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Highway 3 Corridor Economic Impact Study Draft Final Report October 7, 2011

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Highway 3 Corridor Economic Impact Study Draft Final Report October 7, 2011 Highway 3 Corridor Economic Impact Study Draft Final Report October 7, 2011 Davies Transportation Consulting Inc. Wave Point Consulting Ltd. 55 Services I I I Contents I 1 EXECUTIVE SUII(IMARY ...........•.•.............•.•...••........•.......•.............................•.....•.... 9 1.1 Current and Future Economic Opportunities .............................................................................. 9 1 2 . 1.2. 1Ec~~~:~:::~t:tii~·::::: :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: :::::~::::::::::: :::::::::::::: ~ ~ 1.2.2 Additional Impacts of Induced Traffic Growth .... , ........... :............................................................. 11 I 1.3 Stakeholder Perspectives ........................................................................................................... 13 I 2 INTRODUCTION ......•..........•••••...•.. ;...............••.••.••.•....••...........••.•......•...........••.••• ~ •.• 14 3. ECONOI'JIICOVERVIEW OF THE HIGHWAY 3 CORRIDOR ..............~ .•....•......••.•.• 15 . 3.1 · p¢mographics al)d Labour Force.Pa~tlcipation ....... ,........•.......•....•..• ,.................. :.•...........•........ 15 .· ....•...· .. · . / . .. 3.2 Industrial Stru.oture .................. ;o •.••••• ., ••••••••• .'•••• : ••• ; ........... : ........................... : ••••••• , ....................... 18 3.3 "EiliRioyrnent'by Industry. Secfor 2006.and 201 o............... ,., ................ ,........ ,....•...... ... :.... ......... ·19 3.4 ~ajpr lnd!.!stri:es ..................................: ...... :................................... ·········: .................................... :2'1 .I ... ; ... ....., ..... , ..... ..........................................- .............. : ... : •..... 3.5' Se,Yice'S<icto< ........................... ,. 7 ~ ~ 21:. • 3.6 f\ V.erag:e J[u~bllle ....... ·• .: .•. ..... ; ...... :.. .... ;:, . .:.......... ,,., ·' ••. ,;, ......... : ... ;.. ,.•. , ... ;. '·· ,., •.• '· .., ..: •, .. :................ ,.• 22· · .I 4·. MAJ.QRINOUSTRIES: MINING.At-ID MINERAL PROCESSING.:.; ....·: .... , ....... ,•• , .... 23 . I 4.1. Operating. Mines ............. :, ........................ :...... ;................. ,........................ ,.............................. ,. 2'3 4.2 Mining Projects and Exploration .. ,............................................................................................. 24 5 MAJOR INDUSTRIES: FOREST PRODUCTS ......................................................... 27 5.1 Existing Operations .......................................................................... :......................................... 27 5.2 Potential Expansion of the Forest Sector .................................................................................. 29 I 6 TOURISM OVERVIE:W ............................................................................................. 30 6.1 Introduction ................................................................................................................................. 30 .l 6.2 · Room Revenue ............................................................................................................................ 31 6.3 Accommodation Supply ............................................................................................................. 34 .I 2 6.4 Parks & Camping ........................................................................................................................ 35 6.5 Other Services ...................................................., ....................................................................... 37 6.6 Retail Services ............................................................................................................................ 38 6.7 Transportation ............................................................................................................................ 39 7 TOURISM • OKANAGAN·SIMILKAMEEN ............................................................... 40 7.1 Room Revenue ............................................................................................................................ 40 7.2 Accommodation Supply ............................................................................................................. 41 7.3 Other Services ............................................................................................................................ 42 7.4 Retail ............................................................ : ............................................... : ............................... 44 7.5 Transportation ............................................................................................................................. 45 8 TOURISM· KOOTENAY ROCKIES ......................................................................... 46 8.1 Room Revenue ............................................................................................................................ 46 8.2 Accommodation Supply ............................................................................................................. 47 8.3 Other Services ............................................................................................................................ 48 8.4' Retail ............................ :........................ ;.. :.......... :.......... ; ........................... :...... :.......... ; ........ :..... 50 8.5 Transportation ............ ,........................................................................................................... ; ... 50 9 HIGHWAY 3 CORRIDOR TRANSPORTATION HISTORY..................... · .......... , .. ;; .. 52 · 9.1 Rise and Decline of the Railway System .....................................................................; ............. 52 9.2 Development of the Highway 3 Corridor .................................................................................... 53 10 TRAFFIC PATTERNS ON THE HIGHWAY 3 CORRIDOR.: ................................. 55 10.1 Data Sources anti' Methodology ................................................................................................. 55 10.2 Corridor Traffic Patterns ............................................................................................................. 56 11 TRUCK TRAFFIC .................................................................................................. 61 11.1 Highway 3 Corridor Truck Traffic Volumes ............................................................................... 61 11.2 Truck Traffic- Mining and Mineral Processing ......................................................................... 64 11.3 Truck Traffic- Forest Products ................................................................................................. 65 3 I 12 THROUGH TRAFFIC ON THE HIGHWAY 3 CORRIDOR .................................... 68 i 12.1 Travel Times and Distances ................................... ,.............. ~ .................................................... 68 12.1.1 Vancouver to Calgary ............................................................................................................ 70 12.1.2 Osoyoos to Vancouver and Calgary ...................................................................................... 71 I 12.1.3 Alberta Border to Vancouver via US 1-90 ............................................................................... 71 12.1.4 Eastern Portion of Highway 3 Corridor and Calgary ............................................................... 72 12.1.5 Travel Time Summary ........................................................................................................... 72 12.2 Highway Characteristics ............................................................................................................. 73 12.3· Other Factors .............................................................................., ............................................... 75 13 TRAVEL TIME SAVINGS: DIRECT USER BENEFITS ......................................... 77 I 14 TRAVEL TIME SAVINGS: ECONOMIC IMPACT OF INDUCED TRAFFIC .......... 79 14.1 Economic Impact Analysis ......................................................................................................... 79 14.2 Impact of Highway Improvements on Tourism: Kelowna and the Coquihalla Highway .......... 80 14.3 Impact of Highway Improvements on Tourism: Golden and Highway 1 .................................. 80 \ . I 14.4 Origin/Destination Patterns for Tourist Trips in the Highway 3 Corridor ................................. 8.3 14.5 Induced Tourism Growth on the Highway 3 Corridor- Scenario Analysis .............................. 87 I 15 APPENDIX 1 COMMUNITY PROFILES· HOPE TO PRINCETON .................. ,... 9t 15.1 Princeton ..................................................................................................................................... 92 I 16 APPE;NDIX 2 COMMUNITY PROFILES" PRINCETON TO OSOYOOS ............. ; 95 16.1 Keremeos., .................................................................................................................................. 96 16.2 Oliver ... ,....................................................................................................................................... 97 16.3 Osoyoos............................................. ,........................................................................................ 99 17 APPENDIX 3 COMMUNITY
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