NOVEMBER / DECEMBER 2010
Pr.0 hibition PM#41835528
U P S
S y s t e m s
I n c
Power Protection & Backup for All Industrial & Commercial Applications
We didn’t invent clean power, we merely perfected it! (250) 491-9777 ext. 451
“A Proud Okanagan Valley Employer” • Kelowna, BC
PR EM I ER
A higher level of luxury, now At A lower rAte. Be the first to experience the surprisingly advanced 2011 Lincoln lineup. turn your drive into a wi-fi hotspot with Mylincoln touch™± available on MKx. experience your music with the available thx ii Certified Audio
On mOst 2011 mOdels
System. And keep your life connected with SynC ®† .
leASe finAnCing for uP to
2011 MKX OPtIOnAl Wheels shOWn.
2011 MKS OPtIOnAl Wheels shOWn.
2011 NAVIGATOR ULTIMATE PURChAse fOR
OffeR InClUdes $6,000 delIVeRY AllOWAnCe & $1,550 fReIGht & AIR tAx. 0% fInAnCInG nOt AVAIlAble On nAVIGAtOR.
2 011 m K Z f Wd
0% / 48 mths*
2 011 m K x AWd
0% / 48 mths*
2 011 m Ks f Wd
0% / 48 mths*
2 011 m K t AWd
0% / 48 mths*
2011 MKZ OPtIOnAl Wheels shOWn.
OffeRs InClUde $1,550 fReIGht & AIR tAx.
OR PURChAse fInAnCInG WIth 0% APR fOR UP tO 48 mOnths **. On mOst 2011 mOdels
ReCeIVe UP tO $6,000 In delIVeRY AllOWAnCe On RemAInInG 2010 mKZ mOdels And ReCeIVe UP tO $8,500 In delIVeRY AllOWAnCe On RemAInInG 2010 mKs mOdels.†††
WISE BUYERS READ THE LEGAL COPY: Offers available at participating dealers only. Dealer may sell or lease for less. Factory order may be required. Limited time offers. Offers may be cancelled at any time without notice. See participating Dealer for details. Inventory may vary by dealer. Dealer Transfer may be required. *Lease a new 2011 Lincoln MKZ FWD/MKX AWD/MKS FWD/MKT AWD and get 0% APR for up to 48 months on approved credit (OAC) from Ford Credit. Not all buyers will qualify for the lowest APR payment. Additional payments required. MKZ FWD/MKX AWD/MKS FWD/MKT AWD for $39,950/$48,050/$48,950/$51,500 at 0% APR for 48 months, monthly payment is $449/$499/$579/$649, total lease obligation is $26,702/$29,252/$32,792/$36,552, optional buyout is $12,784/$18,740/$16,154/$14,935. Cost of leasing is $0 or 0%. Examples are based on $5,150/$5,300/$5,000/$5,400 down payment or equivalent trade in. Taxes payable on full amount of lease financing price after any price adjustment is deducted. Some conditions and mileage restrictions of 80,000km over 48 months apply. A charge of 16 cents per km over mileage restrictions applies, plus applicable taxes. ††Purchase a new 2011 Lincoln Navigator Ultimate for $69,999 after a delivery allowance deduction of $6,000. Taxes payable on full amount of purchase price after delivery allowance has been deducted. Offer includes $1,550 freight and air tax, and exclude license, fuel fill charge, insurance, registration, PPSA, administration fees, any environmental charges or fees, and all applicable taxes. **Receive 0% APR purchase financing on all new 2011 Lincoln MKZ/MKX/MKS/MKT models for a maximum of 48 months to qualified retail customers, on approved credit (OAC) from Ford Credit. Not all buyers will qualify for the lowest APR payment. Example: $40,000 purchase financed at 0% APR for 48 months, monthly payment is $833.33, cost of borrowing is $0 or APR of 0% and total to be repaid is $40,000. Down payment on purchase financing offers may be required based on approved credit. Taxes payable on full amount of purchase price. †††Receive up to $6,000 in delivery allowance on remaining 2010 MKZ models and up to $8,500 in delivery allowance on remaining 2010 MKS models. ±Driving while distracted can result in loss of vehicle control. Only use mobile phones and other devices, even with voice commands, when it is safe to do so. Certain functions require compatible mobile devices. †Some mobile phones and some digital media players may not be fully compatible - check www.syncmyride.com for a listing of mobile phones, media players, and features supported. Driving while distracted can result in loss of vehicle control, accident and injury. Ford recommends that drivers use caution when using mobile phones, even with voice commands. Only use mobile phones and other devices, even with voice commands, not essential to driving when it is safe to do so. Sync is standard on select new Lincoln vehicles. ˆEstimated fuel consumption ratings for the 2011 MKX AWD 12.2 L/100km City, 8.8 L/100km Hwy. Estimates are based on Transport Canada approved test methods. Actual fuel consumption may vary based on road conditions, vehicle loading and driving habits. ‡BLISTM with Cross Traffic Alert is only a warning system. You should always be aware of traffic in front, behind and beside your vehicle. When changing lanes or backing up, always signal and look to make sure the move can be made safely.
Kelowna Ford lincoln SaleS ltd. 2540 enterpriSe way, Kelowna, Bc V1X 7X5
a home to nurture your soul
FINAL PHASE…NOW SELLING Bridges at Glenview Pond Phase II is a unique neighbourhood of 34 heritage style single family homes. Homes that are custom designed to match your family’s needs, desires and lifestyle. The backdrop for your home is a private park with a creek, 2 ponds, bridges and lush landscaping. It’s the perfect setting for a morning jog, an afternoon walk or an evening stroll. The lots have been designed to offer homeowners both privacy and the ability to create unique outdoor spaces to enjoy.
2 BRAND NEW SHOW HOMES OPEN DAILY Noon - 5:00pm
Tucked into the existing Old Glenmore neighbourhood, Bridges at Glenmore Pond is within easy walking to the lake, cultural district and downtown. For people who enjoy an active lifestyle, Knox Mountain and the Rails with Trails offer both biking and hiking trails without the need to load up the car - just head out from home!
1358 Glenview Avenue, Kelowna, BC
Party like it’s 1919 You can still drink. You can still drive and the government, the police and MADD say the new drinking and driving penalties limit are all about safety, but statistics aren’t that definite and the food service industry is paying a steep price for this new moral stance. Page 6
inside Trust & Reason - 9 Business consultant Lorraine McGrath argues that between poorly thought out, impulsive decision making and analysis paralysis lies an effective middle ground.
Secret Wars - 24 Around the globe there is a fight starting up about whose currency can be devalued the most. It’s a dangerous game, and it’s one that the U.S. is playing to win. Dominik Dlouhy points out collateral damage has already hit the Okanagan.
Turning out the Lights - 25 Fortis invites the most significant power savers for a get together once a year to celebrate the most innovative power savers in the region. Here’s a snapshot of this year’s winners.
World Cup Matters - 28 There will be a six-year spread between Sovereign’s first hosting of a World Cup and next year’s Masters races. The hill is better than ever so will the financial impact be from these races be for Vernon’s economy.
Publisher Craig Brown email@example.com associate Publisher Chytra Brown firstname.lastname@example.org BUSINESS DEVELOPMENT MANAGER Roy Kunicky email@example.com Custom Publishing & Communication Manager Sean Kravetsky firstname.lastname@example.org MANAGING Editor Devon Brooks email@example.com ADVERTISING SALES Sales Representative Don Jack Angus Cathro Jesse Kunicky Kathie Nickel Design / Production Corrina Deters firstname.lastname@example.org Assistant to the publisher Joanne Clarke email@example.com Contributing Photographer Shawn Talbot 1.888.317.1403 firstname.lastname@example.org www.shawntalbot.com Subscription Rates 12 issues annually | One year: $27.00 778-755-5727 Distribution The Okanagan Business Examiner is published monthly at Kelowna, BC by Prosper Media Group Inc. Copies are distributed to businesses from Osoyoos to Greater Vernon. The views expressed in the Okanagan Business Examiner are those of the respective contributors and not necessarily those of the publisher or staff. PUBLICATIONS MAIL AGREEMENT NO. 41835528 RETURN UNDELIVERABLE CANADIAN ADDRESSES TO: 105-1979 OLD OKANAGAN HIGHWAY, WESTBANK, BC, CANADA V4T 3A4 Follow us on
And the Children shall Lead - 29 It’s been less than a year since Kelowna was awarded the International Children’s Winter Games. In that time organizers have gone from zero to a likely 38 plus international cities who will participate in Canada’s firstever winter games under the ICG banner. 4 Okanagan Business Examiner / November 2010
President Craig N. Brown Vice President C. Derriksan FOLLOW Noll US ON Grand Chief WFN, U.B.C.I.C.
101-1979 Old Okanagan Highway, Westbank, BC V4T 3A4 T: 778.755.5727 F: 778.755.5728
Slowing the 700% Predators The toughest legislation in the country governing conduct of payday loan operations came into effect last month in Manitoba. The legislation was passed in July, which gave companies there three months to adjust. Four payday operations in Winnipeg, including all the Cheque Stop operations, closed their doors. That’s four stores out of 87 that were operating across the province, run by 21 different companies. The Canadian Payday Loan Association says it warned the Manitoba government there would be repercussions from their “stringent” new laws. The first thing that needs to be said is this is a case where the federal government appears to have utterly abrogated its responsibility. Despite clear federal legislation that caps permissible interest rates at 60% per annum, both the Conservative government and before that, the Liberals, turned a blind eye toward predatory interest rates charged by payday loan companies. There is no denying that there is a demand for these payday services, just as there is no denying that there is, unfortunately, a swath of people who have little or no grasp of just how much of a swindle these kind of services are. Manitoba’s new legislation has brought in the following stipulations: • All loan conditions must be stated clearly including all fees and costs; • Lenders must be licensed and bonded (Cheque Stop operations were not even licensed, which suggests that anyone could set up shop and loan out money pretty much willy nilly. Until payday
loan companies started up, that state of affairs was halted by federal legislation after numerous scandals during the nineteenth and early twentieth centuries.); • Internet lenders will be regulated in the same way as store front operators; • A lender is now required to have written consent to verify a borrower’s employment; • Lenders cannot make unauthorized withdrawals from a borrower’s account; • Lenders cannot give incentives to entice borrowers to take out a loan; • The maximum fee (on top of the interest) for a replacement loan is 5%; • Loans cannot be made for more than 30% of a person’s next pay cheque and the maximum rate they can charge for the loan is 17%. If you’re thinking that 17% is not as bad as what you pay on a credit card remember a credit card rate is (usually) 19% per annum. The 17% limit imposed by Manitoba is for a two week period. That works out, on an annual basis, to 517% and that’s the lowest in Canada. The highest rate in Canada can be claimed by Nova Scotia where it stands at a staggering 943% while B.C. payday operations are getting by with a “mere” 700% annual rate. Loan sharks would be content with these kind of rates.
DEVON BROOKS Devon Brooks is the editor of the Okanagan Business Examiner. Comments on this, or any other article in this magazine, should be sent to email@example.com.
including the poorest and most financially illiterate amongst us, but ultimately, while a tiny minority of people using these services probably have great need and are sensible, most are victims of ignorance. This is like opening up a liquor store between an A.A. meeting and a halfway house for recovering alcoholics. In this case I can only say that while Manitoba has done a better job than any other province, this is still legalized robbery of society’s most vulnerable.
Payday loan companies argue that they take a much greater risk with their clientele and that higher rates are necessary.
Necessary and predatory. We all have the right to manage our own financial affairs in this country,
Cover story on Virtual Prohibition
Influential Leadership Survey
Desk of Derriksan
The Fortis Awards
Movers & Shakers
Masters World Cup
International Children’s Winter Games
Okanagan Business Examiner / November 2010 5
New penalties are pushing drinking back into a socially unacceptable status By Devon Brooks
Prohibition, was a strangely moralistic, yet sadly irrelevant time in which various elements from society did their best to ban alcohol because of its detrimental effects. In Canada prohibition was run by the provinces, starting with Prince Edward Island in 1901 and ending there in 1948. At one point every province signed on, even if it was for only a few months in Quebec.
Trade-Marks Industrial Designs
& Technology Transfer
PRACTICE RESTRICTED TO INTELLECTUAL PROPERTY LAW L A W C O R P O R AT I O N R E G I S T E R E D P AT E N T & T R A D E -M A R K A G E N T P H O N E : (250) 418-3250 F A X : (250) 418-3251 T O L L F R E E : 1-877-943-9990 E-M AIL : firstname.lastname@example.org
6 Okanagan Business Examiner / November 2010
While alcohol consumption did go down, mostly it went indoors and underground. Today we are moving in that same direction. Recently this province, prodded by Mothers Against Drunk Driving (MADD), has acted to tighten up drinking and driving by pushing up the penalties.
Responding to criticism by the Vancouver Police Union in October that the new penalties had police chasing social drinkers, Murie responded, “We need to be clear that police are not out there targeting people who are between .05% and .08%.”
Officially of course this is not prohibition. You can still drink in public, restaurants and bars are still allowed to serve alcohol, but the effect will ultimately be the same.
Paul Jones, co-owner of Summerland’s Vanilla Pod restaurant, feels that is exactly who the new rules are going after. He says, “The new, bigger fines aren’t directed at the right people.” Heavier drinkers aren’t discouraged, he claims, but casual drinkers are.
Under the latest legislation blood alcohol content (BAC) limits have not changed, but the penalties have. Since 1977 police have been required to warn drivers not to drink after they reach a .05% BAC.
MADD estimates 35 to 45% of driving under influence drinkers are problem drinkers or alcoholics. The remaining 55 to 65% are drivers who “drank too much on that particular day.” Ideally, MADD believes any alcohol is too much.
Oddly enough, the .05% limit is still called a “warn” even though a failed warn now comes with immediate penalties of a three day driving ban, a $200 administrative penalty, a $250 license reinstatement fee and likely cost of vehicle impoundment of $100 to $200 for the three days. Total costs will therefore run around $500 to $600. For any driver who receives another “warn” within five years penalties escalate, going up as high as $4,060 according to the B.C. government.
“While we would certainly encourage people to separate their drinking from driving entirely, we want people to understand that the .05% BAC law does not infringe on someone’s ability to have a glass of wine or a drink with dinner, or join friends for a beer after work,” Murie said.
Andrew Murie, CEO for MADD Canada, is cheering the government’s decision. He says, “We commend the Government of British Columbia for these important changes. This province now has the strongest administrative sanctions for impaired driving in the country.” Administrative sanctions suggest penalties like those associated with parking tickets, but the consequences here are far more serious and they are scaring people.
MADD states, “It takes more than one drink for most people to reach the .05% BAC level.” The last statement is the rub, especially the word ‘most.’ Every statement out there by police, MADD or the government contains one of these words: ‘most,’ ‘usually,’ or ‘average’ when it pertains to how much you can drink and stay under .05%. In Kelowna RCMP Superintendent Bill McKinnon hosted several media personalities for a drink and breathalyzer session at a local pub. Here are some of the results after two hours (from a report on Castanet): Wayne Moore of Castanet, who weights 203
glasses of wine in “about an hour’s time,” and blew over .05% BAC.
pounds, had four beers and blew .023% BAC; Don Plant from the Daily Courier, who weighs 156 pounds, had four Caesars and received a reading of .024% BAC;
Uncertainty equals Fear
Adrian Nioeczym, a freelance reporter weighing 175 pounds, had two sleeves (pints) of beer and blew .039% BAC; Ken Molgat from the CTV, who weighs 171 pounds, had six ounces of vodka over two hours and received a .041% BAC reading; Gord Vizzutti from AM 1150 News, who weighs 196 pounds, had four glasses of wine and blew over .05% BAC; Klaudia Ceglarz from CHBC News, who weighs 124 pounds had two
It wasn’t revealed how much over .05% Vizzutti and Ceglarz blew, which is unfortunate because it reinforces the uncertainty. The real problem here is just that: the uncertainty. Few people are going to take a chance, especially responsible drinkers, if it might result in a summary conviction, hundreds of dollars in fines and the loss of use of one’s automobile. Superintendent McKinnon and MADD may both say misinformation is causing the problem, but MADD and the police are part of that problem.
BAC Chart Men Men Approximate Blood Alcohol Percentage Drinks
Body Weight in Pounds 100
1 2 3 4 5 6 7 8 9 10
. 04 .08 .11 .15 .19 .23 .26 .30 .34 .38
.03 .06 .09 .12 .16 .19 .22 .25 .28 .31
.03 .05 .08 .11 .13 .16 .19 .21 .24 .27
.02 .05 .07 .09 .12 .14 .16 .19 .21 .23
.02 .04 .06 .08 .11 .13 .15 .17 .19 .21
.02 .04 .06 .08 .09 .11 .13 .15 .17 .19
.02 .03 .05 .07 .09 .10 .12 .14 .15 .17
.02 .03 .05 .06 .08 .09 .11 .13 .14 .16
Only Safe Driving Limit Driving Skills Significantly Affected ––––– Possible Criminal Penalties
After 13 Monks closed down, management attributed at least part of the blame to the government’s punishing new regulations, as this closure notice points out.
Consider that among the media Moore and Vizzutti had only seven pounds in weight difference between them, but Moore blew only .023% (less than half of a warning) while Vizzutti blew over .05%. Both had four drinks. Every BAC chart out there comes with a caveat that how much you can actually drink depends on your weight, gender, age, how much you have eaten, other medications or drugs in your body, duration of
time while imbibing and time since drinking, and your own personal metabolism. There is no official B.C. BAC chart, but you can find many others online. You will also find they don’t agree. So, a BAC chart put up by the State of Virginia (see left) shows that a 160 pound man or a 140 pound woman can consume one drink before they would gate crash the .05 limit. The same chart Continued on page 8
Legally Intoxicated ––––– Criminal Penalties Death Possible
Subtract .01% for each 40 minutes of drinking. One drink is 1.25 oz. of 80 proof liquor, 12 oz. of beer, or 5 oz. of table wine.
BAC Chart Women Women Approximate Blood Alcohol Percentage Drinks
Body Weight in Pounds 90
1 2 3 4
. 05 .10 .15 .20
.05 .09 .14 .18
.04 .08 .11 .15
.03 .07 .10 .13
.03 .06 .09 .11
.03 .05 .08 .10
.02 .05 .07 .09
.02 .04 .06 .08
.02 .04 .06 .08
5 6 7 8 9 10
.25 .30 .35 .40 .45 .51
.23 .27 .32 .36 .41 .45
.19 .23 .27 .30 .34 .38
.16 .19 .23 .26 .29 .32
.14 .17 .20 .23 .26 .28
.13 .15 .18 .20 .23 .25
.11 .14 .16 .18 .20 .23
.10 .12 .14 .17 .19 .21
.09 .11 .13 .15 .17 .19
Only Safe Driving Limit Driving Skills Significantly Affected ––––– Possible Criminal Penalties
FROM COLD CALLS TO CALLING THE SHOTS
Legally Intoxicated ––––– Criminal Penalties Death Possible
Subtract .01% for each 40 minutes of drinking. One drink is 1.25 oz. of 80 proof liquor, 12 oz. of beer, or 5 oz. of table wine. This information is taken from Virginia Tech Alcohol Abuse Prevention website
Okanagan Business Examiner / November 2010 7
three times a month have stopped drinking.”
Continued from page 7
That may be a victory for MADD, but it could possibly kill Turton’s business, which is down he estimates, by about 20%.
says 40 minutes is enough time to eliminate .01% of BAC. Other BACs differ, suggesting that most men or women in those respective weight ranges are good with two drinks, but they’ll need an hour to eliminate that amount of alcohol. In the end it comes down to this: If you have a drink or two before driving, are you confident enough of those statistics to face down a breathalyzer at the side of the road? Many moderate drinkers are not that confident, which means this legislation is either a tax grab, or else it is indeed targeting, perhaps unintentionally, the casual, social drinker. Steve Turton’s family has owned the rural McCulloch Station pub in east Kelowna for more than a dozen years. He says the new penalties will not deter the heavy drinker who tended to ignore the .08% limits, but it does drive away the occasional drinker. He says, “The people who came two or
Certainly the 13 Monks restaurant in West Kelowna, which just closed, believes that the government’s new rules are largely responsible (see photo). For those who do come, Turton says, they drink less. People will now order one drink, if they order any. Food at McCulloch Station is a loss leader to attract people in for some drinks. If people stop drinking, McCulloch stops being profitable. He says, “I don’t know how many pubs can survive [with patrons] having one drink.” Murie disagrees, saying, “These sanctions are not an attack on the social drinker; they are not a strike at the hospitality industry; they are not an undue burden on police resources.” Ian Tostenson is the CEO of the BC Restaurant & Foodservices Association. There are few solid
Education “RED MONSTER” Drawing by Jayes Tazer Derriksan, Age 7
Kelowna Waldorf School
REGISTRATION ON NOW!
Kelowna Waldorf School 250-764-4130 429 Collett Road, Kelowna, BC V1W 1K6
8 Okanagan Business Examiner / November 2010
Tostenson says the real impact of this legislation will hit some establishments much harder than others. In Vancouver public transit or taxis are readily available. In rural B.C. it’s a different matter.
Safety at Any Cost “These sanctions are an effective and realistic way to make British Columbia’s roads safer from impaired drivers,” says Murie. All the arguments about how this might affect pubs, restaurants or any aspect of the economy seems self serving when comparing profits to injuries and fatalities. The question then isn’t dollars and cents, but how much safer do the laws make us and can they work?
statistics in yet, but he says feedback from his members indicates sales are off this fall by 20 to 30%.
The benefits and costs of a reasonable limit on a social activity, like drinking, that can cause harm needs to be assessed. After all, every activity we engage in has some risk from driving a car (even with zero alcohol) to athletic activities like skiing or walking down the street. The British Columbia government is parroting a statistic found on the Ontario government’s website, that says a driver at .05% is seven times more likely to have an accident than a driver who doesn’t drink. The United Kingdom shows considerably different statistics. In that country the estimate is given as a range, with drivers reading .05 BAC going from zero to about 2.5 times as likely to have an accident. The New Zealand Ministry of Transport publishes one of the most comprehensive set of statistics on motor vehicle crashes. From 2006
to 2008 approximately 5 drivers out of a total of 170 killed in accidents had a BAC less than .05. There were 15 with blood alcohol content between .05 and .08, leaving the vast majority, 150 of them, at .08 or more. Currently New Zealand has a .08% BAC level for impaired driving (with a much lower limit of .03% for drivers under the age of 20); that country has cut its rate of fatalities due to alcohol or drug use by 62% from 1989 to 2008 through education and penalties without changing the .08% legal limit. What did change was the introduction of much harsher penalties for those who went over .08 BAC or were repeat offenders. Another change was the relaxation of the drinking age, from 20 to 18 years of age. So even though more people were allowed to drink, and at a younger age, which represents the demographic most likely to drink and have an accident, the number of fatalities and injuries declined. Back at the Vanilla Pod, Jones doesn’t have firm numbers on how much his business is down yet, but he relates two relevant anecdotes. The Vanilla Pod offered this year, as it has in past years, a dinner celebration linked to the Okanagan Wine Festival. Jones says one couple from Kaleden cancelled when they found a taxi ride would cost $150, but even if they had been willing to pay it’s doubtful it would have mattered. A well-to-do couple from West Kelowna also cancelled a three-month reservation because they couldn’t secure, in advance, a taxi. Says Jones, “The biggest problem we have is we don’t have the infrastructure to get people home.” Turton’s pub is offering Kelowna residents a free or very inexpensive
ride home in a van so they can enjoy some drinks without having to worry. He doesn’t have final numbers yet, but agrees with an estimate that Tostenson provides, that offering such a service will probably cost $75,000 to $100,000 per year. Turton says he has received lots of positive response about the van service, but relatively few takers. Despite efforts to make the service as customer friendly as possible, casual drinkers just aren’t coming. He says he will run the service for six months to see if the situation improves. Some larger events at the Okanagan Wine Festival, might be beneficiaries of the new penalties. According to Christina Ferreira from the Okanagan Wine Festivals society, attendance was up at the main tasting events. “What we did notice was at signature events there was a huge increase in the use of our [free] taxis.” Back in the early 1900s we tried prohibition. Despite all the embarrassment, punishments, crime and prosecutions at that time large numbers of people still wanted to get together and drink. Perhaps a slow, hidden approach to prohibition will work this time, because the new liquor laws
are going in the same direction – a repeal of the right to drink in public places. Even in urban centres, but definitely in rural British Columbia, driving after drinking whether it is with a bottle of wine at dinner or from the pub is standard practice. Cutting out that practice is hurting many businesses, for a dubious benefit because the people who drink responsibly are most fearful of penalties. Jones says he has sent a letter off to his MLA protesting the law. He is not alone it seems. Minister of Public Safety and Solicitor General Rich Coleman has already come out, promising the new penalties will be reviewed. Meanwhile he says it is a matter of police using discretion in their decision to penalize those who register above .05, but police discretion doesn’t address the real issue. It only adds another degree of uncertainty. Either these new penalties are effective, worthwhile and enforceable, in which case society and business will have to suffer the costs, or this sneaking, virtual prohibition should end up on the scrap heap like earlier, well-intentioned, but ultimately futile, legislation. Okanagan Business Examiner / November 2010 9
Thanks to all our advertisers, readers and supporters...
Left to right: owners of Prosper Media group - Suki Derriksan, Noll Derriksan, Craig Brown, Chytra Brown.
Rising stars always start out from flat horizons. Our horizon at Prosper Media Group started less than two years ago with the Okanagan Business Examiner, during a time of downturn and recession. We started with newsprint copy, uncertain distribution and the belief that Okanagan readers would support local news about what’s happening here, not in Vancouver or Washington, DC. You proved us right. From that horizon we’ve expanded into 10 publications and a custom publishing division that offers excellent service right across Canada. We were, and are honoured, that the Kelowna Chamber of Commerce recognized our hard work with the Rising Star Award. One thought is always foremost in our minds – making products that are content rich, beautifully photographed and portrayed, on the best paper money can buy. This allows us to provide what other media is no longer able to with their continual cutbacks in budget and coverage – a damn good read and the best ROI for our advertisers. Thank you, our readers and customers, who made this award, and our success, possible. D E S I G N
A R C H I T E C T U R E
OKANAGANCOLLECTION.COM SO T HEB Y SR EALT Y. C A
OkanaganCollection PREMIER EDITION | 2010
where you belong
E T H I C A L
KELOWNAí S AM B R I DGEFELD ESTATE PEACHLANDí S UNIQUE ENGLI SH COTTAGES
VQA GR OWS GOOD WI NE
Financial literacy needs to start young
TASTI NG N OTES
The 10 Commandments of Customer Service
BRITISH COLUMBIA MADE
Feeling Better Yet? saFetY anD Green thInkInG DestroY aGrIcuLture In B.c.
Farm Holidays GentLe staYs to Bootcamp
FarmWho On the DELICIOUS
Owns Our Food?
Foods may look Mother Nature Fresh...
Rita Watcheston’s Star is Made Why the CCAB Counts:
ISSUE 5 • VOLUME 2
TRADER, HEALER AND WARRIOR
where rural and sophistication meet...
ALsO: Your LocaL Farmers’ market DIrectorY
Autumn Bounty FALL AnniversAry 2010
SPRING/SUMMER 2010 • Field to PLATE magazine
A TALk WITH cLINT DAVIS
$4.95 CAN vol 1, No 2 oCT 2010
P R O F E S S I O N A L
SI GNI FI CANT CANADI AN AR T
HOME SWEET SALE
WEST KELOWNA • WESTBANK
THE CONTEMP OR ARY HOM ES OF EAGLE B AY
Customized Kitchens Transformed Livingrooms Inspiring Interiors
D E C O R
2011 OFFICIAL VISITORS GUIDE
WEST KELOWNA • WESTBANK 2011 OFFICIAL VISITORS GUIDE
E D U C A T I O N A L
FROM THE DESK OF
DERRIKSAN FROM THE DESK OF FROM THE DESK OF
Grand Chief, Westbank first nation | Grand Chief, Union of bC indian Chiefs, foUndinG MeMber
Wait, Wait, wait, wait, and and wait wait
Grand Chief, Westbank first nation | Grand Chief, Union of bC indian Chiefs, foUndinG MeMber Grand Chief, Westbank first nation | Grand Chief, Union of bC indian Chiefs, foUndinG MeMber
The economy has slowed and is still in Thedoldrums, economy why? has slowed slowed and is is still still in is the The business world The economy has and in the doldrums, why? The business world is waiting, for forward motion. the doldrums, why? The business world is waiting, for forward motion. waiting, for forward motion. seems to be The Canadian Businessman The Canadian Businessman seems to be be especially prone to this; waiting for the The Canadian Businessman seems to especially prone to this; waiting for the Market to warm up can be counterproductive especially prone to this; waiting for the Market toyou warm up can can be counterproductive counterproductive and getto caught behind the surge if you Market warm up be and get you caught behind the surge surge ifif you you misgauge the returning markets. and get you caught behind the misgauge the returning markets. misgauge the returning For those wise, lucky, ormarkets. good businessmen For those wise, lucky, or good businessmen preparing for the coming upturnbusinessmen is what they For those wise, lucky, or good preparing for the coming upturn isresources. what they they should be doing, if they have the preparing for the coming upturn is what should be doing, if they have the resources. Everything is cheaper now before the should be doing, if they have the resources. Everything is cheaper cheaper now before the coming upturn, services, and materials, Everything is now before the coming upturn, services, and materials, Professional Services as well, now is the coming upturn, services, and materials, Professional Services as well, now is the the time for major preparations. Professional Services as well, now is time for major preparations. time for major preparations. Look back at the last surge in the markets, Look back at the last surge surge in the markets, markets, especially Real Estate, and in Commercial. Look back at the last the especially Real Estate, and Commercial. Those who were not prepared for it, jumped especially Real Estate, and Commercial. Those who were not prepared for it, jumped jumped into the fray only to find great difficulty in Those who were not prepared for it, into the fray only to find great difficulty in getting Professional Services, and all the into the fray only to find great difficulty in getting Professional Services, and all the other things needed to proceed, and those getting Professional Services, and all the othercommenced things needed needed to projects proceed,found and those those who their it other things to proceed, and who commenced their projects found difficult to find contractors, workmen and who commenced their projects found itit difficult to find find contractors, contractors, workmen and all the required people theyworkmen needed. and Many difficult to all the required people they needed. Many were already too late and didnâ€™t realize it all the required people they needed. Many were already too late and didnâ€™t realize for by the time they got going the surge were already too late and didnâ€™t realize itit forthe by market the time timeand theyeconomy got going goingwere the already surge in for by the they got the surge in the market and economy were already beginning to slow. These unfortunates in the market and economy were already beginning to to the slow.market Thesedisappearing unfortunatesbefore experienced beginning slow. These unfortunates experienced the market disappearing before they got their product to market and farbefore too experienced the market disappearing they got their product to market and far too many faced financial disaster because of they got their product to market and far too many faced financial disaster because of this. many faced financial disaster because of this. this. Activity is beginning now, and those who do Activity is to beginning now, and those who do do not begin prepare now, for it and will be exposed Activity is beginning those who not begin to prepare for it will be exposed to the possibility of experiencing the not begin to prepare for it will be exposed to the the possibility possibility of experiencing experiencing the unfortunate effects of missing thethe coming to of unfortunate effects of missing the coming market burst. unfortunate effects of missing the coming market burst. Okanagan Business Examiner / November 2010 11 market burst.
Breakfast Seminar - Nov. 17 - Glad Tidings Church Hall, Armstrong
The Going for Gold Breakfast Seminar features Leigha Horsfield talking about the ‘Our Okanagan’ online business registry and Community Futures programs. From 7:30 - 9 am. Sponsored by the Armstrong Spallumcheen Chamber of Commerce. $6 for Chamber
C a l e n da r …Helping Okanagan Businesses
get started today! navigatormultimedia.com
201-260 Harvey Ave.
ONLINE since 1993
get started today! navigatormultimedia.com
ed today! navigatormultimedia.com 201-260 Harvey Ave.
250-862-9868 201-260 Harvey Ave.
members, $10 for others, but preregistration is required. More info by calling 250-546-8155. Business After Hours - Nov. 18 - BC Wine Museum & VQA Shop, Kelowna
The Kelowna Chamber of Commerce’ monthly networking event from 5 to 7 pm. $10 for members, $15 for non-members. Call 250-8613627 for information. Secrets of Microsoft Office - Nov. 26 Penticton Chamber of Commerce
This morning program from 9 to 11:30 am looks at Microsoft Outlook and the Business Contact Manager part of the Microsoft Office program suite. Taught by Frank Byl. $45 for Chamber members, $65 for others. To register call the Chamber at 250-492-4103. Breakfast & Learn - Nov. 26 - 19 Okanagan Grill, West Kelowna
Jessica Samuels from AM 1150 presents ‘Are you ready to get jacked in?’ from 7 to 8:30 am. The talk is how to get your business information to the public. $20 for Chamber members, $25 for others. Information at 250-768-3378.
Business After 5 - Dec. 14 - Vernon Public Art Gallery
The Greater Vernon Chamber of Commerce’ monthly networking event from 5 to 7 pm. $5 for members, $15 for non-members. Call 250-5450771 for information. Workplace Training for Innovation until Jan. 2011 - All locations
B.C.’s Ministry of Advanced Education and Labour Market Development has created the new Workplace Training for Innovation Program. Eligible employers can apply for funding to improve productivity, introduce new technology or equipment, improve international competitiveness or bring in new strategies to increases company productivity or competitiveness. Employers must have fewer than 50 employes, have been in business for at least one year and be in good standing with the BC Corporate Registry. More information and applications are available online at www. aved.gov.bc.ca/workplace_training_program/ welcome.htm. Emerging Companies Seminar - Jan 13 - Coast Capri Hotel, Kelowna
Vernon Women in Business’ monthly luncheon, networking meeting. From 11:30 am to 1 pm. $14 for members, $20 for non-members. Contact information: email@example.com.
This one day seminar is the third in a series of three (single seminar attendance is permitted) put on BCIC New Ventures and hosted in our region by ORIC-OSTEC. This seminar: ‘Building the Beast - Creating a sales & marketing function for new ventures’ is about helping the entrepreneur get off the ground. It runs from 2 to 5 pm. $20 Register by e-mail at firstname.lastname@example.org or call Chantelle Kshyk at 250-712-3340.
Business After Business - Dec. 2 -
HR Toolkit for Small Business - Jan.
13, 20, 27, Feb. 3 - Community Futures,
The Penticton & Wine Country Chamber of Commerce’ Christmas Mixer and monthly networking event from 5 to 7 pm. Free for members, $20 for non-members. More information online at www.penticton.org/ chamber-events.aspx.
VWIB Luncheon - Dec. 1 - Schubert Centre, Vernon
Selling Goods Seminars - Dec. 9 -
These four half day workshops focus on developing human resource tools and appropriate policies through coaching with HR professionals. $875 or free if participants apply for a Workplace Innovation Grant by Nov. 15. Contact Alexis to register at 250-493-2566.
Penticton Chamber of Commerce
Pursuit of Excellence - Jan. 20-23 -
This all day session consists of two separate seminars. The morning seminar, from 10:30 am to noon is on how to ‘Sell your Goods & Services to the Government of Canada’, while the afternoon, from 1 to 3 pm, is on how to ‘Import & Export your Goods’. Both seminars are free, but you must pre-register. For more information contact Leanne Kruger at 250-493-3323 or by e-mail: email@example.com.
Christmas Connection Luncheon Dec. 10 - Best Western Vernon Lodge
The Greater Vernon Chamber of Commerce’ 21st 12 Okanagan Business Examiner / November 2010
annual networking event and party from 11:30 am to 1:30 pm. $35 for members, $45 for nonmembers. Call 250-545-0771 for information.
One of the longest, most effective personal and professional development courses running over four days. The course, consisting of two evenings and two full days, sets out to answer what it is that holds a person back from achieving whatever they want to, and ways to overcome those obstacles. This counts as an employee training program and is eligible for funding from the provincial government, otherwise $595 plus tax or bring a friend at 50% off for second person. More information at www.C3Training. com or by calling 250-491-1212.
Thompson Okanagan Tourism Industry
TOTA Works to Grow Tourism
As totA hosts the 2nd Annual thompson okanagan tourism industry summit, november 3 at sparkling hill resort, it is celebrating its renewal as a newly vibrant destination management organization that is working with new partners to grow tourism throughout the region. his past year has seen exciting changes within Thompson Okanagan Tourism (TOTA) as we moved from being a membership-based association to one that represents all tourism interests in the region. Our strategic focus has broadened considerably as we seek to work with industry to heighten the appeal of the Thompson Okanagan as a region and increase the value of the overall tourism economy. To be truly successful in this role, we need to work together to strengthen all elements of the industry, whether it relates to access issues, innovative marketing and media relations, or building skills and knowledge within individual companies, communities and product sectors. The global tourism marketplace has become much more competitive and today’s economic climate remains challenging - but focusing on innovation and delivering memorable experiences will go a long way to achieving goals that we all share. TOTA is thrilled to have recently expanded its staff and looks forward to delivering an increasing range of customized programs and services that meets the current needs of industry. We would like to take this opportunity to thank our Board colleagues and staff for their strategic input and commitment in recent months, and look forward to seeing what can be accomplished in this new era. Our mission is to support the ongoing growth and sustainability of our tourism industry by establishing Thompson Okanagan Tourism as a champion of excellence and innovation in destination marketing, destination management and industry development. Our vision is to strengthen Thompson Okanagan’s position as a preferred destination for all travellers in our target markets.
The TOTA Board of Directors
The 2009-10 Board of Directors for the Thompson Okanagan Tourism Association (TOTA) is, left to right, BACK ROW: Kelly Watt (Sandman Inn, Kelowna), Christopher Nicolson (Tourism Sun Peaks), Ian Henson (Sun Rivers Golf), Stephen Earl (Hampton Inn, Kamloops), Joseph Dubois (Dubois Hospitality, Summerland), Roger Sellick (Tourism Kelowna), Christina Ferreira (Okanagan Wine Festivals Society); FRONT ROW: Lee Morris (Tourism Kamloops), Chris Bower, TOTA Board Vice-Chair (NK’MIP Resort Association, Osoyoos), Judy Poole (Penticton & Wine Country Tourism), Michael J. Ballingall, TOTA Board Chair (Big White & Silver Star Resorts, Kelowna & Vernon), Fred Legace (Kamloops Airport), Glenn Mandziuk, TOTA Chief Executive Officer (Kelowna), Lisa Corcoran (Predator Ridge Resort, Vernon), Ingrid Jarrett, TOTA Board Secretary-Treasurer (Watermark Beach Resort, Osoyoos). Don Weixl / TOTA Photo
COVER PHOTO BY JF BERGERON
Explosion of Stakeholders
this has been a very busy year for the thompson okanagan tourism Association. Following the launch of the first annual tourism summit in 2009 at the Delta Grand in Kelowna, it has been a year of new strategies, new partnerships and new directions.
ighteen months ago TOTA was a membership based organization with 300 members. Today it has 3,200 stakeholders with no barrier to entry. The decision to broaden TOTA will have far reaching impacts as it serves a much broader and deeper group of tourism industry operators. The stakeholder model also paves the way for more participation throughout the region by including communities and operators in the outer reaches of the region. “Smaller communities often only have one person working on tourism,” says TOTA CEO Glenn Mandziuk. “We can come alongside and give them information, and offer our resources, to each community.” At a board retreat in January 2010 priorities were set for marketing, industry development, community development and in depth research. “In order to develop the Thompson Okanagan as a destination in the broader sense, we need to be able to develop new products and new approaches,” says Mandziuk. One of the first steps was TOTA’s decision to partner with Fjord West, a division of Cossette. Within the realm of marketing Cossette is well known for its experience in the tourism sector. The fall 2010 campaign was launched with a strong buy in from stakeholders across the geographic region in wineries, restaurants, hotels, tour operators and tourism boards. The marketing strategy builds on increased awareness in international markets of British Columbia, says Mandziuk. “I would rather be marketing right now with the Olympics having happened than not. There is a pent up demand created by the Olympics.” The awareness creates the opportunity for TOTA to work on developing a regional brand that shows the breadth of experiences available from Valemont to Osoyoos. TOTA hosts between 60 and 70 near-in and international media events per year. Top international markets are Germany, Great Britain, Australia and Korea, while growing markets include Mexico, Brazil, and India. As for China, that market is a long way from showing fruit says Mandziuk. Wine and culinary tourism are perennial favorites, with eco-tourism showing steady interest. As a region TOTA is home to Mount Robson, a UNESCO world heritage site, the spectacular Wells Gray provincial park and the wonders of the Sonora desert. “There is growth there; people turn up with their hiking boots,” observes Mandziuk. A common thread for all types of travelers is the expectation of ease in terms of tourism infrastructure. TOTA is working with communities and sub-regions to be certain the basics are in place. Signage, promotional materials and customer service standards are
PHOTO BY DON WEIXL
necessities. Developing the skill sets among all stakeholders in key areas is one of the purposes of the upcoming Tourism Summit. ‘Reflecting on Excellence’ is the theme of TOTA’s 2nd Annual Thompson Okanagan Tourism Industry Summit, being held November 3 through 5 at Sparkling Hill Resort. It is designed to ‘drill down’ into tourism issues and best practices. The gala evening will include Olympic medalist Charmaine Crooks and local Olympians. With attendees confirmed from one end of the region to the other, TOTA expects delegates to come away with a deeper understanding of sustainability and green issues, media and marketing, and a fuller understanding of the resources and cultural bounty of the Thompson Okanagan. “We want to help build demand for training and follow-up, so we can be effectively working with our partners and stakeholders,” explains Mandziuk. The Summit will also have details on the strategic outside partnerships TOTA is creating. Recently TOTA signed an agreement with TELUS to become the official information and communication technology partner for TOTA and its tourism stakeholders. Stakeholders will be able to take advantage of economies of scale in accessing leading edge services. TOTA has also partnered with Air Canada, to create preferred rates for stakeholders. The Kelowna International Airport relationship is also being strengthened with expected agreements for advertising. Another agreement with Britec Computer Systems will provide server solutions at preferred rates. Behind the scene expenses rarely get front page attention, but they are often essential. Insurance, for seasonal businesses, is a perfect example. Details of a new insurance partnership tailored to the tourism industry will be announced at the Summit. Mandziuk hints that options for back country and high risk insurance will be announced, along with options for companies looking to offer extended benefits to seasonal employees. “These are all top drawer companies that we are working with to provide our stakeholders with a suite of services at great rates.” The regional marketing strategy has already caught some attention. Brewster, the iconic Canadian Rockies tour company, is adding Kelowna to their tour schedule for 2011. Next summer will see six trips weekly, (three each departing from Vancouver and Calgary) for a total of 300 visitors with overnight stays. The company is currently sourcing tour options, extended stay options and day trip events. “We decided it was worth moving the route to go through Kelowna,” says Brewster media rep, Joanna Buckingham. “It’s great to get to the Okanagan.” Good service and functional capacity were two of the most important things Brewster looked for when designing tour packages. The success of the Olympics followed by strong marketing makes it easier for Brewster to come to the region in a more prominent way says Buckingham. “It helps to create demand. It is up to us to create products for our customers and tour operators, but the awareness always helps.” Brewster will be selling the product into the U.S., UK and Australia with plans to promote the route in China and India where Canada is still new. According to Mandziuk, new product offerings will be important in building international markets and planning for customer needs and draws. This past season saw an increase in last minute bookings. Right now the perception is that the high end of the spectrum did well, but the middle was a little sluggish. TOTA is developing new measurement tools to deliver better stats, more quickly to stakeholders to help make adjustments in the future. Says Mandziuk, “There are examples all over the region where new products are being introduced, or hidden gems are being discovered. We do have solid products, but we need to continue to evolve to steer travelers to our region.”
Tourism’s Missing Link
the Minister’s Council on tourism serves as a direct channel for stakeholders to voice their concerns to the Minister of tourism. in June of this year, Gordon Fitzpatrick, president of Cedar Creek Estate Winery in Kelowna, was appointed as the fourteenth member of the council. Fitzpatrick brings an informed perspective from several vantage points: agri-tourism, the wine industry and the okanagan.
New Council of Tourism member Gordon Fitzpatrick believes there is an urgency to moving on tourism’s issues sooner rather than later.
PHOTO BY DON WEIXL
tuart McLaughlin, Chair of the Council, is confident of the council’s ability to effect change at the provincial level. “The premier was at the first meeting of the council and he really encouraged us to think outside the box and assured us of the ability to meet with other ministers,” says McLaughlin. Since the council’s inception members have been meeting on almost a monthly basis. There have been a number of issues that the council wished to ‘get on’ immediately says McLaughlin. The scope of the issues reflects the diverse needs within the tourism industry. The HST has been discussed extensively and McLaughlin says there have been solid discussions about its impacts on tourism. Those discussions have included meetings with the Minister of Tourism and the provincial finance minister. “We are looking at how tourism in B.C. will continue to prosper.” Beyond the publicly contentious HST, McLaughlin is pleased with the progress the council has made in bringing up ‘blue skies’, which is the push for Canada to open more space for foreign airlines. It is also making its voice heard on the need for Canadian airports to lower the rental fees paid by airlines. Kelowna’s airport actually boasts some of the lowest fees in the country, but attracting American and international flyers depends partly on getting them through Vancouver, Calgary and Toronto where high fees are discouraging. The new provincial tourism marketing plan is also high on the council’s discussion list. McLaughlin says, “As a council we want to ensure there is a good review of the plan. We did influence its development; the ministry absorbed our input. Hopefully it will come out in the near future.” Also on the radar is a new backcountry use and safety policy. “It is about safety for citizens of course, but also from a reputational point of view.” The council is looking at the pros and cons of various directions that can be taken on the issue.
Two Versions of the Great Outdoors to a local audience it goes without saying that British Columbia is naturally beautiful, but there are many different ways to experience that beauty. As this region’s adventure tourism blossoms, visitors are finding completely different ways to enjoy the bounty.
The northern reaches of the Thompson Okanagan Tourism Association is Wells Gray Provincial Park. Rarely discussed amongst its ‘near market’ locals, it is avidly sought in Europe as a destination of choice for outdoor ecotourism. Nearly 50% of tourists to Wells Gray are from a Germany, Belgium, Luxembourg or Holland says Wells Gray Park Services Manager Merlin Blackwell. Albertans are the third most likely to visit the region, which parks British Columbia residents a distant fourth in park demographics. “We really benefit from being a part of the Banff, Jasper loop,” explains Blackwell. What makes them different is the distinct lack of overt commercialization. The laid back atmosphere and the fact that Wells Gray attracts about 5% of Jasper’s traffic makes Wells Gray a planned destination for their guests. The natural assets that attract visitors include Myrtle Lake, the largest canoe only lake in North America requiring a 2.4 km portage to access, and Blackwell says that makes the adventure all the sweeter for guests who make the trek. “It is a little too much work for many people,” he says. “The lake is amazingly quiet and perfect for those who appreciate the opportunity.” Blackwell is so dedicated to the idea of low impact that the canoe portage has no infrastructure on site. “People come here for the wildlife and the scenery. The wildflowers
PHOTO BY FITZGERALD
on Trophy Mountain are like you stepped into the movie, ‘The Sound of Music.’ The black bears, the wolves, people want to see them and they usually can. It makes for an authentic trip experience.” There are 330 campsites and 440 km of trails for Blackwell to maintain in the provincial park. The precise numbers are still coming in, but Blackwell estimates the park hosted 14-15,000 overnight parties, and an additional 100-115,000 day visitors, including 40 to 50 tour buses per day during peak season. Those numbers are flat from the year before due to smoke and wet weather in June. The surprisingly big year for growth was 2008/09, during the height of the recession, when Wells Gray saw a 12.25% jump year over year from the previous season. Blackwell says the emphasis is on keeping the park experience authentic wilderness. “We are really careful about development; we don’t want to open some can of worms that we can’t close up again.”
At Silver Star Mountain Resort in Vernon, the goal is a bit different. Resort management is working to take commercial development from one season and turn it into two seasons. The summer recreation and mountain bike activities at the mountain have expanded recently and Summer Business Manager Ian Galbraith is looking at adding even more products to attract a wider demographic. The core of the summer business at Silver Star is the mountain biking trail network. With 17 runs from easy (green) to ultra expert (double black diamond) Silver Star is trying to make the mountain biking experience something anyone can do, not just hard core athlete. Track difficulty is 15% green, 40% blue, leaving 45% for advanced bikers. The summer biking season has strong parallels to winter skiing. There is a core of season pass holders, but the bread and butter comes from day trippers to the region. There is also a rental shop for bikes and safety gear plus a full repair shop. The bike runs cruise through stands of trees separated from the ski runs. The labour intensive bike runs (minimum of 60 hours of creation work for a short run) provide higher quality runs that do not have to be rebuilt each year because skiers don’t damage the bike runs and bikers don’t change the downhill slopes. With one ski lift servicing 17 runs, a mountain biker can fit in 10 to 15 runs per day rather than shuttle up and down once or twice in a recreation area.
“Our runs are bike specific, they are fast and flowy, with purpose built berms and jumps” says Galbraith. “Every week we have maintenance done, just like the grooming schedule on the ski hill.” The sport is growing says Galbraith. He feels the mountain is well known in B.C. and Alberta and the next marketing opportunities will be the U.S. west coast down to California. “We find the majority of people who come are already mountain bikers. The question is how do we get people who don’t mountain bike out to try it?” To expand the types of visitors, Silver Star opened the Summit chair lift on Friday and the weekends for people to ride up the mountain take in the view and make the choice to either ride or hike back down. In an effort to ‘broaden activities’ at the mountain there is now horseback trail riding and wildflower tours. There is a new RV park, with 10 hookup spaces plus a tenting area. Overnight guests have access to indoor showers and washrooms, community fire pit and picnic tables. This year was the first year for camping, and Silver Star only advertised the option on the website. Galbraith says camping was, “Really popular. Next year we will be marketing it a lot more. To us there seemed to be a need for this and people have really come out.” Silver Star heavily invested in the mountain biking season in 2004, and since they have been rewarded with steady growth Galbraith says they are, “Starting to put more resources into summer.”
PAIRED UP WITH THE REGION’S BEST ACTIVITIES
The TOTA/Fjord West Campaign Leverages Local Vision today’s marketing environment is tumultuous for any industry, not just the hyper competitive tourism sector. the reach of print is under scrutiny, social media is shifting faster than many can keep up with and catching the attention of the consumer is an all out effort. Marketing campaigns need to be measured as a value proposition and, to that end, thompson okanagan tourism Association (totA) CEo Glenn Mandziuk applies a simple metric: “Does it promote ‘heads in beds’?”
o help leverage the marketing reach of local and sub-regional tourism boards, TOTA partnered with Fjord West, a division of Cossette, the internationally recognized strategic marketing agency. Mandziuk says the partnership goes beyond a simple agency client relationship. Every stakeholder in TOTA will be able to partner and buy into seasonal campaigns on a broad platform of print, social and digital marketing. Prior to the partnership arrangement TOTA put together ‘one-off’ advertising blitzes. That scattered approach is changing to a more planned and long reaching strategy. Says Mandziuk, “We are looking at campaign style marketing.” For the current campaign of ‘A Taste of the Okanagan: Fall 2010’ Fjord delivered a creative package showcasing five getaways paired with exceptional experiences. Stakeholders were invited to participate with various levels of buy-ins, accessing different levels of exposure. The campaign is purposefully designed as pay-to-play, allowing stakeholders to target their marketing dollars while being part of a $350,000 plus campaign buy. “This is a world class effort,” says Mandziuk. Progress will be monitored in multiple ways. On the main page of the campaign website it is easy to see the Facebook ‘Likes’ click counts for special partners. Even more valuable are the click throughs to organization websites, which are tracked through web analytics. One stakeholder that took part in the fall 2010 campaign is Penticton & Wine Country Tourism (PWCT). The organization jumped at the opportunity says Tourism and Marketing
PHOTO BY MATT JENNINGS
Manager Jessie Campbell. “We could leverage ideas and content we had already developed,” says Campbell. The top notch visual and technical design of the campaign allowed Penticton Tourism to use imagery and story nuggets the organization already had. The links from the campaign go directly to the ‘specials’ page of the PWCT website, easily. That is, says Campbell, “One of the most popular pages to visit [for] new visitors to our site.” The ‘specials’ page on the PWCT website is entirely stakeholder driven, explains Campbell. Penticton area operators in Campbell’s organization voluntarily submit their special offers to PWCT and have them posted in the order received. The specials page is a solid opportunity for operators to put their product in front of potential customers. To leverage marketing dollars further and secure a prominent place in the campaign, PWCT partnered with Osoyoos and Summerland to help create a South Okanagan focus. Campbell says the sub-regional cooperation delivers solid benefits, “Our dollars go further and the partnership allows us to have the most impact. It also fits with media tours we have been giving, showing the region as a whole.” The working relationship with Fjord has been strong says Campbell. Fjord has the ability to ‘negotiate the dollar’ across platforms and deliver a broad reach. “Working with a strong agency has immeasurable benefits.” While waiting for the analytics and other evidence to come in, Campbell says the early signs point to a strong and positive campaign and at this point PWCT is looking forward to participating in spring 2011. Written by Bobbi-Sue Menard
Another Performance Review You may hate them, but handled properly the dreaded review can be beneficial Your palms are sweaty. You are typing madly on your keyboard, noting the clock ticking down to your meeting. You are flipping through notes trying to decipher your chicken scratchings and remember what happened six months ago is fuzzy, and last year seems like a different job. Goals you set together are meaningless because somewhere along the way, the goal posts moved. You barely know what is expected of you let alone your team of five and a couple of them switched jobs half way through, but you can’t remember why. If you feel the performance review is a torture device foisted upon you by the Evil HR Director that would make Catbert look like a kitten, you are not alone. Your employees feel the same way. Trying to sum up an entire year of blood, sweat and tears into a few tawdry pages of ratings or rankings doesn’t really fit what they do anyway. Worst of all, those rankings and ratings will establish who gets a raise and whether or not your employee will be perceived as being a team player on the fast track. Have you ever heard anyone say, ‘Hooray, I get a performance review?” I confess. I hate the typical performance review. I bet you do too. Those people who don’t get nightmares the night before are usually too naïve to know better. Even the notoriously pro-feedback Gen Y’ers swiftly realize that typical performance reviews are not what they imagined and duck and cover at that time of the year. There is a better way, but before we go there, it is important to figure out why we even have performance reviews. Performance reviews are needed: • For documentation of performance in case you need it (i.e. when the employment relationship goes horribly awry); • To provide feedback to the employee; • To serve as a basis for decisions on raises. You should know I am not particularly interested in forcing employees to improve their weaknesses. It is far simpler, faster and more pleasurable for all involved to develop a talent or encourage a work-around strength than to beat your head against a weakness. Competent performance begins with the employee who has the skills, talents, experience, fit and desire to meet the job’s expectations. It is the hiring manager’s role to assess prospects and select the candidate that ideally exceeds, but at least meets, the
minimum requirements and is highly motivated. Unfortunately, many poor performers are in the wrong job or the wrong environment and, if you hire someone to answer phones who hates talking on the telephone or other similar misfits between the employee’ talents and the job, your challenge is with staffing and selection systems, not the performance review. The performance review can be an opportunity to help your employees (and your business) be successful, not by being Pollyanna and only focusing on the positive, but by being proactive, constructive, and focused on how to achieve your goals together. Performance reviews should be multifaceted and distribute attentions between the past, present and future. Past • Recognize and appreciate efforts and strengths which contributed to successes to date (not just what but how) • Acknowledge learning experiences and areas of opportunity Present • Build the relationship between employee and manager • Refocus the employee on the task at hand • Clarify what is expected from the manager and the employee Future • Recalibrate goals to ensure they are S.M.A.R.T. (specific, measurable, attainable, realistic & time sensitive) • Reveal potential obstacles and collaborate on how to overcome or avoid them • Plan for future growth & development experiences for the employee There are many different formats to address these points, but I created a template to act as a conversation guide and either I summarize or I ask my employee to summarize our meeting in an e-mail that we both refer to next time. Keep ratings simple if you use them at all. Few of us are insightful enough to discern between a 6 or 7 on a scale of 1-10. On a 1-5 rating scale, the most common responses are 3 or 4. All the ratings and weightings, in the end, still only describe the following three categories: • Meeting expectations; • Exceeding them, or; • Needing to improve. That is why I like to keep ratings simple and
use only those three categories from the start. Normally, 80-85% of your people typically meet expectations, which means they meet them most of the time and occasionally exceed. The next 10-15% typically exceed expectations and it is clear to everyone, including their peers, that they are exceptional. The last 5% are not meeting expectations, most of whom are learning their jobs. People who chronically don’t meet expectations should be on their way out. Spend more time meeting with and helping the “meets” and “exceeds” people than the experienced and intentionally “not meeting expectations” employees. Attention from and time spent with a manager are valued by employees. Reward those who deserve it. Final notes about performance reviews: • If you do them regularly, these meetings can be short and sweet (<30 mins); • Train your managers in how to effectively hold this kind of performance review meeting; • Teach your employees what a good performance review meeting feels like; • Don’t save your feedback for the review meeting. If you see something great, congratulate them immediately, and if you see problem behaviours, deal with them immediately. • Ensure your managers and employees have the tools, resources, support and abilities to achieve goals set out for them. Success and achievement are powerful motivators. • Track what you agreed to so you have something to work from next time. To those of you who are concerned with how to get started, the goals for each job and/or a clear purpose for and understanding of why the job exists are the foundation. From there, it should be pretty clear whether the employee is meeting or exceeding what is expected for them on the job. If the definition of insanity is doing the same thing over and over and expecting a different result, then why do we keep doing performance reviews the same way? If you like this article and want to see more please visit www.lovehr.ca or contact us directly at 250-801-1341 or firstname.lastname@example.org to find out more and/or share your favourite performance review story. Okanagan Business Examiner / November 2010 21
ion of nt, you
an ding our he next whether mited, alls ple d on a
who er, a sale ur hands;
omers es under ney tied uipment
Manage with your Head, but Lead with your Gut 8F1SPWJEF0LBOBHBO #VTJOFTT0XOFST4UBGG #FOFÂžU1MBOT*OTVSBODF4FSWJDFT
A small business can be nimble and quick, but, if youâ€™re like Jack and thinking of jumping over the candlestick, make sure the risks are factored in first so you donâ€™t get burned. When itâ€™s time to leap, go for it without hesitation. Thatâ€™s the advantage of a small business: the ability to move quickly when necessary. When the economy is booming, thatâ€™s a plus. Now, the urge to move quickly may be costly. There are many tempting opportunities around, but you may want look before you leap in this economic environment.
With a slower economy, this is the time to weigh decisions and work on the important long-term strategy that needs to be behind every seemingly quick decision. Take a good, hard look at where your company is today, where you want to go and the options of how to get there. Chart your course and start making decisions daily that help you move closer to your goals. Measure your progress often and regularly against predetermined milestones. Good, strategic management starts with thorough analysis of the current situation and options. Nowadays thatâ€™s easily accessible and affordable with computers and software applications that have simplified complex decision making.
In my years of banking and working with entrepreneurs and businesses of all sizes, two things were abundantly clear: â€˘ Owner-operated, smaller businesses tend to 1I5' be -BLFTIPSF3PBE ,FMPXOB #$ lacking in good analysis and evidence-based decision-making. &NBJMECÂžOBODJBM!TIBXCJ[DB XXXCDCFOFÂžUQMBOTDPN â€˘ Larger corporations often get mired in the details and are more likely to suffer from analysis paralysis.
Evidence-based decisions are usually
Whatâ€™s the happy medium? My advice is to spend time on your strategy â€“ quality time â€“ and ensure you use all the expertise you can. Just donâ€™t forget your instinctive strength.
better than those made blindly, but donâ€™t get bogged down in the data
and let analysis paralysis
and A they eived r when
As well, many successful business owners are now setting up advisory boards to help with strategy. Donâ€™t forget your strength as a small business, however. Instinct plays a key role, too. You need both the research and awareness to make sound business decisions.
e in oduction e ume the eir hands
In other words, manage with your head and lead with your gut. You have heard the adage: â€œA poor strategy brilliantly implemented is better than a perfect strategy poorly implemented.â€?
you the ead to on to e door. akes a ment. or a
Dynamic and outstanding leadership requires razor sharp instincts and passion to catapult ahead of stiff competition. Often, no matter how good the objective data is, implementation requires a more human element. Taking too long to decide can complicate matters. Opportunities can be lost in the meantime. You may have to pounce immediately or lose out. Trust those instincts.
for BC kills s, 7014 or ere in B.C.
How many times have we found ourselves February 2010 Okanagan Business Examiner
22 Okanagan Business Examiner / November 2010
saying, â€œIf I only jumped on that sooner or when I had the chance?â€? This is often the case in property purchases. In your gut, it seems like a lucrative buy, but you debate over the price and, in your analysis, think it is probably too expensive. Someone else jumps on it, creates value and makes the money you dreamed about. This is the defining characteristic of master entrepreneurs. They jump on opportunities, and move boldly on calculated risks â€”never looking back; emphasis on â€œcalculated risk.â€? Good entrepreneurs know their market, their business and recognize the opportunities, even when they come up unexpectedly. They will have a formal strategic plan that they are firmly committed to and can confidently jump on opportunities because they instinctively know what will work for them. Yes, knowledge is power and it is important to use good information when solving problems. Evidence-based decisions are usually better than those made blindly, but donâ€™t get bogged down in the data and let analysis paralysis set in. Trust your gut. Your experience, insight and wisdom play a vital role in the process. The best case scenario is when your head and gut are aligned. Then, you know youâ€™ve made the right decision. Lorraine McGrath, MBA, of McGrath Executive, is a strategist, corporate director and advisor to businesses that are driven to succeed. Her achievements in business, community-giving and role-modeling have been recognized with several significant awards including Distinguished Alumni, Athabasca University, Woman of Distinction, Woman of the Year and Honourary Fellow. www.mcgrathexec.ca.
ThisDemocracy The Organic Hoax Did you know all government subsidies to the organic industry pass through the hands of organic farmers and go right into the coffers of left-leaning, urban political activists? The global organic industrial-complex promises everything and delivers nothing. Just don’t blame organic farmers! They’re victims of this political subterfuge, along with millions of consumers. If you’re spending your hard-earned money on “organic” food at a grocery store instead of getting it directly from a farmer, you might want to stop and try to become a part of the solution. The root of the problem lies in the fact that organic farms, processing facilities and brokers are NEVER tested to ensure they’re actually organic and that harmful pathogens are being safely eliminated. Let me repeat, there’s NO TESTING in the organic industry! The lax system was set up according to the dictates of organic brokers, traders and importers who are all too busy turning tidy profits to worry about whether the product they’re hocking is really organic. Back in 1998, the Clinton administration turned its back on the only people who matter when it comes to organic food: those who grow it, and those who eat it. Farmers and consumers were ignored as bureaucrats in Washington caved in completely to the
desires of the urban activists. The American Consumers Union wanted organic field testing and so Clinton’s people had no choice but to pay lip service to it during negotiations. By the time the “Final Rule” came out, testing was undermined with the addition of the crucial wording that it would “not be routine practice conducted on every operation.” Sadly, when the Clinton administration said organic field testing “is seen as a useful tool,” the definition of “is” again turned out to be the critical factor. He then placed the whole watered-down mess on the back burner and left it for George W. Bush to pass into law. A decade later Canada followed suit. In spite of the better judgment of leading members of the Canadian Food Inspection Agency, along with consumer groups who all wanted testing, the powers-that-be in Ottawa managed to implement the exact-same watered-down system the Americans had. What we’re left with on both sides of the border is a politicized honour system that aims to fundamentally change the way you feed your family whether you like it or not. Hey, c’mon man…it’s for your own good! “Trust us,” the political activists who run the organic industry say. Really? Should we? Among the many things President Obama promised to do during his first
term, was to finally begin testing organic crops. Unfortunately it’s a promise that will be difficult for him to fulfill considering the great resistance that exists within the upper ranks of the organic industry, which donates heavily to the Democratic cause. Sadly, organic farmers don’t carry anywhere near as much sway in Washington or Ottawa as do the handful of millionaire brokers, traders and importers who want to keep things just the way they are…nice and lax. When the lid is finally blown clean off this multi-billion-dollar scam, taxpayers everywhere will rejoice;
and that includes the thousands of honest organic farmers who’re getting shafted by the current system. Being organic is no longer about farming fields. It’s about filling forms. Your taxes underwrite this marketing subterfuge and help drive a stake into the heart of the most efficient food system ever known. Please go to my website for more information: www.isitorganic.ca. Mischa Popoff is a freelance political writer with a degree in history. He can be heard on Kelowna’s AM 1150 with host Phil Johnson on Friday mornings between 9 and 10.
Small Business Advice
Craig Phillips BA Hons
We’d like to introduce Craig Phillips as your Small Business Advisor. With over 7 years of business banking experience, Craig understands the pressures of owning and operating a business and is committed to helping you by: • discussing your business banking needs • offering professional banking and investment solutions • delivering excellent personal service Drop by the branch to talk to your Small Business Advisor and discover how we can make your business banking easier. We look forward to seeing you soon.
Westbank Shopping Centre 2330 Highway 97 South, Suite 501 West Kelowna 250 768 6500 ext 224 CRAIG.PHILLIPS@td.com Mon - Wed Thu - Fri Sat
8am - 6pm 8am - 8pm 8am - 4pm
Okanagan Business Examiner / November 2010 23
The Secret War There is a secret war taking place between most of the world’s industrialized nations, and many developing countries too. Most won’t admit they are fighting it. It doesn’t involve weapons. It doesn’t involve taxes and trade barriers, at least not yet, though it could escalate. It involves currencies. Trading nations are in a battle to see who can debase their currencies the farthest, the fastest. Currency devaluation is a strange game competition, as it is impossible for every currency to fall against every other currency. So there will be winners and losers. There are also side effects, more expensive imports and inflation, which are not usually policy makers’ first choice. Why comes down to Economics 101. The premise is that economic growth is a good thing; it increases the standard of living, provides jobs and keeps voters happy. The formulaic answer is that economic growth G = C + I + G + (X-M). To grow, a country needs to increase (C)onsumer spending (not happening), business (I)nvestment (not happening), (G)overnment spending (infrastructure stimulus is about to be cut), or net exports, e(X)ports – i(M)ports. The best short term solution is to get citizens to
buy less from their own country, and get other countries to buy more of what they produce. Weaker currencies can do the trick over the short term. They let export prices fall against other currencies while production costs and profits remain stable in their home currencies. Sales increase, profits increase and employment increases. The U.S. has mostly been winning the secret war – one local casualty was our local OwensIllinois glass plant. Once upon a time, when the loonie was worth 64¢ U.S., it paid California winemakers to hire Canadian trucks to take empty wine bottles to Vernon, and return with clean ones, but at parity, the glass plant shut down. It’s been tough for B.C. forestry producers too, as our cost of production rose 50% against U.S. production costs when measured in U.S. dollars, while prices fell. It will continue to be tough for many, including Quebec and Ontario manufacturers who, ship most of their goods to the U.S. The other side of the equation is reduced imports, as the weaker home currency reduces buying of foreign stuff in favour of cheaper local production. Stronger exports and weaker imports
GROWING YOUR BUSINESS Guide Now Available The third in our series of FREE resource guides, the Growing Your Business guide helps you make informed and good decisions about growing your business – both for the business and the owner. Look for your FREE copy in this issue. For copies of our Starting Your Business resource guides call or visit our website. womensenterprise.ca 1.800.643.7014 Vancouver | Victoria | Kelowna Serving the women of BC since 1995
Financial support provided by:
24 Okanagan Business Examiner / November 2010
equal economic growth as long as substitutes exist. The Okanagan can expect to see more Americans wanting to stay home for holidays (and more Canadians wanting to head south for vacations). One of the U.S.’ problems here is oil imports, and they will try to switch a significant portion of their energy from imported oil to U.S. produced oil, natural gas, coal and nuclear power. Countries like China who have pegged their currencies against the U.S. dollar have benefitted enormously, as their exports have enjoyed the comparative devaluation against most other currencies, and kept their relative advantage with the U.S. China’s circumvention of the U.S. strategy has upset U.S. lawmakers, who are threatening to impose tariffs against everything made in China. Economic theory tells us the “right” level for a currency is the exchange rate that makes equal baskets of goods and services equal in all countries. It’s more complicated than it sounds, but the Economist magazine has simplified the issue in an entertaining way with its ‘Big Mac Index’. They survey the cost of Macdonald’s flagship product around the globe, and calculate the level currencies should be. It suggests the Chinese yuan should be about 40% higher, giving some credence to U.S. claims. Our currency should trade closer to 90¢, a level supported by some other economists after detailed research. It also suggests Brazil’s currency is 40% too high (they’ve announced their third tax in currency inflows to try to push down the real), and the Swiss franc is about 80% overvalued. Attempts to bully China have proven counterproductive in the past. Partly because they refuse to be bullied in public, though they appear open to quiet discussion behind closed doors. China also holds something like $1 trillion in U.S. dollars, and a quick currency devaluation could get expensive. We can only hope China quietly implements a series of modest currency devaluations that are big enough to mollify the U.S. and that U.S. policy makers continue to avoid repeating the mistakes of the 1930s. Otherwise this quiet currency war, fought behind the scenes, could escalate and we could all be casualties. Dominik Dlouhy P. Eng, MBA, CFA is a Chartered Financial Analyst and planner with Partners in Planning Financial Services Ltd. and The Fraser Financial Group LLP. You can reach Dominik at 545-5258 or email@example.com with any questions, comments or issues you would like to see covered in this column. The opinions expressed in this article are those of the author and not necessarily those of Partners in Planning or The Fraser Financial Group.
Fortis recognizes 18 Massive Power Savers Eighteen organizations or people were honoured at Fortis’ annual PowerSense awards for their efforts to reduce power use. Carol Suhan, PowerSense manager, pointed out the real energy savings realized by their efforts. Already these projects have reduced power use by 275 gigawatts, which is enough, she says, to power 355 homes annually. Not all the projects are fully realized at present so the annual power savings will increase as time goes on. Saving energy is much more important than just writing some numbers down and handing out awards. Most people probably don’t realize that at peak usage, Suhan says, “We have to buy electricity on the open market.” Ultimately such costs are passed on to the consumers, whether they are private individuals or
businesses. The awards given out came under two broad categories: six of the winners were “conservation leadership awards.” These six have all instigated programs with Fortis, but the energy savings are, to this point, only projected. They include Andrew Gaucher’s development projects, the City of Penticton, the Geotility Geothermal Installation Corp., Home for Learning construction project, Paul Schuster of New Town Architecture Urban Planning and the Penticton Indian Band for innovations in its new school and housing projects. The other dozen winners have had the projects in place long enough that actual power reductions have been measured. Among those 12 savings ranged from 100,000 kilowatt-hours per year for the Canadian Mental
Photo by Shawn Talbot Fortis’ 2010 PowerSense winners gather with their awards, representing total projected energy savings of 467 gigawatts.
Health Association in the region to a maximum of 1,238,754 kilowatts for the INvue condominium development in Kelowna. In between those two are The Society of HOPE (119,121 kWh/yr), Accent Inns of Kelowna (128,898 kWh/yr), Vincor (130,000 kWh/ yr), Acorn Communities for the West Avenue Lofts development (173,185 kWh/yr), Weyerhauser Princeton Operations (249,428 kWh/yr), Okanagan College for its new Centre for Learning building
(260,000 kWh/yr), Mission Group for the Amberhill Properties (386,303 kWh/yr), Interior Health for the Summerland Health Centre (400,000 kWh/yr), the Real Canadian Wholesale Club store in Penticton (494,061 kWh/yr), and the City of Penticton for water infrastructure upgrades (992,184 kWh/yr). Several of these companies will be profiled in upcoming issues, showing how they made these savings.
[ AWARD WINNING MARINE PHOTOGRAPHY ] COMMERCIAL • ARCHITECTURAL • MARINE
Okanagan Business Examiner / November 2010 25
Movers& Tolko continues its Chinese Lessons
Tolko Industries says it has signed two contracts that will see more of its lumber heading to China. One agreement is actually a renewal of an earlier deal, while the new one specifically relates to the sale of 2x4 coming from Tolko’s Soda Creek Division, which is located near Williams Lake. The deals were signed with China National Building Material Company (CNBM), which is a subsidiary of the state owned China National Building Material Group Corporation.
experiences in a single guide to the valley.” The book covers much more than just hiking on valley trails, but includes information on historic sites, cultural activities, family attractions, farm tours and food. The book is the first in a series of three, the second being about Canada and the third on international travel. The 272 page volume will retail for $24.95.
the plucky Canadian airline has reached an interline deal with American Airlines. An interline agreement means passengers can buy a single ticket for flights and check their bags through to a final destination even when that involves flying on both airlines through connections. For American Airlines it extends their network to 25 Canadian destinations they do not currently serve. WestJet already has similar agreements in place with Cathay Pacific and Air France-KLM, but lacked a partner in the vital United States market.
Skogie’s Cleans Up
Grandma Wears Hiking Boots
Local journalist Laurie Carter has just released her new book, Grandma Wears Hiking Boots: A personal guide to the Okanagan Valley. Carter relates, “For the last decade I’ve been writing and shooting photos about the Okanagan for magazine, newspaper and online articles. I felt it was time to pull together my
WestJet gets Hitched
Last year it looked like WestJet was set to consummate a deal with Southwest Airlines to provide a partner south of the border, but that fell through last April. Now
The Skoglunds have reopened their expanded and improved car wash centre at 1830 Underhill Road, next to Highway 97 in Kelowna. Known as Skogie’s Auto Spa Express, the rebuilt facility offers the newest technology in auto car washing. Exterior car cleaning runs from $7.14 to $14.29 while interior cleaning runs from $20 to $32, with many extras available. All prices are before HST. Eight bays can service up to 140 cars per hour. The Skoglund family, run by Dave Skoglund along with his two sons Jason and Chris, owns three car washes in Kelowna.
$15 million. Another spinoff that Carlaw did not measure, he says, was amounts spent on surrounding businesses like restaurants or the casino on game days. Local merchants testified that there was an increase in business, but this study did not measure such increases precisely. This study is structurally the same as one done for the Saskatoon Blades in 2009, where the overall economic impact was measured at $10.9 million.
Miles Prodan, who was at the Thompson Okanagan Tourism Association for five years, jumped from that organization to another group with big roots in the region in October. Prodan is the new executive director of the British Columbia Wine Institute.
Car Sales Summary Rockets prove their Worth
• Convenient and hassle free • Completely automatic • The smallest hearing instrument on the market • Enjoy conversations with family and friends • Understand better in background noise • Better hearing on the phone
Allow yourself to start the process NOW with a FREE HEARING TEST
Optional warranty and accessories packages. The only independent hearing practice in Kelowna.
“It’s my name on the sign... I guarantee your satisfaction.” Joe Wadden BC-HIS WCB & Veteran Aﬀairs Provider Registered under the Hearing Aid Act of B.C.
26 Okanagan Business Examiner / November 2010
A study commissioned by the Kelowna Rockets and prepared by Dr. Kenneth Carlaw, an associate professor of economics at UBCO estimates that the hockey team pumps some $31 million into the local economy annually. In order of magnitude the Rockets’ social activities (community and charity) generates $242,000; the direct impact from the Rockets themselves is just under $4 million (this includes salaries and expenses, billet expenses and the WHL scholarship program); playoff, pre-season and special event activity generates over $5 million; the impact from former Rockets players and support staff now living in the city comes to $7 million while indirect impact (spending at games, ticket sales, corporate sponsorships, visitors from outside the area, competitors coming into the area) amounts to just under
New motor vehicle sales in Canada are erratic, going up and falling and then recovering month to month. In August they dropped 4.8% from the previous month to 128,764 units; although Statistics Canada says initial data suggests sales increased in September. While both car and truck sales dropped, car sales took the bigger plunge and truck sales (which includes minivans, sport-utility vehicles, vans, buses, light and heavy duty trucks) outnumbered cars. Trucks counted for 73,002 units out of the total sales. Sales are not down uniformly across the country, but seven out of 10 provinces reported decreased sales. The worst declines were in Ontario (8.9% drop) and Quebec (4.5% drop) while the biggest gain was Alberta’s 2.4% increase. On a year to date basis, new cars sales to the end of August in 2008 numbered 1,205,729. At the end of
&Shakers August in 2009 sales were down to 1,011,772 but recovered this year to 1,088,474 units. Black Hills Winery &
Destination Osoyoos share Award
Top honours went to Destination Osoyoos and Black Hills Estate Winery at the recent Thompson Okanagan Tourism Industry Summit held at Sparkling Hill Resort near Vernon. The 2010 Tourism Excellence Award for Innovative
TOTA CEO Glenn Mandziuk presenting the Innovative Marketing Award to Black Hills Estate Winery President Glenn Fawcett
Marketing and Promotion was jointly awarded to the two organizations. Black Hills was recognized for its promotional work during the Osoyoos Celebrity Wine Festival while Destination Osoyoos’ big claim to fame was the deal it signed with the ‘Gunless’ movie producers to include mentions of the town on-screen, on the DVD packaging, on movie posters and with a vignette film included on DVD copies of the movie.
Miller is also hiring herself out to work on policy work for advocacy to both senior levels of government.
all directors. John Christie is the new executive director in what is shaping up to be a pivotal year for OSTEC as it merges with ORIC to become the advocate and supporter for hi-tech industry in the region.
Cameron’s New Hat
Miller’s plans takes her from Event to Event
OSTEC picks out New Board
After three years of working as the events coordinator at the Greater Vernon Chamber of Commerce Pamela Miller decided to step out on her own to form Lebens Inc. Miller, through Lebens, will use her expertise to plan events. Her first jobs include working on the Building Sustainable Communities Conference that ran from November 15 to 18 in Kelowna and the Bridges of Trust programs, which will run simultaneously in Kelowna and Kamloops in March.
OSTEC’s new board for the coming year has been announced. Jason Richards of Vineyard Networks is the new president while WaveTeq Communications’ Jack Van der Star is the new VP. Andrew Dow, a lawyer at Farris Vaughan Wills & Murphy, is an executive director at large. Martin Rutherford from Grant Thornton is the treasurer and Andrew Hay from Okanagan College is the secretary while Raghwa Gopal, Mike Martin, Sonja Vrcic and Ian Stuart are
Nancy Cameron, the CEO of Tourism Kelowna is wearing a new hat as the recently elected vice-chair of the British Columbia Destination Marketing Organization Association (BCDMOA). This organization was created in 2008 with the aim of promoting and recognizing local DMOs that do an exceptional job. There is no cost for local groups to join the DMOA, but members are urged to become accredited.
save power reap rewards congratulations | conservation excellence award winners Canadian Mental Health Association, Kelowna and Area The Society of H.O.P.E. Accent Inns Kelowna Vincor Acorn Communities, West Avenue Lofts Weyerhaeuser Princeton Operations Okanagan College, Centre for Learning Mission Group, Amberhill Properties Interior Health Authority, Summerland Health Centre Loblaws, Real Canadian Wholesale Club, Penticton City of Penticton, Water Infrastructure Upgrades John Ross, INvue Penticton Indian Band City of Penticton Paul Schuster, New Town Architecture Urban Planning GeoTility Geothermal Installation Corp. Home for Learning Andrew Gaucher
To learn more, contact FortisBC PowerSense at 1-866-436-7847 or firstname.lastname@example.org. www.fortisbc.com Okanagan Business Examiner / November 2010 27
Sovereign picks up another World Cup Event by devon brooks
roughly the same size crowd of people the 2005 Cup did.
In 2005 the Sovereign Lake Nordic Centre moved onto the world stage when it hosted the World Cup in cross country skiing. Brad Clements, project manager for the 2011 Masters World Cup happening at Sovereign in March, says, “The World Cup really put Sovereign on the map.” It also punched up the local economy, delivering $3.1 million in direct spending to the community over three days. The total economic spinoff effect was estimated to be $6.5 million. Says Clements, “I saw the economic impact of the World Cup.” Sports are supposed to be about the love of the game, healthy activity and wholehearted competition but there is no denying it is also business and it can be big business. A Masters World Cup is a cross-country skiing competition for those who are 30 or over, so it is not about the hottest young competitors hoping to go to the Olympics. Nonetheless, Clements says about 30% of the competitors are serious competitors while the rest are recreational skiers to one degree or another. Recreation in this case, includes the onsite racing, but it also means looking around the area when not racing and for the family that tends
to come along to watch. As Clements remarks, “This is as much about tourism as it is about the race itself.” That’s not to discount the race itself as an economic generator. The Masters World Cup will run over nine days and bring in, it is expected,
How much money they will leave behind is Continued on page 30
Masters Cup 2011 Timeline: Jan 4 2007 - Learn of opportunity to bid for MWC 2011 from Dirk Tempelman-Kluit (former director of the BC Masters Cross Country Ski Association) Jan 31 2007 - Submit initial bid to Yves Babin, Nation Director for Canada, WMA (World Masters Association), who then forwards on to the WMA March 2007 - forward letters of support from Cross Country Canada, Cross Country BC, Silver Star Mountain Resort, City of Vernon and Greater Vernon Services, and BC Parks September 2007 - Brad Clements (former chair of the Sovereign Lake Nordic Centre board) makes presentation to WMA via conference call to McCall Idaho. March 2008 - Scott Lemon and Darren Derochie made a presentation to the WMA in McCall, Idaho at Masters World Cup 2008 March 8-11 2008 - WMA president tours Sovereign Lake/Silver Star (they also inspected Canmore, Alberta) March 2008 - Awarded the Canadian bid for MWC 2011 and Bruce Cummings takes on role as Chair of Organizing Committee
28 Okanagan Business Examiner / November 2010
While the more youthful World’s Cup contenders came with fewer competitors (around 300), there were large training and support staffs. Masters World Cup participants are projected to number closer to 1,200 (registrations are still open), but they come with fewer coaches and more family, friends and time. So many that Clements believes there will be more than 3,000 people here.
along with steering group: Scott Lemon, Bjorn Meyer, Glenn Bond, Sharon Clarke, Don Wylie. September 2008 - Scott Lemon presented a brief to the WMA in Autrans, France (site of the 2009 MWC and SLNC was awarded the bid for MWC 2011 Fall 2008 - Organizing committee is put together to begin planning for the event March 2009 - MWC 2009 held in Autrans. Presentation by e-mail to WMA meeting. September 2009 - WMA (national directors and president) travels to Sovereign Lake/ Silver Star for annual AGM and site inspection February 2010 - delegation sent to Falun, Sweden for MWC 2010 September 2010 - report to WMA done (powerpoint and conference call) to Oberwiesenthal, Germany by Brad Clements and Bruce Cummings September 2010 - Registrations open March 3-11, 2011 - MWC 2011 will take place at SLNC
International Children’s Games offer Mature Benefits By Devon Brooks
In two months, from January 26-31, Kelowna will be host to the International Children’s Winter Games. The Games, which are officially associated with the Olympics, will be the first winter games to be held outside of Europe.
Currently 400 or more youthful athletes are expected to compete in nine different events in skating, curling, hockey, skiing and snowboarding in venues at Telemark, Big White, the Kelowna Curling Club and various arenas in the city. That is about the same number that participated in the last winter games held in Switzerland. Opening ceremonies will be held in Prospera Place and will be open to the general public.
Heather Schneider, lead organizer for the Kelowna games chats with the president of the International Children’s Games organization, Torsten Rasch.
The children’s games were first held in Celje, Slovenia (formerly part of Yugoslavia) in 1968. They were the brainchild of Slovenian Metod Klemenc who, as a child, saw the opportunities for healthy growth and competition stripped away by World War II. He says, “Since I –within my possibilities– wanted to create a better world based on friendship, sport seemed to be one of the best means to bring together young people from different countries.” When he decided to spur such an opportunity back in the ‘60s the Cold War was in full swing and it prevented many countries from openly
working together. He realized the official strictures rarely went as far down as civic government so the first summer games, with nine European nations, were organized at the city level. Organization at that level is a tradition that continues to this day. Since then 37,000 youths from 411 cities in 86 countries have competed in 43 summer games and four winter games. The last winter games were in 2009 in Montreux and Vevey Switzerland, both cities that are participating in the Kelowna games. That Kelowna winter games are the first in North America is not the only first: it is also the first time for hockey and speed skating, it will be the first to have an attached business forum and the first where visiting families are billeted (except for the hockey teams). Billeting with families is important for a couple of reasons says Heather Schneider. “Connecting Lives!” is the official theme of these games, and Continued on page 30
Attending Cities for the International Children’s Winter Games In total 1,193 cities in 65 countries were invited and, as of mid-November 38 cities had indicated they would send a contingent of athletes while another dozen were still considering it. Contingents, not including family or spectators, range from a single athlete to a contingent of 35. Officially Attending (registration fee paid) 1. Maroondah, Australia 2. Woollahra, Australia 3. Innsbruck, Austria 4. Chetwynd, Canada 5. Coquitlam, Canada 6. Hamilton, Canada 7. Kelowna, Canada 8. Penticton, Canada 9. Waterloo, Canada 10. Westbank First Nations, Canada
11. West Kelowna, Canada 12. Windsor, Canada 13. Patras, Greece 14. Darmstadt, Germany 15. Kaunas City, Lithuania 16. Lanarkshire, Scotland 17. Gorje, Slovenia 18. Maribor, Slovenia 19. Seoul, South Korea 20. Montreux, Switzerland 21. Vevey, Switzerland 22. Lausanne, Switzerland 23. Chesterfield, USA 24. Cleveland, USA
Attending (pending registration fee) 1. Lake Macquarie, Australia 2. Shire of Hornsby, Australia 3. Halifax, Canada 4. Port Coquitlam, Canada 5. Port Moody, Canada 6. Tamale, Ghana 7. Reykjavík, Iceland 8. Sialkot, Pakistan 9. Pittsburgh, USA
Attending (still awaiting official registration and fee) 1. Cove Lake, Australia 2. Melbourne, Australia 3. Nisichawaysihk, Canada 4. Lahore, Pakistan 5. Maribor, Slovenia Expressed interest in attending 1. Hornsby, Australia 2. Canmore/Banff, Canada
3. Kamloops, Canada 4. Montreal, Canada 5. Cayman Islands 6. Ísafjörður, Iceland 7. Maribor, Slovenia 8. Pesnica, Slovenia 9. Pesnice, Slovenia 10. Ravne, Slovenia 11. Slovenj Gradec, Slovenia 12. Stockholm, Sweden
Okanagan Business Examiner / November 2010 29
International Continued from page 30
Schneider says that is best done when visitors get to see what life is really like for Canadian families. “To be in a local’s home is to add something to the experience.” There will be plenty of opportunity to build good financial links as well. The business forum, known as Connection2011, will be held on January 26. The event is being co-sponsored by the Central Okanagan Economic Development Commission and the Westbank First Nation; although, many decisions about the forum have yet to be decided. Economic Development Office of the Central Okanagan spokesperson Michael Blondé says they are hoping for 40 to 60 participants to attend the forum. That includes all participants coming from overseas and local companies.
City of Kelowna representative Don Backmayer (centre) stands next to Heather Schneider (right) and International Children’s Games president Torsten Rasch (right of Schneider) during the official handover of the ICG flag from Manama, Bahrain, host of the 2010 Summer Games.
There is no set theme and so far costs are undetermined. Blondé says they are hoping enough sponsors will come forward that there will be no cost to attend the forum.
Businesses interested in being represented should send a note to email@example.com or contact the EDO in Kelowna.
uncertain, but Clements is hopeful. “We don’t know. We estimate it will be at least what the World Cup was.”
The games will cost approximately $800,000 of which, currently about half has been provided by in kind donations. Schneider says Telemark and Big White have made enormous contributions as gold sponsors.
Another difference is the length of stay. The Masters will run nine days, but Clements says expectations are that people will stay on another week vacationing; although not necessarily in the immediate Vernon area.
Donations are still coming in, she says, so the cash cost should continue to go down. Most of the money itself is coming from government, but with a projected economic spinoffs of $1.7 million the local economy will gain more than it loses in tax dollars.
As part of that endeavour the race organizers are working with tour operators to offer visitors things to see and do both before and after the races.
Schneider points out that $1.7 million is before any business contacts are set up. The games were only awarded in January of 2010, giving the volunteer organizers one year to set them up. According to Eric Stansfield who works on marketing and media relations for the games, even that time frame is misleading. People in the sport industry, on whom the Kelowna winter games were depending, told Schneider and Stansfield last January that the Olympics were monopolizing their time, even here in the Okanagan. Unofficially the real work didn’t get going until March. Stansfield says, “We had to hit the ground running.” The International Children’s Winter Games needs 700 people to billet and a thousand volunteers to pull the games off. If you think you could contribute to either need go online to http://internationalchildrensgameskelowna2011.com/volunteers/ 30 Okanagan Business Examiner / November 2010
Continued from page 28
On financing Clements admits they don’t quite have everything they need. The overall budget of $525,000 is still $21,000 shy. Clements says they are still actively looking for sponsors to help make up that budget shortfall for the nonprofit society. There is also some money coming from the racers when they register, but some of that money has to back to the MWC parent organization.
kind donations. Clements says the economic downturn had one silver lining – a lot of heavy construction equipment was left idle. Use of equipment was donated to cure the one major criticism the MWC officials had for Sovereign, which was a lack of a suitably easy route back to the race start. That trail needed to have a green rating (the easiest) and the current route was judged more difficult than that. The heavy equipment broke ground on the new Carl Wylie trail last year, which was completed this year to address that requirement. Fortunately the 2005 World’s Cup already put in place most of the other infrastructure needed for the races. Aside from the new trail, the only legacies from these races will be new communications and first aid equipment, along with computers and racing software. And lots of good memories. Along with money the race needs many volunteers. The organizers say 3,000 hours of volunteer effort needs to happen during the races and they are hoping 350 people will come forward to make that happen.
Outlays so far include $140,000 for venue and $70,000 for protocol and ceremonies. Race expenses will cost about $60,000, and then there is transportation. Many racers will stay at Silver Star and getting them back and forth between the ski village and Sovereign will take time and money. Clements says, “One of the bigger expenses is transportation.” Where money is not being spent is on the 18 volunteers who have guided the project along to this point. So far sponsors have kicked in $300,000 and they have received another $150,000 in in-
Racers set to start on the 30 km race in Falun, Sweden last year
! LAST CYHOUARNnoCmEinations
in Please send ess fluential busin in t s o m e th for re r region befo people in you
ple o e P s s e n i s u nfluential B
The Most I
It’s about lead
leaders. azing business am t os m r ou is without ons of for us to do th the contributi e es iz ri gn go te co ca re y to lieve it is time ople in too man whom fly under the radar. e too many pe s Examiner be ar es e n er si th u many of quire) you to t B bu an e, anag e need (and re t communities, future issu w en t a er bu in ff , k We at the Ok di on or e ti w th r en m ou mention. hard at work in the results of worthy of the worthy of the siness people you think are We will share is bu as ly y on le an rs m op pe pe so is y e th re ar ust be incredib think as man to nominate m your input. The you to nominate as few or n of why you ries. io de at go ci te an de ca pl u e ex yo t es y person one of th very shor t a an as e at us le th We would like at ve n gi in ea s to m t your part – w bution NOT the person, bu follow up on rdinary contri about. We do k ao no tr in is th ex as re e to y he it ad u not only name T m un yo s. m e criteria for ust simply have plain your recommendation presented the business com We have som listed, they m ex re ry d or go an y te if ed ca st rv y ju se er u to in ev le on who has ing back to yo accomplished ing, is ople as possib ill not be com pe w y e an w m d u are consider as re yo su om at fr th t Be as pu ss in ne h si ing for as muc Who, in any bu mpany name. are simply look co a an th er th ra le. least families, with? well as possib viduals, or at di crediting them in e e ar m u na yo e on ti biggest, but Pleas bu ri nt co azing ay not be the m am e es th ss r ne fo si : e bu bl Ia their success responsi , so some CrITEr markable for re e customer draw or m e th l em al h times and might make th rvived the toug at su ss th e ne av si h bu at r th ei R r H ith th - businesses inking in thei successful w • Longevity r decades ul, advanced th • Financially tf gh aren’t si in good times fo h e it th w le in d op ian companies ve pe ri ad s th es an in C w us B ho r • ees - we all hea their employ • Productive practices ge impact for hu a vations in and how e ad y) m er e ose using inno uctive - who is Hill win s that hav th od on se ut si pr es , b is in st M te us e la B th e f • y th the greatest the nomy (think o y considered e and beyond vators - not onl dl ov no w In ab re k sh • ac is b or the local eco at es th giv nology y Impact - Who service or tech • Communit e m sa e th munities have call nsIdEr: - Not all com on ti ca lo haos (in c hi Ors TO COty/community building T C E s s s anagement, C E • Geograp m ue en BusIn , v • Chari al Blues Festiv Arts - Roots & • ies, art creation ies, art, , music, galler production it n) d tiv no oo ac er F n V & io e at in V • W rts, recre ufacturing shing, radio, T estaurants, spo Industry/man ommodation , print & publi • cc R , a , P ia ns • Tourism - r io ed ct m - ra ation ultural att airy, organics • Communic historical & c ent, franchises king earch, fruit, d ces es vi r er g, s in rt res, managem ch merce, networ po to an s up om r l C t s f ai re bu o et tu s rs R ul or be ic ss • m gr • A ajor proce izations (Cha not only the m ians) Support organ • s • Forestry - ce vi s, BBB, politic hysiotherapists, er IA S rt , B C po D up , E S al p groups • Law & Leg tists, research, - doctors, den n h io s, specialists lt at an ea rt ci H ti po ns op • ra s, er id • T om air ov pr ing ive health everything fr nt at ut rn ou b st te cc on al li ti a to g, ca y in du an • E ial plann viders - too m state, anking, financ • Service pro tecture, real e eaners hi cl rc w • Finance - b a do t in en w ning to ____ developm io n/ it io nd ct co ru st ____________ on • C vices er ____________ s __ t s or __ ct ne ra __ er nt __ nt I __ co mers, __________ ____________ renovators, ucers, program ____________ od ____________ e: pr __ am e __ N ar __ __ tw __ of ____ ____ • Hi-tech - s ____________ ____________ ____________ ____________ ____________ vements: ____
th! DECEMBER 10
__ __ Achie ____ ____________ ____________ ____________ ____________ ____________ ____________ __ __ __ __ __ __ __ __ __ __ __ e: __ __ am __ ____________ N __ __ __ __ __ __ __ __ __ __ __ ____ ______ __________ ____________ : __________ ____________ Achievements ____________ ____________ __ __ __ __ __ __ __ __ ______ __________ ____________ ____________ ____________ ____________ __ __ __ __ __ __ __ __ __ __ ________ ______ ____________ ____________ ____________ ____________ Name: ______ ____________ __ __ __ __ __ __ __ __ __________ ____________ __________ ____________ ____________ vements: ____ ie __ __ ch __ __ A __ __ __ __ __ __ __ ____ ____ ________ ______ ____________ ____________ ____________ ____________ Name: ______ ____________ ____________ ____________ __ __ __ __ __ __ __ __ __ __ __ __ __ __________ __________ : __________ ____________ Achievements ____________ __ ____________ __ __ __ __ __ __ __ __ __ __ ________ ____________ ____________ ____________ __ __ r call me. __ __ __ ________ me by e-mail o
to send them to lease feel free , p ns io st ge ug s best. y questions or e Okanagan’s th of e m so If you have an f o le raise the profi e time to help th ng ki ta r fo Thanks
@businessex Email: editor .5728 Fax: 778.755
McDOUGLL’S PLACE AUTO CENTRE OPPORTUNITIES AVAILABLE FOR: • Auto Glass • Insurance • Mufflers • Mechanical Svcs. • Transmission • Brake • Accessories • Tires • Upholstery • etc.
Ready for Occupanc y 0 August, 201
75% leased! Corner of Daimler and East Boundary
N.C. Derriksan & Son Enterprises www.ncderriksanandsonenterprises.com
CALL ED LUGOSSY
LICENCED COMMERCIAL REAL ESTATE AGENT