2021

A
Table of Contents PERSPECTIVE –TRENDS OF NOTE

PERSPECTIVE – TRENDS OF NOTE........................... 3-4

LIMITATIONS............................................................................. 5

YEAR IN REVIEW AND OUTLOOK..........................6-12

s I write this introduction to
Macroeconomic Indicators
BC Real GDP Growth Rate, Exchange Rate, the seventh edition of the State of the Island
Unemployment Rate Economic Report, COVID-19 continues to
Infrastructure and Development
limit social and economic activity around
Building Permits, Housing Starts, Infrastructure the world. But despite challenges present-
Investment, Major Infrastructure Projects ed by the pandemic, we’ve endeavoured
to produce a report that maintains a famil-
Regional Impacts of COVID-19........................... 13-15 iar look and feel and to provide the latest
BUSINESS ENVIRONMENT data allowed by our publication deadlines
& INVESTMENT ATTRACTION............................... 16-19 and as complete a picture as possible, of
the state of the Island economy.
Number of Businesses, Insolvency, Business Formations
Economies were hit hard in 2020
Skilled and Entrepreneurial Immigration
and BC saw a contraction in economic
PNP Applications, Skills Immigration, Entrepreneur
Immigration activity albeit smaller than Canada’s as
a whole. The Island fared better than
POPULATION AND LABOUR FORCE................. 20-25 Vancouver Island is the province as net migration remained
Population Growth, Population Distribution, Labour home to over 50 First positive leading to record increases in
Force, Employment Rate, Participation by Region and Nation groups belonging
to three distinct house prices. Hospitality and tourism
Age, Employment by Industry, Share of Employment by
Sector on VI and in BC families: the Coast continue to be the sectors hit hardest by
Salish, Nuu-chah-nulth, the effects of COVID restrictions. The
and Kwakwakaw’akw.
INDUSTRY ANALYSIS................................................... 26-44 second half of the year saw a rebound
VIEA acknowledges its
Tourism activities take place on in the economy as lockdown restrictions
Visitor Indicators and Ferry Traffic the unceded land of were eased and more activity could take
Manufacturing these First Nations and place. Performance in the economy has
Distribution of Businesses respects the historical
relationship they have
been mixed, largely dependent on how
Aquaculture & Agriculture with the land that easily public health measures could be
Shellfish and Finfish Licenses, BC Aquaculture continues to this day. adopted. The hospitality and tourism
Production, Distribution of Agrifoods Businesses
2021 EDITION sectors on Vancouver Island benefited
Seafood Farmers Ready to Drive Canada’s from increased domestic travel during
Blue Economy Engine...................................................33-35
the summer months. Financial and
Forestry
professional services sectors adjusted to
Distribution of Businesses, Employment, Timber
Processing Facilities, Product and Log Cargo Volumes, remote working and have done well. Food
Published in Canada by Harvest Volumes production, some goods manufacturing
VANCOUVER ISLAND
ECONOMIC ALLIANCE Ready for Renewal and transportation, have not been able to
(VIEA) Vancouver Island Forestry....................................... 40-42 adjust as easily to COVID restrictions, and
High Technology performance has been weaker. Spending
Prepared for VIEA by Distribution of Businesses from both the federal and provincial
MNP
Education governments has supported households
Printing Post-Secondary International Enrollments by Regional and businesses through the worst of
HEMLOCK PRINTERS Districts and on Vancouver Island the pandemic and helped spur towards
recovery.
Design & Layout COST OF LIVING & AFFORDABILITY................. 45-54
BLACKBERRY Housing, Living Wages, Median Wage Rates The growth trend has continued into
CREATIVE 2021 with unemployment declining as
Building Sustainably on Vancouver Island... 49-54 more people returned to work following
Copyright COVID-induced layoffs. While the
VIEA 2021 IN CLOSING..............................................................................55
All rights reserved. recovery has been robust in percentage
terms, we are still only just approaching
$195.00 CANADA pre-pandemic levels of employment and
ISBN 978-1-7751480-0-5 GDP. Expectations are for strong growth
in the economy in 2021 albeit coming off a
2 OCTOBER 2021 www.viea.ca S TAT E O F T H E I S L A N D E C O N O M I C R E P O R T 3
 PERSPECTIVE –TRENDS OF NOTE

low base. The strength of recovery will continue This report is provided for information
to vary with those areas of the economy less purposes and is intended for general
affected by ongoing restrictions performing guidance only. It should not be regarded
better. Government continues to spend at as comprehensive or a substitute for
record levels to help businesses and households personalized, professional advice.
weather the economic storm.

LIMITATIONS
COVID-19 has had differing effects on We have relied upon the completeness,
communities throughout Vancouver Island accuracy and fair presentation of all
depending on the main sectors in each area information and data obtained from
and the degree to which local economies are public sources, believed to be reliable. The
diversified. This year’s report includes an accuracy and reliability of the findings and
Digital copies of this article highlighting the impacts in some of these opinions expressed in the presentation
communities and some unexpected results. Two are conditional upon the completeness,
report will be available
articles highlight new partnerships emerging in accuracy and fair presentation of the
to all attendees of the aquaculture and forestry, pointing to a path to information underlying them. As a result,
2021 Summit. Hard reconciliation and a potential boost to smaller we caution readers not to rely upon any
copies will be available communities. Climate change is top-of-mind findings or opinions expressed as complete
for purchase by for many of us and an article on sustainable and disclaim any liability to any party who
request as well as buildings shines a light on how new buildings relies upon them as such.
are reducing greenhouse gas emissions.
on Amazon through
Notwithstanding the changed world in which The findings and opinions expressed in
the year. we operate, VIEA continues to carry out its the presentation constitute judgments as
mandate, making use of the technology available of the date of the presentation, and are
to meet virtually. As registrations showed subject to change without notice. MNP is
that most people were not yet ready to gather under no obligation to advise of any change
in person for the 2021 Economic Summit, the brought to its attention which would alter
planning committee made the decision to once those findings or opinions. The reader must
again, deliver the event online. Other VIEA understand that our analysis is based upon
initiatives continue to move forward as well. projections, founded on past events giving
VIEA’s pilot project for waste wood recovery has an expectation of certain future events.
been completed and data is now being processed Future events are not guaranteed to follow
to show the economic value in making greater past patterns and results may vary, even
use of the fibre basket. Island Good continues to significantly. Accordingly, we express no
grow with a new position created to manage the assurance as to whether the projections
program. And VIEA co-hosted the first national underlying the economic and financial
FTZ conference in early October 2021. analysis will be achieved.
As with most VIEA initiatives, sponsorship is
critical. We owe a debt of thanks to MNP whose Before taking any particular course of
commitment and ongoing participation ensures action, readers should consult their
the quality of this report’s content and to our professional advisor to discuss matters in
other sponsors: Coastal Community Credit the context of their particular situation.
Union and Nanaimo Airport Authority for their
continued financial support. Organizations such
as VIEA also depend on member volunteers.
This year’s report committee includes: Susan
Mowbray, Po Wan, Shannon Baikie, Peter van
Dongen, Joe Cristiano and Judy Kitts. Thank you
for your thoughtful contributions. And finally,
I would like to thank George Hanson, VIEA
President & CEO, for his leadership and hard
work on this, the seventh edition of the State of
the Island Economic Report.
Stay healthy and safe.

Pip White
Chair, 2021 SOTIER Committee
4 OCTOBER 2021 www.viea.ca S TAT E O F T H E I S L A N D E C O N O M I C R E P O R T 5
 A YEAR IN REVIEW Outlook for 2021/22

GDP
BC’S ECONOMY CONTRACTED IN 2020, AS INITIAL COVID-19-
RELATED RESTRICTIONS IN MARCH AND APRIL AFFECTED ALL
SECTORS OF THE ECONOMY. While much of the goods sector re-opened
and office workers transitioned to remote work environments, the
hospitality and transportation sectors were significantly impacted by
COVID-19-related restrictions for the remainder of 2020.

BC Real GDP Growth Rate

T
8.0%
RBC
7.0% Economic
6.0% Research
5.0% Forecast
4.0%
3.0%
TD
2.0% Economic
1.0% Forecast
0.0%
he Canadian economy underwent 2016 2017 2018 2019 2020 2021F 2022F
-1.0%
a sharp contraction in 2020, as the Central 1
-2.0%
COVID-19 pandemic and associated Forecast
-3.0%
restrictions caused GDP growth to decline
-4.0%
by 5.3%, the largest year-over-year
decrease on record.1 Economic declines
differed substantially by sector. Physical Source: Statistics Canada. Table 36-10-0402-01 GDP at basic prices, by industry, provinces and territories;
distancing and travel restrictions had the TD Economics, Provincial Economic Forecast (June 2021); RBC Economic Research, Provincial Outlook (June
2021); Central 1 (May 2021).
most impact on workers in the recreation,
hospitality, and transportation sectors. Mid-year estimates projected BC’s GDP to contract by 5% to 8% in
In BC, overall economic declines were 2020 and rebound with a 2% to 5% gain in 2021.2 BC’s economy exceeded
less pronounced than in Canada as a expectations, as GDP fell by 3.8% in 2020 and is projected to grow
whole. Construction at major projects between 5% and 7% in 2021.3
continued after a period of stoppages Despite the elevated outlook for BC’s economy, the recovery from
to implement safety measures, while COVID-19 restrictions has varied by sector. Sectors such as professional
lockdowns were less restrictive than in services, finance and insurance that were able to transition to remote
other provinces. BC’s economy was also work environments experienced job gains in 2020, while those that were
supported by increases in renovation not able to transition tended to experience declines in employment due
and building activity throughout North to physical distancing requirements. In goods producing sectors such as
America that increased the demand for construction, manufacturing and forestry, employment levels modestly
lumber in the second half of 2020, and declined. In service sectors that rely on travel and people being able to
pushed lumber prices to record highs. gather in groups such as accommodation, food services, recreation and
Population levels continued to grow retail, border closures and safety restrictions led to widespread layoffs
moderately, while most communities and employment remained below pre-pandemic levels in the first half of
across Vancouver Island experienced 2021.
record increases in housing prices. Vancouver Island’s economy contracted in 2020, though to a lesser
However, the tourism and aquaculture extent than BC as a whole and has recovered well in 2021. There are
sectors struggled as travel restrictions indications that many people that were unable to travel internationally,
reduced the number of visitors and visited Vancouver Island and the hospitality and retail sectors on
restaurant closures limited commercial Vancouver Island did not experience the same level of declines as in the
demand for seafood. rest of the province. Additionally, Vancouver Island’s housing market
has been extremely strong through 2020 and into the first half of 2021,
with significant gains in most markets.

2 Statistics Canada. Central 1 Economics. Province of BC.

1 Statistics Canada. Table: 36-10-0129-01 3 Statistics Canada. Central 1 Economics. TD Economics. RBC Economics.

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 Macroeconomic Indicators

Inflation4, 5, 6 Unemployment Rate

BY REGION 2020 AND 2021 (JANUARY TO JUNE)
AFTER INCREASING AT A MODEST 0.7% IN 2020, INFLATION HAS
ACCELERATED IN THE FIRST HALF OF 2021. In June 2021, the consumer British Columbia 8.9%
price index (CPI) was 3.1% higher compared with June 2020 and in 7.3%

July 2021, it was 3.7% higher than in July 2020. The July increase is the Vancouver Island and Coast 8.7%

largest year-over-year increase since 2011 and is well above the Bank of 6.5%

Canada’s target level. However, it is important to note that the prices of Lower Mainland-Southwest
9.0%
7.6%
many consumer goods and energy declined at the onset of the pandemic,
resulting in abnormally high year-over-year inflation figures in 2021. Thompson-Okanagan 6.9%
8.6%

In addition, inflation has been driven by many of the unique economic

conditions that have emerged since the onset of the pandemic. COVID-19 Kootenay 6.2%
9.6%

disrupted supply chains, leading to a global shortage of shipping

10.0%
containers and computer chips. This created a scarcity of items like cars Cariboo 6.5%
and electronics, pushing prices higher. On the demand side, travel and
8.8%
social restrictions led to increased demand for items like lumber for home North Coast and Nechako 8.1%
renovations, recreational vehicles, and bicycles. 6.4%
Northeast
Many of the factors driving inflation levels are seen by the Bank of 4.0%

Canada to be transitory and linked to the pandemic. As the impacts of

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%
COVID-19 dissipate, inflation levels are expected to return to their long-
term targets. As of July 2021, the Bank of Canada expects inflation to January-June 2021 2020
remain high through the end of 2021 but begin to decline in 2022.
Source: Statistics Canada Table: 14-10-0293-01, Table: 14-10-0090-01 and BC Stats Monthly Labour Force
Statistics.
Exchange Rate (CAD:USD)
As of September 2021, the Canadian dollar was trading at $1.26 Canadian
1.50 per US dollar ($0.79 US per Canadian dollar).7
Looking forward, analysts expect a moderate decline in the value of
the Canadian dollar through 2022 as global commodity prices stabilize.
1.40 Appreciation in the Canadian dollar typically leads to increased travel
abroad for Canadians. However, as long as border closures and travel
1.30 restrictions remain in place, the exchange rate is unlikely to significantly
affect travel to and from Vancouver Island.
THE UNEMPLOYMENT RATE ON VANCOUVER ISLAND INCREASED
1.20
SIGNIFICANTLY IN 2020, as COVID-19-related business closures and
layoffs led to steep declines in employment levels. However, in 2021
1.10 Vancouver Island’s unemployment rate has remained below that of BC
as a whole, and is among the lower rates in the province outside of the
1.00 Northeast region.
Sept-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sept-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
2021-Q3
2021 Q4
2022 Q1
2022 Q2
2022 Q3
2022 Q4

By July 2021, unemployment rates in the sectors hardest hit by

COVID-19 restrictions, like hospitality and recreation, were between 4%
and 7%, a significant improvement from Q2 2020 when they ranged from
20% to 35%.8 Unemployment rates in most goods producing sectors, as
Source: Bank of Canada, TD Economics, RBC Economics.
well as professional services, education, and business support services,
were approximately in line with or below July 2019 levels.
THE CANADIAN DOLLAR FLUCTUATED SIGNIFICANTLY Unemployment rates on Vancouver Island are expected to continue
THROUGHOUT 2020. At the onset of the COVID-19 pandemic, the to decline, as there are indications of labour shortages, particularly in
Canadian dollar declined in value as economic uncertainty caused flight- the hospitality sector. However, there remains uncertainty as rising
to-safety into the US dollar. Beginning in June 2020, the Canadian dollar COVID-19 case numbers and hospitalizations due to the Delta variant
gained significant value through the end of the year and into the first have led to the reintroduction of restrictions in some regions. Expansion
half of 2021. The strength of the Canadian dollar is linked to significant of restrictions on travel between regions or on Vancouver Island could
increases in global commodity prices like lumber, copper, oil and gas. lead to slowdowns and an increase in unemployment levels.

4 Statistics Canada. Available here: 150.statcan.gc.ca/n1/daily-quotidien/210616/dq210616a-eng.htm

5 Bank of Canada. Monetary Policy Report. July 2021. 7 Bank of Canada. Exchange Rates. Available here: bankofcanada.ca/rates/exchange/.
6 Bank of Canada. Available here: bankofcanada.ca/2021/07/fad-press-release-2021-07-14/. 8 Statistics Canada. Table: 14-10-0291-01.

OCCTTO
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 Infrastructure and Development

Building Permit Values (Victoria CMA only) Building Permits by Regional District
JANUARY TO JUNE (in $000s) JANUARY TO JUNE 2021 (IN 000s)

Institutional
Government TOTA L
Industrial
unknown
VALUE
COMPLETE DATA
Commercial UNAVAILABLE AT
Mt . Waddington
REPORTING TIME

Residential
$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 Strathcona
Comox
Valley
2021 2020
Source: Statistics Canada. Alberni
Clayoquot
PLEASE NOTE that building permit data were only available for the Victoria CMA for 2020 and 2021. Nanaimo

Cowichan
THE VALUE OF BUILDING PERMITS IN THE Valley
VICTORIA CMA INCREASED BY 59% IN THE
FIRST SIX MONTHS OF 2021, COMPARED TO Capital
THE SAME PERIOD IN 2020. The increase was
Housing Starts driven by both residential (59% year-over-year
increase) and non-residential (92% year-over- Source: Statistics Canada.
YEAR-OVER-YEAR year increase) permit values.
JANUARY TO JUNE Both residential and non-residential building PLEASE NOTE that building permit data were only available for the Victoria CMA for 2020 and 2021.
permits increased between Q1 2021 and
Q2 2021. This suggests that the outlook for will create approximately 200 direct jobs and
construction in the Victoria region remains will be open for patients in early 2023.

11.4 % positive.
Building permits indicate construction HIGHWAY 14 CORRIDOR UPGRADES10
intentions, while housing starts indicate Highway 14 connects Langford to the
construction activity. In the first six months of communities of Sooke, Jordan River and
Source: CMHC, Starts and 2021, the number of housing starts increased in Port Renfrew. The Highway 14 – Corridor
Completions Survey.
Courtenay, Victoria and Nanaimo and declined Improvement project includes widening and
elsewhere. This suggests that construction repaving portions of the road, adding paved
activity remains strong in the largest shoulders and concrete barriers, building slow
population centres on Vancouver Island but vehicle pullouts, and improving pavement
may begin to slow in other markets. markings in order to reduce commute times
and improve safety. Construction began
in November 2020 and is expected to be
Major Infrastructure Projects completed by the end of summer 2022.
NANAIMO HOSPITAL ICU REPLACEMENT9 PEXSISEN ELEMENTARY AND CENTRE
In February 2021, construction began on a new MOUNTAIN LELLUM MIDDLE SCHOOL
intensive care unit (ICU) at Nanaimo Regional CONSTRUCTION 11, 12
General Hospital. The new ICU will be three The Sooke School District is currently
times the size of the current unit and include 12 constructing two new schools on the same site
single-patient rooms, service booms, overhead
lifts, a medication room, family consult room 10 Government of BC. Available here: gov.bc.ca/gov/content/transpor-
and staff room. It is estimated that the project tation-projects/other-transportation-projects/highway-14.
11 Sooke School District. Available here: sd62.bc.ca/our-district/
district-growth/new-schools.
9 Island Health. Available here: islandhealth.ca/news/news-releases/ 12 The Discourse. Available here: thediscourse.ca/west-shore/new-
nanaimo-icu-breaks-ground-improve-care. langford-schools.

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 Infrastructure and Development

MAJOR in West Langford. Pexsisen Elementary will

INFRASTRUCTURE have a capacity of 500 students, while Centre
PROJECTS UNDER Mountain Lellum Middle School will have
CONSTRUCTION a capacity of 700 students. The names of the
schools have been gifted to the school district
VALUE OF INVESTMENT by Songhees First Nation and Beecher Bay
IN $MILLIONS

UTILITIES
Nation. Pexsisen will have a neighbourhood
learning centre attached to it, including child
Regional Impacts
care facilities, while Centre Mountain Lellum
will include an all-weather sports field.
of COVID-19
Construction began in November 2020 and
$222 the schools are expected to be completed and
operational in September 2022.

210 GORGE REDEVELOPMENT13 THE SECTORAL NATURE OF THE IMPACTS OF

210 Gorge Rd. is a 72-unit affordable housing THE COVID-19 PANDEMIC HAVE BEEN WELL-
TRANSPORTATION development in Victoria. The project will DOCUMENTED. Hospitality, transportation,
include 21 supportive housing units as well recreation, and entertainment have all been
as 51 rental apartments for low- and middle- profoundly impacted while the impacts on
income families. Construction began in 2020 other sectors have varied. There have also been
$164 and is expected to be complete by 2022. regional differences in the pandemic’s impacts.
To understand the experience on Vancouver
HIGHWAY 4 SAFETY IMPROVEMENTS14 Island, we reached out to stakeholders to gather
Highway 4 connects Tofino, Ucluelet and the perspectives on how each of their regions has
Pacific Rim National Park Reserve to the rest fared since March 2020. This is what we heard.
HEALTHCARE of Vancouver Island. The project was delayed
due to COVID-19 and is now expected to be REMOTE WORK IS CREATING
completed in the summer of 2022. OPPORTUNITIES AND CHALLENGES
Mount Waddington, Campbell River, Tofino,
$60 COMOX VALLEY WATER TREATMENT PLANT15 Victoria, Port Alberni, and Cowichan have seen
As of June 2021, construction was nearing an inflow of new residents, which appears to
completion, and the plant is expected to be be related to opportunities to work remotely.
operational by the fall of 2021. This is creating demand for retail and personal
from top services and is straining existing infrastructure.
EDUCATIONAL PROJECTS COMPLETED IN 2020 Of particular concern are housing availability
INSTITUTIONS McLoughlin Point Wastewater Treatment Plant
Kaelin Chambers
and housing affordability.
Cumberland
in Esquimalt16 In the South Island the move to remote work
Highway 1 Admiral McKenzie Interchange in
Jen Dart has left downtown offices empty. Restaurants
Tofino and retail businesses in the core have suffered
$489 Saanich
Pat Deakin while businesses in the suburbs have benefited.
Royal Bay Secondary Expansion in Victoria17 Port Alberni At present, it is unclear how much office space
will be needed as companies and government
Rose Klukas
Campbell River
implement hybrid work models. This presents
AFFORDABLE a potential opportunity for repurposing office
HOUSING Cathy Robertson space to support the diversification of the
Cowichan Valley region’s economy.
Kim Smythe
Nanaimo LOCAL SHOPPING HAS SURVIVED
$19 13 Cool Aid. Available here: coolaid.org/210-gorge-rd-e-redevelopment-
Bruce Williams
As the pandemic unfolded, retail was expected
proposal/. to be one of the hardest hit sectors. While
14 Government of BC. Available here: gov.bc.ca/gov/content/transporta- Victoria
tion/transportation-infrastructure/projects/highway4kennedyhill. there have been a number of store closures,
15 Comox Valley Regional District. Available here: comoxvalleyrd.ca/. not pictured local retail has proven to be more resilient
projects-initiatives/past-current-projects/comox-valley-water-treatment-
project.
than anticipated. Consumers have supported
Pat English
16 CBC. Available here: cbc.ca/news/canada/british-columbia/victoria-crd-
Mt. Waddington
local retailers and in doing so have discovered
Source: British Columbia Major
Projects Inventory, Q1 2021.
wastewater-treatment-ends-untreated-sewage-dumping-1.5844830
17 Sooke School District. Available here: sd62.bc.ca/royalbayexpansion.
what is available in their local area. It has

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 Regional Impacts of COVID-19

also highlighted that it may be easier and INFRASTRUCTURE AND HOUSING ARE
more convenient to purchase items locally EXPECTED TO BE A PRIORITY COMING OUT
than to order them online. Retailers that have OF THE PANDEMIC.
implemented appointment-based shopping Prior to the pandemic, housing availability
have found that customers are more likely to and affordability were key concerns in the
complete a purchase using this model, that South Island, Nanaimo and communities like
theft is lower, and that it is easier to identify ... interviews suggest Parksville and Tofino. Continued population
staffing needs. that communities growth has led to continued price increases and
are emerging from areas in the North Island are also starting to
ENTREPRENEURSHIP IS ALIVE AND WELL
the pandemic with see rising prices. Also, many communities are
In smaller In the Mid Island, there has continued to be reporting a lack of rental housing availability.
communities and an inflow of migrants. There has also been a a renewed sense Increases in population are also putting
the North Island, rise in the number of home-based businesses of optimism and pressure on infrastructure and amenities.
increases in domestic and some expansion of existing businesses excitement about the Broadband connectivity within municipal
visitors have more providing recreation and sightseeing for future. boundaries tends to be sufficient to support
visitors to the region. Many new businesses remote work. However, outside of municipal
than offset overall
have opened in the Alberni Valley and boundaries, service can be limited. There
declines due to Campbell River, including brewpubs, coffee is also a need for new facilities to replace
border closures and shops, and a bookstore. aging infrastructure and to serve the growing
travel restrictions. In population. For example, on the west coast
Victoria, domestic RECOVERY IN TOURISM HAS BEEN UNEVEN there is a need for a new hospital to replace
visitors have not been There is no question that tourism has been one Tofino General Hospital.
of the hardest hit sectors through the pandemic.
able to make up for
In smaller communities and the North Island, WHAT DOES THE FUTURE LOOK LIKE?
the loss of cruise ship increases in domestic visitors have more than Overall, these interviews suggest that
traffic and the closure offset overall declines due to border closures communities are emerging from the pandemic
of the marine border. and travel restrictions. In Victoria, domestic with a renewed sense of optimism and
visitors have not been able to make up for excitement about the future. In the words of
the loss of cruise traffic and the closure of the those interviewed:
marine border. Cowichan―We will see higher density smaller
The increase in domestic visitors has created footprint houses and fewer standalone houses with
challenges for some tourism businesses. quarter-acre lots. The housing stock is going to
International visitors tend to book weeks or change.
months in advance while domestic visitors tend West Coast―There will be lots of incremental
to make more last-minute bookings. Shorter changes. We will continue to grow if we can deal
booking lead times have created challenges for with the housing issues.
accommodation providers in scaling operations South Island―Going forward, it will be better.
to meet demand. Domestic visitors are also We will be better at what we do. People are more
less likely to use tour buses or to go on wildlife efficient and effective since we had to find efficiencies
viewing excursions so businesses providing and ways to work around challenges. Businesses and
these types of services have continued to industries all innovated to respond to the pandemic.
struggle. Mid-Island―I think we are in a good place
There have also been significant increases and Vancouver Island in general is doing great.
in participation in outdoor activities such as The pandemic didn’t hammer us as much as other
camping, mountain biking, boating and hiking regions and people are looking at Vancouver Island
across Vancouver Island. While this has put who hadn’t before.
increased pressure on outdoor infrastructure, North Island―We have a strong future ahead.
it is unclear if this will continue as restrictions We are forward thinking and innovative. People
are lifted and travel and entertainment options who live here are committed to their community.
increase. So, I think we will see continued growth. We have
space to expand, we are not remote and we are well
connected.

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 BUSINESS ENVIRONMENT AND Business Environment
INVESTMENT ATTRACTION

Number of Businesses with Employees

BY SECTOR AND CATEGORY, SHOWING TREND

GOODS-PRODUCING SECTOR

Fishing Agriculture Forestry Hunting 1,011 Manufacturing 1,010

T
Mining Oil + Gas 63 Construction 4,003 Utilities 27
Extraction

SERVICE-PRODUCING SECTOR

he sectoral nature of the impacts

of COVID-19 were reflected in trends Accommodation 2,061 Admin + Support 1,322
+ Food Services Waste Mgt + Remediation
in business counts, formations and
bankruptcies. The sectors affected most
by COVID-19-related shutdowns like
recreation and transportation experienced
declines in the number of businesses. Arts, 521 Educational 411 Finance + 1,079
The healthcare sector, as well as sectors Entertainment Services Insurance
that transitioned to remote working + Recreation
environments like professional services and
finance/insurance, experienced growth in
the number of businesses. Overall, business
formations were consistent with their three- Healthcare 3,677 Information 347 Management 105
year average in most regions on Vancouver + Social + Cultural of Companies
Island in 2020. Assistance Industries + Enterprises
In 2020, both business and consumer
bankruptcies fell to historic lows on
Vancouver Island and across Canada.
This is consistent with the widespread
government support measures that Other Services (Excluding 2,360 Professional, Scientific 3,538
Public Administration) + Technical Services
were available including the CERB and
the CEWS, as well as mortgage deferral
options.
In Q1 2021, consumer and business
bankruptcies both continued to decline Public 361 Real Estate 1,470 Retail Trade 3,621
on Vancouver Island and across Canada. Admin + Rental
While interest rates remain low and + Leasing
government support measures remain in
place (the Federal Government announced
the CEWS will be extended through
October 2021), bankruptcies are expected to
Transportation + Warehousing 872 Wholesale Trade 820
stay below historical levels.18
Source: Statistics Canada, Business Register,
Establishment Counts December 2020.
18 Department of Finance Canada. Available here: canada.ca/en/
department-finance/news/2021/06/extending-business-support-
measures-through-the-pandemic.html. Growing Declining Stable

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 Business Environment Skilled and Entrepreneurial Immigration

Insolvency Business Formations Applications TO THE SKILLS IMMIGRATION NOMINEE PROGRAM

INCORPORATIONS BY REGIONAL DISTRICT
2018
Business 1,431
24
Bankruptcies 33
133
2019 2018 - 2020
134 TOTA L
221 228 2020
2017–2019
A N N UA L AV E R AG E 0 100 200 300 400 500 600
266 243
Source: BC Ministry of Municipal Affairs.
11 94
VI+COAST BC
321
330 Nominations TO THE SKILLS IMMIGRATION NOMINEE PROGRAM
2018
2020 823 MOUNT 1,168
801 WADDINGTON 2019
2018 - 2020
2020 TOTA L
12 80 ALBERNI-
VI+COAST BC CLAYOQUOT
0 20 40 60 80 100 120

Source: BC Ministry of Municipal Affairs. Note: All previous years’ data has been updated and does not
STRATHCONA match what was included in previous State of the Island reports. Additionally, data were not available for the
Consumer Entrepreneur Immigration category for 2020.

Bankruptcies 2,501 2,517

COMOX Salaries OF SKILLS IMMIGRATION NOMINEES
VALLEY

2017–2019 2018
COWICHAN
A N N UA L AV E R AG E VALLEY
2019
935 4,117 NANAIMO Average
VI+COAST BC
2020 Median

CAPITAL 0 10K 20K 30K 40K 50K 60K 70K 80K

2020 Source: BC Ministry of Municipal Affairs.

552 2,609 NOMINEES UNDER THE SKILLS IMMIGRATION STREAM ARE SELECTED
VI+COAST BC
BASED ON THE SKILLS, EDUCATION AND/OR EXPERIENCE REQUIRED
FOR HIGH-DEMAND OCCUPATIONS IN THE PROVINCE. Due to the
Source: Office of the Superinten- COVID-19 pandemic’s effect on the hospitality sector, nominations in the
dent of Bankruptcy Canada.
sales and service occupations declined significantly in 2020. However,
there was a marked increase in nominations in natural and applied
sciences between 2018 and 2020.
BC PNP Tech was introduced in 2017 as a pilot under the Skills
Immigration stream. Nominations under this initiative stream grew
from approximately 10% of Skills Immigration Nominees in 2018 to
approximately 27% of Skills Immigration Nominees in 2020.
Nominees under the Entrepreneur Immigration stream are required
2017-19 2020 to meet a minimum financial investment amount and demonstrate
VI + COAST VI + COAST the ability to create job opportunities. While demand for the program
Annual remained strong throughout 2020 and into 2021, in-person entrepreneur
Average interviews were suspended for much of 2020 while virtual alternatives
$4,277 $4,298 were created. The Entrepreneur Immigration-Base category is
temporarily paused and is being reviewed to ensure that the program
Source: BC Stats, Business Formations and Failures. continues to support government priorities and economic recovery.
18 OCTOBER 2021 www.viea.ca S TAT E O F T H E I S L A N D E C O N O M I C R E P O R T 19
 POPULATION AND Population
LABOUR FORCE

Population Growth by Region – 2019 TO 2020

+67

+0.6%

+978

V
Mt. Waddington
+1.3%
+2,010

Strathcona
+1.2%
+573 +1.2% Comox +574
Valley

Alberni +0.6%
ancouver Island’s population Clayoquot
Nanaimo
continued to grow in 2020, though at
+419 +1.3%
a more moderate pace than during the
previous five years. The overall growth rate Cowichan
Valley
(1.2%) was slightly above BC as a whole
(1.1%) and the Lower Mainland (1.1%). All
regions on Vancouver Island experienced +5,651 +1.3% Capital
growth, with Port Alberni, the Capital and VANCOUVER
Comox regions having the greatest year-
over-year increases (1.3%). ISLAND
Population growth on Vancouver Island
is typically attributable to interprovincial
+10,272 | +1.2%
migration as well as migration from within
BC. There are indications from the housing Source: BC Stats, Population Estimates by Regional Districts and Development Regions.

market, that these trends continued in

2020 and may be linked to increased
opportunities for remote work.
Preliminary population and immigration
estimates, as well as indications from
the real estate market, suggest that Population Distribution
population growth in BC as a whole, and VANCOUVER ISLAND AND COAST BY AGE GROUP
on Vancouver Island, has accelerated in the
first half of 2021. International immigration
<15 yrs
to BC returned to near pre-COVID-19 2010
(14%)
Working Age Population 15-64 yrs (67%) 65+ (19%)
levels in Q1 2021, while interprovincial
migration to BC increased substantially
<15 yrs
in the same period.19, 20 Looking forward, 2015
(13%)
Working Age Population 15-64 yrs (65%) 65+ (22%)
Vancouver Island’s population is expected
to increase at a more rapid pace in 2021,
<15 yrs
as international migration begins to return 2020
(13%)
Working Age Population 15-64 yrs (62%) 65+ (25%)
and interprovincial migration continues.
19 Statistics Canada. Table: 17-10-0040-01.
20 Statistics Canada. Table: 17-10-0045-01. Source: BC Stats, Population by Age and Sex.

2
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 Labour & Employment

Employment Rate Participation Rate

IN PERCENTAGES BY REGION 2020 (JANUARY-JUNE, 2021) IN PERCENTAGES BY REGION 2020; JANUARY-JUNE, 2021

NORTHEAST 69.3% NORTHEAST 74.1%

70.0% 72.9%

CARIBOO 59.0% CARIBOO 65.5%

61.9% 66.1%
BC AVG BC AVG
LOWER MAINLAND-SOUTHWEST 59.0% LOWER MAINLAND-SOUTHWEST 64.8%
2020 2020
62.7%
57.9% 67.8% 63.6%
JAN-JUN JAN-JUN
NORTH COAST AND NECHAKO 58.9% NORTH COAST AND NECHAKO 64.6% 2021
2021
64.0% 60.5% 69.5% 65.2%

THOMPSON-OKANAGAN 57.3%
Jan-Jun THOMPSON-OKANAGAN 62.7% Jan-Jun
55.8% 2021
2021
59.9%
2020
2020
KOOTENAY 56.1%
KOOTENAY 62.0%
59.4%
63.3%

VANCOUVER ISLAND AND COAST 53.9%

VANCOUVER ISLAND AND COAST 59.0%
54.6%
58.3%

Source: Statistics Canada, Labour Force Survey Estimates (Statistics Canada. Table 282-0122 and Table 282- Source: Statistics Canada, Labour Force Survey Estimates (Statistics Canada. Table 282-0122 and Table
0123). 282-0123).

VANCOUVER ISLAND’S LABOUR FORCE PARTICIPATION RATE AND

EMPLOYMENT RATE BOTH DECLINED IN 2020, as COVID-19-related
Labour Force Participation Rate
OVERALL TRENDS BY AGE (BC) 2018 TO 2020
shutdowns and restrictions led to reduced employment across BC.
However, the declines on Vancouver Island were not as pronounced as
in BC as a whole.
At the onset of Phase 1 COVID-19 restrictions, Vancouver Island’s
participation and employment rates declined. As restrictions lifted and
businesses re-opened in the second half of the year, participation and
employment rates recovered. In late 2020, as COVID cases climbed, some
restrictions were brought back in and participation and employment
rates both declined again. Between March 2021 and June 2021, as the
second round of restrictions eased, participation and employment levels
began to rise.21
Declines in participation rates were most apparent among those
aged 15 to 24. This is consistent with significantly fewer opportunities
in recreation and hospitality which typically employ large numbers of
younger workers.
The COVID-19 pandemic and associated restrictions led to significant
declines in employment across BC and on Vancouver Island in 2020. 15 − 24 25 − 44 55+ OVERALL
Overall employment fell by 4.5% in 2020 (a loss of 18,500 jobs), DECLINING STABLE STABLE STABLE
compared to a 6.6% decline province wide. The hardest hit sectors were
the hospitality and recreation sectors which experienced year-over-

21 Statistics Canada. Table: 14-10-0387-01

2
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 Labour & Employment

Employment By Industry VANCOUVER ISLAND 2020 (IN 000s) Share of year employment declines of 27% and 13%,
Employment respectively, in 2020.22
BY SECTOR ON VI In the first half of 2021, overall employment
Construction levels on Vancouver Island were up 5% year-

Goods-Producing Sector 67.3

35.1
2019 over-year, as restrictions lifted. Compared with
17.3% Q2 2019, employment levels in the recreation,
Manufacturing transportation and construction sectors were
16.5 lower in Q2 2021, while employment levels in
the education and forestry sectors were up.
Forestry, Fishing,
Mining, Oil and Gas
8.9
82.7% There are indications that employment in the
construction sector is subdued due to supply
chain disruptions and increasing material costs,
Agriculture despite the strong demand for construction
5.6
projects.
2020
Utilities 17.0% Looking forward, employment levels on
<1.5 Vancouver Island are expected to continue
to increase, particularly in the tourism and
Health Care and Social
Service-Producing Sector 329.2

transportation sectors, as restrictions lift and

Assistance
borders re-open. However, uncertainty remains
62.1
83.0% with respect to timing due to the emergence
of the COVID-19 Delta variant and whether
restrictions will be required to limit its spread.
Wholesale and
Retail Trade Share of
55.9
Employment COVID-19 UPDATE
BY SECTOR IN BC
Over the course of the pandemic, the
Accommodation and
Food Services 2019 job vacancy rate on Vancouver Island
25 has been rising. This indicates that the
19.2% number of job openings is growing faster
Professional, Scientific than employers are able to fill them.
and Technical Services Increases in the job vacancy rate can
31.2

Educational Services 80.8% arise due to either a labour shortage or

a skills shortage. Labour shortages occur
31.1 when there are too few job seekers to
fill available openings while skill shortages
Public Administration 2020 occur when the applicants to jobs do not
38.9 have the required qualifications.
19.4% Between January and July, the number
Other Services of employment insurance claimants on
16.1 Vancouver Island declined but remained
elevated, while employment levels have
80.6%
Finance, Insurance,
Real Estate and Leasing been rising and wage rates have increased.
19.9 This suggests that some of the increase
Information, Culture
in the gap between job openings and
and Recreation job seekers is due to labour shortages.
14.3 Goods-Producing Factors that may be contributing to
Sector labour shortages include slowdowns in
Transportation and
Warehousing Service-Producing immigration and reluctance to return to
16.1 Sector work in the hospitality sector due to risks
Business, Building and
of exposure and potential job insecurity.
Other Support Services Source: Statistics Canada, Labour
Force Survey, Custom Tabulation,
18.6
Prepared by BC Stats January
Source: Statistics Canada, Labour Force Survey, Custom Tabulation, Prepared by BC Stats. 2020. 22 Stastics Canada. Table: 14-10-0388-01.

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25
 INDUSTRY ANALYSIS
Tourism

Ferry Traffic Visitor Indicators

JAN–JUN YEAR-OVER-YEAR CHANGE YEAR-OVER-YEAR CHANGE

UNDER HEIGHT OVER HEIGHT Hotel Occupancy

Passenger Vehicles Passenger Vehicles

M
2021 (Jan - Jun)

-6.3% 20.0%
12.2%

2021
867,262 71,888
2020 (Jan - Dec)

2020
925,623 59,912

-29.4%
any of Vancouver
Island’s key industries experienced steep Buses Commercial
Vehicles
declines in 2020 due to the COVID-19
pandemic and associated shutdowns.
While the first half of 2021 was an Average Daily Room Rate
improvement for many industries, the -84.5% 16.5%
2021 (Jan - Jun)
fourth wave of COVID-19 in BC adds

2021
further uncertainty to the outlook. 304 121,834
The forestry sector experienced a
8.8%
difficult beginning to 2020 as COVID-19
2020
shutdowns delayed the resumption of 1,959 104,565
operations following an extended strike
by workers at Western Forest Products. 2020 (Jan - Dec)
However, record high lumber prices in
the second half of the year supported -2.8%
employment levels and production in the -31.7%
sector.
1,061,288
2021

The aquaculture sector experienced

declining demand due to restaurant Total Vehicles
closures worldwide. While demand is Passengers at Regional Airports
1,092,059
2020

beginning to return in 2021, the future of

Total Vehicles
the sector on Vancouver Island may be in
jeopardy due to coming changes to tenures
and closures in the Discovery Islands. 2021 (Jan - Apr)
Tourism was among the sectors most
affected by COVID-19, as travel restrictions Total Passengers
and border closures have significantly -78.0%
reduced visitors to Vancouver Island. In the
education sector, international enrollments
-18.3%
dropped sharply as schools moved to 2020 (Jan - Dec)
remote learning and travel was restricted.
2021

Vancouver Island’s housing market 1,984,201

experienced a historic run-up in prices due
to low inventory levels coupled with low
-69.0%
2020

2,427,806
interest rates and strong demand for rural
and suburban homes.
Source: BC Ferries. Source: Destination BC, Provincial Tourism Indicators.

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 Tourism Manufacturing

Distribution of Manufacturing Businesses

EXCLUDING MANUFACTURERS OF FOOD AND BEVERAGE, FOREST PROD-
UCTS AND HIGH TECH, ACROSS VANCOUVER ISLAND | RELATIVE TO OTHER
KEY INDUSTRIES WITHIN REGIONAL ECONOMIES

Agrifoods Production

Agrifoods Manufacturing
Forestry Production

Forestry Manufacturing
High Tech

Manufacturing

Note: Each symbol represents 1 0

businesses with employees. Symbol
Mt. Waddington placements do not r epresent
business locations.

Strathcona

Nanaimo
THE TOURISM SECTOR HAS BEEN AMONG
THE HARDEST HIT BY THE COVID-19 Comox
PANDEMIC. After complete shutdowns in Q2
2020, the easing of restrictions in July 2020 led
to an increase in domestic visitors over the Alberni-
BC Ferries vehicle summer and into the fall. Restrictions on non- Clayoquot
traffic on major routes essential travel within BC were re-introduced
to Vancouver Island in November 2020 and remained in place until
returned to close to the spring of 2021.
In Q2 2021, as travel restrictions were relaxed
2019 levels by July
both within BC and interprovincially, tourism
2021 while passenger activity began to increase. Hotel occupancy
traffic remained 20% rates in Nanaimo and Parksville/Qualicum
lower. returned to 2019 levels in July 2021, though Cowichan
Capital Valley
room rates were between 10% and 20% lower.
BC Ferries vehicle traffic on major routes to
Vancouver Island returned to close to 2019
levels by July 2021 while passenger traffic
remained 20% lower.
In August, Canada re-opened its border
to fully vaccinated travellers from the US,
while restrictions remained for Canadians
travelling to the US. Looking forward, the
recovery of Vancouver Island’s tourism sector
will be largely contingent on continued easing
of border restrictions and travel remaining
unrestricted within BC. Further lockdown
measures due to the spread of the Delta variant
would result in further challenges for the
tourism sector. Source: Statistics Canada, Business Register.

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 Aquaculture & Agriculture

THE QUANTITY OF AQUACULTURE In April 2021, a federal court judge

BC Aquaculture PRODUCTION IN BC REMAINED STABLE IN suspended the ban on restocking three of the
Production 2019 WHILE THE VALUE DECREASED. Export fish farms in the Discovery Islands, allowing
ANNUAL AVERAGE ...salmon was
data indicate that volumes remained stable the operators to transfer fish to the area.29
2014 TO 2019 again in 2020, while export values declined. removed from In addition, the provincial government
($ Millions) COVID-19-related supply chain disruptions as grocery stores and has announced more stringent rules for the
well as worldwide restaurant closures led to salmon exports from renewal of salmon farm tenures in the province.
reduced demand for many seafood products, Beginning in 2022, tenures will only be granted

$23.8
BC to China dropped
causing prices to weaken for much of 2020.23 to zero in Q4 2020, to fish farms that can verify to Fisheries and
Weakening of demand for BC seafood Oceans Canada that their operations do not
and remained down
SHELLFISH exports was exacerbated by a COVID-19
outbreak in Beijing that was linked to a salmon 99% year-over-year in
harm wild salmon stocks and can confirm
agreements with First Nations in whose
market.24 As a result, salmon was removed Q2 2021. territory they operate.30
from grocery stores and salmon exports from
9,673 BC to China dropped to zero in Q4 2020, and
TONNES remained down 99% year-over-year in Q2
Shellfish and Finfish Licenses
2021.25 The overall volume of seafood exports FINFISH—MAY 2021; SHELLFISH—JUNE 2021
from BC dropped by 22% in the first half of
2021 compared to the same period in 2020. 6
Looking forward, restaurant demand is 6
expected to pick up as vaccines are rolled out 1
826
in North America and Europe, and indoor

$642.8
4 16
dining and travel restrictions ease. As a result, 25
prices and global trade in seafood are expected 10
137
to rebound. However, on Vancouver Island
FINFISH there remain significant risks related to the 21
8
24

109
impending widespread closures of fish farms 23 52
29
in the Discovery Islands and changes to tenure
86,016 rules that will come into effect in 2022. Mowi 3 3
TONNES Canada has indicated that 30% of its farms FINFISH 20
11
are in the Discovery Islands, and the closure Licenses in BC

483
of those farms puts the company’s entire
operations in BC at risk.26

FISH FARM CLOSURES IN THE DISCOVERY 51 SHELLFISH

Licenses in BC
ISLANDS FINFISH
$666.7 In late 2020, the federal government ordered
all fish farms in the Discovery Islands, between
Campbell River and Sayward, to close by
Licenses on
VANCOUVER ISLAND
264
TOTAL SHELLFISH
47%
2022, in an effort to protect wild salmon from
sea lice and other pathogens. In addition to Licenses on
the closures, the decisions included a ban VANCOUVER ISLAND
95,689 on restocking the fish farms in the interim. of all BC Licenses on

55%
VANCOUVER ISLAND
TONNES The decision affects 19 fish farms and the
BC Salmon Farmers Association estimates
the closures could result in up to 1,500 job of all BC Licenses on
losses.27, 28 VANCOUVER ISLAND
23 FAO. Available here: fao.org/in-action/globefish/market-reports/ Source: Department of Fisheries and Oceans, Current Valid British Co-
Source: Department of Fisheries resource-detail/en/c/1306829/. lumbia Shellfish Aquaculture License Holders as of May 2021.
and Oceans, Aquaculture 24 BBC. Available here: bbc.com/news/world-asia-china-53089137. Department of Fisheries and Oceans, Current Valid British Columbia
25 International Merchandise Trade Database. Finfish Aquaculture License Holders as of June 2021.
Production Quantities and Values.
26 Mowi. Available here: mowi.com/caw/blog/2021/01/18/mowi-seeks-
Note: Data were not available
judicial-review-of-ministersdecision-on-discovery-islands-salmon-farms/.
for the value of Scallops farmed 27 CBC. Available here: cbc.ca/news/canada/british-columbia/court- 29 CBC. Available here: cbc.ca/news/canada/british-columbia/court-
in 2015 and 2016, and as a result orders-minister-to-rethink-stocking-fish-farms-in-b-c-s-discovery- orders-minister-to-rethink-stocking-fish-farms-in-b-c-s-discovery-
the Total Shellfish and Total islands-1.5977450. islands-1.5977450.
Aquaculture Production average 28 BC Salmon Farmers. Available here: bcsalmonfarmers.ca/ 30 CBC. Available here: cbc.ca/news/canada/british-columbia/bc-fish-farms-
values are marginally understated. discoverydamage/. first-nations-approval-1.4714036.

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 Aquaculture & Agriculture

Distribution of Agrifoods Businesses

ACROSS VANCOUVER ISLAND | RELATIVE TO OTHER KEY INDUSTRIES
WITHIN REGIONAL ECONOMIES

Agrifoods Production
Agrifoods Manufacturing
Seafood Farmers Ready
Forestry Production
Forestry Manufacturing
to Drive Canada’s Blue
High Tech Economy Engine
Manufacturing
Note: Each symbol represents 1 0 GUEST CONTRIBUTOR
businesses with employees. Symbol
placements do not r epresent
business locations. Jennifer Woodland, Chair

Mt. Waddington Canadian Aquaculture Industry Alliance

CEO & Aquaculture Development Manager

Nuu-chah-nulth Seafood

There are perhaps no other sectors in Canada

Strathcona that have the capacity to simultaneously drive
good-paying coastal job creation, provide
Nanaimo domestic food security, support meaningful
Indigenous reconciliation and realize
Comox
sustainable food production, as the seafood
The expansion of farming sector can.
Canadian aquaculture
Alberni- to meet the increased CLEAN ECONOMIC DEVELOPMENT
Clayoquot The Government of Canada has identified clean
global need for high
growth as the best way to create good jobs
quality protein would and power our long-term economic recovery.
represent low carbon Seafood farming, in all its forms, fits the bill.
economic potential. Canadian seafood farming and processing
activities already deliver significant economic
benefits in Canada – mainly within rural and
Capital coastal communities where well-paying, full-
Cowichan
Valley time jobs are greatly in need. In 2019, farming
and fish processing activities generated an
estimated $5.2 billion in economic activity,
$2.1 billion in GDP, and full-time jobs for
almost 21,300 Canadians.
Aquaculture has the smallest environmental
footprint of all animal protein production. The

$21.5 expansion of Canadian aquaculture to meet

the increased global need for high quality
$515.4 protein would represent low carbon economic
potential.
We have abundant ocean resources, but
we’re not realizing their full potential. Without
Source: Statistics Canada, Business Register. question, we can create many new full-time
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 Blue Economy Engine

jobs and renew coastal communities if the

federal and provincial governments make this a
priority.

MORE FOOD FROM THE OCEAN

Seafood is being pointed to as an important
part of the solution to feed a growing world
population in a sustainable manner. 70% of the
globe is covered by oceans. But today, only 3%
of food for humans comes from the oceans.
Expanding Canadian aquaculture
production would allow Canada to capitalize
on the world’s rapidly increasing demand
Today, there are over for seafood. The UN Food and Agriculture
250 communities Organization projects that global seafood
across Canada engaged demand will increase 7-9% per year. With
many wild fish stocks facing serious pressures,
in aquaculture while future growth in seafood demand will largely
around 20% of all be met by aquaculture. Today, approximately
salmon farming jobs half of all global seafood production for human
in British Columbia – consumption is farmed, and this is expected to
close to 1,500 – are rise to over 60% by 2030.
held by people of First
INDIGENOUS PARTNERSHIPS
Nations heritage. Strategy 2040, a joint vision and action plan to
Our sector has experienced first-hand the
value of strong cooperative partnerships capture the untapped potential of our waters.
with Indigenous peoples. These durable The strategy includes a vision to position
relationships enable the production of Canada as a global top three best sustainable
high-quality food, ensure protection of the fish and seafood producer by 2040. FCC and
environment and wild salmon and provide CAIA are recommending three sustainable
economic and social benefits to Indigenous growth targets: double the value of Canadian
peoples. above seafood; double the economic benefits; and
Deep Bay Marine Field double domestic consumption.
The numbers are telling. Today, there Station
are over 250 communities across Canada The strategy outlines various priorities for
engaged in aquaculture while around 20% of achieving these goals, the number one being
“As a key part of
all salmon farming jobs in British Columbia the need for a federal departmental economic
Vancouver Island champion – one that will stand up for and
– close to 1,500 – are held by people of First
Nation’s heritage. And we’re seeing new University’s Centre explicitly support the fish and seafood sector’s
interest and new communities across Canada for Shellfish Research, sustainable growth.
wanting to participate – most of which are our industry leading Other nations such as Norway and
very remote with very few other economic facilities are where Iceland have captured the potential of their
opportunities. I believe aquaculture is a vehicle seafood sectors through strong political and
we conduct applied
to building meaningful relationships with government support and strategic plans and
research that partnerships. Canada has massive potential
local First Nations and to embrace the spirit of
reconciliation. benefits the shellfish but has not offered the same level of structural
aquaculture industry.” support.
A NATIONAL SEAFOOD PLAN The potential of Canada’s fish and seafood
Vancouver Island University industry for long-term, sustainable job-creation
Following the commitment made by the research.viu.ca/deep-bay-marine-
Canadian federal government in the 2020 field-station will be paramount to Canada’s COVID-19
Speech from the Thone to develop a blue recovery and for blue economy development.
economy strategy, CAIA has partnered with Canada has yet to seize its seafood opportunity
the country’s leading wild-capture trade and this strategy development is a chance to
association, the Fisheries Council of Canada frame and realize Canada’s outstanding blue
(FCC) to release Canada’s Blue Economy economy promise.

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 Forestr y

FOR VANCOUVER ISLAND’S FOREST SECTOR, Distribution of Forestry Sector Employment

2020 WAS A MIXED YEAR. The year began VANCOUVER ISLAND 2020
with the Western Forest Products workers
agreeing to end their eight-month long strike
in February 2020. Shortly after, the onset of
the COVID-19 pandemic led to temporary mill
21% Total 9,600
EMPLOYMENT
shutdowns and supply chain disruptions.
64%
In the second half of 2020, softwood lumber 15% Forestry and Logging
production on the BC coast increased by Wood Product Manufacturing
26% year-over-year. Despite the increase,
production remained below 2018 levels.31 The Pulp and Paper Manufacturing*
year-over-year increase reflected the return to
work following the strike at Western Forest
Source: BC Stats, Employment by Industry. * Values are for Paper Manufacturing Industry which includes Pulp.
Products and increases in lumber prices that
began in July 2020 and persisted through June
2020—a mixed 2021. Prices were supported by a combination will be to upgrade the company’s ability to
year for forestry on of strong demand from the US housing Timber ship lumber through Port Alberni while the
Vancouver Island construction market and home renovation Processing remaining investments will be to expand
sector as well as supply limitations related to
COVID-19 mill curtailments and temporary
Facilities the capacity of the Coulson sawmill,
VANCOUVER improve automation technologies at their
closures. Softwood lumber exports from BC’s ISLAND 2021 remanufacturing plant, and create a biomass
coast to the US were up 54% in the second half facility at the San Specialty Sawmill.35
of 2020 compared to the same period in 2019
LUMBER MILLS (20)
and up 32% compared to the same period in FAIRY CREEK BLOCKADE
2018.32 PULP & PAPER (3) Beginning in August 2020, environmental
Between January and May 2021 softwood POLE & POST (2) protestors began setting up blockades to
lumber production on the BC coast increased OTHER* (18) halt old growth logging in the Fairy Creek
by 48% year-over-year and was approximately watershed and surrounding areas, near

43
92% of 2019 levels. Softwood lumber exports Port Renfrew. The logging area is part of
from BC’s coast to the US were up 57% year- a harvesting tenure held by the Teal-Jones
over-year in the first half of 2021 and were Group.36 In May 2021, an injunction was granted
40% higher than exports to the US in the same by the BC Supreme Court to allow the RCMP
period in 2019.
Beginning in June 2021, lumber prices fell Total
FACILITIES
to begin arresting protestors and clearing the
blockades. In June 2021, the Government of BC
accepted the requests of Pacheedaht, Ditidaht
sharply as supply volumes caught up with
demand.33 By August 2021, lumber prices and Huu-ay-aht First Nations to defer old
Source: Ministry of Forests,
were down approximately 20% year-over- Lands and Natural Resource growth logging in the Fairy Creek watershed
year, though remained above 2019 levels.34 Operations, Major Timber for two years.37 However, the protestors
Processing Facilities in BC, 2019.
Looking forward, lumber prices are expected to *Includes Chip Mills,Veneer Mills remained in the areas, as the deferral does not
continue to soften and are expected to stabilize and Shake and Shingle Mills. protect all old-growth forests in the region. As
at a higher level than historical averages, of July 2021, over 400 people had been arrested
though ongoing global impacts of COVID-19 for breaking the injunction that prohibits
may result in further volatility. interfering with logging operations.38 While
logging operations related to second-growth
SAN GROUP INVESTMENTS timber have continued, the protests and deferral
The San Group is planning a $100 million of old-growth logging is creating uncertainty
investment in its Port Alberni forestry about future harvest levels.
operations. The majority of the investment
35 San Group. Available here: sangroupinc.com/san-group-will-in-
vest-100m-in-four-forestry-based-projects-in-port-alberni/.
31 Statistics Canada. Table: 16-10-0045-01. Lumber, production, shipments
and stocks, monthly. 36 Globe and Mail. Available here: theglobeandmail.com/canada/british-
32 Global Affairs Canada. “Monthly Export Reports (Canada-US)”. Avail- columbia/article-fairy-creek-blockade-2021-what-you-need-to-know-
able here: international. gc. ca/controls-controles/softwoodbois_oeuvre/ about-the-anti-logging/.
index. aspx?lang=eng. 37 Government of BC. Available here: news.gov.bc.ca/releases/2021
33 Canadian Forest Industries. Available here: woodbusiness.ca/lumber- PREM0038-001122.
prices-drop-as-supply-improves/. 38 CTV News. Available here: vancouverisland.ctvnews.ca/more-than-
34 Wood Business. Available here: woodbusiness.ca/lumber-prices-drop- 400-people-have-now-been-arrested-at-the-fairy-creek-blockades-rcmp-
again-as-customer-reluctance-continues/. say-1.5514022.

36 O C T O B E R 2 0 2 1 www.viea.ca S TAT E O F T H E I S L A N D E C O N O M I C R E P O R T 37
 Forestr y

Distribution of Businesses Forest Product and Log Cargo Volumes

ACROSS VANCOUVER ISLAND | RELATIVE TO OTHER KEY INDUSTRIES WITHIN
REGIONAL ECONOMIES THROUGH PORT ALBERNI AND PORT OF NANAIMO IN METRIC TONNES

2016
Agrifoods Production

Agrifoods Manufacturing 2017

Forestry Production
2018
Forestry Manufacturing
High Tech 2019

Manufacturing
2020
Note: Each symbol represents
10 businesses with employees. 0 1M 2M 3M 4M 5M
Symbol placements do not
Mt. Waddington represent business locations.

Logs Forest Products

Source: Nanaimo Port Authority Cargo Statistics, Port Alberni Port Authority.

Harvest Volumes on Crown Land by Natural

Strathcona
Resource District (m3)
Nanaimo

Comox 2016

2017
Alberni-
Clayoquot 2018

2019

2020

0 3M 6M 9M 1M 1.5M
Cowichan Campbell River North Island–Central South Island
Capital Valley Natural Resource Coast Natural Resource Natural Resource
District District District

Source: Ministry of Forests, Lands and Natural Resources Harvest Billing System.

SOFTWOOD LUMBER UPDATE

Each year, the US Department of Commerce undertakes an annual review
of softwood lumber imports from Canada. In May 2021, the findings
of the preliminary determination in the second administrative review
indicated that Canadian lumber is heavily subsidized and dumped into
the US market. As a result, an anti-dumping rate of 18.32% was proposed,
more than double the current rate of 8.99%.39
Changes in the rates will not take effect until a final determination,
expected in November 2021, is made.

39 Canadian Forest Industries. Available here: woodbusiness.ca/feds-u-s-plan-to-double-softwood-lumber-duties-

Source: Statistics Canada, Business Register. will-hurt-on-both-sides-of-border/.

38 O C T O B E R 2 0 2 1 www.viea.ca S TAT E O F T H E I S L A N D E C O N O M I C R E P O R T 39
 where mills are major employers and closures
have large impacts on local economic activity
and taxes. Successive governments have
introduced various policies to help revitalize
Ready for Renewal the industry and deal with reductions in
timber supply. In January 2019, the current
Vancouver Island Forestry government announced policy changes for
the coast forest sector to increase value-added
manufacturing and achieve greater utilization
of the fibre basket by reducing waste. Other
policy goals included stronger business to
GUEST CONTRIBUTOR
Position paper released business relations between major licensees, BC
by the province of British Timber Sales, and First Nations, and improving
Pip White, CEO Columbia, 2021. harvest performance to make more fibre
available for domestic uses.
Cedar Arch Consulting Ltd. This year, the Ministry of Forests released
a position paper that creates a framework and
The BC forest industry has been battered by direction for further policy changes in the
a variety of external factors over the last two sector. The three guiding principles detailed in
decades. The mountain pine beetle infestation, the paper are:
the ongoing softwood lumber dispute with
the United States, and volatile markets have 1. increasing forest sector participation;
The mountain pine 2. enhancing stewardship and sustainability; and
beetle infestation all impacted the industry in a variety of ways.
devestated BC forests More recently, climate change has caused 3. strengthening the social contract.
in the 1990s and 2000s. several years of devastating fires, further These principles are expected to create greater
reducing timber supply, particularly in the diversification amongst tenure holders and
interior. On the coast and Island, increases in provide forest communities and First Nations
forest area set aside for parks and conservation with more opportunity to manage forests
has also reduced timber available for harvest. locally.
In 2019, forestry These headwinds have resulted in reductions A recent article by Pam Agnew in Truck
activity and associated to the annual allowable cut, mill closures and LoggerBC magazine (Agnew, P. 2021) highlights
manufacturing resulting employment loss. an example of what the future might look like
produced $5.9 billion Despite all of these factors weighing on the for forestry on Vancouver Island. Atli Chip
industry, forestry continues to be a significant Limited Partnership is an entity created by
to GDP with the
contributor to the provincial economy. In 2019, ‘Namgis First Nation (through their forestry
Island share estimated forestry activity and associated manufacturing business, Atli Resources Limited Partnership),
by the BC Council of produced $5.9 billion to GDP with the Wahkash Contracting, and Paper Excellence.
Forest Industries Island share estimated by the BC Council of Atli Resources is the majority partner with
at $2.2 billion. Forest Industries at $2.2 billion. Forestry and Wahkash and Paper Excellence holding
associated manufacturing activity paid $8 minority stakes. Atli Chip LP acquired the
billion in wages, salaries, and benefits in 2019 North Island chipping facility in Beaver Cove.
In 2020, forestry
with $1.36 billion paid on the Island and coast. The plant operates one shift, employing six to
and logging activity In 2020, forestry and logging activity eight people while processing about 200,000
provided 17,200 jobs provided 17,200 jobs with a further 31,600 jobs cubic metres of logs and waste from harvesting
with a further 31,600 in wood and paper manufacturing. Forestry and wood manufacturing annually.
jobs in wood and and logging supported 6,100 jobs on the Island Atli Chip will take over agreements
paper manufacturing. and coast with another 3,600 in wood and currently held by Paper Excellence for salvage
paper manufacturing. These are good paying from three area licensees that will secure logs
jobs with hourly wage rates significantly above and waste as input to the facility. Wahkash will
the provincial average. Beyond the direct jobs also provide fibre and help improve logistics
in the industry, the forest sector supports to make operations safer. These improvements
another 53,000 indirect and induced jobs in the
province--a significant economic multiplier. Agnew, P. (2021, Summer). Working Together for Win-Win Fi-
bre Solutions. Truck LoggerBC, 44 (2), 25-27. (bluetoad.com/
The decline of the forest industry has hit publication/?i=712420&article_id=4061478&view=articleBrowser&ver=
smaller, more rural communities the hardest html5)

40 O C T O B E R 2 0 2 1 www.viea.ca S TAT E O F T H E I S L A N D E C O N O M I C R E P O R T 41
 Ready for Renewal High Technolog y

are expected to increase production to 400,000 Distribution of Businesses

cubic metres in two years and add a second ACROSS VANCOUVER ISLAND | RELATIVE TO OTHER KEY INDUSTRIES WITHIN
REGIONAL ECONOMIES
shift to the plant. In addition to allowing Atli
Chip to take over the salvage agreements,
Paper Excellence will source 150,000 cubic
International Enrollment
metres of chips from the plant each year.
By investing in the plant, the ‘Namgis Agrifoods Production
expect to create long-term economic and
environmental benefits for their people and Agrifoods Manufacturing
the North Island as a whole. As partners, Forestry Production
Wahkash and Paper Excellence bring expertise
Trevor Cootes Forestry Manufacturing
and value to the business that will help sustain
Councillor
Huuy-ay-aht First Nation
it for the long-term—something contractual High Tech
(HFN) arrangements are less likely to achieve. Manufacturing
On the west coast of the Island, Huuy-ay-aht
Note: Each symbol represents 10
HFN has taken a First Nation (HFN) is looking to incorporate
Mt. Waddington businesses with employees. Symbol
majority stake in their vision of “Ancient Spirit, Modern Mind” placements do not r epresent
in managing the forests of TFL 44. In 2018, business locations.
TFL 44 and, thus HFN and Western Forest Products (WFP)
far, a minority stake signed a reconciliation protocol agreement
in Alberni Pacific providing a shared vision and a framework for
Division Sawmill revitalization of the Alberni Valley forest sector.
Since signing the agreement, HFN has taken a
Strathcona
majority stake in TFL 44 and a minority stake
in Alberni Pacific Division Sawmill that could
Nanaimo
increase to a majority stake.
Trevor Cootes, an elected councillor Comox
of HFN, is responsible for the economic
development portfolio. He explains that having
an ownership position creates a stronger Alberni-
relationship than a revenue sharing agreement. Clayoquot
By owning the majority stake, HFN can have
greater influence on strategic planning and
day-to-day management of the lands and
fibre basket. That influence allows HFN to
incorporate cultural values developed over
thousands of years into a modern context that
provides employment and opportunity to Huu-
ay-aht citizens. It also allows HFN to manage Cowichan
Capital Valley
the lands to ensure perpetual sustainability and
provide economic opportunities for generations
to come.
These two examples provide a glimpse of
what the future of forestry could be like on
Vancouver Island. Shared ownership between
Indigenous and non-Indigenous business that
incorporates the values of First Nations, is a
path to reconciliation. Putting tenures in local
hands at the community level allows a different
approach to managing the forest that promises
environmental and economic sustainability.

Source: Statistics Canada, Business Register.

42 O C T O B E R 2 0 2 1 www.viea.ca S TAT E O F T H E I S L A N D E C O N O M I C R E P O R T 43
 A
Education COST OF LIVING
AND AFFORDABILITY

Post-Secondary International Enrollments

BY REGIONAL DISTRICT
6,242 1,955 435

2018 8,632
TOTAL
6,610 1,800 475 fter a period of stagnation
2019
8,885 at the onset of the COVID-19 pandemic,
TOTAL
Vancouver Island and much of the rest
5,808 1,160 340
of BC’s housing market, experienced
7,308
2020 TOTAL significant growth in home prices through
the second half of 2020 and into 2021. All
0 2 4 6 8 10 markets on Vancouver Island experienced
over 20% year-over-year increases in

The Westerly Residential Condos, Fairwinds

Strathcona Nanaimo Capital benchmark single-family home prices in
June 2021, with Port Alberni leading all
Source: BC Ministry of Advanced Education, May 2021 Data Submission and BC HEADset. Please note: values markets at 41% year-over-year.
for 2018 and 2019 have been revised from previous reports and reflect enrollments as of Nov. 1 in each year.
Rapidly increasing demand for homes
is consistent with many of the unique
International INTERNATIONAL ENROLLMENTS DECLINED
characteristics of COVID-19’s effect on
AT ALL VANCOUVER ISLAND POST-
Enrollments SECONDARY INSTITUTIONS IN 2020, with
the economy. While many sectors of the
ON VANCOUVER ISLAND economy have been adversely affected
Vancouver Island University and North Island
by COVID-19, individuals in higher-paid
College exhibiting the largest year-over-year
= of BC sectors have largely retained employment,
7,308 10.9%
Total declines. COVID-19-related border closures,
and in many cases, saved more throughout
reduced confidence in moving abroad and
2020. Increased savings, coupled with
the shift to remote classrooms all contributed
Source: BC Ministry of Advanced record-low interest rates and a transition to
to the significant year-over-year declines in
Education, May 2021 Data
remote work, have fueled demand for larger
Submission, BC HEADset and BC international enrollments. Business counts
units in suburban and rural areas.
Ministry of Education. and employment levels in the education sector
On Vancouver Island, housing supply
remained stable.
Businesses There are indications that the reduced
limitations have further contributed to
record price increases. According to the
in Educational international enrollments have contributed
Vancouver Island Real Estate Board,
Services to budget deficits at Vancouver Island
inventory was at a 21-year historic low
University and Camosun College, as
in July 2021.44 This has led to a slight
international students’ tuition rates are
394 412 411 slowdown in sales volumes between May
generally higher than domestic students’
and July, though most indications are that
rates.40 As a result of the deficits, Camosun
2018 2019 2020 demand remains strong across the region.
College and Vancouver Island University have
Looking forward, a slight stabilization is
Source: Statistics Canada, each laid off approximately 50 employees in
expected, as normal economic conditions
Business Register, December support services like the bookstore, parking
return and interest rates increase. Mortgage
2018, 2019, 2020. Please note
enforcement and cafeterias.41, 42 Looking
that the 2018 value has been rates are projected to increase modestly
revised from the previous report. forward, international students are expected
through 2023 and the federal government
to gradually return to Canadian institutions
increased the qualifying rate used for
Employment as vaccination rates increase and borders re-
stress testing mortgages in June 2021.45
open. However, uncertainty remains due to
in Educational numerous hurdles for international students to
A significant correction in home prices is
Services navigate including increased waiting times for
unlikely, due to the continued expectation
of population growth and the tight supply
visas, differing vaccine rules across universities,
2020 - STABLE of housing. Affordability is becoming a
low vaccine availability worldwide, and the
concern across Vancouver Island as wage
costs of mandatory quarantines.43
2019 - STABLE growth has not kept pace with home price
40 Times Colonist. Available here: timescolonist.com/news/local/camosun- values.
2018 - INCREASE viu-face-budget-deficits-as-international-enrolment-drops-1.24267120.
41 Ibid. tudents-barriers-return-to-class-fall-2021-1.6082287.
42 Times Colonist. Available here: timescolonist.com/news/local/10-to- 44 Vancouver Island Real Estate Board. Available here: vireb.com/
30-drop-in-international-students-for-island-universities-and-colleg- index.php?page=20.
Source: Statistics Canada, Labour es-1.24202300. 45 Central 1. British Columbia Housing Market Outlook 2021- 2023.
Force Survey, Custom Tabulation. 43 CBC. Available here: cbc.ca/news/canada/british-columbia/international- May 2021.

44 O C T O B E R 2 0 2 1 www.viea.ca S STT
AATTE E OOF FTTHHE E I S
I SL LAANNDD E ECCOONNOOMMI C
I C RRE EP POORRTT 45
45
 Cost of Living and Affordability

Living Wages A LIVING WAGE IS THE HOURLY WAGE RATE Housing―Benchmark Single Family Home Prices*
FOR SELECTED THAT IS REQUIRED FOR A HOUSEHOLD IN JUNE 2021 (GROWTH COMPARED TO ONE YEAR AGO)**
COMMUNITIES ON TO MEET ITS BASIC NEEDS AND PROVIDE
VANCOUVER ISLAND A BASIC LEVEL OF ECONOMIC SECURITY.
Living wages are calculated based on a family
of four in which both parents work full-
CLAYO Q U OT

2019 time, one child is in full-time daycare and $824,000

S O U ND

one child is in after-school care. Costs used

$
19.63 in the calculation include rental housing,
$756,400

transportation, food, clothing, childcare, +30%

medical expenses and miscellaneous expenses. +30%
The calculation does not include allowances for
retirement savings, debt servicing or the costs $728,200
CO MOX
VALLEY

2019 of caring for an elderly, disabled, or seriously Mt. Waddington

$
15.97
.
ill family member.
Campbell
The living wage on Vancouver Island ranges River
+30%
from $15.81 in Qualicum-Parksville to $19.63 in $627,600 +28%
Clayoquot Sound. Comparing the living wages
to median wage, the majority of workers on
C OWI C H A N

Comox
Vancouver Island earn at least a living wage. $693,200
VA L L E Y

2017 Valley
$
19.05 However, median wages for couriers, shippers
Qualicum
and receivers, janitors, cashiers, chefs, and food Parksville
and beverage servers are below the living wage +28%
Port Alberni
$468,100 +41%
in certain communities. Nanaimo
There were no data available on Vancouver
Island to assess wage trends. In BC, average
NA NA I M O

2017
$
17.55 weekly earnings grew substantially in 2020
(8.4% year-over-year), bringing the 2017 to 2020
Duncan

annual average up to 4.6%.46 Inflation over the

Victoria***
same period was 1.9%.47 BC’s minimum wage $973,000 +22%
increased to $15.20 in June 2021, and subse-
quent increases will be tied to inflation moving VANCOUVER
ISLAND
A L B E RNI

2017
forward.
P O RT

$
17.56 Preliminary estimates show rising inflation
in 2021.48 Wage growth is expected to continue $714,700 | +31%
as inflation remains higher than normal and
ongoing labour shortages cause businesses to
increase wages to attract employees.
PAR K SV I LLE
Q UALI C U M

Source: Vancouver Island Real Estate Board Monthly Statistical Package June 2021, Victoria Real Estate Board
2019 Statistics Package for Media.
$
15.81
Wage Rates
*The benchmark for single family home is a composite of one-storey homes (where the bedrooms,
L OW MED I A N HIGH kitchen and dining rooms are on the same floor and the utility room and laundry room are generally
located below ground) and two-storey single family homes (characterized by distribution of bedrooms
on the upper floor(s) and a kitchen, living room and other day-to-day rooms on the main floor). This
$
15.20 $
28.85 $
67.58
V IC TO RI A

benchmark does not differentiate between attached and detached home. (source: MLS Home Price Index
2019 Methodology – Benchmark Descriptions)
$
19.39 **In May 2019, the Altus Group, who manages the MLS HPI data for CREA and all participating boards
including the VIREB and VREB, revised the historic benchmark single-family home prices on Vancouver
Source: Government of Canada, Job Bank Wage Report, May 2019. Island. This process is part of their annual review in which adjustments to the definition of the
benchmark home are conducted to match market trends. As a result, the benchmark prices reported in
the State of the Island reports prior to 2019 have been adjusted and the year-over-year change will not
Source: Living Wage Canada, align with them.
Social Planning Cowichan.
Please note that living wage ***Victoria includes:Victoria,Victoria West, Oak Bay, Esquimalt,View Royal, Saanich East, Saanich West,
calculations have not been Sooke, Langford, Metchosin, Colwood, Highlands, North Saanich, Sidney, Central Saanich, ML Malahat and
updated since 2019 due to 46 Statistics Canada. Table: 14-10-0204-01 Area, GI Gulf Islands
potential irregularities from 47 Statistics Canada. Table: 18-10-0005-01
COVID-19. The next update is 48 Statistics Canada. Available here: 150.statcan.gc.ca/n1/daily-quotidi-
scheduled for November 2021. en/210616/dq210616a-eng.htm

46 O C T O B E R 2 0 2 1 www.viea.ca S TAT E O F T H E I S L A N D E C O N O M I C R E P O R T 47
 Cost of Living and Affordability

Median Wage Rates

FOR SELECTED OCCUPATIONS ON VANCOUVER ISLAND

GOODS-PRODUCING SECTOR
CONSTRUCTION MANAGERS
$37.98

ELECTRICIANS $27.00

PLUMBERS $34.00
Building Sustainably
WELDERS $32.00
on Vancouver Island
CARPENTERS $26.00 GUEST CONTRIBUTOR

CONSTRUCTION LABOURERS
$20.00 Tom Zaban, LEED Green Associate
SILVICULTURE AND FORESTRY
WORKERS $24.00
Reliable Controls
AQUACULTURE LABOURERS
$20.00
Climate change is real. Anthropogenic
LOGGING AND FORESTRY impacts on the planet are observed on a
LABOURERS $30.00 top regular basis. As many climatologists have
North Island Hospital,
long forewarned, increased flooding, drought,
Campbell River - LEED®
HEAVY-DUTY EQUIPMENT
MECHANICS $36.00 GOLD CERTIFIED wildfires, and extreme weather have now
become one of the most significant challenges
LOGGING MACHIN E above of our time.
O P E R ATOR S $35.00 BC wildfires rage Greenhouse gas emissions (GHGs) such
throughout the summers as carbon dioxide CO2, methane (CH4), and
of 2020 and 2021
C O U R I E R S , MES S EN GER S ,
nitrous oxide (N2O), typically expressed in
SERVICE-PRODUCING SECTOR

ET C . $16.00
units of CO2 equivalency, or CO2e, have been
SHIPPERS AND RECEIVERS identified as the primary root cause of climate
$19.50
change. When emitted, GHGs can linger in
SCHOOL TEACHERS $33.63
our atmosphere for an extended period of
time. They act like an insulating blanket,
CASHIERS $15.20
trapping heat from our sun, causing Earth’s
average temperature to increase over time.
J A N I TO RS , BUIL D ING This phenomenon is often referred to as global
S UP ER I NT END EN TS $19.23
warming.
TRUCK DRIVERS $24.65 Buildings are a key source-emitter of GHGs.
In their 2020 annual report, the World
OCCUPATIONAL THERAPISTS Green Building Council (WGBC) (worldgbc.
$40.00
org) states that 28% of the worldwide
LICENSED PRACTICAL NURSES
energy-related carbon emissions came from
$29.38 building operations, and 36% of the world’s
energy consumption was consumed by
FOOD SERVICE MANAGERS
$20.00 buildings (worldgbc.org/sites/default/files/
WorldGBC%20Annual%20Report%202020_1.
ACCOMMODATION MANAGERS
$23.00
pdf).
The WGBC acts as a central body that
CHEFS $19.00 unifies seventy different green building
OUTDOOR SPORT AND
councils around the world such as the Canada
RECREATIONAL GUIDES $20.00 Green Building Council (CaGBC) and US
FOOD AND BEVERAGE Green Building Council (USGBC). The WGBC
SERVERS $16.00 has set objectives for carbon neutrality (net
Source: Government of Canada, Job Bank Wage Report for Vancouver Island and Coast. Available here: zero carbon) in the built environment. This
jobbank.gc.ca/.

48 O C T O B E R 2 0 2 1 www.viea.ca S TAT E O F T H E I S L A N D E C O N O M I C R E P O R T 49
 Building Sustainably on Vancouver Island

considers both the embodied carbon contained in the materials to Once a LEED project is registered, it can take months, or even years, for a
construct and dispose of buildings, as well as the carbon emitted during project to achieve certification. In Figure 2 we see that LEED registrations
construction and operation of buildings. The WGBC has mandated on Vancouver Island began in 2001 and certifications really began to gain
that all new buildings be carbon neutral (creating as much GHGs as momentum starting in 2011.
they offset) by the year 2030, and that all existing building inventory
be retrofitted to be carbon neutral by the year 2050 (worldgbc.org/
thecommitment). These significant and challenging goals speak to Figure 2
sustainable building design, construction, and operation. LEED Buildings
A green building certification from rating systems such as Leadership ON VANCOUVER ISLAND
in Energy and Environmental Design (LEED) can be an important 160
strategy in meeting the net zero carbon mandate of the WGBC and
140
mitigating the CO2e emissions from the built environment.
120
So, how are we doing on Vancouver Island with regard to LEED
certified green buildings? 100
The CaGBC is the exclusive licensor of LEED in Canada (cagbc.org/ 80
Default.aspx). The CaGBC maintains a detailed and up-to-date project 60
profile database of all registered and certified LEED projects constructed 40
in Canada (leed.cagbc.org/LEED/projectprofile_EN.aspx). The database 20
is available to the public and contains approximately 8,000 registrations 0
and certifications of green buildings all across our nation. As of this ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21
writing, there are 147 LEED registered green buildings on Vancouver
Island of which 105 have achieved a certification of one level or another. Registrations Certifications
Figure 1 illustrates the distribution of LEED certified buildings on
Vancouver Island. Source: CaGBC Project Profile Database - April 20, 2021).

Figure 1 The LEED rating system ranks a green building’s design using
points. Depending on the number of points achieved, the rating system
LEED Certification 0
5 recognizes four ascending levels of certification: Certified; Silver; Gold;
BY REGION, 2021
and Platinum. In Figure 3, we see that on Vancouver Island, just over half
of the 105 LEED certified buildings have achieved LEED Gold to date.
0.0%
4.8%
20
Figure 3
Mt. Waddington LEED Certification Levels Achieved
BY 105 BUILDINGS ON VANCOUVER ISLAND
19%

Strathcona 14 /13.3%
4 3.8% 17 /16.2%
2 Certified
Comox
Valley Silver
Gold 21/ 20.0%
1.9%
Port Alberni Platinum
Nanaimo 53 /0.5%
2 1.9%

Cowichan Source: CaGBC Project Profile Database - April 20, 2021

Valley
As one might expect, the LEED certified buildings on Vancouver
Island include every type of building. Figure 4 (next page) shows that
72 68.9% Victoria*** office, retail, education, and mixed-use buildings comprise the majority
of LEED certified buildings on Vancouver Island.

Source: Canada Green BuildingCouncil Project Profile Database.

50 O C T O B E R 2 0 2 1 www.viea.ca S TAT E O F T H E I S L A N D E C O N O M I C R E P O R T 51
 Building Sustainably on Vancouver Island

Figure 4 consumed only 53.0 GWh of energy each year. This means the 105 LEED
LEED Certified Building Types certified buildings save approximately 64.3 GWh of energy for each full
ON VANCOUVER ISLAND year of operation! Assuming the energy source for each building is evenly
split between electricity and natural gas, the 105 LEED certified buildings
Office
2.9% 2.9%
on Vancouver Island prevent 6,116,366 kg of CO2e or approximately
Retail 3.8% 6,116 metric tonnes of CO2e gas emissions from being released into
Education
5.7% 21.9% our atmosphere each year. This is equivalent to removing about 1,300
Mixed passenger vehicles from our Vancouver Island roads every year.
6.7%
Residential
Other
Sport Centre 6.7%
Healthcare
15.2%
Industrial/ 7.6%
Manufacturing
Finance
Finance
13.3% 13.3%
Government

Source: CaGBC Project Profile Database - April 20, 2021.

A common industry benchmark used to quantify building energy

performance is the building’s energy use intensity (EUI) typically
expressed in units of kWh/m2/yr. As shown in Figure 5 from the Hartman
Company, (hartmanco.com/) the current average EUI for office buildings
in the US is approximately 270 kWh/m2/yr. If the 105 LEED certified
buildings on Vancouver Island had been designed and constructed using
conventional (non-green) methods and codes, they might have achieved
a reasonably respectable EUI of 160 kWh/m2/yr. By multiplying this EUI
by each building’s floor area as reported in the CaGBC project profile clockwise from top
data base, the 105 buildings would have collectively consumed about VIU-Deep Bay Marine Field Station (LEED® Platinum), North Island Hospital-Campbell
117.3 GWh of energy for each full year of operation. River & District (LEED® Gold), Nanaimo-Uplands Walk Supportive Housing (LEED® Gold)

In addition to GHG emission reductions, green buildings provide many

Figure 5
additional benefits.
Office Building Energy-Use Spectrum The WGBC reports that green buildings consume less potable
Advanced tech Conventional Older office Office buildings with water, reduce utility bills for tenants and households, and improve the
office building
& systems
code based
office buildings
buildings
& systems
correctable design or
operational problems
wellbeing and productivity of occupants (worldgbc.org/benefits-green-
buildings). In Canada, 300,000 full-time jobs were attributable to our
Proposed 2020 Current ASHRAE Current average Current average nation’s domestic green building economy in 2014 (cagbc.org//News/
max. energy use energy use for energy use for
for sustainable
90.1 new building
Singapore office U.S. office EN/2016/20160210_News_Release.aspx). Although there are additional
requirement
building buildings buildings upfront design costs and optional certification costs of a green building,
Dodge Data & Analytics, in their 2018 SmartMarket Report, claim that
green building owners experienced a 13% to 15% decrease in operating
costs over a five-year window, and a six- to eight-year payback time on
their green building investment (igbc.ie/wp-content/uploads/2018/11/
kWh/ft2 5.0 10 15 20 25 30 World-Green-Building-Trends-2018-SMR-FINAL.pdf). Green buildings
kWh/m2 50 110 160 215 270 325 also benefit our communities by minimizing waste that would normally
find its way to landfills or incinerators. The USGBC reports that LEED
Source: Hartmanco.com. building construction projects have diverted more than 80 million tonnes
of waste to date and anticipate that number to grow to more than 500
Since the 105 buildings were actually LEED certified buildings, we million tonnes by 2030 (usgbc.org/press/benefits-of-green-building).
can estimate their aggregated energy savings. Assuming an EUI of 110 Nationally, Canada is a strong proponent in green building construction.
kwh/m2/yr for LEED certified buildings, 90 kWh/m2/yr for LEED Silver Outside of the US, Canada holds the number two position in the world
buildings, 70 kWh/m2/yr for LEED Gold buildings, and 50 kWh/m2/yr for LEED certified gross square footage, just behind China (cagbc.org/
for LEED Platinum buildings, the 105 buildings would have collectively cagbcdocs/advocacy/LEED_Impact_Report_2018.pdf).
52 O C T O B E R 2 0 2 1 www.viea.ca S TAT E O F T H E I S L A N D E C O N O M I C R E P O R T 53
 Building Sustainably on Vancouver Island

In its market impact report titled Canada’s

Shanghai Tower Green Building Engine, our federal government IN CLOSING...
(LEED® Platinum - core claims that as of 2018, over 160,000 new
In its seventh year, the Vancouver Island
and shell) jobs have been added to the green buildings
Economic Alliance (VIEA) State of the Island
sector since 2014; bumping up the total sector
Economic Report has become a go to resource that
patronage to just over 460,000 people. By 2030,
continues to provide timely, relevant information
under the Canadian government’s Climate
and data. As in years past, we encourage you to
Forward scenario, the report forecasts direct
explore the data behind the data available to you
green building jobs will increase to over
at viea.ca.
1,470,000 jobs, and that GHG emissions from
green buildings will be reduced by 53 million
Each year, this report aims to connect the data
tonnes of CO2e (cagbc.org/cagbcdocs/advocacy/
and editorial to the important topics discussed
CaGBC_CanadasGreenBuildingEngine_
at the State of the Island Economic Summit in a
Executive_Summary_EN.pdf). The report
fulsome way. Doing so, allows for meaningful
concludes that although there has been
discussion and analysis of trends impacting
a growing patronage of green building
the Vancouver Island economy. As COVID-19
construction and renovation in Canada, the
continues to create economic uncertainty, the data
industry “still has a long way to go to become
presented in this report is essential for planning
mainstream,” and that British Columbia’s
for a sustainable, diverse, and vibrant Vancouver
provincial building codes and municipal bylaws
Island economy going forward.
(e.g., BC Energy Step Code, energystepcode.ca )
are helpful in “driving market transformation.”
It is with great thanks to the professionals from
With extreme weather events happening
MNP and the report committee and the work they
more frequently due to climate change, it is
put in that this document is made available each
incumbent on governments to use the building
year. The reliability of the data presented as well
codes to turn the “optionality” of green
as the ability to compare data year over year is a
building into a requirement. Requiring green
valuable tool for a broad range of parties across
building design and the use of more sustainable
Vancouver Island.
materials through building codes will help
lower the costs of green building and lead
We are open to your ideas and feedback on how
to more innovation, helping to reduce GHG
the report can be improved and what additional
emission from a major source.
content would be helpful. We look forward to
As an island community, we can feel
connecting at this year’s Summit.
good that the stakeholders of the 105 LEED
certified buildings are doing their part to add
momentum to the transformation that will
— Shannon Baikie, VIEA Chair
assist Canada in meeting its
climate change commitments to
the world. As a vanguard of the
Island’s business community,
VIEA members too can feel good
about promoting the growing
economic benefits resulting from
our sustainability in the built
environment.

Alberni District Secondary School (Gold)

54 O C T O B E R 2 0 2 1 www.viea.ca S TAT E O F T H E I S L A N D E C O N O M I C R E P O R T 55
55
 THANKS
to the generosity of our supporters and
the expertise of researchers and staff at
MNP, VIEA is proud to present the 7th
edition of this report, an annual reading
of the state of the Island economy and
the key issues, trends and events that
shape the way we live, work and do
business on Vancouver Island.

The next edition of the report is planned

to be released at VIEA’S 2022 State of the
Island Economic Summit...
viea.ca

OCT
2 6−2 7

If you would like to explore opportunties

SUPPORTED BY for strong, sustainable economic growth
by engaging with an ever-expanding
community of forward thinkers, policy
makers and risk takers across sectors and
all industries on Vancouver Island, then join
VIEA.

Visit viea.ca to find out what we do and how

you can get involved.

PREPARED BY