Progress 2020 Update

KAMLOOPS

PROGRESS

2020

UPDATE

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PUBLISHED BY

VENTUREKAMLOOPS.COM

KAMLOOPSTHISWEEK.COM

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WEDNESDAY, September 30, 2020

www.kamloopsthisweek.com

2020 KAMLOOPS PROGRESS UPDATE

Community’s character unchanged Pandemic has altered a lot, but city’s core remains intact On March 12, 2020, Mayor Ken Christian made his annual State of the City Address to an audience of more than 150 business leaders hosted by the Kamloops Chamber of Commerce.

It was the last such gathering in Kamloops before COVID-19 turned the community — and the world — upside down.

Into that void we launched Progress 2020: A New Decade of Success. Our annual Progress edition is a special magazine which takes stock of our community’s

accomplishments and looks ahead to its future — as indicated in its title, at the whole decade to come.

While the pandemic has changed many of the businesses we wrote about in this piece — our burgeoning dining scene, the continuing success of the Tournament Capital Program’s sporting events, the growth of the Kamloops Airport and the boldly unscripted new direction of Tourism Kamloops — the fundamentals that have carried us through these uncertain times are still here, still strong.

As Kamloops, B.C. and Canada adjust to new realities and begin to emerge from the crisis that has gripped us, we thought it was time to remind the community of that vision for the decade to come.

Our partners at Venture Kamloops have graciously supported our efforts to provide you with this 2020 Progress Update.

This is being distributed to more than 5,000 business leaders across B.C. through Business in Vancouver magazine as an insert into the Progress magazine, and we’ve

reprinted it here for our community as well. Here you can read about how our community has worked through the pandemic and our plans to build, recover and grow.

The future to come doesn’t look entirely like the one we saw six months ago, but we know that through hard work, resilience and the strong sense of community we enjoy here, we will move forward together into a new decade of success.

Tim Shoults Operations Manager Kamloops This Week

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2020 KAMLOOPS PROGRESS UPDATE

Silver linings exist despite pandemic Region’s real estate nubers remain strong; room for growth

T

o say that 2020 has been difficult so far would be an understatement.

Over the past six months, we have seen a catastrophic downturn in the economy, countless new regulations and an ever-changing suite of new programs and supports as everyone in the world attempts to navigate this new territory.

Kamloops has not been immune to the extremes of 2020, but what effect has this global pandemic had on a local level, and what has Venture Kamloops been doing to support the economic recovery and growth of our city?

The City of Kamloops has always been recognized as a stable economy due to its economic diversity.

A welldiversified economy typically offers a wide range of employment opportunities, manageable economic growth and a JIM ANDERSON solid resistance to economic downturns.

While all of this is true, it does not make Kamloops immune to the effects of the recent pandemic-induced downturn.

Like other cities in British Columbia who welcome a large number of travellers every summer, our tourism sector has seen a 75 per cent decrease in revenues generated.

Along with that, Thompson Rivers University is projecting a deficit of nearly $9 million this school year, with a 30 per cent decrease in international enrollment.

With Kamloops’ economic stability, though, comes some positive outlooks.

In the world of real estate, home sales increased by 34 per cent in August 2020 year over year.

Kamloops also saw consistent growth in terms of real estate development, with a year-to-date construction value of $225 million in 2020 compared to $187

million at the same time last year.

As for unemployment numbers, Kamloops is recording a strong 10.3 per cent compared to the Canadian average of 12.3 per cent.

As always, Venture Kamloops is committed to economic development and growth in Kamloops, with our building blocks focussed on four key areas: business retention and expansion, business attraction, information and resources delivery and workforce development.

This year, to date, our team has connected with a record number of businesses to provide support in various ways. Our VK Venture Advisor program, which connects entrepreneurs to experienced business professionals for free advice, has been offered virtually for business that need supplemental support.

The VK Accelerate program continues to connect entrepreneurs to the resources they need to get into their first physical location, and we have been encouraged by the large number of start-up meetings and outside inquires of businesses looking at expanding into our city.

Along with our suite of business support programs, Venture Kamloops is committed to providing the most up-to-date information possible on our economy through our website, social media channels and various economic reports.

Whether it’s the VK Inside Track program that provides outside developers with the information they need in order to invest in our growing city, or our Balance campaign that showcases Kamloops as a destination for skilled workforce, it is always our goal to support sustainable growth through integrated programming.

If you’re an existing business looking for assistance, a new business looking to open or a developer looking to invest, be sure to connect with Venture Kamloops.

Jim Anderson executive director Venture Kamloops

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WEDNESDAY, September 30, 2020

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2020 KAMLOOPS PROGRESS UPDATE

Recovery could take some time

Task force forecasts tough economic bounce-back for city

E

VELOPMENT

conomic recovery in Kamloops from the COVID-19 pandemic won’t be easy. It will be slow and depend fully on treatment of SOLD HOUSE PRICES, BY COMMUNITY, JULY 2020 COVID-19 or a vaccine.

Greater Vancouver $1,045,495 The biggest challenge, in fact, is Fraser Valley $825,669 not knowing how long it will take, Victoria according to the city’s $816,427 mayor, who Okanagan pointed Mainline to a second $624,429 wave.

South Okanagan However, the city$485,361 and its Kamloopscommunity partners$447,941 have come up Kootenay with a series of recommendations $390,295 BC Northern $356,045 to help facilitate a local economic rebound, adapting to the new normal and also planning for the future.

Some examples include adding cycling infrastructure as more bikes roll out of stores and creating a digital shopping mall for local businesses to shift online.

On Sept. 11, the city released $93,588,629 a report on local impacts and YTD) recommendations of the COVID-19 $90,448,912 pandemic, the culmination of three months’ worth of meetings from a $87,544,862 mayor-selected task force, consisting YTD) of people across myriad sectors within $77,948,649 the community.

The Mayor’s Task Force on 2020 Economic Recovery 2019 and Renewal Report will be discussed at council’s regular meeting on Tuesday, Sept. 15.

The report noted a 12.4 per cent unemployment rate in Kamloops in June and economic hits to sectors including travel, tourism, accommodations, arts, sports, recreation, small retail stores and food services.

Mayor Ken Christian said businesses that relied on international travel have been hit hard and the report noted the tourism sector will likely operate at below capacity until a return to normal, essentially reliant on a vaccine.

“If you’re reliant to any extent on the tourist dollar, then you are going to suffer more than others,” Christian said. “I think that’s a reality I see. The other impact is on Thompson Rivers University and that, in turn, ripples through our community.”

ILDING PERMITS

WORK AND BUSINESS IN KAMLOOPS Owners were asked to rate the state of their businesses: GOOD/INCREASING

FAIR/STEADY

2019

SLOW/POOR

2020 60%

33%

39% 45% 16%

7%

EMPLOYEE LAYOFFS JOB POSTINGS Employees laid off over two weeks in July 2020

KAMLOOPS

2,536

2,400

B.C. AVERAGE

4.2

5.7

2,159

1,710

UNEMPLOYMENT RATE 2020

2019 12.3%

12.1% 10.3%

5.5%

4.4%

THOMPSON OKANAGAN

4.3%

B.C.

The university is anticipating a $9-million deficit this fiscal year, has sent out about 80 layoff notices and has seen its lucrative international student enrolment numbers plunge.

Meanwhile, the report noted some positives.

The city’s large employers — TRU, Interior Health, the KamloopsThompson school district and the BC Lottery Corporation — kept running

CANADA

Q2 2019 Q3 2019 Q4 2019 Q1 2020

despite the pandemic. Construction activity and the mining sector show signs of optimism. COVID-19 case counts in Kamloops have also been low.

“The brightest aspect of Kamloops is that we are doing very well on the health front,” the report notes. “While promoting tourism, we can emphasize that Kamloops is a safe destination.

However, it will take time to get back

international travellers and, thus, the tourism sector in Kamloops may have to operate below capacity until normalcy returns.”

Promotion of the city as a safe place to work and play is among a series of recommendations outlined in the report. Other broad themes include re-envisioning public open spaces, new sustainable and accessible activities and infrastructure, support

WEDNESDAY, September 30, 2020

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2020 KAMLOOPS PROGRESS UPDATE

and infrastructure for businesses and fostering community.

Progress spoke to Christian about some specific ideas in the report: • Adding bike routes in parks, such as McArthur Island.

Christian said more people are accessing local recreational opportunities amid the pandemic.

“One we saw was cycling absolutely took off,” he said. “You can’t buy a bike, you can’t get your bike fixed in this town. To the extent that Kamloops needs to make itself a destination for biking, it is important to do that.”

The report also suggests considering street markets and consider closing Victoria Street and/or other commercial areas to vehicular traffic.

• Reducing service fees, including at Kamloops Airport.

Christian said the recommendation

signals to airlines when travel resumes that it is an important local economic driver.

“We want to make sure we give the airlines every opportunity to be profitable,” he said, noting a potential reduction.

Christian said that as the airport operates at lower than 20 per cent of 2019 passenger numbers, it trickles into the community with impacts to Sun Peaks, heli-skiing, hotel stays and others.

“It’s all connected,” he said.

• Creating opportunities for larger spaces during colder months.

“People aren’t going to be travelling. The snowbirds are going to be stay-at-home birds,” Christian said, noting with borders closed, people will be here and the city needs to plan for that.

• Develop online hubs to give local small businesses the opportunity

to collectively sell online without developing their own online infrastructure.

“It’s kind of like an electronic shopping mall,” Christian said. “It was just an idea, but those businesses that have pivoted to an online presence have been more successful than those that just relied on their walk-in traffic.

We have to recognize it’s a trend and we have to try to facilitate that.”

• Making city services more efficient for businesses and the community by increasing online service options, essentially a more digitized city hall. Christian said the city was forced to go digital amid the pandemic and the recommendation could look at further efficiencies.

• Fast-tracking infrastructure funding to open up of lands in the southwest sector for market growth in the transportation and warehousing industries.

Christian said the task force spoke about a shortage of light industrial space in Kamloops and taking advantage of the city’s geography. He said the city needs to be shovel-ready for companies looking for land.

The recommendations are for not only the city, but for the community at large. Christian said some recommendations will be pursued by partners, such as Tourism Kamloops and Venture Kamloops.

When ideas are developed further, city staff will bring a report to council with specific recommendations. Some ideas are already being implemented. price tags are attached.

Christian said he is grateful for those who participated in the task force during the summer months, including community volunteers and city councillors.

“They were really on task and really dug in,” Christian said.

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WEDNESDAY, September 30, 2020

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2020 KAMLOOPS PROGRESS UPDATE

Coming together to help each other A product of COVID-19 pandemic, YKA Strong pushes on

Y

KA Strong is forging ahead to help businesses through a potential winter surge of the COVID-19 pandemic with marching orders from the mayor’s task force on economic recovery.

Two of the recommendations in the report mention the group specifically — continue to use #YKAStrong branding and promoting Kamloops as a place for regional staycations through the work of #YKAstrong and Tourism Kamloops.

On Sept. 17, representatives of the 10-member groups comprising YKA Strong met to discuss which will lead the charge in accomplishing some of the recommendations.

“I think what you’re going to see in the next few weeks from YKA Strong is actual mobilizing on some of the recommendations,” said Kamloops Chamber of Commerce executive director and YKA Strong member Acacia Pangilinan.

YKA Strong consists of the Kamloops Chamber of Commerce, City of Kamloops, Kamloops Central Business Improvement Association, North Shore Business Improvement Association, Venture Kamloops, Community Futures-Thompson Country, Kamloops Airport, Thompson Rivers University, Tk’emlups te Secwépemc and Tourism Kamloops.

Pangilinan said there was also discussion on bringing in partner groups such as Kamloops Innovation Group, the United Way and the Food Policy Council to work alongside them.

There are other recommendations from the report YKA Strong could address.

One is the reimagining of how public spaces are utilized, something both Kamloops’ business improvement associations have experience in during the pandemic, Pangilinan said. Another is the call to create community ambassadors

ACACIA PANGILINAN who can get the word out on safety protocols businesses have in place — roles YKA Strong members would be more than willing to serve in.

Started in March at the onset of the pandemic, YKA Strong has proved effective.

It began with a website as a onestop shop for the information and resources businesses were receiving on new practices and procedures during the pandemic.

The site ensured local businesses weren’t getting inundated with duplicate messages from the multiple local organizations that make up YKA Strong, said Monica Dickinson with Tourism Kamloops.

“Our first priority was how do we do this in a simplified fashion that isn’t overwhelming to the businesses, knowing they’re dealing with all

MONICA DICKINSON kinds of uncertainty,” Dickinson said.

In June YKA Strong launched its Support Kamloops campaign to help stimulate the local economy by encouraging residents to support local businesses.

“It’s been super successful,” Dickinson said.

In July, the campaign shared eight videos honouring remarkable Kamloopsians and business pivots amidst the pandemic.

In August, it released another eight highlighting a swath of businesses throughout the city.

In August alone, the videos garnered more than 123,000 impressions on social media and 3,500 engagements organically and more than 90,000 impressions and 33,500 engagements via paid advertising.

“The reach has been pretty good in our opinion,” Dickinson said.

“That campaign ran throughout the summer and it was fantastic because it gave all of the organizations similar branding to promote local companies within the community,” Pangilinan said.

Facebook followers of YKA Strong increased by three per cent and Instagram followers rose by eight per cent in August.

In mid-September YKA Strong wrapped its latest promotion in which a local social media influencer highlights her experiences with local businesses via Instagram stories and blog posts.

Dickinson said that campaign yielded YKA Strong’s largest number of impressions on Instagram to date at nearly 6,400.

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2020 KAMLOOPS PROGRESS UPDATE

Real estate market ignores pandemic Home sales remain strong, prices high even amid COVID-19

W

hile many businesses have struggled to keep their doors open through the COVID19 pandemic, one Kamloops sector has done surprisingly well — with numbers approaching best-of-thedecade levels.

That would be real estate, where prices remain strong and the market hot.

And those sales numbers surprised a lot of people, including those who are part of the industry.

“Going back, I think that we all expected it to take a much bigger hit than it has,” said Wendy Runge, Kamloops and District Real Estate Association President.

And numbers were down for the first few months of 2020, as everyone was initially reacting to the COVID-19 outbreak.

But that didn’t last long. Year-todate sales are at 1,759 to the end of August compared to 1,991 last year, and sales for August itself was up to 349 compared to 291 a year earlier.

Though that might seem strange, Runge’s answer is simple — supply and demand.

With a lack of inventory, buyers are finding themselves having to take what’s available.

Any property that is in good shape with a good price is hot.

And, though she’s not sure exactly what is behind the reduced inventory, Runge said it might be a cyclical problem.

People selling their existing property need to be able to move someplace new and, if there are fewer options, she said, people might be inclined to stay where they are.

Another factor that might have played a part in the strong sales numbers during the pandemic is that as working remotely has become a more common option for employees, people are finding they don’t necessarily need to live near where they work.

REAL ESTATE AND DEVELOPMENT August 2020

August 2019

SOLD HOUSE PRICES, BY COMMUNITY, JULY 2020

$124.6 million, $88.4 million, 266 units sold 198 units sold 2020 YTD

2019 YTD

$659.8 million, 1,407 units sold

HOUSING STARTS Number of new housing starts in July 159

$709.7 million, 1,605 units sold

Greater Vancouver Fraser Valley Victoria Okanagan Mainline South Okanagan Kamloops Kootenay BC Northern

REAL ESTATE AND DEVELOPMENT

BUILDING PERMITS BUILDING PERMITS August 2020

August 2019

$124.6 million, $88.4 million, 266 units sold 198 units sold 2020 YTD

$659.8 million, Residential (YTD)

1,407 units sold

$93,588,629 HOUSING STARTS

Residential (YTD)

Number of new housing$90,448,912 starts in July

Commercial (YTD) 159

22

2020

Commercial (YTD)

2019

$1,045,495 $825,669 $816,427 $624,429 $485,361 $447,941 $390,295 $356,045

$87,544,862 $77,948,649

2019 YTD $93,588,629 $709.7 million,

1,605 units sold $90,448,912

SOLD HOUSE PRICES, BY COMMUNITY, JULY 2020

Greater Vancouver Fraser Valley Victoria Okanagan Mainline South Okanagan Kamloops Kootenay BC Northern

BUILDING PERMITS

$77,948,649

Residential (YTD)

2020 Commercial (YTD)

22

AVERAGE PRICES, JULY 2020 2020

$1,045,495 $825,669 $816,427 $624,429 $485,361 $447,941 $390,295 $356,045

$87,544,862

2020

2019

2019

$90,448,912

2019

UNE

$87,544,862 $77,948,649 2020

2019 10.3%

MEDIAN RESIDENTIAL PRICE

KAMLOOPS — $490,080

KAMLOOPS — $490,080

KAMLOOPS AND DISTRICT — $447,967

KAMLOOPS AND DISTRICT — $447,967 B.C. AVERAGE PRICE — $770,810

THOM OKAN

B.C. AVERAGE PRICE — $770,810

There are people who are “ looking at Kamloops now, and this area, and seeing this as a viable option to Lower Mainland living.

”

— WENDY RUNGE, Kamloops and District Real Estate Association

“There are people who are looking at Kamloops now, and this area, and

EM

$93,588,629

AVERAGE PRICES, JULY 2020

MEDIAN RESIDENTIAL PRICE

WO

seeing this as a viable option to Lower Mainland living,” Runge said.

Whatever the exact reason, Runge said that she expects the trend to continue for some time.

As long as the inventory remains low, sales should remain high and prices will keep climbing.

Compared to what a lot of other industries are struggling with, that’s good news.

“No one expected the rebound to happen so quickly,” she said.

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2020 KAMLOOPS PROGRESS UPDATE

PROGRAMS THAT POWER BUSINESS The team at Venture Kamloops develops programs for businesses by working in partnership with community leaders and organizations. These programs are based on input from the business community as well as opportunities with local, provincial and federal government agencies. It’s all about helping businesses in Kamloops continue to learn, grow and thrive.

Learn more about our business programs at VENTUREKAMLOOPS.COM

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