Examining retail’s overall impact on our region
Another successful Delegation to China
Preparing your business for sale
BUSINESS MATTERS
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January 2013
Retail in Greater Victoria BUSINESSMATTERS
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BUSINESSMATTERS
CONTENTS BUSINESS MATTERS
January 2013 Business Matters is a semi-monthly publication of the Greater Victoria Chamber of Commerce and a key business resource targeted to 2,000 business leaders in our community. The Greater Victoria Chamber of Commerce is a progressive, inclusive and dynamic community leader. It is a supportive resource for business people who wish to learn, grow and create a stronger business and a more robust and sustainable community while respecting people, planet and profit.
5 Checking In Find out what members had to say about key issues that impact business in
6 Retail in Greater Victoria We took a closer look at how this vibrant industry impacts our region beyond providing a great shopping experience.
10 Member News Keep up with what’s happening in the Chamber community. 13 Transition Planning XPS Group’s Mark Grey-Dreaper writes about preparing your business for sale. 17 Another Succesful Delegation to China
To advertise in Business Matters, contact us at: The Greater Victoria Chamber of Commerce #100 - 852 Fort St. Victoria, BC V8W 1H8 (250) 383-7191 chamber@victoriachamber.ca
Find out the economic impact of the GVDA’s delegation to China.
19 Upcoming Events 21 Longstanding Members
Recognizing members who have supported us for a number of years.
23 New Members
Studies show that people prefer to do business with Chamber members. Check out who has recently made the decision to join us.
27 Industry Profile
Publication Mail Poste-Publications 40005319
our region.
We took a tour of KANO/APPS and interviewed Co-Founder Tim Teh.
29 Taking the Pulse of the Local Economy
This month’s Economic Snapshot examines manufacturing, tourism, education, technology, and marine & shipbuilding sectors.
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CHECKING IN Last fall the Chamber polled our membership about key issues that have an impact on business in our region. Here’s what you had to say:
92.8% { 91.6% { 72.8% { 70.6% {
Amalgamation In addition to the various issues the Chamber is actively addressing, we asked if there were any other issues of concern. Amalgamation was the top response.
think infrastructure projects, such as the Belleville Terminal, need joint municipal support to encourage provincial and federal funding, and create jobs.
think municipal governments must work together to provide integrated services, and to provide quality service to the whole region while saving money. think we need to significantly change our transportation governance to a single coordinating authority so we can manage and improve our transportation infrastructure (roads, transit, etc.) think capital gains taxes should be deferred when investing in another rental property to help create more affordable housing.
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To view the full results of our survey, visit our website at: victoriachamber.ca/news_ policies/key_issues.aspx
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As a consumer driven culture, retail is a major part of Canadians’ lifestyle. Greater Victoria boasts a vibrant retail sector. With several malls, high end fashion boutiques and a number of home-grown products and services, the region offers a wide variety to both local and visiting shoppers. Beyond this great retail experience, Business Matters examines how Greater Victoria’s retail sector impacts our region overall by examining its growth, place in our economy, relationship with consumer debt, diversity, and role as a major employer.
Stable growth Retail growth is normally closely tied with population growth, with little significant change from year to year. However, given the economic situation in the last few years, retail growth has lagged behind population growth. Retail jobs in Greater Victoria dropped by 10 percent from 2008 to 2011, whereas population in the region grew by nearly 3 percent in the same period.
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Even with this disparity, the retail industry has maintained stability when compared with overall employment. Employment in retail and wholesale trade, which are combined in the Labour Force Survey, decreased by less than two percent in BC from 2008 to 2011. Compared with BC’s marginal increase in overall employment by less than half of a percent from 2008 to 2011, retail is keeping pace with provincial employment in spite of the economic crisis.
An economic indicator The retail industry acts as a telling economic indicator, since retail spending foreshadows overall spending trends. In its simplest form, retail suffers in a weak economy and strengthens in a stable economy. Despite this helpful role as the canary in the coal mine, it’s important to remember that retail is a reactive sector rather than a driving sector. The key difference between the two is that a reactive sector recirculates existing dollars, while a driving sector creates new dollars. Therefore the retail industry can’t continue growing just for the sake of growth, there needs
to be an underlying healthy economy to support it. Unlike a manufacturer exporting goods to other markets, which then brings in new money from outside the community in exchange for those goods, retail relies on existing money within our economy changing hands. In order to support retail in Greater Victoria, we need to continue to strengthening tourism, education and the other industries that drive our economy.
Retail trends Stores in Greater Victoria and across Canada are trying hard to keep pace with retail trends being set in the US. Last fall, Canadian spending grew 23 percent on “Cyber Monday” and 6.5 percent on Black Friday. Though still not yet as powerful as in the United States, the discounted shopping days have the potential to eventually overtake Boxing Day as the busiest shopping period of the year. Black Friday occurs on the Friday following American Thanksgiving (the fourth Thursday in November) and is named after the beginning of holiday shopping, when retailers shift from debt (red) to profit (black) on their
RETAIL IN Greater VICTORIA: Examining retail’s overall impact on our region balance sheets. Cyber Monday has emerged an an online follow-up sale to Black Friday’s generous in-store discounts. The Black Friday trend has only truly appeared in Canada within the last few years, and has significant room to grow. American retailers in Canada are helping to promote the campaign north of the border, as are savvy shoppers. According to Darlene Hollstein, General Manager of the Bay Centre, stores at the Bay Centre hosted their most organized Black Friday sales efforts to date in November 2012. Not all US trends are available to Canadian retailers; due to Canada’s lower density and sprawling geography, it is difficult for online retailers to offer widespread free shipping in Canada similar to that offered by large companies throughout the US.
Retail and consumer debt Economist Linda Nazareth calls Canada’s low interest rates a “shopper’s paradise,” which tempts many Canadian consumers to extend
their debt beyond mortgages. With planned obsolescence reigning in today’s retail landscape, it’s no surprise Canadians are taking advantage of these low rates to purchase the latest iPhone and other endless “must have” items. Some consumer debt, though technically considered bad, does help continue to drive the economy. Moreover, when compared with other countries’ economies, Canadians are still in good shape even with our indulgent spending habits. Despite this overall spending trend, British Columbians are doing well; BC is one of only three provinces with higher mortgage interest debt service ratios than non-mortgage interest debt service ratios.
“To support retail in Greater Victoria, we need to continue strengthening tourism, education and the other industries that drive our economy”
Diversity and competition With its diverse mix of local boutiques and large big box stores, the region’s retail offerings cater to a wide range of shoppers. Downtown Victoria’s Lower Johnson Street, nicknamed “LoJo” is renowned for its shops and has even been compared with Vancouver’s hip Robson Street. But with the introduction of heavy hitting stores like Forever 21 last month and the addition of H&M and Target scheduled to open this year, smaller boutique stores will face a new kind of competitor in attracting shoppers. To generate extra buzz for its opening, Forever 21 offered the first 300 customers in line free gift cards, and outfits valued upwards of $150 for two lucky customers, an aggressive campaign out of reach for smaller stores with tighter budgets. Organizations such as the Downtown Victoria Business Association (DVBA) collaborate with and have created the branded precincts and many unique traffic generating events and promotions for downtown Victoria. “Many local stores in the downtown core have been forced to come up with really unique ways to promote their businesses in recent years and with
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great success” says Darlene Hollstein, General Manager of The Bay Centre. “I feel very strongly that these efforts combined with offering consumers a unique and experiential visit, including hosting annual events such as Buskerfest and Jazzfest and building strong partnerships with organizations such as DVBA and Pacific Design Academy, truly makes downtown Victoria special.” Although tourists likely won’t seek out these larger stores which are already available at home, local shoppers who have previously had to travel great distances to visit these stores in the past are sure to meet them with excitement. Local retailers and downtown shopping destinations focus more on the customer experience and more individual engagement, setting them apart from the larger box international retailers entering the market place. Larger corporate stores are essential in diversifying Greater Victoria’s retail mix, offering shoppers competitive pricing and a wider selection. While these stores, whose profits are inevitably leaving the community rather than being reinvested here, may seem
to add less benefit than local retailers who spend their profit locally; they play a key role in employment. Forever 21 created 120 new jobs when it opened in December. Not to mention that those 120 staff will be spend their wages locally.
Major employer in the region Wholesale and retail trade is the largest employer on Vancouver Island and the Coast, with 16% of the workforce employed in this industry. With about half of the population living in the Capital Regional District, many of these service-related jobs are located in and around Greater Victoria, making retail a major employer in the region. Forbes recently highlighted the important role retail plays in women’s employment, especially for those who have taken a step back from other careers due to recession-related layoffs or motherhood. In the US, women currently make up 50.1 percent of the total retail workforce. This number jumps to 72 percent in clothing and accessory stores, where a female workforce dominates. Retail jobs are desirable to workers because they offer more flexibility, off-peak hours,
and overtime among other incentives like employee discounts. Retail is a key player in Greater Victoria’s economy thanks to its stability, reactivity, relationship with consumer debt, diversity, and role as a major employer. Along with all of the ways Greater Victoria’s retail landscape affects our economy and lifestyle; it remains susceptible to global economic trends. As countries like China move toward a consumptionbased economy, Greater Victoria’s retail industry is well positioned to benefit from increased tourism in two ways; first from actual tourist dollars spent in retail, and second from foreign dollar investment entering our local economy. See page 17 for additional details on the economic impact of the GVDA’s recent delegation to China. ON THE COVER: Meet Darlene Hollstein, Greater Victoria’s “Queen of Retail.” As the General Manager of the Bay Centre, Darlene is tuned in to the region’s retail sector. She’s also the new Chair of the Chamber’s Board of Directors for 2013.
Proof yet again that Victoria is a jewel.
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Member News Vantreight Continues To Look Forward
After a devastating fire last September, Vantreight Farms is staying positive and preparing for spring planting. “It’s the only thing we can do,” said Ryan Vantreight, the farm’s General Manager, on maintaining a positive outlook. He calls the rebuild “business as usual, but just a bit harder,” as the farm moves forward with its planting plan, which will include 100 acres of certified organic produce. Although the fire didn’t damage the main facilities or the shop, the greenhouse and storage areas filled with materials and machinery were significantly damaged. As the farm awaits debris cleanup and insurance results, Vantreight Farms is already planning to rebuild the lost greenhouse this spring. The farm will continue to rely on its signature daffodils, but is primarily focused on promoting local, sustainable food security in the region.
SW Audio Visual Welcomes New Regional Manager
SW Audio Visual is pleased to announce the appointment of Chris Lynn as the Vancouver Island Regional Manager. Lynn comes from a background in hospitality, with senior management
positions with local hotels. “Vancouver Island has been my home for more than 30 years and I look forward to bringing my community connection and management experience to what is already a very accomplished and solid events team on Vancouver Island,” said Lynn of his new role.
REES Program Finds a Home
The Victoria Cool Aid Society’s Resources, Education, Employment and Support (REES) program was started by people living with mental illness in 1999. The program provides services and support to community members challenged with poverty, mental illness and addiction. After a sudden move to a temporary location in June 2011, REES is now happily settled into a more permanent and central location at 1509 Douglas Street, across from City Hall.
DVBA Launches User-Friendly Website The Downtown Victoria Business Association (DVBA) launched a new look for its newsletter and a new mobile-friendly website. The website, which was designed by Trapeze Communications, features a comprehensive list of downtown
businesses and boasts a built-in search function that allows users to find businesses by name or category. “This site is far more capable than our previous site,” said DVBA General Manager Ken Kelly. “We hope that people will find it helpful in navigating the downtown core and useful in finding businesses and events, whether they are accessing it from home or on the sidewalk using Downtown Free Wi-Fi.” Take a look for yourself at www.downtownvictoria.ca.
Camosun Students Win Case Study Prize
Four Camosun College business students took home the top prize of $2,500 at the Certified Management Accountants Society of BC’s case competition at Simon Fraser University. The Camosun group competed against 30 other teams made up of first and second year students. Congratulations to Eric Brabander, Annette Wagers, Natalia Simo and John Turner for demonstrating superlative management skills in analyzing a fictional business case!
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Member News Happy 35th Birthday Thrifty Foods!
Thrifty Foods celebrated the 35th anniversary of its first store in December. Celebrations were held at the Fairfield location with 35 years of photo history, a timeline birthday cake, free coffee, and in-store sampling. Thrifty’s birthday follows recent recognition of its Director of Energy and the Environment Jerry Wyshnowky’s environmental efforts. Wyshnowsky was awarded an Excellence Award from B.C. Hydro for being a Power Smart leader. The award also recognizes Thrifty Foods’ energy management policy, which commits the company to $5.8 million worth of future green projects.
RRU Campaign Wins Awards
Royal Roads University (RRU), along with its creative agency Cossette Vancouver, took home Advertiser of the Year at the Lotus Awards in November. The campaign also received three awards at the Marketing Magazine Media Innovation Awards in Toronto. RRU’s Traits We Admire campaign was recognized for its creative excellence in an integrated campaign and outstanding collaboration between
an agency and client. The campaign followed RRU’s refreshed branding in June and included an out-of-home media campaign where commuters at Vancouver’s Burrard Station were encouraged to take home one of 5,000 branded pens from a purpose-built wall.
Tourism Victoria Wins Awards
Tourism Victoria was named Best Company to Work for in B.C in the public sector, non-profit and Crown agency category. Last year Tourism Victoria took home an award in the tourism and hospitality sector. The organization was also recognized for its Escape Your Everyday campaign at the Canadian Tourism Awards in Gatineau, Quebec. “We are honoured and humbled to be recognized at the national level,” said Trina Mousseau, Director of Destination Marketing at Tourism Victoria. “It is the collaborative camaraderie we enjoy with our agency partners, our members and our Sales and Marketing Committee that makes these awards possible.” Tourism Victoria created the campaign in collaboration with local company Eclipse Creative.
Mt. Doug Hits $1 million in 10/10!
Congratulations to Mt. Doug CruiseShipCenters for achieving over $1 million in sales in a single month, on the 10th month of their 10th anniversary! “I attribute our October success to having a very strong team that works together and recognizes that building relationships with our clients is the most important thing we can do to build loyalty and repeat business,” said Janet Maxwell, Owner of Mt Doug. Many of Mt. Doug’s Vacation Consultants were recently recognized for their success at the Presidents Circle Gala Awards at Expedia CruiseShipCenters’ annual national conference.
Caorda & Sage Join Forces
Caorda Web Solutions announced a merger with Sage Internet Solutions in November. The combined entity boasts a staff of 17 and offers increased breadth of services including creative web design and strategy, software development for web, mobile and Windows platforms, as well as Canadian hosting solutions. “I’m excited about the synergies between Caorda and Sage,” said Michael Stevulak, Sage Founder. The merged company is located at Suite 100 – 3550 Saanich Road.
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Member News Victoria Regent Recognized by Readers
The Victoria Regent Waterfront Hotel was ranked among one of the top 20 hotels in Canada for the fourth year in a row! The hotel was recognized by Condé Nast travel magazine readers as only one of two Victoria hotels worthy of this coveted ranking. Victoria Regent’s breathtaking harbour-front location, spacious apartment-style suites with huge balconies overlooking the Inner Harbour, and excellent customer service placed the hotel as 18th best in all of Canada by over 46,000 readers. The
hotel was also recently awarded a Certificate of Excellence for 2012 by Trip Advisor.
Beacon CEO Named CEO of the Year
Beacon Community Services Chief Executive Officer Isobel Mackenzie was named British Columbia’s CEO of the Year by Business in Vancouver and Mackay CEO Forums. Mackenzie was selected for her vision, leadership, financial performance, people development, innovation and commitment to social responsibility
in the not-for-profit sector. Mackenzie has led Beacon for 17 years and her leadership has helped the organization to grow, expanding its community support through health and social service programs.
Cedarwood turns 10!
Cedarwood Productions is delighted to announce their 10 year anniversary of doing business in Victoria! These days Cedarwood enjoys bringing TV series and documentaries to Canadian television networks. Their latest series, The Hard Way, premiers on CHEK this September and will feature a number of Victoria businesses. The cookbook “Flavours of the West Coast,” by Cedarwood Productions with Chef Steve Walker-Duncan and guests recently won Best Local Cuisine at the 2012 Gourmand Cookbook Awards. The book will represent Canada at the Gourmand Best in the World competition in Paris, France in February.
Doors Open at Oak Bay Beach Hotel
The new Oak Bay Beach Hotel celebrated its grand re-opening in December, after a six year hiatus for reconstruction. During the lengthy deconstruction, 95 percent of the old building was either saved for re-use or recycled, leaving only five percent for the landfill. Former patrons will be able to recognize reclaimed features, such as light fixtures and antiques, throughout the new hotel. To get a glimpse of the new building before your next visit, go to www.oakbaybeachhotel.com.
10 Years Later Sitka Still Growing Strong
Sitka founders Andrew Paine and Rene Gaultier have a lot to smile about in Sitka’s tenth year. The pair successfully turned their UVic business plan into reality, and ten years later have stayed true to Sitka’s surf roots while expanding globally. After outgrowing two locations, the Sitka flagship store now resides at 538 Yates street and boasts a café, clothing, and surf equipment. The company has stores in Vancouver and Aukland, New Zealand, and also sells their clothing through a number of other retailers worldwide as well as online.
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Transition PlanninG: PREPARING your business for sale By: Mark Grey-Dreaper, CA•CBV, CMAP, President, XPS Group Inc.
A recent survey by the Canadian Federation of Independent Business found that 24 percent of 2,300 business owners surveyed in British Columbia plan to exit their businesses within the next 5 years and 47 percent plan to exit within the next 10 years. This data can be extrapolated to provide an estimate of approximately 40,000 B.C. businesses changing hands or closing in the next 5 years. Many of these business owners have implemented smart tax planning strategies for future succession, but have they fully prepared their business for a successful transition? By considering the primary types of potential buyers and their motivations, the options available to small business owners and the key ingredients of a successful deal, business owners can prepare themselves for a smooth and effective transition.
are positioned to achieve strategic advantages from an acquisition. This does not necessarily mean that they will pay more than financial buyers. However, they may pay more when competing for a deal that will have potentially greater combined value than the individual business. Standard & Poor estimates that North American strategic buyers have more than $1 trillion cash available on their balance sheets, which is readily available for potential mergers and acquisitions.
Financial Buyers
Strategic Buyers
Financial buyers typically raise a private equity (PE) fund to purchase interests in private companies. Over the past 10 years PE groups have become the most active source of investment capital for private company acquisitions. Individual funds are often in the tens and hundreds of millions of dollars. Pitchbook estimates that there is currently more than $430 billion of committed, though not yet spent, PE capital in North America. PE groups remain selective but are highly motivated to invest raised capital before sponsors demand it back.
Strategic buyers are typically in the same industry or supply chain and
Established PE groups typically seek out businesses with a minimum of
$10 million of revenue per year; which represents only 2% of all businesses. There are also a number of small, local PE groups actively seeking private company investment opportunities in businesses, usually with $2 million to $10 million in revenue, 20 plusemployees, and more than $250,000 in earnings after management remuneration. This segment of the market represents less than 10% of all businesses, meaning it isn’t an option for many small business owners in Greater Victoria.
Management buy-outs Selling to management can result in the most successful transition, though it often provides less upfront cash to the seller. Owners tend to be more accommodating with price and terms to management where they recognize the value of the management team and feel some duty to ensuring their ongoing success. Also, the due diligence process can be much easier when buyers possess insider knowledge. Banks will typically allow for greater financial leverage for a management buy-out because they know that experience in the business leads to a much higher chance of success.
Options for small owner-
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Options for small owneroperated businesses It is relevant to note that micro businesses with less than $2 million in revenue are the largest segment of the market, representing nearly 90% of all businesses, albeit less than 10% of all revenue. These are often referred to as lifestyle businesses and are rarely of interest to strategic and financial buyers. These businesses need to identify or develop entrepreneurial individuals to take the reins. New Canadians immigrating under the B.C. Provincial Nominee Program (“PNP”) are a potential source of buyers as they can enjoy accelerated permanent residency by investing in and actively managing a new or existing business in BC. To qualify, immigrating entrepreneurs need to make a minimum investment of $400,000 into a business in the Lower Mainland or $200,000 in other parts of B.C. There are also attractive programs available to Aboriginal people interested in buying a business. Another option for small businesses is to grow prior to sale. Larger businesses tend to trade at higher “multiples of earnings” than smaller businesses due to greater diversification of risk across a larger customer base, more
product or service lines, and/or more geographic economies. Remember in building your business that value is primarily derived from maintainable bottom line earnings, rather than top line revenue.
“Value is primarily derived from maintainable bottom line earnings rather than top line revenue.” A longer-term or gradual sale can also be a viable option to maximize sale proceeds. Private companies can yield high returns on investment when risks are managed. Moving away from a 100 percent ownership control model to a corporate governance model, which provides discriminatory investment opportunities to the individuals with the highest potential for entrepreneurial tendencies needed in the business, can be highly effective. This process differs from a management buy-out in that the founder stays active at the board level and develops a controlled private market for the company’s shares; while key individuals grow into qualified buyers over time.
Ingredients for a successful deal Many closely-held businesses tend not to build lasting value. The owner views their business as a job that provides them with a “nice income.” This income often arises from the owner wearing many hats in the organization rather than building the people and processes that embed value in the business. While industry focus may vary, sophisticated buyers primarily seek companies with steady revenue growth, a defendable market position, diversity in customer base, stable margins at, or above, industry norms, predictable cash flows, and management teams with a proven track record. Particularly active industries for mergers and acquisitions include software-as-a-service, where buyers are seeking 50 percent to 100 percent year-over-year growth, and healthcare. Building strong senior management in your business is critical to a successful transition. Buyers need someone to run the business and they generally prefer to have solid bench strength in place, although some may be willing to recruit for key positions. Beware: relying on buyers to recruit can slow or stall the selling process.
visit us on the web at www.chinookbusinessbrokers.ca Chinook Business Brokers is a full service Business Brokerage offering businesses for sale on Vancouver Island. We specialize in valuating, packaging, listing and selling existing business opportunities, new business opportunities, and franchise opportunities. Chinook Business Brokers provides comprehensive personal support to our clients through every stage of the transaction. From the initial business valuation, through the due diligence process, to signing the final documents, Chinook Business Brokers offers guidance every step of the way. We create an environment where you can access the information necessary to make decisions, enabling you to maximize your investment and minimize your risk.
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Once the selling process is initiated, maintaining deal momentum is of utmost importance. Financial information and corporate records should be highly organized to respond promptly to due diligence requests. Any weaknesses or negative issues should be cleaned up and/or disclosed upfront to avoid becoming deal-killers upon discovery. Business owners need to consider the realities of their business and develop a realistic view of its value. Chris Boissevain from the Business Development Bank of Canada has observed disconnects at times between seller expectations and a reasonable price for the available quantitative value of micro businesses. He has also observed less sophisticated buyers paying too much to buy themselves a job rather than a self-sustaining business. A business transition needs to be viewed as a partnership between buyer, seller and lending institution, where each party’s interests are met. Planning for a successful exit should begin the day you start your business. Consider whether the purpose of your business is to enjoy a particular lifestyle or to build wealth. An understanding of the various buyer types and motivations can help you to develop a business that not only serves your interests in life, but is also attractive to buyers.
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Another Successful Delegation to China In October the Greater Victoria Development Agency led a delegation to China, including Mayor Dean Fortin and a number of industry representatives from Greater Victoria. The delegation, which visited 6 cities in 10 days, was a resounding success. The trip supported major economic development for tourism, education, investment, immigration, as well as strengthened valuable cultural ties with China.
Why China? With a population of 1.34 billion people, China is the most populated country in the world. It is the second largest economy in the world, and is expected to replace the US for first place within the next 15 years. China is an important and relevant partner to Victoria because of our community’s existing cultural and business ties. Victoria is home to the oldest Chinatown in Canada, which is one of the oldest in North America, and has a Chinese-descended population in excess of 15,000 or 4.4 percent of the region’s overall population. Although many Victoria-based businesses and institutions are already doing business with China, we need to consistently reinforce relationships there— which is a key cultural aspect of doing business in China.
Tourism Tourism, with $1.9 billion in annual impact, is one of Victoria’s key economic drivers. Since 9/11, tourism
has been vulnerable to more volatility than previously seen in the region. Beyond hotels and tourist destinations, many local retailers, restaurants, and service firms rely on tourists to sustain their businesses and create jobs. As of one Canada’s most prominent destinations, Victoria must develop a strong brand in China, and build relationships with partners who influence these tourists. The tourism delegation met with over 50 tour operators to further develop existing relationships while establishing several new ones. For every additional tourist that these meetings generate, $135 is earned for the local economy for each day of their visit. The delegation also met with Consul General Rick Savone and the Suzhou Tourism Bureau to discuss the challenges of visa processing time and how to use social media to promote tourism. If these meetings and planned activities increase inbound tours to Victoria by even just a few hundred people per year, tourism’s economic impact could increase by over $100,000 annually.
Education International students’ impact on Greater Victoria’s economy exceeds $3 billion per year making it one of the most significant local industries.
Every dollar invested in educational institutions results in $3.40 in impact to the local economy. The University of Victoria and Sooke’s School District #62 are two excellent examples of how educational institutions directly benefitted from this trade mission. University of Victoria’s Peter B. Gustavson School of Business began a project with Hunan University in 2010. This relationship was further developed through the delegation’s visit with several partners including the Mayor of Changsha and the President of Hunan University. UVic’s project with Hunan is worth $50,000 per year in revenue, and will increase to $250,000 in the coming years. Impact will continue to grow as this partnership is further developed over time. The October delegation enabled Sooke School District #62 to launch a program for 50 students from Changsha’s Mingde School to attend various schools in the Sooke district next year. These 50 students will bring an economic impact of $1.8 million per year and $9.7 million over five years as the program increases to include 20 more students.
Investment Many Chinese investors are looking for investment opportunities outside China
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to shelter their currency from volatility. Canada is not only renowned for its financial stability and strong currency, but is also generally respected and admired by the Chinese. The delegation met with several investors interested in Greater Victoria projects and opportunities including hotels and a winery. As the baby-boom generation retires in the coming years, there will be a number of businesses seeking investment. By building relationships now, the Greater Victoria Development Agency is helping open doors for these future transition opportunities.
Immigration Many Chinese citizens want to immigrate to Canada. With Canada’s low birth rate and an aging population, our ability to compete internationally and increase GDP relies heavily on immigration. Since Greater Victoria’s mild climate is more similar to China’s than the rest of Canada, it remains a popular destination for immigrants with enough net worth to invest. The minimum investment required to immigrate under the Provincial Nominee Program is $200,000 plus full-time job creation for a local citizen
(at least another $20,000 impact even at minimum wage). If the 2012 mission results in even five new immigrants to Victoria, a minimum of $1.1 million could be injected into the local economy. Immigration is also vital to entrepreneurship and innovation; approximately half of the new “startups” in Silicon Valley include at least one immigrant among their founders.
Cultural Exchange Strengthening ties with China helps support our region’s vibrant multiculturalism. The Department of International Exchange in Changsha plans to develop a 50-student summer cultural exchange program with Greater Victoria. This opportunity would offer second generation Chinese-Canadians the chance to learn more about Chinese culture and their heritage. While the cultural value of this opportunity is immeasurable, the initial investment from Changsha would include $100,000 for travel, accommodation, and other expenses.
beginning to be embraced by Chinese culture. Greater Victoria’s leading role in sustainable economic development can help influence China to follow this great example. There are more than 14,000 businesses in Greater Victoria; many of which rely on international markets. Companies exporting goods generate new wealth in the region, which is then dispersed throughout our regional economy supporting reactive sectors like retail. China is a key market for many of the firms exporting these goods—in sales, and as a source of investment and partnership. By fostering a strong relationship between Greater Victoria and China, the GVDA is helping these businesses to continue growing and supporting our regional economy. Dallas Gislason Economic Development Officer, Greater Victoria Development Agency
Mayor Dean Fortin presented to postsecondary students and faculty on sustainability; a concept that is only
TD Canada Trust
Running a small business is hard enough We can help Owning a small business can be as demanding as it is rewarding. We understand how busy you are, and we want to help. • Easy credit application and fast response • Business account packages tailored to meet the needs of your business • Convenient access in-branch by ABM, phone or web • Professional and personable banking advice
Brian Gordon Area Manager, Business Banking 250-507-7025 brian.gordon@td.com 1070 Douglas Street, Suite 440 Victoria, BC
®/
The TD logo and other trade-marks are the property of The Toronto-Dominion Bank or a wholly-owned subsidiary, in Canada and/or other countries.
18 BUSINESSMATTERS
M00584 (0212)
JANUARY & february Events Thursday, January 10, 2013
Saturday, February 9, 2013
Wednesday, February 13, 2013
5:00pm – 7:00pm Hosted by: Stone’s Throw Restaurant Members & their guests only please
6:00pm – 10:30pm Hosted by: The Fairmont Empress
5:00pm – 7:00pm Hosted by: TBD Members & their guests only please
Prodigy Group Anniversary Mingle
Tuesday, January 15, 2013 Six for Lunch
12:00pm – 1:30pm Location: Ric’s Grill – Steak, Seafood & Chop House Members only please
150th Anniversary Ball
Prodigy Group February Mingle
Tuesday, February 12, 2013
Thursday, February 21, 2013
Six for Lunch
February Business Mixer
12:00pm – 1:30pm Location: The Bengal Lounge Members only please
5:00pm – 7:00pm Hosted by: Vision 2000 Travel Group
Thursday, January 17, 2013 January Business Mixer
5:00pm – 7:00pm Hosted by: Canadian College of Performing Arts & Scotiabank Group Members & their guests only please
Thursday, January 24, 2013 Industry Tour – Scott Plastics 8:00am – 9:30am Members only please
Tuesday, January 29, 2013
WHAT CAN A GROUP RETIREMENT SAVINGS PLAN DELIVER TO YOUR BUSINESS:
11:30am – 1:30pm Hosted by: Victoria Marriott Inner Harbour
“A group retirement savings plan can be critical to stay ahead in a competitive business environment”
Business Leaders Luncheon: President Kathryn Laurin, Camosun College
Monday, February 4, 2013
Understanding the Transition to PST 1:00pm – 3:00pm
• • •
Assist in Employee Retention Attract the best new employees Get ahead of imminent provincial legislation How much does it cost? Where can I find out more about this?
Visit my website or speak to me personally to find out more Brad Clark, CFP Financial Advisor Raymond James Ltd. Suite 1000 – 1175 Douglas St. Victoria, BC V8W 2E1 T: 250-405-2410 // F: 250-405-2499 // TF: 1-877-405-2400 brad.clark@raymondjames.ca // www.bradleyclark.ca
– “offering innovative business solutions here on the island”
Securities offered through Raymond James Ltd., Member-Canadian Investor Protection Fund. Insurance products and services offered through Raymond James Financial Planning Ltd., not a Member-Canadian Investor Protection Fund.
BUSINESSMATTERS
19
Where emerging business leaders need to be.
As a Chamber member, you can send your employees to our monthly mingles for free?
Did you know‌ e
niversary mingl
Special 6 year an
Every second Thursday of the month from 5-7pm, promote your company to this key demographic of emerging business leaders. Thurs Jan 10, 5-7pm Wed Feb 13, 5-7pm
RSVP to mingles@prodigygroup.ca / for more information visit us at prodigygroup.ca
150
Join us for an evening of celebration at our
150th AnniversAry BAll saturday, February 9, 2013 6:00 p.m. - 10:30 p.m. Fairmont empress 721 Government St.
Be there.
20 BUSINESSMATTERS
With performances from
the time Benders! Tickets available online. victoriachamber.ca 250.383.7191
LONGSTANDING MEMBERS As we celebrate 150 years representing Greater Victoria’s business community, the Chamber would like to recognize members who have supported us for a number of years.
Members Over 50 Years Rogers Broadcasting -103.1 Jack FM &
Air Canada
The Ocean FM 98.5
Black Ball Ferry Line BMO Bank of Montreal
Rogers’ Chocolates Ltd.
Brown Bros Agencies Limited
Sands Funeral Chapel Cremation and Reception
Butler Brothers Supplies Ltd.
Centre (Victoria)
Chew Excavating Ltd.
Scotiabank Group
CIBC - Canadian Imperial Bank of Commerce
Strathcona Hotel
City of Victoria
TD Canada Trust
Crease Harman LLP
TELUS Communications
david burr Ltd.
Times Colonist
Fairmont Empress, The
Victoria Van & Storage Co. Ltd.
Individual Dry Cleaners Ltd.
W & J Wilson Ltd.
Investors Group - Yates Island Asphalt Ltd. Island Blue Print Co. Ltd. Island Farms
Some banks chase global clients.
King Bros. Ltd. KPMG MSLP Lunds Auctioneers & Appraisers McCall Bros. Funeral Directors
We value local partners.
Pacific Coach Lines Parker Johnston Ind. Ltd. Pearlman Lindholm RBC Dominion Securities RBC Financial Group -
As an Island business, we understand the unique complexities and opportunities that our Island partners encounter. That’s why our business banking experts are equipped to handle everything – from complex borrowing and investments to more routine banking and insuring. We’re partners in your local success story.
Find out more: iscu.com/business
Commercial Financial Services, V. I. South
BUSINESSMATTERS
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LONGSTANDING MEMBERS Members Over 40 Years AECOM Canada Ltd.
Metro Lexus Toyota Victoria
Berwick Retirement Communities
Oak Bay Marine Group
Better Business Bureau of Vancouver Island
Pacific Beach Investments Ltd.
Budget Car & Truck Rentals
Quality Inn - Downtown
Campus Nissan - Campus Infiniti
Read Jones Christoffersen Ltd.
Canadian Western Bank
Scott Plastics Ltd.
CHEK News
Seaspan Marine Corporation
CIBC Wood Gundy - Victoria
Triovest Realty Advisors - Hillside Shopping Centre
Greaves Moving and Storage Ltd.
United Way of Greater Victoria
Helm’s Inn
Vantreight Farms
Hotel Grand Pacific
Victoria Ford Alliance Ltd Suburban-Glenoak-JaguarMitsubishi
HSBC Bank Canada Kasapi, A. A.
Victoria Real Estate Board
Mayfair Shopping Centre Ltd. Partnership
Western Stevedoring
McCreadie & Tait
Wilson Foods Ltd.
Expert Cleaning Service
Canada's innovation leader providing cleaning services to Victoria and Area
Recruitment with great taste!
Staffing professionals who go “Canada's in the extra mile to match the right cleaning serv candidate with the right employer. Over 40 Years Experience And Canada’s Largest Janitorial Service Provider
Certified • Experienced • Sustainable Industrial Commercial Institutional Educational Retail
Main Floor, 1124 Fort Street Victoria, BC
For more information:
www.bee-clean.com Victoria Office: 526 Comerford Victoria B.C. phone:250-381-7566 fax:250-381-7570
Call us today 250.381.3254
E
Celebrating 15 Years of BusinessCertified • Exper in Victoria - September 2012 www.pgstaff.com THE CONTRACTORS’ CHOICE
40 Years Experience & Canada’s La New Look. New Site. Check usOver out online.
22 BUSINESSMATTERS
100% Ca
NEW MEMBERS A PAWsh Oasis Pet Resort
One of Victoria’s newest pet care boarding resorts for the canine and feline members of your family. Our main attraction is our close proximity from the Victoria city core to a ”unique” wilderness setting in Saanich. (250) 589-2072 www.pawshoasispetresort.com
Associated Independent Adjusters
The Victoria office was established in the year 2000 to finalize our efforts in offering adjusting services to Vancouver Island. The Victoria office has developed into a well recognized independent adjusting firm on southern Vancouver Island. (250) 381-9411 www.aiaclaims.com Bon Macaron Patisserie Ltd We are dedicated to offering an amazing moment in one guilt-free bite. Our Macarons are created in over 20 flavours, perfect for any occasion! (250) 813-1055 www.bonmacaronpatisserie.com
Brannigans Restaurant
We take pride in offering high-quality comfort foods in a casual family-style atmosphere. Fine food - reasonable pricing. Come join us at Brannigans Victoria, where Victoria families dine. (250) 472-1083 www.brannigans.ca
It’s simple. Hire a student. See results. Canadian Diabetes Association It’s simple. We’re leading the fight against diabetes by helping people with diabetes live healthy lives while Hire a co-op working to find a cure. (250) 382-5454 student. www.diabetes.ca Cold Star Freight Systems Inc. See results. We provide Vancouver Island and the Lower Mainland with the best refrigerated trucking service available for just-in-time delivery of fresh and frozen food. (250) 391-7425 www.coldstarfreight.com
Co-op students have the skills, knowledge and flexibility to help your workplace excel— and open a window on future recruitment.
Post a job today.
Work terms normally begin in January, May and September.
Co-operative Education Program and Career Services www.uvic.ca/hireacoop 250.721.7628
Put learning in motion.
BUSINESSMATTERS 23
NEW MEMBERS Concert Properties/Era
Concert is an award-winning diversified real estate enterprise specializing in developing rental, condominium and senior’s housing, acquiring and developing commercial properties and property management. (250) 383-3722 www.Eravictoria.com CoraPay (250) 883-0635 www.corapay.com
ECS Electrical Cable Supply Ltd The largest independently owned distributor of wire and cable products and solutions in Canada; with a focus on specialty markets. Offering a diverse product portfolio, technical application solutions and value-added services. (250) 361-9199 www.ecswire.com
Elizabeth Backman
Elizabeth inspires, interactively trains through workshops and professionally speaks on civility and etiquette to support businesses, personal finesse and enhanced social awareness. (778) 677-6815 www.elizabethbackman.com Famoso Market Square Famoso is a fast casual pizzeria serving authentic Neapolitan pizza in a warm and lively atmosphere now here in Victoria. Recipient of Edmonton’s Golden Fork. (250) 590-2648 www.famoso.ca
Flynn Roofing
Providing quality contracting services in the institutional, commercial, & industrial construction marketplace. Your source for roofing, environmental solutions, curtain walls & glazing or architectural metals. (250) 652-0599 www.Flynn.ca
GoodLife Fitness Bay Centre
We give every Canadian the opportunity to live a healthier, happier life, and feel better about themselves. We do it by making fitness fun, easy and affordable. (250) 381-9444 www.goodlifefitness.com Hand and Beak Luigi the Lovebird is passionate about shredding paper. Mary McQueen takes Luigi’s shreddings and arranges them into abstract and themed designs creating the world’s first inter-species greeting cards! (250) 686-0005 www.handandbeak.com
Helm Legal
Providing legal services in Victoria, the Western Communities, Duncan and Sidney. Jordan Helm is the founding principal of Helm Legal. (250) 588-4356 www.helmlegal.ca
24 BUSINESSMATTERS
NEW MEMBERS Innovative Fitness
Modern Mortgage Group
Insightful Marketing Inc.
Mortgage Architects
Innovative Fitness is a personal training company with a single focus: facilitate personal reinvention through physical challenge, adversity and victory. By supporting our customers through their training adversities we help them achieve their goals. (250) 920-0029 www.innovativefitness.com We help businesses GROW and THRIVE using mobile, Internet and social media marketing solutions. Visit INSIGHTFULM.ca to download 5 free reports, including “Marketing Secrets Revealed.” (250) 889-1429 www.insightfulm.ca
Island Hockey 101 Ltd
Tasty television developed locally by MaxFlex includes YUM! with Executive Chef Garrett Schack from Chateau Victoria’s Vista 18 Restaurant. (778) 433-6929 www.maxflextelevision.com McAvoy Rule & Company (250) 592-5542
New Century Signs
Offers the most advanced printing technology in Victoria. Our unique UV light cured ink lasts longer for interior and exterior signs. Printing on anything from paper to granite, we provide the best product value no matter the size of your project. (250) 590-5578 www.newcenturyss.com
Perma Construction
At Perma Construction, we take pride in having a reputation for delivering quality workmanship on all of our construction projects since 1976. (250) 384-2323 www.permaconstruction.com
Looking for a last minute gift?
Marigold Service Ltd.
MaxFlex Digital Media
NCCI continues to stay on the leading edge of On Hold messaging technology and as a result can offer your company the benefits of digital download On Hold service. With information on hold, customers will hold, on avg 3, 4 mins for you to get to them. (604) 329-6488 www.nccionhold.com
Besides finding the right rate, we can custom fit your loan or mortgage to give you the results that best suit you. Whether first time home buyer, looking to renew or switch, considering a renovation, a second home or investment property, we can assist you. (250) 744-5557 www.mortgagedesigners.ca
Island Hockey 101 is an adult, beginner, coed ice hockey league in Greater Victoria. (250) 661-6149 www.islandhockey101.com Kwusen Research & Media Ltd. Supporting indigenous communities in research and media productions to document, archive, and share their cultural knowledge, land use activities, and languages. (250) 858-3878 www.kwusen.com We maintain and repair all types of automotive vehicles including right hand drive, classic and antique cars. (250) 744-5787 www.marigoldservice.ca
NCCI On Hold Marketing
A home is the largest purchase most people make during their lifetime. At Dominion Lending Centres, we want to make each and every purchaser aware of the many mortgage options available to them prior to their purchase and closing date. (250) 588-9917 www.jasonzailo.ca
A Royal BC Museum membership will be appreciated for an entire year and you will be supporting one of the foremost cultural institutions in the world. Ask us about our corporate membership offer. Give the gift of membership today. www.royalbcmuseum.bc.ca/join
Woolly Mammoth Natural History Gallery
Kwakwaka’wakw Ceremonial Masks First Peoples Gallery
Old Town Modern History Gallery
BUSINESSMATTERS 25
NEW MEMBERS Power-Clean Building Maintenance
Our mission is to fulfill the cleaning needs of our customers and exceed their expectations for quality, service and value; to serve you, the client, to a degree that exceeds your expectations and maintains highest standards possible. (250) 889-8938 www.commercialcleaningvictoriabc.com Prodigy Window Films Prodigy Window Films is a Canadian company which is based in Victoria that sells and installs flat glass window films and glass tinting products throughout the Province of British Columbia. (250) 477-3126 www.prodigywindowfilms.com
Randstad
Canada’s leader for staffing, recruitment and HR Services. (250) 383-1389 www.randstad.ca
Ride the Glide | Segway Victoria
Ride the Glide to more exciting business promotions, events, workshops or teambuilding. Ask us how! Segway Victoria your Segway Sales, Service, and Tours solution. (250) 418-0812 www.ridetheglide.ca
Royal Victoria Yacht Club
Join the Royal Victoria Yacht Club, fun, friendly and affordable. A place to race, a place to start your cruise, a place for families to have fun, or a place to get away. (250) 592-2441 www.rvyc.bc.ca
Russ Hay’s The Bicycle Shop From high-end mountain and racing bikes, commuting bikes, touring bikes, cruising bikes, your child’s first bike to a full range of components and accessories, Russ Hay’s knows bikes. (250) 384-4722 www.russhays.com
File And Smile Chamber of Commerce Member Specials for small and large businesses on tax preparation services for individual members or employee groups. Call 250-360-2281 for details. INCOME TAX PREPARATION SERVICES Liberty’s guaranteed, conndential service at economical rates include: • Small business returns • Home business returns • Year round service available at no extra charge • Fast, convenient service provided by professional staff • Electronic ling Three convenient locations: Call 250-360-2281 or visit LibertyTaxCanada.ca
26 BUSINESSMATTERS
Sanction Board Shop
Vancouver Island’s best selection of skateboards, snowboards and streetwear brands. (250) 590-2597 www.sanctionboardshop.com
Seafirst Insurance Brokers
We offer insurance for business, home, auto, marine, strata, travel and more. If you’re looking to insure your car, motor vehicle, boat, vacation, condo, house or just about anything in the greater Victoria region, contact us today. (250) 652-1141 www.seafirstinsurance.com Smith Healthy Vending (250) 661-5347 Super Save Disposal (Victoria) “The Blue Guys” providing roll-off and front end waste disposal and recycling service to construction, commercial, industrial and residential customers. Service available in British Columbia, Alberta, Saskatchewan and Ontario. (604) 539-2685 www.supersave.ca TDStar Technologies Corp. (250) 885-0346
The Oaks Restaurant and Grill (250) 590-3155
Victoria HarbourCats
The Victoria HarbourCats are Victoria’s entry in the West Coast League, a college-level, wooden-bat baseball league featuring elite-level college players from across North America playing at Royal Athletic Park from June through August. (250) 216-6953 www.harbourcats.com
Industry Profile: KANO/APPS The Chamber visited KANO/APPS to gain insight into Victoria’s gaming industry. Although the company is only a few years old, it is considered a veteran in social gaming; an arena that has quickly evolved since its creation five years ago. Business Matters got a sneak peek of the KANO/APPS headquarters and interviewed co-founder Tim Teh to get the inside scoop. In a nutshell: We make highly addictive social games that connect people through play. Number of Employees: We have 20 full-time staff in Victoria and growing. Industry Sector: Social and Mobile Gaming Area of Town: Downtown, in the Design District above Union Pacific Coffee. Primary Product/Service: We have four games that can be played on platforms like Facebook as well as an online gaming portal, kanogames.com, and two new games being released this month.
Annual Revenue: KANO/APPS is a selffunded and privately held company. Tim boasts “we have cash in the bank to grow... I will let readers work the math on that one!” KANO/APPS in 30 words or less: An “indie” gaming company that is growing a vibrant and thriving community through fun and engaging social games. Business Matters: What is the best part about doing business in Victoria? Tim Teh: Great work life balance, a moderate climate and lots of talent available to help grow an amazing team. Victoria has all the amenities of a modern city, but is far enough removed from big city life that it doesn’t seem stressful. BM: What is the best thing KANO/APPS is doing for Victoria? TT: Since starting in 2008, we have created a number of new jobs in the community and have worked to support and help grow Victoria as a tech center, whether through sponsoring local game jams or
islandnet.com locally owned and operated since 1993
vancouver island’s premier internet service
answering questions in a classroom of eager entrepreneurs at one of our local feeder schools. BM: What is it like working at KANO/ APPS? TT: Our team is super driven and aligned with the goal of building the best games we can. We are challenged to learn and grow daily, while still having a lot fun. Our culture is the opposite of corporate: we have relaxed attire, beer Fridays, team “lunch ‘n learns” and company hack days. Everyone has a say here and everyone knows exactly how they contribute to our roadmap and goals. BM: Can you tell our readers more about hack days? TT: For a full day every quarter, people who don’t normally work together partner up in teams of two to three to work on something they are personally interested in. Last time, people worked on a feature for a game that wasn’t yet released, but that they were very passionate about. At the end of the day their work was demonstrated to the group, and everyone responded
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The KANO/APPS team.
with so much excitement, we decided to add the feature to the game in time for its release. BM: What are 3 things few people know about KANO/APPS? TT: Two of our co-founders, Eric Haight and Eric Alpini, have known each other since elementary school. I met them both when we were assigned to the same residence building at UVic. In the pre-revenue days our team, then only four members, worked out of one another’s condos. I remember coding in Eric Haight’s kitchen when he would wake up in the morning to make himself a coffee or smoothie for breakfast! In our five years in production, we have reached millions of players worldwide and continue to
improve the quality of our games and the experience we provide our users. BM: What is KANO/APPS proudest of? TT: Our team, what we have created together, and what we are creating next. We are extremely proud that we have been able to launch KANO/ APPS without external funding or loans and haven’t had to compromise our integrity or vision because of a market trend.
to our live production games daily. As soon as a new feature is released to a live game, hundreds of thousands of players see and interact with it immediately. It is very fulfilling to know that your work will be enjoyed by many people in a very short timeframe. We strive very hard to make sure that all our players are heard by focusing on high quality customer support. Listening to our players has helped us to create better gaming experiences for them.
BM: Are there any other fun facts we should know? TT: While traditional console game developers take two years to release games, we work in a fast paced environment where we release code
Interested in participating in an Industry Tour? This month we’ll be visiting Scott Plastics on Thursday, January 24th. Reserve your space and find out more online at www.victoriachamber.ca/events.
Co-founder Tim Teh.
28 BUSINESSMATTERS
ECONOMIC SNAPSHOT
Taking the Pulse of the Local Economy Canadians were shocked last November when Mark Carney, former Governor of the Bank of Canada announced his move to the Bank of England. While Carney’s departure left some Canadians worried, others are noticing the real potential of this situation: Canada’s financial guru can help strengthen Europe’s economy, which will help Canada’s economy in turn. Closer to home, Victoria’s economy held steady through to the end of 2012. The last unemployment rate available (before going to print) was 5.6 percent. Many economists refer to 5 percent unemployment as “full employment,” reinforcing Victoria’s stability, especially in relation to many other North American cities. Experts predict Victoria will inch higher in the GDP growth category in 2013. The Conference Board of Canada predicts
2.3 percent for the year, placing us in the 12th position for metro-regions in Canada, out of 33 total.
the opportunity to train pilots from all over the world on behalf of clients who purchase aircraft from nearby Viking Air.
Manufacturing
Tourism
Canada’s dollar seems to have eased the rising pressures surrounding international economic uncertainty. Thus local manufacturers have gained a slightly better competitive position globally. Such an advantage can help ease the transport costs of manufacturing on an island. Regardless of currency, Victoria boasts numerous success stories in manufacturing—such as Scott Plastics, Ramsay Fabrication, Nicholson Manufacturing and many others.
According to the Conference Board of Canada’s Travel Market Outlook Forecast BC saw a 2.1 percent increase in overnight visits and a 3.6 percent increase in visitor spending to $8.1 billion last year. Visits are expected to increase another 2.8 percent and spending should reach $8.5 billion in 2013. Globally, tourism is increasing at a rate of 4.6 percent. Meaning both Canada and Greater Victoria must continue to pursue new and emerging opportunities. Having attained Approved Destination Status from China a few years ago, we are still only beginning to cater to the expanding market of Chinese tourists, whose visitation numbers were up by 23 percent this past year. Although the Chinese market doesn’t make
What is often ignored however, are the numerous spin-off opportunities a strong manufacturing sector creates. Pacific Sky Aviation’s office near the Victoria International Airport is a great example. Their location offers them
BUSINESSMATTERS 29
up for declining American visitors, it remains a remarkable opportunity for future growth.
Education Each of Greater Victoria’s postsecondary institutions boasted increases in international student enrollments for the 2012-2013 school year. These institutions are also actively delivering contract education services in overseas markets. This combined success helps diversify revenue streams for local institutions, helping ease pressure from increasing tuition. Additionally, for every dollar invested in education, $3.40 is returned to the local economy, creating a profoundly positive impact on our region’s economy. Last fall, following an in-depth study, the University of Victoria announced that it provides an economic impact of over $3.2 billion per year.
more of these companies are opening offices in Victoria. Turn to page 28 to read about KANO/APPS’ social gaming success story.
Marine & Shipbuilding As Seaspan gears up for long-term procurement work, spin-offs are already occurring in the marine sector. Germanbased company ATLAS ELEKTRONIK GROUP recently established headquarters at the Vancouver Island Tech Park in anticipation of local shipbuilding contracts. Perhaps the biggest spin-off of 2012 was the Provincial Government announcement of a $29 million investment into a Trades Learning Centre for Excellence at Camosun College. This investment will help ensure that our region is meeting the needs of many important business sectors like marine, shipbuilding, and more.
Technology
Government
According to VIATeC, as global market conditions continue to influence the pace of growth, our tech sector should see a “total increase in revenues in excess of 30 per cent over the next five years.” Greater Victoria’s tech and gaming industry continues to grow as
Last fall Provincial Finance Minister Mike de Jong announced that 2012’s provincial deficit was expected to reach $328-million more than First Quarterly Report estimates. Total projected deficit for 2012-2013 is $1.47 billion. However, according to the Economic Progress
Council, who advises the provincial Cabinet on various issues, BC’s GDP growth is likely to outperform the Canadian average in 2013. Within this context, Minister de Jong is confident the Government can balance the 2013 budget. Efforts will have to include thorough budget cuts, and possible tax increases. Municipal governments have reason for optimism; Basia Ruta, the first appointed Municipal Auditor General, takes office this month. The Municipal Auditor General will help guide municipalities towards more sustainable fiscal strength by identifying best practices and improving spending efficiencies province wide. As we enter budget season, the timing is right for the Municipal Auditor General to begin working with municipalities in planning for the year ahead. Now is also the time to begin writing your MP with any concerns about the budget, to ensure your voice is heard. The Chamber completed its budget last month, and reminds business owners to plan ahead for the reintroduction of PST. Attend our event Understanding the Transition to PST on Monday, February 4, 2013 to ensure you are fully prepared.
I believe Victoria is a great conference destination … “I felt proud to represent Victoria and the Victoria Conference Centre at my Association’s annual meeting. Working with the VCC team to bring the Fire-Rescue Canada meeting here in 2015 has been a real pleasure – a very rewarding experience for me both personally and professionally. I can’t wait to showcase my home town.” JEFF LAMBERT
Fire Chief, Victoria Fire Department Proud to be a Victoria Business Ambassador
Every delegate spends $350+ per day in our community. Help us to identify future business. Call me and become a Business Ambassador. Brenda Anderson Director of Sales & Marketing Direct: 250-361-1035
30 BUSINESSMATTERS
PREPARED FOR: VICTORIA CONFERENCE CENTRE PUBLICATION: CHAMBER BUSINESS MATTERS INSERTION DATE: JANUARY 2013
Your Community.
Your
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