 28% Gibsons 73% 27% Valemount 75% 26% Looking at type of housing, 65% were Fernie 75% 25% Lake Cowichan 77% 23% single‐family dwellings, ranking in the Invermere 77% 23% middle of the comparison group. As Osoyoos 78% 22% Radium Hot Springs 81% 19% shown in Table 18, Ucluelet ranked Gold River 81% 19% relatively low in the number of semi‐ Harrison Hot Springs 82% 18% Rossland 86% 14% detached (townhouse) or row houses BC 70% 30% and apartments, but very high in the Owned Rented "other" category that includes mobile homes, houseboats, and other types not specified in the table.

93 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

Table 18. Housing Characteristics (Private Dwellings Only), 2006

Benchmark Rank* Income Type Ucluelet BC (Among 15 Communities) Total private dwellings with usual residents 640 1,643,150 .....Single‐detached 64.8% 49.2% 7th .....Semi‐detached/Row house 3.9% 10.0% 13th .....Apartments 14.9% 38.0% 11th .....Other (mobile, houseboats, etc.) 16.4% 2.8% 2nd .....% Owned 64.1% 69.7% 14th .....% Rented 35.9% 30.1% 2nd *Highest percentage in each group is ranked 1st. The benchmark group is explained on page 71. Source: Statistics Canada

Some housing development, especially Dwellings NOT Occupied by Usual Residents, 2006 in resort communities, is not intended (Source: Statistics Canada Census) Lake Cowichan 6.0% for year‐round occupation but rather Port McNeill seasonal or recreational use. The Census Gibsons Golden counts the number of dwellings that are Ucluelet 10.5% occupied by “usual residents”, Valemount Invermere suggesting that dwellings without usual Osoyoos residents are only used on a periodic or Rossland seasonal basis. Port Hardy Harrison Hot Springs Gold River Nearly all of the communities in the Tofino Fernie benchmark group have more Radium Hot Springs 55.2% recreational properties in the BC BC 8.1% average, which is understandable given the resort character and high tourism reliance of many of these communities. At 10.5%, Ucluelet's rate of recreational home use ranks only 11th highest.

94 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

HOUSING PRICES

Housing price data from the Multiple Listing Service is unfortunately not available for Ucluelet. Sales in Ucluelet are combined with Tofino and Port Alberni in the published statistics from the Vancouver Island Real Estate Board and therefore the data may not accurately reflect typical prices or trends in Ucluelet (especially given the vast difference between the Tofino and Port Alberni housing markets).

Several other indicators can be used Average Value of Owned Dwelling, 2006 instead. First, the average value of an (Source: Statistics Canada Census) owned dwelling from the 2006 Census Gold River $107,823 Valemount shows that Ucluelet had the 4th highest Port Hardy Port McNeill average value among the 15‐community Lake Cowichan benchmark group. Prices were still less Rossland Golden than the BC average and substantially Radium Hot Springs lower than Tofino prices, but the data Fernie Osoyoos does suggest that Ucluelet has less Harrison Hot Springs affordable housing than some similar Ucluelet $336,345 Invermere communities. Gibsons Tofino $493,615 BC $418,703

The situation is similar with respect to Median Monthly Payment for Rented Dwellings, 2006 average rents. Ucluelet also ranks 4th in (Source: Statistics Canada Census) highest average rents, in which case only Valemount $501 Fernie slightly lower than Tofino but still below Gold River the BC average. Rossland Port Hardy Lake Cowichan Golden Port McNeill Harrison Hot Springs Invermere Osoyoos Ucluelet $716 Tofino Gibsons Radium Hot Springs $800 BC $752

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The average assessed value of single Assessed Value of Representative House, 2011 family homes is shown in Table 19. (Source: Ministry of Community, Sport & Cultural Development) Gold River $126,857 Ucluelet's average home ranks 7th in Valemount assessed value among the comparison Port Hardy group in 2011, the same as in 2006 and Port McNeill Golden up from 8th in 2001. Housing values Lake Cowichan have increased dramatically throughout Rossland the province in the last decade, but Radium Hot Springs Ucluelet $305,147 Ucluelet's increase in average assessed Harrison Hot Springs value from $124,000 to $305,000 is not Osoyoos Fernie out of the ordinary. The average annual Invermere growth rate of 7% in the last 5 years Gibsons ranks only 10th highest. Tofino $715,575

Table 19. Assessed Value of Representative House16, 2001‐2011

Benchmark Rank* Ucluelet Average Benchmark Rank* Year Ucluelet Value (Among 15 Communities) Annual Growth (Among 15 Communities) 2001 $124,000 8th 2006 $217,243 7th 11.9% 5th 2011 $305,147 7th 7.0% 10th *Highest value is ranked 1st. The benchmark group is explained on page 71. Source: BC Ministry of Community, Sport and Cultural Development

16 BC Assessment reports the value of a "representative house" in order to calculate typical property taxes and various usage and service charges. It is a simple average of all single family homes in each community.

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A‐6: PROPERTY TAXATION

ASSESSMENT AND TAX BASE

The size of a community's non‐ Municipal Property Taxes from Residential Class, 2011 residential tax base is important in (Source: Ministry of Community, Sport & Cultural Development) Fernie 46.3% supporting local government services as Golden commercial and industrial properties are Port Hardy taxed at a higher rate than residences. Tofino Valemount (Although rates that are too high can be Gold River a serious competitive disadvantage for Harrison Hot Springs businesses). Ucluelet 59.5% Gibsons Port McNeill Ucluelet derives 59.5% of its property tax Radium Hot Springs Invermere revenue from residential properties in Lake Cowichan 2011, placing it exactly in the mid‐point Osoyoos of the benchmark group. Communities Rossland 87.6% like Rossland, Osoyoos and Lake Cowichan that receive more than 80% of their tax revenue from residences are more financially constrained than communities like Fernie and Golden that have a much more diversified local assessment base.

Table 20. Assessment and Property Tax Base by Property Class, 2011

Ucluelet Benchmark Rank* Ucluelet Property Benchmark Rank* Assessed (Among 15 Taxes (municipal (Among 15 Property Class Property Values Communities) portion only ) Communities) Total $472.1 million $2,328,336 .....% Residential (Class 1) 80.4% 10th 59.5% 8th .....% Business (Class 6) 19.1% 4th 39.6% 4th .....% Industry/Other 0.4% 12th 0.9% 15th *Highest value is ranked 1st. The benchmark group is explained on page 71. Source: BC Ministry of Community, Sport and Cultural Development

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TAXES AND CHARGES ON REPRESENTATIVE HOUSE

Comparing the taxes and charges paid by Taxes & Charges on a Representative House, 2011 residents in different communities is an (Source: Ministry of Community, Sport & Cultural Development) Gold River $2,074 inexact science as the type and quality of Radium Hot Springs services may vary significantly. Using the Port McNeill average single family house values Port Hardy Valemount shown in Table 19 (see page 96), Osoyoos Ucluelet ranks exactly in the middle for Golden total taxes and charges at $2,931 per Ucluelet $2,931 Lake Cowichan year. Harrison Hot Springs Gibsons Invermere Tofino Fernie Rossland $3,858

TAX MULTIPLES

The business tax multiple shows the Ratio of Business to Residential Tax Rate, 2011 discrepancy between municipal property (Source: Ministry of Community, Sport & Cultural Development) Port McNeill 1.50 tax rates for business properties relative Osoyoos to residential properties. Nearly every Rossland municipality in BC has higher tax rates Gold River Valemount for business properties, but the ratio can Radium Hot Springs vary significantly. Business tax rates that Fernie are too much higher than residential Golden Ucluelet 2.80 rates are considered a competitive Invermere disadvantage for businesses in that Gibsons Lake Cowichan community. Port Hardy Tofino Tax rates for Ucluelet businesses Harrison Hot Springs 3.50 (Property Class 6) are 2.80 times higher than residential properties, which is in the mid‐range of the benchmark group.

98 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

A‐7: TOURISM

Tourism is one of the few sectors where additional local and regional data is readily available. This section summarizes some recent trends revealed by that data.

OVERALL TRENDS

Tourism is a discretionary activity that is affected by the general state of the economy, as well as major world events that influence people's comfort with traveling away from home. The last decade was challenging for the tourism sector on Vancouver Island and by extension Ucluelet.

The global recession in 2008‐2009 dampened travel activity worldwide and was especially severe in BC's main tourist market of the United States. Unemployment rates in the US remain significantly higher than their pre‐recession levels and economic growth since the recession has been sluggish.

A series of significant cost increases have further affected demand for Vancouver Island tourism in the last decade. The Canadian dollar was worth as little as $0.62 US in 2002 but has been around par or above for the last several years. Fuel prices increased drastically in the 2002 to 2008 period then fell sharply before rising again over the last couple of years. And BC Ferry fares have increased several times.

For BC as a whole, estimated tourism employment fell by 2.1% in 2009 and real tourism gross domestic product (GDP) declined by 2.4%17. Similar statistics are not collected on a regional basis, but there are other indicators of what is happening with tourism in specific regions of the province.

The number of international customs International Customs Entries via Vancouver Island entries via Vancouver Island (the vast (Source: Tourism BC using Statistics Canada data)

majority of which come from the United 815 805 773 766 771 States) grew steadily through the early 752 Thousands 695 702 676 part of the last decade before falling 654 665 back in 2007 and then growing again (2009 is the last year for which data is available).

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

17 BC Stats (August 2010), "Special Focus: Tourism Sector slumps in 2009", in Tourism Sector Monitor, Issue 10‐08.

99 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

The network of Visitor Information Total Visitor Counts at Island Visitor Centres Centres (VICs) throughout the province (Source: Ministry of Jobs, Tourism and Innovation)

are required by Tourism BC to track the 446 425 427 431 number of visitor parties and inquiries 407 399 401 Thousands 391 390

they service each year, providing a crude 355 347 measurement of year‐to‐year changes in tourist visitation. The main caution in the use of this data is that sometimes observed changes are due to factors like changes in operating hours or the number of VICs operating in a given year.

Regardless, total visitation at Vancouver 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Island VICs shows a similar pattern of steady growth for the 2000 to 2005 period, followed by more difficult conditions in the last few years.

Room revenue data shows a similar Vancouver Island Room Revenue & Room‐Nights pattern. Growth was consistent through (Source: Ministry of Jobs, Tourism and Innovation) Room Revenue 2007, peaking at $344 million, before 5,000 ($millions) 18 $344 4,500

declining in the last three years . The $333 Thousands Millions $318 $304 $303 $299 4,000 lower line in the chart to the right shows $289

$263 $268 Room‐nights 3,500 the estimated number of occupied $253 $234 $241 (thousands) 2,753 3,000 room‐nights ‐ it is a flatter increase 2,540 2,595 2,569 2,437 2,417 2,267 2,333 2,349 2,500 because it removes the boost from 2,173 2,147 2,000 inflation, but the pattern is the same. 1,500

1,000

500

0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

18 Data for 2010 is from BC Stats whereas the other data is from Tourism BC within the Ministry of Jobs, Tourism and Innovation. BC Stats does not report an average room rate, so the number of room‐nights cannot be calculated.

100 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

The average room rate on Vancouver Vancouver Island Avg. Room Rate & Hotel Occupancy Island increased from $108 in 1999 to (Source: Ministry of Jobs, Tourism and Innovation) Average room rate 100.0% $130 in 2008 before falling back to $125 $130 $122 $125 $125 in 2009. This may be due to lower $119 $120 90.0% $112 $112 $113 $114 $108 80.0% demand for the higher‐priced rooms, or Hotel Occupancy 64.5% 64.5% 66.0% 70.0% active discounting by accommodation 63.2% 62.0% 63.8% 63.4% 61.2% 60.8% 61.0% 59.3% properties in order to attract visitors. 60.0% The hotel occupancy rate rose every year 50.0% 40.0% from 2001 to 2007 before falling 30.0% significantly in 2008 and 2009. 20.0%

10.0%

0.0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

UCLUELET STATISTICS

Ucluelet is serviced by two Visitor Information Centres (VICs) operated by the Chamber of Commerce. One is located in downtown Ucluelet (upstairs at the District Hall) and the other is the Pacific Rim Visitor Centre located at the junction of Highway 4 to Port Alberni and the Ucluelet‐Tofino Highway.

The number of hours that the Visitor Counts at Visitor Information Centres Downtown Ucluelet VIC has been open (Source: BC Ministry of Jobs, Tourism and Innovation) has fluctuated significantly in recent 103,093 Highway Junction 99,170 years so its visitor numbers have varied 94,435 89,082 as well. The Pacific Rim VIC at the

highway junction has maintained a 69,994

relatively consistent number of 58,481 operating hours since its first full year of operation in 2005 so its statistics are a Downtown Ucluelet better indicator of the year‐over‐year 19,997 13,551 change. This data set shows no evidence 8,955 9,107 of the declines in the 2007 to 2009 3,553 3,748 period seen elsewhere in the region. 2005 2006 2007 2008 2009 2010

101 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

The BC Ministry of Transportation and Highway Traffic Counts Infrastructure has a long‐standing traffic (Source: BC Ministry of Transportation and Infrastructure)

counter at the Highway 4 junction. Total Arrivals at Hwy 4 Junction from East number of vehicles arriving from the 372,337 370,174 357,640 365,221 357,000 355,811 east (Port Alberni) increased rapidly 340,910 346,199 328,865 from 2001 to 2005 before dropping 305,140

significantly in 2006 and then rising Turning to Ucluelet (estimated) again. The traffic count in 2010 still had 182,066 156,623 165,450 166,641 162,972 161,085 not returned to the 2005 level. 142,168 147,825 144,540 150,426

Of course the majority of these traffic counts are from people who live in Tofino and Ucluelet, but given that 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 population has been relatively stable in the last decade, any significant changes in traffic counts can reasonably be attributed to changes in tourist visits.

The chart above also shows the estimated number of those arrivals from the east that turned toward Ucluelet (this typically ranged from 42% to 46% of the total while the others turned toward Tofino). The data shows the percentage turning toward Ucluelet jumped to 49% in 2010.

Room revenue statistics are the best Room Revenue in Ucluelet and Tofino ($ millions) measure, and they also show that the (Source: BC Stats) Tofino $37.7 decline experienced elsewhere in the $36.8 $35.3 province is not evident in Ucluelet (but is $34.3 Millions $32.1 $32.3 noticeable in Tofino). Room revenue in $30.0 Ucluelet quadrupled in only 10 years $26.9 $22.6 from 2000 to 2010 (although growth $20.2 was almost nil in 2008 when the $17.6 recession first hit). Room revenue in Ucluelet Tofino is about double its level in 2000, $8.4 $6.0 $6.1 $6.6 $4.9 $5.5 but has declined for 3 years after $3.5 $4.0 $2.1 $2.6 $2.9 peaking in 2007. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 In summary, the data for Ucluelet does not show the same decline in visitation that occurred elsewhere on Vancouver Island in the last few years. The overall environment for tourism expansion remains challenging due to factors such as economic uncertainty in the US and rising transportation costs that will continue to affect Ucluelet's growth potential in the years ahead. But the attractiveness of the community is, at least so far, minimizing the local impacts of these challenges.

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APPENDIX B: UCLUELET COMMUNITY SURVEY REPORT

A total of 148 surveys were completed: 100 through personal interviews and 48 returned by mail. Not all questions were answered in each survey, so the number of responses to each question will be indicated through the notation “n”.

For open‐ended questions, a significant number of qualitative comments were provided by the survey respondents. These are summarized in two ways: visually through a word cloud19 (which shows the most common responses), and with a short written summary of the strongest themes running in the responses or, where relevant, particularly notable or insightful responses.

In addition to the overall responses, each question was also checked for any significant differences in the responses provided by different groups of people. The groups are based on the number of years living in Ucluelet, male versus female, whether or not children lived in the household, current age, and employment status (full‐time, part‐time, business owner/self‐employed, retired, or other).

LIVING IN UCLUELET

1. Are you a permanent or seasonal resident of Ucluelet (or Millstream)? (n=148)

Permanent Seasonal 145 3 98% 2%

For how many years? (n=148) Less than 3 years 3 ‐ 4.9 years 5 ‐ 9.9 years 10 ‐ 24.9 years 25+ years 32 22 31 31 32 22% 15% 21% 21% 22%

19 A word cloud is a visual representation of text data. The font size for individual terms varies depending on their frequency, enabling a quick visual summary of the most common terms. All word clouds in this report were generated at www.wordle.net.

103 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

2. Why did you initially move to Ucluelet? (n=148)

The most common reason for respondents to initially move to Ucluelet is for a job (35%), followed by quality of life (26%). Notably only 9% have lived in Ucluelet since childhood.

Of the 10 "other" reasons for moving to Ucluelet, half said they moved to Ucluelet because it has lower‐ cost housing than Tofino. Others mentioned wanting to live in a small town, to get away from the city, because it's a central location on Vancouver Island, they arrived to visit friends and did not intend to stay, and as investment/recreation.

Lived here since To operate a For quality With childhood business For a job To retire of life family/spouse Other 13 18 52 4 38 13 10 9% 12% 35% 3% 26% 9% 7%

3. The topics listed below may affect your satisfaction and wellbeing as a resident of Ucluelet. Please circle the number that best shows your feeling about how each issue affects your household, where a 5 is “very satisfied”, 3 is “neutral” and 1 is “very dissatisfied.” If you are not familiar with a topic, please answer “Don’t know”. (n=141 to 146)

Ucluelet's trails are overwhelmingly Satisfaction Ratings popular as more than 90% of Trails 4.6 respondents are either somewhat or Overall satisfaction 4.0 very satisfied. Parks, recreation Parks 3.6 programs and services, arts and cultural Rec programs/services 3.4 amenities and recreation facilities all Schools 3.2 Arts/cultural amenities 3.1 scored positively for satisfaction. Rec facilities 3.1 Housing availability 3.0 The housing‐related topics generate Health care 2.7 Variety of local goods 2.7 more dissatisfaction than satisfaction, Rental housing availability 2.7 along with health care and the variety Rental housing affordability 2.6 and value of local goods. Value of local goods 2.5 Housing affordability 2.4 It is notable that the overall satisfaction with living in Ucluelet is higher than the satisfaction with any specific factor other than trails. This suggests that despite unhappiness with some aspects of the community, residents are overall quite satisfied.

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Very Somewhat Somewhat Very satisfied satisfied Neutral dissatisfied dissatisfied Don’t know/ Average (5) (4) (3) (2) (1) Not relevant Rating 3 21 32 47 28 13 2.4 Housing affordability 2% 15% 22% 33% 19% 9% 13 32 36 34 11 19 3.0 Housing availability (to own) 9% 22% 25% 23% 8% 13% 4 16 37 29 17 40 2.6 Rental housing affordability 3% 11% 26% 20% 12% 28% 4 18 32 30 14 45 2.7 Rental housing availability 3% 13% 22% 21% 10% 31% 9 29 31 16 5 51 3.2 Schools 6% 21% 22% 11% 4% 36% 34 49 24 28 5 5 3.6 Parks (not including trails) 23% 34% 17% 19% 3% 3% 13 45 37 26 18 5 3.1 Recreation facilities 9% 31% 26% 18% 13% 3% Recreation programs and 16 54 45 16 7 6 3.4 services 11% 38% 31% 11% 5% 4% 94 41 8 1 0 1 4.6 Trails 65% 28% 6% 1% 0% 1% 5 48 43 35 6 8 3.1 Arts and cultural amenities 3% 33% 30% 24% 4% 6% 3 31 44 36 18 12 2.7 Health care services 2% 22% 31% 25% 13% 8% Variety of goods and services 4 30 50 47 15 0 2.7 available locally 3% 21% 34% 32% 10% 0% Value (price & quality) of goods 1 30 36 49 28 1 2.5 & services 1% 21% 25% 34% 19% 1% What is your overall satisfaction 42 69 30 4 1 0 4.0 with Ucluelet as a place to live? 29% 47% 21% 3% 1% 0%

The level of satisfaction with some topics varies between groups:

. Satisfaction with housing affordability is highest among those age 65+ (3.5 rating) compared to ratings of 2.2 to 2.8 for younger age groups. . Satisfaction with housing availability (to own) is lower for newcomers to the community (those living in Ucluelet for less than 3 years) ‐ their rating is 2.6 compared to 3.0 to 3.3 ratings for others. . Rental housing affordability and availability are both rated highest by the youngest group of respondents (age 18‐24). o For rental housing affordability, those in the 18‐34 range give ratings over 3 whereas older residents give ratings in the 2.0 to 2.3 range.

105 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

o For rental housing availability, the youngest age group gives a 3.3 rating compared to 1.9 to 2.8 for older groups. o It is likely that younger renters are more likely to be aware of higher rents elsewhere (including Tofino) and are therefore more satisfied with Ucluelet rents. o This is supported by the fact that satisfaction with rental housing affordability declines the longer someone has been living in Ucluelet, suggesting that newcomers are not as put off by higher rents. . Satisfaction with both arts and cultural amenities and recreation facilities generally increase with age. . Satisfaction with the value and variety of local goods is highest for those who have lived the longest in Ucluelet. . Those who have lived in Ucluelet for the longest are also most satisfied with health care.

These differences between groups should be interpreted with caution. The differences are generally not that large and they have not been tested for statistical significance (because the respondents are not a randomly‐selected sample of residents).

Also note that several topics received their highest ratings from the oldest and longest‐tenured Ucluelet residents. It could be that this group of respondents was simply more likely to give higher ratings to every topic than younger and newer residents.

ECONOMY

4. How does the state of Ucluelet’s economy today compare to 5 years ago? (n=145)

The predominant feeling in Ucluelet is the Summary local economy is worse now compared to 5 years ago. Only 10% feel that it is Better (4, 5 rating) 10% somewhat or much better while 43% feel Same (3 rating) 17% it is somewhat or much worse.

Worse (1, 2 rating) 43% These results are entirely reasonable given the slower growth and instability in the global economy and ongoing struggles with the major resource sectors on Vancouver Island.

Much better Somewhat better About the same Somewhat worse Much worse Don’t know/ (5) (4) (3) (2) (1) No answer Average Rating 2 12 25 46 17 43 2.4 1% 8% 17% 32% 12% 30%

106 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

5. Do you feel that the changes in Ucluelet are due to local factors, or external factors in the provincial/national/global economy? (n=146)

The changes in Ucluelet's economy are Summary more likely to be attributed to factors Local factors 14% beyond local control (31% place greater (4, 5 rating)

weight on external factors while 14% lean Local & external 43% toward local factors). The largest number (3 rating) External factors of respondents (43%) place an equal 31% balance on local and external factors. (1, 2 rating)

Younger respondents and those newer to Ucluelet were more likely to attribute economic challenges to local factors.

Almost all local Mostly local Local and external Mostly external Almost all external factors factors factors factors factors Don’t know/ Average (5) (4) (3) (2) (1) No answer Rating 5 16 63 31 14 21 2.7 3% 11% 43% 21% 10% 14%

6. How do you think Ucluelet’s economy will look in 5 years compared to today? (n=146)

Compared to the generally negative view Summary of Ucluelet's economy in the last 5 years, there is significant optimism for the next Better (4, 5 rating) 48% 5 years. Same (3 rating) 34%

Only 8% of respondents feel the economy Worse (1, 2 rating) 8% will be in worse shape while almost half (48%) feel it will be better.

Much better Somewhat better About the same Somewhat worse Much worse Don’t know/ (5) (4) (3) (2) (1) No answer Average Rating 10 60 49 10 2 15 3.5 7% 41% 34% 7% 1% 10%

107 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

7. How satisfied are you with your current employment and/or business situation? (n=146)

It is common in surveys like this for Summary people to feel more satisfied with their personal situation than with the bigger‐ Satisfied (4, 5 rating) 53% picture economy, perhaps because they Neutral (3 rating) 16% have greater control over their own

circumstances. Dissatisfied (1, 2 rating) 21%

This holds true in Ucluelet as a majority of respondents (53%) are satisfied with their current employment and/or business situation. But there is a sizable group of people (21%) who are dissatisfied, most of whom report having difficulty getting enough work or they feel that most available jobs are relatively low‐paid service positions.

Very satisfied Somewhat satisfied Neutral Somewhat dissatisfied Very dissatisfied Don’t know/ (5) (4) (3) (2) (1) Not relevant Average Rating 38 40 24 19 12 13 3.5 26% 27% 16% 13% 8% 9%

8. Please estimate the percentage of your total household spending on everyday items (groceries, clothing, household supplies, entertainment) that is spent in the following places: (n=138)

Ucluelet Tofino Port Alberni Nanaimo Mail‐order/Online Elsewhere Total Average 59.1% 3.6% 16.7% 10.4% 3.3% 4.8% 97.9%

This question suggests that the average Location of Ucluelet Retail Spending Ucluelet household makes about 60% of Elsewhere (Estimated) Mail‐order/ 5% its everyday purchases in Ucluelet, Online followed by Port Alberni (17%) and 3% Nanaimo (10%). If we assume there is no Nanaimo difference between where higher‐ 11% spending households and lower‐ Ucluelet spending households do their shopping, 60% then these figures are a reasonable approximation of where Ucluelet's total Port Alberni retail spending occurs. 17%

Tofino Several respondents said that 4% "elsewhere" means Victoria.

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The majority of respondents said that they would like to do most or all of their shopping in Ucluelet, but find local prices, quality and variety to be lacking. Others must travel out of town for work or to access other services (e.g., dentist) and do other shopping while they are away.

9. What items or services “should” be available to purchase in Ucluelet that you have to buy elsewhere?

This was an open‐ended question. The word cloud summarizes the most common responses.

The two dominant themes in the responses were more options to purchase food and clothing. Affordability was a major concern, particularly with respect to food. The word "variety" is also prominent, while some of the other specific types of goods that are desired include furniture, shoes, sporting goods, computer and office supplies, pet food, arts and crafts supplies, and equipment and hardware.

Various services were identified, including dentist, optometrist and veterinarian, as well as repair services.

109 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

ECONOMIC DEVELOPMENT

10. If you were trying to attract a business to come to Ucluelet, what would you say are the top three selling points for the community?

The most prominent word in the open‐ended responses to this questions is "community", which is used by the respondents in many different ways. They refer to "friendly community", "sense of community", "authentic fishing community", "strong community", "close knit community", "size of community", "community closeness", "community is very welcoming, "community spirit and values", "small community values", "great community", "growing community", "healthy and friendly community", "supportive business community", "small, safe community", "small community atmosphere", "small supportive community", and so on.

The other major theme in the responses is the attractiveness of Ucluelet's lifestyle, location and natural beauty and environment. Others mentioned the tourism sector, affordability and proximity to Tofino and Pacific Rim National Park Reserve.

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11. In your opinion, what are the three biggest challenges facing businesses in Ucluelet?

The most common challenge identified in the survey is seasonality, which affects the two primary industries of fishing and tourism. Various responses also addressed the issue of location, transportation and shipping and travel costs. Others made reference to the community not being large enough to create the customer base to support businesses, combined with competition from other centres for the spending of Ucluelet residents.

Other challenges that were mentioned include the decline in the fishing industry, a lack of available, affordable space to rent, difficulty hiring quality staff, taxes and red tape (referring to both municipal and federal), and opposition to mining and fish farming.

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12. In your opinion, are there viable business opportunities in Ucluelet that are not being capitalized upon? What are they and why don’t they exist?

A wide variety of possible business ideas were mentioned, including:

. Bakery, butcher . Restaurants, mobile food carts, coffee shops open later with live music . Pub, micro‐brewery, live music venue . Pool, arena, bowling alley . Local produce . Holistic health care , midwives, optometrists, dentists, other health services . Fish market . Manufacturing of specialty goods and food products (e.g., smoked salmon) or byproducts (e.g., fertilizer using fish byproducts) . Auto repair, car wash . Post‐secondary institutes, perhaps focusing on biology or environmental issues, or trade schools/private schools, or arts schools (perhaps with artists in residence) . Art store, dollar store, shoe store, small department store, computer/phone repair store, outdoor clothing store . Pet store, pet grooming or walking services, veterinarian . Hair salons, barbers . Tourism and eco‐tourism businesses (e.g., guiding, hiking, kayaking to Broken Group, scuba diving) . Transportation shuttles, public transit . Small manufacturers of unique, high‐value wood products, biomass energy using wood waste

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The reasons given for why these businesses don't already exist in Ucluelet were similar to the challenges in the previous question. Seasonality was mentioned most often, as well as a local population base not large enough to support them in the off‐season.

High start‐up costs, transportation costs, taxes and regulations, costs of insurance and other standard business operating challenges were mentioned as impediments.

13. What do you feel are the important industries (e.g., fishing, tourism, forestry, arts and culture) supporting Ucluelet’s economy in the next 5 years?

The word cloud for this question leaves little doubt about the primary responses. Tourism was mentioned 121 times, followed by fishing/fisheries (82 times), forestry (33 times), arts (24 times) and culture (21 times).

Some of the less common responses include energy, education, construction, health care and government services.

113 UCLUELET ECONOMIC DEVELOPMENT STRATEGY – FINAL REPORT, APRIL 2012

What will be the most important industries in Ucluelet in 20 years?

The word cloud for Ucluelet's important industries in 20 years is similar to the 5‐year picture in terms of the most common industries, but they are less dominant and there is far more diversity. Energy is far more prominent, along with education.

Respondents were also asked for any additional comments on industry prospects in Ucluelet. Some of the sentiments expressed include:

. Ucluelet needs to diversify and remain open to all types of opportunities . There was concern expressed that fishing and forestry are not long‐term solutions. They are considered too cyclical and there is concern about their long‐term sustainability. . Others also want the community to be less reliant on tourism. . Arts are an under‐utilized asset. . Overall, there is no consensus. Some respondents are optimistic about the return to health of forestry and fishing ‐ others see no future in those industries.

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14. What are the most important economic development priorities for Ucluelet? (n=135 to 141)

The top‐ranked priorities are expanding Ranking of Economic Development Priorities employment opportunities and helping existing businesses, followed by Expanding employment 4.4 Helping existing businesses 4.4 attracting tourists and increasing the Attracting tourists 4.3 supply of affordable housing. Increasing affordable housing 4.3

Helping entrepreneurs 4.1

Attracting more seasonal residents is the Expanding goods/services 4.1

only option ranked below medium. Attracting business 3.9 Improving amenities 3.9 There were considerable additional Expanding population 3.6 commentary and suggestions for this Expanding trained workers 3.5 question. One of the most common Helping with exporting 3.3 concerns was about the attraction of Attracting seasonal residents 2.8 outside businesses and workers when existing businesses and workers are already struggling. Some of the additional comments include:

. Several commented on the importance of affordable housing and the challenge keeping people in the community if they can't afford homes. This was mentioned in connection with the need to attract and keep young families. . The topic of skilled workers was popular. Several mentioned the challenge in keeping the community's current skilled workers rather than attracting new ones. Some current residents are skilled in fields that are no longer in demand due to downturns in their industries, but the priority should be retraining them. . One person suggested a lot of the topics seem beyond the scope of what local government should focus on. The macroeconomics should be left to be sorted out at the federal and provincial levels. . There were mixed feelings on the level of community amenities for tourists. Many feel that better amenities are required, including conveniences like more public washrooms as well as new facilities like a pool, ice rink and playing fields. Others feel that the District has already spent significant resources on the Community Centre. . Several feel that growing the size of the community is not desirable ‐ that maintaining a smaller population is part of the attraction of the community. A smaller number of respondents felt that growth was positive and would help the community become more sustainable.

Overall the ratings by different groups of respondents were very similar. Respondents who have been in Ucluelet for 25+ years were much less supporting of helping entrepreneurs (3.4 rating while all other groups had a 4.3 rating). Helping with exporting was not popular among the youngest (age 18‐24) respondents (2.7 rating) but was a high priority for the oldest (age 65+) respondents (4.0 rating). The seniors also gave by far the highest rating (4.4) to expanding the supply of trained workers.

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Very high High Medium Low Not a priority priority priority priority priority at all Don’t know/ Average (5) (4) (3) (2) (1) No answer Rating 41 57 30 9 0 3 3.9 Attracting new businesses 29% 41% 21% 6% 0% 2% Expanding employment 72 52 14 1 0 1 4.4 opportunities 51% 37% 10% 1% 0% 1% Helping existing businesses grow 72 49 14 2 0 3 4.4 and prosper 51% 35% 10% 1% 0% 2% Helping entrepreneurs and new 61 41 27 9 0 3 4.1 businesses get started 43% 29% 19% 6% 0% 2% 23 27 41 22 6 16 3.3 Helping businesses with exporting 17% 20% 30% 16% 4% 12% Expanding the supply of trained 27 34 41 15 7 13 3.5 workers 20% 25% 30% 11% 5% 9% Expanding the permanent 34 44 39 16 4 3 3.6 population base 24% 31% 28% 11% 3% 2% 68 45 24 3 0 1 4.3 Attracting more tourists 48% 32% 17% 2% 0% 1% 13 18 49 32 22 5 2.8 Attracting more seasonal residents 9% 13% 35% 23% 16% 4% Expanding the type and quality of 52 54 29 4 0 1 4.1 goods and services available locally 37% 39% 21% 3% 05 1% 41 58 32 6 2 1 3.9 Improving community amenities 29% 41% 23% 4% 1% 1% Increasing supply of affordable 65 45 21 4 0 4 4.3 housing 47% 32% 15% 3% 0% 3%

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Are there other important priorities?

A wide variety of additional priorities were suggested:

. Fix Whiskey Landing . Encourage more local spending . Clean up Ucluelet streets . Focus on year‐round employment . Recreational centre with ice rink and pool . Supporting arts and culture, including accessing Native culture . Child care, and general support for youth and families . Increase partnership between the District and First Nations . Maintain and continue developing Wild Pacific Trail . Addressing the aftermath of First Nations treaty settlement

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COMMUNITY DEVELOPMENT

15. What is your view of the changes that have occurred in Ucluelet in the last 5‐10 years? (n=138)

A majority of respondents (55%) have a Summary positive view of the changes in Ucluelet in the last 5‐10 years. Only 14% have a Positive (4, 5 rating) 55% negative view. Neutral (3 rating) 19%

The negative views are connected Negative (1, 2 rating) 14% primarily to the growth of tourist and seasonal‐oriented accommodation and properties, the construction of the Community Centre (which they feel was unnecessary and expensive, the rise in housing prices, and a perceived increased divide between "haves" and "have‐nots".

Those with a positive view are happy with the Community Centre and the perceived progress signified by new developments, water system upgrades and infrastructure planning and continued development of the Wild Pacific Trail.

Very positive Somewhat positive Neutral Somewhat negative Very negative Don’t know/ (5) (4) (3) (2) (1) No answer Average Rating 25 51 26 17 2 17 3.7 18% 37% 19% 12% 1% 12%

16. What are the major changes you would like to see in Ucluelet in the next 5 years?

Affordable housing was the change identified by the most respondents. A wide range of other community amenities were also identified, as shown in the word cloud (including a swimming pool, ice

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rink, arts‐related facilities and amenities, trail expansion, a movie theatre, and more and better local goods and services providers).

What about over the next 20 years?

When asked about desirable changes in the next 20 years, the most common response was the same as the 5‐year list. A hospital was mentioned by several people.

17. How important is it to have a vibrant village core? (n=138)

An overwhelming majority of Summary respondents (90%) feel it is extremely or Extremely or very important 90% very important to have a vibrant village (4, 5 rating)

core. Somewhat important 6% (3 rating) Those in favour all expressed similar Slightly or not important (1, 2 rating) 3% sentiments about the importance of a community gathering place and a focal point for tourists first encountering the community.

Those that were neutral or opposed to the village core were concerned about the District spending money to make it happen and getting diverted from other priorities. Another commenter felt it had already been tried and failed.

Extremely Very Somewhat Slightly Not important at important important important important all Don’t know/ Average (5) (4) (3) (2) (1) No answer Rating 80 44 8 3 1 2 4.5 58% 32% 6% 2% 1% 1%

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18. What do you think is needed to make Ucluelet’s core more vibrant?

Some of the specific comments on how to make the core more vibrant include:

. Keeping streets and the area clean . Giving buildings a facelift, more landscaping, flowers, benches, etc. . More human/pedestrian activity through markets, performers, events . Close areas to vehicle traffic . Showcasing artwork . Maps and signage to highlight where the core is . Build on the aquarium . More commercial space, more and better stores . Pedestrian connection from the core to Wild Pacific Trail . Define where the core is, minimize sprawling commercial areas

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19. Where do you think the “heart” of Ucluelet is?

Main Street and the Village Square were mentioned most often, with some mentioning Peninsula Road and the area centered on the co‐op.

20. What improvements are required to make cycling and walking more attractive to you?

More sidewalks and bike lanes/paths/trails were the most common responses, or simply more room for cycling on the shoulder of roads. There was a comment that Ucluelet is well designed for walking, but not for cycling due, in part, to the use of gravel as road shoulders that is troublesome for cycling. Other ideas include:

. More road markings, bike racks and maybe a "change station" . Fixing potholes, generally keeping roads in better condition, more street lighting

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21. If necessary to conserve water, are you in favour of taking steps like summer lawn water restrictions used in many BC municipalities?

About three‐quarters of respondents are Summary in favour of water restrictions, with many In favour 76% commenting that they would support (4, 5 rating)

them only if necessary and that activities Neutral 9% like lawn watering are unnecessary but (3 rating) Against other options like more rain water 11% (1, 2 rating) collection and the installation of water meters should also be considered.

Some of those opposed to restrictions feel that industry and hotels should be held responsible for addressing the situation, while others also felt that putting a value on water through the installation of water meters was a better solution than restrictions.

There were several differences in how various groups answered this question. Women were more in favour of restrictions than men (4.3 to 3.8), support for restrictions was highest among the youngest residents and declined steadily by age (4.7 for age 18‐24 group, declining to 3.5 for age 65+), and those that worked as employees were more in favour of restrictions than either business owners or the retired.

Strongly in favour Somewhat in favour Somewhat against Strongly against of restrictions of restrictions Neutral restrictions restrictions Don’t know/ Average (5) (4) (3) (2) (1) No answer Rating 71 33 13 5 10 5 4.1 52% 24% 9% 4% 7% 4%

22. How concerned are you about the safety of Ucluelet’s roads? (n=137)

The results to this question show a wide Summary range of opinion on the safety of Extremely or very concerned 39% Ucluelet's roads. In some cases the (4, 5 rating)

question was interpreted to mean not Somewhat concerned 26% just roads in Ucluelet but also the (3 rating) Slightly or not concerned highway to Port Alberni, which generates 34% (1, 2 rating) much concern.

Those that were extremely or very concerned mentioned the dangers of large trucks using the roads (especially at rapid speeds), winding roads, potholes, blind corners and the lack of sidewalks making it

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dangerous for pedestrians. Drinking and driving was also mentioned as a problem by multiple respondents.

Extremely Somewhat Slightly Not concerned at concerned Very concerned concerned concerned all Don’t know/ Average (5) (4) (3) (2) (1) No answer Rating 18 36 35 20 27 1 3.0 13% 26% 26% 15% 20% 1%

What roads or locations concern you?

The location most mentioned is the intersection of Peninsula Road and Main Street. Other commonly‐ mentioned locations include Matterson Street (needing sidewalks as the main route to the Community Centre and running past the school), Bay Street, the major corners between Millstream and Ucluelet, Larch Street, Marine Drive (especially winding and blind corners), hill to the garbage dump, and others.

Multiple people also mentioned the dangers of Highway 4 to Port Alberni.

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CATEGORIZING THE RESPONDENTS

23. Are you female or male? (n=148)

Gender of Survey Respondents

Refused/Other 8%

Female 53%

Male 39%

24. Do you have children under age 18 living in your home? (n=140)

Children Under Age 18 Living in your Home?

Yes 30% No 70%

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25. Please indicate your current age? Current Age

55‐64 65+ 20% 8%

18‐24 7%

45‐54 15%

25‐34 30% 35‐44 20%

26. What is your primary employment status? (n=137)

Some respondents identified multiple primary employment types, which explains why the total exceeds 100%.

Employed Employed Business owner/ Unemployed, and Not currently working full‐time part‐time Self‐employed Student Retired seeking work for other reasons 56 29 45 1 15 3 6 41% 21% 33% 1% 11% 2% 4%

27. Please add any final comments you wish to provide.

Final comments provided to the District of Ucluelet under separate cover.

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APPENDIX C: PRIORITY ANALYSIS OF ECONOMIC DEVELOPMENT OPPORTUNITIES

The purpose of this appendix to the Ucluelet Economic Development Strategy is to examine some of the more prominent economic development opportunities that have been raised for the community. The analysis falls well short of a formal feasibility analysis, but nevertheless provides a consistent and semi‐ rigorous evaluation of each opportunity.

Most economic development opportunities are identified and pursued by entrepreneurs and businesses, but to the extent that the local government gets involved it should focus its limited time and resources on opportunities that have significant benefits, where the community clearly has a competitive advantage, and where efforts are likely to make a real difference.

The analysis addresses the following questions:

1. How well does each opportunity fit with Ucluelet’s characteristics?

This question considers Ucluelet from the industry’s point of view. Each industry has unique requirements for workers, land, infrastructure, transportation connections, access to natural resources, etc. For which opportunities is Ucluelet a good fit?

2. What are the benefits that each opportunity would provide to Ucluelet residents, businesses and the community at large?

This question considers each opportunity from Ucluelet’s point of view. What impact would each opportunity have on local employment (both the number and quality of jobs), on opportunities for local businesses, and on quality of life? Are there any aspects of the opportunity that are not a good fit with community values and vision (such as adverse environmental impacts)?

3. To what extent can this opportunity be realized through the efforts of the local economic development function?

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The modern economy is immensely complex and is affected by a multitude of factors, some of which are local but many are provincial, national and global in scope. The chance of a particular opportunity being realized in Ucluelet is therefore affected by many factors beyond local control, so this question considers whether a dedicated local effort can make a real difference to the chance of success, or whether success is largely beyond local influence.

OPPORTUNITIES

1. Forest‐related opportunities, many of which will be related to the new “Barkley Community Forest”, co‐owned by Ucluelet and the Toquaht First Nation, as well as the expected increase in harvesting by the local First Nations‐owned Iisaak Forest Resources. In addition to the wood manufacturing and logging opportunities listed below, there may also be opportunities on the Community Forest land base for run‐of‐river power development (covered by opportunity 8), better access for forest‐based recreation and tourism (opportunity 6), or for conducting forestry research (perhaps tied to a research institute like in opportunity 4). Greater exploitation of non‐ timber forest products (e.g., mushrooms, berries, wild flowers) has been mentioned, but these are usually part‐time, highly seasonal activities that are rarely converted into viable, stand‐alone businesses. The opportunities considered in this analysis are: a. Wood products manufacturing, building on improved local access to quality wood fibre. b. Logging and related forest maintenance activities (brush piling, road and trail maintenance, etc.)

2. Harbour‐related business expansion, including attracting more permanent and seasonal activity in all of the major lines of business. Several activities are tourism‐related, including visiting recreational boats, charters and possible pocket cruises (all covered under tourism development in opportunity 5). Opportunities include: a. Seafood products manufacturing, especially higher‐value products. b. Commercial fishing and aquaculture, including using Ucluelet as a home port and offloading site.

3. Lifestyle‐oriented personal services (including health‐related, such as spas or naturopathic health centres, but not core public health services). Many of these services are attractive to tourists as well as retirees.

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4. Post‐secondary educational facility or research institute, likely affiliated with an established institution. The facility would likely host a special educational program that relates to the community or surrounding area. A program relating to forestry or fishing, or combined with environmental management of the resource, would be a possibility (e.g., forest renewal regulations was mentioned). A research institute would similarly focus on the area (e.g., forestry, tourism, oceanography, rainforest) and may also have an educational component.

5. Various tourism development opportunities, including businesses relating to: a. Outdoor recreation (including marine‐based activities like kayaking or forest‐based activities like hiking and mountain biking) or culinary, educational, historic or cultural tourism (possibly in partnership with the Ucluelet First Nation). There are many possible tourism development opportunities but the analysis focuses on tourism growth from a series of smaller businesses rather than huge resort‐type developments. b. Conferences. c. Pocket cruises, which are smaller cruises with a passenger count ranging from several dozen to at most several hundred. They typically have shorter trips of only several days at a time.

6. Artists cooperative, providing gallery space for displaying and selling locally‐produced art, and possibly also including studio space for renting or sharing. This could create another desirable destination for tourists to visit and artists would have a greater opportunity to sell their creations.

7. Wave energy or other “green energy” development. Ucluelet’s potential as a location for wave energy development has been well‐known and pursued for many years. Other possibilities for green power development may include run‐of‐river power (which would not be located in Ucluelet but possibly serviced from the community) and a biomass facility (probably using wood waste as fuel but possibly other regional biomass sources as well).

8. Lifestyle‐motivated entrepreneurs. Ucluelet already attracts many people who could be called “amenity migrants”, which is a term for those who choose where to live based on quality of life and then make the best of the employment and business opportunities in that place. A related group is what economic developers call “lone wolves” ‐ these are people, many of whom are highly educated, who work independently in self‐employment or as tele‐commuters. Because their work and lifestyle is highly mobile, they are also attracted by unique places and experiences, provided they have basic amenities like high‐quality telecommunications services and access to an airport. These entrepreneurs could theoretically work in any sector, but it is assumed in this analysis that they are primarily professionals who would work primarily in an office setting (either at home or in a commercial office).

Note that the list above is condensed from a longer list that was presented for discussion during the project consultation phase. Some of the original ideas that focused on single, small businesses were

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removed. It was determined that those smaller opportunities are better addressed through the strategies relating to entrepreneurial and small business support.

Typically these sorts of exercise are focused on “investment attraction”, which is the attraction of new businesses and/or investments to a community from somewhere else. Investment attraction is one possible way for Ucluelet to use this analysis, but more generally it shows which opportunities should receive extra focus in the strategy, whether through trying to attract investment in those areas or taking steps locally that make it more likely for the opportunities to be generated by existing residents.

EVALUATION CRITERIA

The first set of evaluation criteria are the Location Factors and are viewed from the perspective of the potential target industries. If Ucluelet is a good match for what these industries require in order to operate successfully, then the opportunity is rated highly and there is a better chance of that opportunity turning into a success. If, however, the things the industry needs to operate successfully are not present in Ucluelet, then the opportunity is rated poorly.

1. Labour Force. Reflects the quality and availability of a suitable labour force and the local advanced education and training possibilities (if required).

2. Real Estate. Reflects the suitability of Ucluelet’s available land and leasable space.

3. Access to Markets. Reflects how easily a Ucluelet‐based business can access its target market.

5. Infrastructure. Reflects the suitability of Ucluelet’s telecommunications and utilities infrastructure.

6. Quality of Life. Reflects the fit between the Ucluelet lifestyle and the typical requirements of owners and workers in each possible opportunity.

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demand for suppliers and support services) as well as induced employment (created by the additional income paid to workers that is spent in the local community). There are economic multipliers available from BC Stats to help with this evaluation.

8. Job Quality. Not all jobs are equally desirable. All else being equal, higher‐paying jobs are clearly better, but jobs that provide a wider range of opportunities for Ucluelet residents to utilize their skills should also be valued more highly. This does not necessarily mean the jobs with the highest educational or training requirements, but the jobs that are the best fit with the skills and education of Ucluelet residents (many of whom report having difficulty finding jobs commensurate with the abilities).

The final factor is a type of reality check.

9. Economic Development Influence. Pursuing any opportunity carries the risk of being unsuccessful, while it’s also possible that any of the opportunities could be successful without any assistance from the local economic development office. This factor considers which opportunities would have their chance of success increased the most by a concerted economic development initiative. For example, if the chance of success is largely dependent on economic forces or senior government regulations that are beyond local control, the local economic development effort won’t significantly increase the chance of success. For other opportunities, a local effort may make a huge difference in the chance of success.

RATING SYSTEM

Each opportunity is rated for all 9 criteria (summarized Maximum in the table to the right). The scales differ somewhat, as Evaluation Criteria Rating explained below. The first six “location factors” criteria Labour Force +2 allow both positive and negative rankings, while the Real Estate +2 remaining criteria are either positive or zero. Access to Markets +2 Access to Resources +2 Rating Scale for Location Factors Infrastructure +2 Quality of Life +2 Ucluelet is evaluated on a relative basis compared to (1) Total Location Factors +12 other communities that might also attract the same Employment Impact +5 type of investment. The rating scale is: Job Quality +2

(2) Total Economic Impact Factors +7 +2 Strongly positive (3) Economic Development Influence +2 +1 Positive Overall Rating (1) x (2) x (3) +168 0 Neutral (neither positive nor negative) ‐1 Negative ‐2 Strongly negative

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Rating Scale for Employment Impact Factors The number of direct jobs that would be created by any of the opportunities within the next few years can only be estimated based on the typical size of similar operations. The total employment impact is then calculated as the direct jobs multiplied by the appropriate employment multiplier (see Table 21 below). The rating scale is: +5 40+ jobs +4 30‐39 jobs +3 20‐29 jobs +2 10‐19 jobs +1 Less than 10 jobs

Rating Scale for Job Quality +2 High +1 Moderate 0 Low

Rating Scale for Economic Development Influence +2 Strong influence ‐ economic development initiatives can make a real difference +1 Moderate influence ‐ economic development initiatives likely have some influence, but may not be decisive 0 Little or no influence ‐ economic development initiatives are unlikely to determine success or failure (Half‐point ratings may also be used).

The Overall Rating is then determined by multiplying together the total Location Factions, the total Economic Impact Factors (which includes the employment impact and job quality) and the Economic Development Influence. The result is by no means a flawless feasibility analysis, but it does provide a general guideline of which opportunities score well across most areas. The best opportunities will be those that are a good fit with Ucluelet’s characteristics, must provide a meaningful economic benefit to the community, and must be capable of being influenced by the economic development office. An opportunity that scores highly in only one or two of these dimensions will be rated much lower.

RATING THE OPPORTUNITIES

The ratings for each opportunity are explained in the remainder of this sub‐report. Most of the information that is used to make the evaluations comes from the Economic Analysis Report (Appendix A), as well as the Community Survey (Appendix B) and the overall Competitive Analysis that is summarized in Section 2.4.

In addition, some extra information was compiled for the purposes of this targeting exercise. First, employment multipliers are estimates of the number of additional “spinoff” jobs that will be created in

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the local area per job created in the original opportunity. The multipliers in Table 21 were prepared by BC Stats for the Alberni‐Clayoquot Regional District using data from the 2006 Census. For example, each job in fishing (including seafood manufacturing) supports an additional 0.67 to 0.77 jobs in the region. (We can’t be sure exactly how many of these jobs are in Ucluelet versus Tofino or Port Alberni, but these are the most precise multipliers available and still provide a good indication of the sectors with the greatest local spinoffs).

Table 21. Indirect and Induced Employment Multipliers, Alberni‐Clayoquot RD, 2006

Sector Additional Jobs per Direct Job20 Pulp & Paper 0.71 ‐ 0.86 Fishing & Seafood Manufacturing 0.67 ‐ 0.77 Mining & Mineral Processing 0.41 ‐ 0.54 Sawmills 0.37 ‐ 0.49 Other Wood Manufacturing 0.32 ‐ 0.44 Logging 0.31 ‐ 0.43 Construction 0.31 ‐ 0.40 Film Production 0.30 ‐ 0.32 High Technology 0.25 ‐ 0.28 Miscellaneous Manufacturing 0.21 ‐ 0.33 Public Sector (Health, Education, Public Admin) 0.19 ‐ 0.29 Agriculture & Food Manufacturing 0.16 ‐ 0.23 Tourism 0.09 ‐ 0.14 Source: BC Stats (March 2009), British Columbia Local Area Economic Dependencies: 2006.

For evaluating job quality, the only readily available data is on average incomes, which is admittedly an imperfect measure. It is also difficult to exactly match up the types of jobs that would be created in Ucluelet’s opportunities with the standard industry definitions. The data in Table 22 provides a general indication of the prevailing income levels in the major opportunity areas for the Vancouver Island/Coast region.

The table shows that the forestry and professional‐type services have the highest incomes, followed closely by education. Tourism‐related opportunities generate the lowest‐paying jobs. Further commentary on why the particular subsectors were chosen for each opportunity is provided in the analysis that follows.

20 The employment impacts are shown as a range that roughly corresponds to short‐term and long‐term impacts. The technical term for the lower multiplier is the “no migration, safety net” scenario while the higher multiplier is the “migration, no safety net” scenario.

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Table 22. Average Employment Income in Opportunity Sectors, Vancouver Island/Coast Region, 2005

Average Employment Ucluelet Opportunity NAICS Subsectors Income 1a. Wood products manufacturing 321 Wood Product Manufacturing $41,294 337 Furniture and Related Product Manufacturing $25,660 Weighted Average $37,473 1b. Forest‐related ‐ Logging & Forest 113 Forestry and Logging $59,050 Maintenance 115 Support Activities for Agriculture and Forestry $32,720 Weighted Average $53,467 2a. Seafood products manufacturing 311 Food Manufacturing $24,701 2b. Commercial fishing and aquaculture 114 Fishing, Hunting and Trapping $23,101 4. Post‐secondary educational facility or research institute 611 Educational Services $38,353 3. Lifestyle‐oriented personal services 487 Scenic and Sightseeing Transportation $17,920 5. Various tourism development 532 Rental and Leasing Services $24,268 opportunities 711 Performing Arts, Spectator Sports and Related 6. Artists cooperative Industries $16,869 (All tourism‐oriented opportunities are 712 Heritage Institutions $32,168 combined as they would all draw people to 713 Amusement, Gambling and Recreation Industries $21,982 Ucluelet and generate spending in the 721 Accommodation Services $21,219 industries shown here). 722 Food Services and Drinking Places $15,107 Weighted Average $18,090 7. Wave energy or other “green energy” development 561 Administrative and Support Services $20,476 8. Lifestyle‐motivated entrepreneurs 541 Professional, Scientific and Technical Services $42,697 Source: Statistics Canada, 2006 Census; Vann Struth Consulting Group calculations

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1A. WOOD PRODUCTS MANUFACTURING

Evaluation Criteria Rating Notes/Comments Some workers with forestry‐related experience and relevant construction Labour Force 1 experience in the area. Several possible industrial sites are available within Ucluelet, but this is not a particular strength or weakness compared to other forest Real Estate 0 communities. Location is a challenge for shipping products out of the local area due to the condition of Highway 4 and the further expense of shipping off Vancouver Island. Barge transport may be an option in the longer‐term but would require significant volumes. Resorts and higher‐end homes in the Ucluelet/Tofino area provide a limited local market for high‐value Access to Markets ‐1 products. Local wood resources are high‐quality and local ownership of tenures provides an advantage for local secondary manufacturing, but Ucluelet is Access to Resources 1 not alone among BC communities with similar assets. Community has excellent basic infrastructure (e.g., utilities) and is well‐ Infrastructure 1 positioned for new industrial operations. Attracting and/or retaining wood products entrepreneurs may be helped Quality of Life 1 by the area’s quality of life. (1) Location Score 3 There is potential for processing jobs in the range of 0.2 local jobs per 1,000 m3 of harvested timber (per analysis done in other Timber Supply Areas)21. With about 100,000 m3 per year to be harvested by Iisaak Forest Resources (an increase over the pattern in recent years) and the potential for 25,000 m3 in the Community Forest, this would generate up to 25 local jobs in basic wood processing with the potential for even more with fabrication of more specialized, higher‐value products. Some of this employment is already in place, but there is potential for multiple small operations employing perhaps 20‐25 people, with a further local Employment Impact 4 employment multiplier of 0.4 (employing an additional 6‐10 people). Smaller firms that would predominate in Ucluelet would pay less than Job Quality 1 higher‐paying, larger sawmills. (2) Economic Impact Score 5 Some influence through part‐ownership of the Community Forest and some assistance with new business creation or attraction could be (3) Economic Development Influence 1 provided through an economic development officer. Overall Rating (1) x (2) x (3) 15

21 For example, BC Ministry of Forests (February 1999), Timber Supply Review: Strathcona Timber Supply Area Analysis Report. This analysis showed 0.22 local jobs per 1,000 m3 of harvest, but employment ratios are declining over time (due to greater manufacturing efficiency).

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1B. LOGGING AND RELATED FOREST MAINTENANCE

Evaluation Criteria Rating Notes/Comments Some workers with forestry‐related experience in the area and Labour Force 1 an active, youthful population that could be trained. Not a significant factor as activity is outside municipal Real Estate 0 boundaries. Not a significant factor. Logs are either used locally or can be Access to Markets 0 efficiently transported elsewhere. Major logging tenures for Tree Farm Licences 54 and 57 are controlled by local First Nations. The Barkley Community Forest will also place a high priority on local employment for logging Access to Resources 2 and forest maintenance activities. Infrastructure 0 Not a significant factor. Quality of Life 0 Not a factor. (1) Location Score 3 Likely only a handful of full‐time equivalent jobs to be created. Possibly larger numbers of people for brief or season periods of time. The multipliers (0.3 to 0.4) could push total employment Employment Impact 2 over 10 jobs. Job Quality 2 Logging jobs are among the highest‐paying. (2) Economic Impact Score 4 District influence through part‐ownership of the Community (3) Economic Development Influence 1 Forest. Overall Rating (1) x (2) x (3) 12

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2A. SEAFOOD PRODUCTS MANUFACTURING

Evaluation Criteria Rating Notes/Comments There is an existing pool of fish manufacturing workers and an Labour Force 2 active, youthful population that could be trained. Real Estate 1 Industrial space is available, perhaps even former fish plants. Trucking product on Highway 4 is challenging relative to communities with better highway connections, but Ucluelet is significantly closer than many coastal communities to the major Access to Markets 1 seafood distribution site of Metro Vancouver. Access to Resources 2 Prime location to access West Coast fish resources. Community has excellent basic infrastructure (e.g., utilities) and Infrastructure 1 is well‐positioned for new industrial operations. Attracting and/or retaining seafood products entrepreneurs may Quality of Life 1 be helped by the area’s quality of life. (1) Location Score 8 Despite the large number of jobs in hake processing, new development will likely be focused on high‐value, niche products Employment Impact 3 produced, at least initially, in smaller quantities. Pay is mid‐range. Job quality is mitigated somewhat by season Job Quality 1 nature. (2) Economic Impact Score 4 Some supportive role can be played for all new business development initiatives and by helping current industry (3) Economic Development Influence 1 participants explore new species and product ideas. Overall Rating (1) x (2) x (3) 32

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2B. COMMERCIAL FISHING AND AQUACULTURE

Evaluation Criteria Rating Notes/Comments There is an existing pool of workers with fisheries experience Labour Force 2 and an active, youthful population that could be trained. Not a significant factor as most activity is on the water and Real Estate 0 supported through harbour infrastructure. Trucking product on Highway 4 is challenging relative to communities with better highway connections, but Ucluelet is significantly closer than many coastal communities to the major Access to Markets 1 seafood distribution site of Metro Vancouver. Access to Resources 2 Prime location to access West Coast fish resources. Infrastructure and supporting services already in place. Upgrades and possible relocation of docks would relieve Infrastructure 1 congestion and further enhance the current situation. Quality of Life 0 Not a significant factor. (1) Location Score 6 Significant number of jobs already involved in these sectors and support services. Focusing on them should consider not just expanding the industries, but retaining existing jobs in a challenging commercial fishing environment. Commercial fishing Employment Impact 4 has the highest multipliers of any industry in the region. Job Quality 1 Pay in the mid‐range. (2) Economic Impact Score 5 Successful investments in maintaining and upgrading harbour infrastructure will help secure and expand the industry, although work markets, natural conditions and senior (3) Economic Development Influence 1 governments are also highly influential. Overall Rating (1) x (2) x (3) 30

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3. LIFESTYLE‐ORIENTED SERVICES

Evaluation Criteria Rating Notes/Comments Labour force is young and many have experience in tourism and Labour Force 1 service industries. Some commercial locations are available – neither a particular Real Estate 0 strength nor weakness of the community for smaller operations. Market is local residents and visitors so high level of tourism Access to Markets 1 traffic in the area is a benefit. Access to Resources 0 Not a factor. Infrastructure 0 Not a significant factor. The envisioned services would emphasize natural treatments Quality of Life 2 and would fit seamlessly into the West Coast lifestyle. (1) Location Score 4 Even with several small businesses, the total employment impact would be moderate. Tourism‐related industries have the Employment Impact 2 lowest multipliers. Jobs in these services can require specialized skills and pay Job Quality 1 higher. Related tourist‐serving jobs typically lower‐paying. (2) Economic Impact Score 3 Some supportive role can be played for all new business development initiatives, but the type of one‐to‐one business counseling required by very small businesses is often not (3) Economic Development Influence 0.5 feasible for a municipal economic development function. Overall Rating (1) x (2) x (3) 6

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4. POST‐SECONDARY EDUCATIONAL FACILITY OR RESEARCH INSTITUTE

Evaluation Criteria Rating Notes/Comments Not a significant number of advanced degree holders in Ucluelet Labour Force 0 so most specialized positions would be filled by newcomers. Some commercial locations are available. A purpose‐built Real Estate 0 building could be accommodated on sites in the community. Distance and limited transportation options for travel between partnering institutions may be a drawback, but strong interest from colleges in the past suggests the Ucluelet location Access to Markets 0 outweighs these concerns. Facility is likely to have programs relating in some way to the Access to Resources 1 natural environment of the area. Unlikely to be a significant factor. (It is possible a research facility would be able to take advantage of Ucluelet’s quality Infrastructure 0 water and sewer infrastructure). West Coast lifestyle and natural environment are clear attractions, but academics or researchers moving from larger centres may be challenged by fewer big‐city conveniences and Quality of Life 1 limited employment opportunities for spouses. (1) Location Score 2 Number of jobs dependent on size of the operation, but direct school/institute jobs might be 10‐15, supplemented by the direct tourism spending of visiting students, researchers and faculty. Local multipliers are modest for public sector Employment Impact 4 operations, but the entire impact is assumed to reach 30+ jobs. Jobs are well‐paying and diversify the opportunities available to Job Quality 2 Ucluelet residents. (2) Economic Impact Score 6 Successfully attracting such a facility would require a concerted effort by the community, possibly including local contribution (3) Economic Development Influence 2 toward the development of a new campus location. Overall Rating (1) x (2) x (3) 24

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5A. VARIOUS TOURISM OPPORTUNITIES

Evaluation Criteria Rating Notes/Comments Labour force is young and many have experience in tourism and Labour Force 1 service industries. Some commercial locations are available – neither a particular Real Estate 0 strength nor weakness of the community for smaller operations. Access to Markets 1 Will capitalize on existing strong tourism market. Capitalizing on natural resources and human history and culture Access to Resources 2 (including First Nations) will be basis of many tourism ventures. Infrastructure 0 Not a significant factor. The area’s quality of life is a major asset for tourism Quality of Life 2 development. (1) Location Score 6 The sheer variety of tourism development opportunities suggests that multiple opportunities would combine to have a direct impact of perhaps 20‐30 jobs (although this is highly Employment Impact 4 speculative). The additional spinoff jobs are relatively minor. Tourism jobs typically lower‐paying and do not diversify the Job Quality 0 opportunities available to Ucluelet residents. (2) Economic Impact Score 4 Some supportive role can be played for all new business development initiatives, but the type of one‐to‐one business counseling required by very small businesses is often not feasible for a municipal economic development function. The District will continue to support tourism through funding the Visitor Centres, as well as developing other assets like the (3) Economic Development Influence 0.5 Aquarium and the Wild Pacific Trail. Overall Rating (1) x (2) x (3) 12

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5B.CONFERENCES

Evaluation Criteria Rating Notes/Comments Labour force is young and many have experience in tourism and Labour Force 1 service industries. The Community Centre and facilities at Black Rock Resort could Real Estate 1 accommodate events. Difficult transportation connections limit the market for Access to Markets ‐1 attracting business events. Tourist activities built on natural attractions and human history Access to Resources 2 and culture (including First Nations) are a key attraction. Infrastructure 0 Not a significant factor. The area’s quality of life is a major asset for attracting Quality of Life 2 conference delegates. (1) Location Score 5 Conferences are occasional events, so even adding the tourism spending would not support significant new full‐time equivalent Employment Impact 1 jobs. Tourism‐related industries have the lowest multipliers. Tourism jobs typically lower‐paying and do not diversify the Job Quality 0 opportunities available to Ucluelet residents. (2) Economic Impact Score 1 Developing the market for more conferences and meetings (3) Economic Development Influence 1 would require special focus but success would not be assured. Overall Rating (1) x (2) x (3) 5

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5C. POCKET CRUISES

Evaluation Criteria Rating Notes/Comments Labour force is young and many have experience in tourism and Labour Force 1 service industries. Real Estate 0 Not a factor. The market for attracting cruise vessels is very competitive, particularly for smaller Vancouver Island communities. The West Coast location is less popular than routes along the east side of Access to Markets ‐1 the Island as they can serve as stops on the route to Alaska. Tourist activities built on natural attractions and human history Access to Resources 2 and culture (including First Nations) are a key attraction. There is not currently a space within the Ucluelet Harbour that could be dedicated for use by a visiting cruise vessel. Public moorage space is allocated on a first‐come, first‐served basis so making arrangements for appropriate moorage and possibly other upgraded facilities to accommodate offloading passengers Infrastructure ‐1 may be required. The area’s quality of life is a major asset for tourism Quality of Life 2 development. (1) Location Score 3 Cruises would visit, at best, several times per year and despite a flurry of activity those days, the sustained job creation would be Employment Impact 1 minimal. Tourism‐related industries have the lowest multipliers. Tourism jobs typically lower‐paying and do not diversify the Job Quality 0 opportunities available to Ucluelet residents. (2) Economic Impact Score 1 Successfully attracting pocket cruises would require a concerted sales effort aimed at cruise companies, but market (3) Economic Development Influence 1 realities would largely dictate the level of interest. Overall Rating (1) x (2) x (3) 3

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6. ARTISTS COOPERATIVE

Evaluation Criteria Rating Notes/Comments Labour Force 0 Not a factor. Some commercial locations are available – neither a particular Real Estate 0 strength nor weakness of the community for smaller operations. Access to Markets 1 Will benefit from access to existing tourism market. Access to Resources 0 Not a factor. Infrastructure 0 Not a significant factor. The envisioned facility would feature art showcasing the people and natural environment of the area. Quality of life is also a Quality of Life 2 major asset for any tourism‐related development. (1) Location Score 3 Most employment in art cooperatives is usually volunteered by the members, but a successful facility could function as an effective tourist draw and support moderate employment. Some artists may sell sufficient product to work part‐time or full‐time as an artist. Tourism‐related industries have the lowest Employment Impact 1 multipliers. The opportunity for artists to earn additional income is a benefit. Job Quality 1 Related tourist‐serving jobs typically lower‐paying. (2) Economic Impact Score 2 The impetus in any cooperative is for the participants to organize, but there would likely be a public role in helping (3) Economic Development Influence 1 procure space or provide other assistance. Overall Rating (1) x (2) x (3) 6

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7. WAVE OR OTHER GREEN ENERGY

Evaluation Criteria Rating Notes/Comments Labour Force 0 Not a factor. Real Estate 0 Not a factor. Access to Markets 0 Not a factor. Natural waves and other features are vital to attract this Access to Resources 2 opportunity. Questions remain unresolved about how any green power generated in or near Ucluelet would connect to the BC Hydro Infrastructure ‐1 grid. Quality of Life 0 Not a factor. (1) Location Score 1 Required jobs for operating facilities are minimal, and may only be part‐time or occasional. Multipliers would similarly be Employment Impact 1 modest. Jobs for operating and maintaining power facilities typically Job Quality 1 require some technical skill but are not high‐paying. (2) Economic Impact Score 2 Successfully attracting a green energy development would require significant facilitation but would ultimately be reliant (3) Economic Development Influence 1 on market and regulatory conditions. Overall Rating (1) x (2) x (3) 2

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8. LIFESTYLE ENTREPRENEURS (“LONE WOLVES”)

Evaluation Criteria Rating Notes/Comments Labour Force 0 Not a factor. Many will work at home, so this is not a significant factor. Those Real Estate 0 seeking small commercial leases will find limited selection. Access to Markets ‐1 Transportation links for work‐related travel are challenging. Access to Resources 0 Not a factor. Telecom infrastructure is most important and service in Ucluelet Infrastructure 0 is competitive. Spectacular location and lifestyle options would be the Quality of Life 2 attraction for some “lone wolves”. (1) Location Score 1 Potentially large number of “lone wolves” could live in the community and some may employ local staff. Most similar industry in Table 21 is High Technology, with moderate Employment Impact 3 multipliers. Potentially high‐paying jobs with considerable personal Job Quality 2 autonomy. (2) Economic Impact Score 5 There is some ability to market to this group, often by piggybacking on tourist messages, but it is very fragmented and even within a given demographic group or location there are a limited number of people who would fit this category. Ultimately the natural qualities of the area are the main selling (3) Economic Development Influence 0.5 feature. Overall Rating (1) x (2) x (3) 2.5

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SUMMARY OF EVALUATION RESULTS

Table 23. Summary of Priority Analysis

Location Factors Economic Impact Factors Economic OVERALL Labour Real Access to Access to Infrastr‐ Quality Total Job Total Development RATING Opportunity Force Estate Markets Resources ucture of Life (1) Employment Quality (2) Influence (3) (1 x 2 x 3) 2a. Seafood manufacturing 2 1 1 2 1 1 8 3 1 4 1 32 2b. Commercial fishing/ aquaculture 2 0 1 2 1 0 6 4 1 5 1 30 4. Educational or research facility 0 0 0 1 0 1 2 4 2 6 2 24 1a. Wood manufacturing 1 0 ‐1 1 1 1 3 4 1 5 1 15 1b. Logging & Related 1 0 0 2 0 0 3 2 2 4 1 12 5a. Various tourism 1 0 1 2 0 2 6 4 0 4 0.5 12 3. Lifestyle services 1 0 1 0 0 2 4 2 1 3 0.5 6 6. Artists cooperative 0 0 1 0 0 2 3 1 1 2 1 6 5b. Conferences 1 1 ‐1 2 0 2 5 1 0 1 1 5 5c. Pocket cruises 1 0 ‐1 2 ‐1 2 3 1 0 1 1 3 8. Lifestyle entrepreneurs 0 0 ‐1 0 0 2 1 3 2 5 0.5 2.5 7. Wave & green energy 0 0 0 2 ‐1 0 1 1 1 2 1 2

The results of the opportunity analysis are shown in order in Table 23 from the highest‐scoring to the lowest‐scoring. As noted at the beginning of this sub‐report, this analysis is based on various assumptions and estimates, so small differences between opportunities should not be considered significant. It is fair to say, however, that opportunities that scored highly across multiple dimensions should be regarded as better opportunities than those that scored poorly in most areas.

Some overall conclusions:

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. The benefits of a more significant post‐secondary presence would go far beyond the employment impacts shown here, including social benefits of having more options for youth to stay in the community and the bigger‐picture economic benefits of enhancing local human potential and the ability to capitalize on opportunities. It is therefore recommended that a post‐secondary facility and/or research institute be one of Ucluelet’s external targets.

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APPENDIX D: ECONOMIC DEVELOPMENT MODELS IN BC

This appendix is adapted from previous research conducted by Vann Struth Consulting Group on economic development structures in British Columbia. It identifies the advantages and disadvantages of the “in‐house model” and the “arms‐length model” across a variety of dimensions.

1. The “in‐house model”, where an economic development function is established within the local government. This may be a single individual with sole responsibility for economic development, a multi‐person department, or an individual or department that handles economic development in addition to other responsibilities.

2. The “arms‐length model”, where the local government provides funding through a fee‐for‐service arrangement with an arms‐length organization. This can be a dedicated economic development organization (such as a non‐profit society or development corporation), or an existing organization like a Chamber of Commerce or Community Futures Development Corporation.

The key factors to consider when comparing the two models include, in no particular order:

1. Operational costs and access to external funding 2. Relationship with business community 3. Relationship with local government 4. Administration and regulation 5. Co‐location with other agencies (e.g., tourism, film) 6. “Deal‐making” and provision of incentives 7. Structure of economic development boards and advisory committees 8. Local vs. regional operations

Not all of these issues are of equal importance for Ucluelet and in many cases there is no clear right and wrong approach ‐ it is simply a matter for each community to determine what is most important within its own unique situation. There is also significant latitude within each model for further decisions on the level of service, the amount of funding and time allocated to the "core" position, the appropriate amount of contracting of services (from individuals, other organizations, private companies, etc.), and much more.

The discussion that follows looks at each issue and provides feedback from economic development practitioners in BC and information from other respected information sources, including professional associations and economic development publications.

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ISSUE 1. OPERATIONAL COSTS AND ACCESS TO EXTERNAL FUNDING

Financial considerations are always important in economic development, as with all municipal functions.

In‐House Model Arms‐Length Model . Overhead costs are absorbed within local . Overhead costs can be shared with other government budgets. jurisdictions or with other organizations. Some . Access to most government funding programs economic development offices own buildings is the same regardless of the organization’s and charge rent to other organizations, while structure. The only exceptions are for projects others are tenants in facilities owned by other that exceed the typical mandate of a local organizations. government (e.g., constructing commercial . May have greater access to non‐traditional buildings). sources of funding through partnerships, sponsorships, for‐profit ventures, etc.

ISSUE 2. RELATIONSHIP WITH BUSINESS COMMUNITY

A positive relationship with the business community, including both local businesses and external investors, is essential for a successful economic development program.

In‐House Model Arms‐Length Model . Enables coordinated service across all . Economic developer viewed more as an advocate for municipal departments. business, and less as part of the regulatory body. . Provides business community with . Maintaining an office outside of local government (even direct access to decision‐makers. if economic developer is still directly employed by local . Subject to Freedom of Information government) enhances relationship with business requests so care is required to maintain community. confidential business information. . Greater assurances of privacy and confidentiality.

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ISSUE 3. RELATIONSHIP WITH LOCAL GOVERNMENT

Many economic development projects and issues require cooperation and coordination of other local government departments, such as planning. There is also a need for overall direction and support from Council.

In‐House Model Arms‐Length Model . Proximity to other local government . More difficult to have effective communication with departments enhances information local government and input into policies relevant to sharing and coordination of activities. economic development. . Allows greater opportunity for political . Physical separation of economic development office influence and control over economic exacerbates communication problems. development activities. . Less direct oversight by local government can lead to a . Enables economic developers to exert sense of disconnect and consequent loss of political greater influence on the direction of support for the economic development organization. local government policy. . Greater independence from local government control . Economic developers can serve as reduces influence of politics on decision‐making. champions of large projects within the local government.

ISSUE 4. ADMINISTRATION AND REGULATION

While hardly unique to economic development, the administrative burden and bureaucratic constraints within local government were raised as important barriers to an effective economic development program.

In‐House Model Arms‐Length Model . Economic developers are often senior managers, but also . Independence from local often work in a department of one or two people. Involving government bureaucracy lessens the economic developer in excessive meetings and issues administrative burden and allows with little relevance to the position detracts from the more rapid response to economic development function. opportunities. . Requirement for senior staff and Council approvals . Flexibility is enhanced by hiring increase time and effort required to respond quickly to contractors on a project basis business demands (e.g., making an unscheduled rather than maintaining a large out‐of‐town trip to meet a client). permanent staff.

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ISSUE 5. CO‐LOCATION WITH OTHER AGENCIES

Some BC communities are now combining economic development with tourism or film promotion agencies into a single office.

In‐House Model Arms‐Length Model . Little potential for . Co‐location with related agencies allows greater co‐ordination of co‐location with other activities and saving of overhead costs. agencies with the in‐ . Organizations like tourism and film promotion agencies are essentially house model. It may be doing economic development focused on a particular sector. There possible for some may be significant synergies between, for example, tourism agencies to be brought promotion, investment attraction promotion, and new resident into the local promotion that are less likely to be realized with separate government but tourism organizations. promotion in particular . Particularly in smaller communities where financial resources are requires a highly limited, it is sensible to limit overhead costs to the greatest degree accessible location possible. It may also be helpful in limiting the demands placed on outside of government community volunteers who would otherwise become involved with offices. multiple organizations. . A number of communities have incorporated the Chamber of Commerce and other similar groups into a single location. Other organizations like Community Futures Development Corporations, Business Improvement Areas, and other business‐related groups are other possible partners.

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ISSUE 6. “DEAL‐MAKING” AND PROVISION OF INCENTIVES

The ability to enter partnerships and joint ventures was one of the reasons the UEDC was initially created in Ucluelet.

In‐House Model Arms‐Length Model . Local governments are constrained by legislation and . Have more freedom to be creative in their own regulations that prohibit offering anything to a dealing with potential investors. May company that might confer an advantage relative to be able to own land and may sell it other companies. not necessarily to the highest bidder, . Lack of incentives (e.g., property tax reduction, free but to the bidder that will create the infrastructure upgrades, support for training) relative to greatest economic value from the American locations may be a disadvantage in the eyes of land. American companies that are accustomed to being . There is greater latitude to negotiate offered inducements to locate in a particular area. a comprehensive deal that may . General consensus among BC economic developers is include other inducements to the that the lack of most American‐style incentives is not a company, such as assistance with drawback because it avoids the “race to the bottom” financing or a lower land sale price. that happens when municipalities compete to offer the . Increased freedom of arms‐length best incentives and thereby eliminate much of the organizations to structure deals is still benefit they would otherwise receive from the not comparable to the incentives investment, such as an enhanced local tax base. offered by American jurisdictions.

The final two issues shown below are also important to consider in the structure of an economic development organization but are not significantly different for the in‐house local government model versus the arms‐length model.

ISSUE 7. STRUCTURE OF ECONOMIC DEVELOPMENT BOARDS AND ADVISORY COMMITTEES

The Board structure of the UEDC is somewhat unusual in that most arms‐length organizations have their own Board that is separate from Council (although often includes one or more Council members). The following comments refer to the typical situation in most BC communities.

. Nearly all economic development boards and committees have a mixture of public and private sector representatives. Some have a fixed roster of appointments that must come from designated organizations (e.g., local government, Chamber of Commerce) or important sectors (e.g., forest industry, tourism, and agriculture).

. Some organizations require potential board/committee members to apply, at which time their applications are reviewed (often by a membership committee of the board) and a recommendation is made for the next round of appointments. In other cases, the board uses their own knowledge of community leaders to identify and approach individuals. Board elections may or may not be held to verify appointments.

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. There is no clear consensus on the best approach to appointing board/committee members – what is important is the support of the local government, the business community, and the public at large. It is likely, however, that the more transparent and rigorous is the selection process, the fewer problems will ensue.

. For in‐house economic development offices, ultimate control over activities and the strategic direction is provided by Council, so an economic development committee is strictly advisory. There is strong consensus, however, that the active participation of local business leaders is essential for identifying and focusing on the most important economic development issues for the community. Business community participation is less easily achieved in the local government model where business leaders must accept working within a bureaucratic framework. Some BC municipalities have struggled to maintain an advisory committee over the years as there is a feeling that Council has not been interested in allowing others to provide direction to the economic development program.

. Regarding the issue of having fixed board positions from specific sectors, there is some feeling that this leads to a situation where the board members feel responsible for ”representing” their sector, rather than acting in the best interest of the economic development organization as a whole. While it is desirable for all key sectors in a community to be represented, this may be better accomplished in an informal way without fixed positions. Several private economic development corporations reported that they operate their boards like any other private company, thereby avoiding the politicization of the board as much as possible.

. The issue of term limits on boards and committees has been troublesome for some organizations. Term limits have been introduced to ensure that “fresh blood” is kept on the board, but term limits can also be changed by those wishing to extend their involvement.

ISSUE 8. LOCAL VS. REGIONAL OPERATIONS

The issue of local versus regional scope is not directly relevant for Ucluelet’s situation, but may provide some insight into factors affecting regional partnerships.

. Regional economic development organizations face unique challenges, regardless of how they are structured. There are often political difficulties in ensuring that each contributing entity (either a municipality or a regional district electoral area) is satisfied that they are receiving value for their contribution. It is often the case that smaller entities feel, either fairly or unfairly, that the central or largest community receives most of the attention and benefit of the economic development program.

. Sharing of costs and leveraging of additional resources is one of the primary arguments in favour of a regional approach. The resources of a combined regional entity in terms of both staff and

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budget are often considerably more than any of the individual entities could fund on their own, particularly in the case of small communities that can obtain a far more substantial economic development program by combining with other small communities or with larger communities in their region.

. Most of British Columbia’s economy is highly regional in nature. Industries often have a primary component in unincorporated areas or small communities (e.g., forestry, mining, fishing, tourism) supported by services, transportation facilities, and natural resource processing in larger centres. There are more than half a million people living in unincorporated areas in the province, most of whom live near incorporated municipalities that act as retail and service centres and places of employment. In more urbanized areas, adjacent municipalities often function as part of a single regional economy. Businesses looking to invest in an area are interested in the size of the market, regardless of political boundaries, so if often makes better sense for multiple jurisdictions to have a unified economic development organization.

. The physical size of a region is important in considering a regional function. The point was made by several economic development professionals that regions that are so large that it takes many hours by car to travel between outlying communities may not be suited to a regional partnership. These vast distances diminish the argument that the entire region functions as a single economy, and also make it more difficult for outlying areas to feel connected to activities happening at the centre.

CONCLUSIONS

The following are general conclusions with respect to economic development organizations in BC.

1. There is no single best model of local economic development.

3. The “in‐house” model of economic development remains the most common organizational structure for BC local governments, but there is a trend toward more arms‐length organizations.

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6. Co‐location with other organizations enhances collaborative economic development planning and reduces unnecessary overlap of services.

8. Communication with local government is essential for arms‐length organizations to ensure continued support and coordination of activities.

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APPENDIX E: RESEARCH SOURCES

BC Ministry of Forests (February 1999), Timber Supply Review: Strathcona Timber Supply Area Analysis Report.

BC Ministry of Forests (January 2005), Tree Farm Licence 57 ‐ Issued to Iisaak Forest Resources Ltd.: Rationale for Allowable Annual Cut (AAC) Determination.

BC Ministry of Forests and Range (September 2008), Tree Farm Licence 54 ‐ Ma‐Mook Natural Resources Ltd.: Rationale for Allowable Annual Cut (AAC) Determination.

BC Stats (December 2001), Defining the British Columbia High Technology Sector Using NAICS.

BC Stats (2006), A Guide to the B.C. Economy and Labour Market.

BC Stats (March 2009), British Columbia Local Area Economic Dependencies: 2006.

BC Stats (August 2010), "Special Focus: Tourism Sector slumps in 2009", in Tourism Sector Monitor, Issue 10‐08.

BC Stats (November 2010), “China Could Be a Huge Market for BC Forest Products”, Infoline Report, Issue 10‐44.

BC Stats (March 2011), “Year in Review: A Change in Direction for BC’s Exports”, Infoline Report, Issue 11‐10.

Brown‐Graham, Anita and William Lambe (Fall 2008), Measures and Methods: Four Tenets for Rural Economic Development in the New Economy, Carsey Institute, Policy Brief No. 9.

District of Ucluelet (December 2000), Ucluelet ‐ Crisis and Opportunity: Economic Strategy Meeting.

District of Ucluelet (2005), Ucluelet Community Profile.

District of Ucluelet (2011), Official Community Plan (May draft).

Drabenstott, Mark (undated), Revitalizing Rural British Columbia: Some Lessons from Rural America, prepared for The Real Estate Foundation of British Columbia Project: Reversing the Tide.

Ference Weicker & Company (December 1997), Economic Transition and Diversification Strategy for the Clayoquot: Draft Report.

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From the Ground Up Resource Consultants Inc. (January 2011), Alberni‐Clayoquot Regional District Draft Agricultural Profile – 2011, prepared for Alberni‐Clayoquot Regional District.

GSGislason & Associates Ltd. (February 2004), British Columbia Seafood Sector and Tidal Water Recreational Fishing: A Strengths, Weaknesses, Opportunities, and Threats Assessment, prepared for BC Ministry of Agriculture, Food and Fisheries, in association with Kingzett Professional Services Ltd., Archipelago Marine Research Ltd., Edna Lam Consulting, Ellen F. Battle Consulting Ltd., G. Jones Consulting Ltd., Dr. James L. Anderson and Dr. Gunnar P. Knapp.

GSGislason & Associates Ltd. (April 2007), Economic Contribution of the Oceans Sector in British Columbia, prepared for Canada/British Columbia Oceans Coordinating Committee.

GSGislason & Associates Ltd. (June 2010), Economic Impacts from a Reduced Groundfish Trawl Fishery in British Columbia, prepared for BC Ministry of Environment.

Hambleton and Associates (1997), District of Ucluelet Economic Action Plan.

Iisaak Forest Resources Ltd. (January 2011), Sustainable Forest Management Plan.

InterVISTAS Consulting Inc. (June 2008), Vancouver Island and Sunshine Coast Region Air Transportation Outlook, prepared for Vancouver Island Economic Developers Association (VIEDA).

Malaspina University‐College and Tourism Vancouver Island (July 2007), Tourism Labour Market Research Project: Visitor Profile – Pacific Rim Region.

Nelson, Stuart (Nelson Bros Fisheries Ltd) (March 2007), Challenges and Opportunities of Fisheries Globalization: Perspectives from Canada's Pacific Coast, prepared for Fisheries and Oceans Canada, Trade Policy and International Coordination Branch.

Okey, Thomas A. and Laura A. Loucks (2011), Social‐Ecological Assessment for the Marine and Coastal Areas of the West Coast of Vancouver Island, published by The Tsawalk Partnership (retrieved online at www.westcoastaquatic.ca/sea/book/export/html/212).

Regional District of Alberni‐Clayoquot (September 2000), Completing the Canadianization of the Pacific Hake Processing Industry: A Position Paper.

Seasmoke Communications Inc. (undated), District of Ucluelet Tourism Media Relations Plan: Aug 1, 2000 ‐ Dec 31, 2001, prepared for District of Ucluelet.

Small Craft Harbours (1998), Harbour Authority Manual.

Small Craft Harbours (August 2001), Harbout Authority Planning: Guide to Preparing a Business Plan.

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Statistics Canada (2003), North American Industry Classification System: Canada 2002.

Statistics Canada (2004), Canadian Framework for Culture Statistics.

Synergy Management Group Ltd. (August 1997), District of Ucluelet: Forestry, Fishing & Tourism Trends, Impact and Opportunities Analysis.

Synergy Management Group Ltd. (September 1997), District of Ucluelet: Feasibility and Action Planning for the Development and Implementation of Short/Medium Term Economic Opportunities in Forestry, Fishing and Tourism.

Synergy Management Group Ltd. (October 1997), District of Ucluelet Strategic Economic Development Planning Briefing Paper.

Tourism British Columbia (January 2010), Vancouver Island Regional Profile: Building Tourism with Insight.

Tourism Vancouver Island (undated), 2008 Vancouver Island Visitor Exit Survey, prepared in partnership with Recreation and Tourism Research Institute, Vancouver Island University.

Ucluelet Harbour Authority (undated), Ucluelet Small Craft Harbour Business Plan.

Union of British Columbia Municipalities (November 2010), UBCM 2009 Economic Development Survey of Local Governments.

Vann Struth Consulting Group Inc. (February 2009), Regional Economic Analysis ‐ Vancouver Island and Central/Sunshine Coast: Final Report, prepared for Vancouver Island Economic Alliance.

Vann Struth Consulting Group Inc. (September 2010), 2010 EDABC Membership Survey ‐ Final Report, prepared for Economic Development Association of British Columbia.

Vodden, Kelly (Simon Fraser University Community Economic Development Centre) and Brenda Kuecks (Ecotrust Canada) (2003), The Clayoquot Green Economic Opportunities Project: Taking Steps Towards A Conservation Economy, prepared for Friends of Clayoquot Sound, Ahousaht First Nation & Clayoquot Biosphere Trust.

White/Barton Research Associates and Robert Prescott‐Allen (July 1991), Summary and Analysis of Community Values Surveys of Alberni Valley, Tofino and Ucluelet Area, prepared for District of Tofino and Steering Committee of the Clayoquot Sound Sustainable Development Strategy.

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