VICTORIA, British Columbia, May 29, 2018 (GLOBE NEWSWIRE) -- Considered the urban hub of the Vancouver Island/Coast Development Region, the Capital Regional District (CRD) continued to experience strong economic growth in 2017. For the third consecutive year, the region’s population increased, sparking housing starts and boosting employment in related industries such as construction. And as expected, the CRD also continued to enjoy robust tourism activity, which helped increase the region’s average annual employment to an all-time high of 386,600, with the addition of 20,100 new jobs.
“There were some notable gains in tourism last year, likely due to the low Canadian dollar,” said Chuck Chandler, FCPA, FCA, partner at Grant Thornton LLP in Victoria. “Air passenger arrivals at our four major airports were up 7.8 per cent compared to 2016, and ferry passengers travelling to Vancouver Island from the Gulf Islands increased by 4.9 per cent.”
Population growth and tourism drove employment increases in seven of the eleven service industries, with the largest gain in the health care and social assistance industry. CPABC’s Regional Check-Up reported that the CRD’s increased population and a high number of senior citizens were likely responsible for the addition of 4,200 health care positions. Job creation in other services, particularly personal and laundry services, and retail trade followed with the addition of 3,400 and 3,200 new positions. Employment in accommodation and food services, education services, real estate and insurance services, and information services also expanded.
The goods sector also added 5,300 new jobs in 2017, with gains in every industry. The mining, oil and gas industries, manufacturing industry, and construction industry posted the highest gains, adding 4,500 jobs collectively.
Robust economic activity across all industries increased overall business activity. The business climate in the region has improved steadily. In 2017, only 17 business bankruptcies were reported in the region, nine fewer than in 2016. At the same time, the region witnessed the opening of 200 businesses, which further shows the region’s growing economic strength and business confidence.
“Overall, the economic forecast for 2018 looks positive for the CRD. The low Canadian dollar will continue to attract foreign tourists, which will encourage spending and business activity,” said Chandler. “However, there are a few potential threats that we will need to keep a close eye on. For example, the housing market is expected to slow because of tightened mortgage regulations and higher interest rates. Additionally, it remains to be seen how the new speculation tax will impact the real estate market in the region and in BC overall.”
About CPABC Regional Check-Up – Vancouver Island/Coast:
The Vancouver Island/Coast Development Region encompasses Vancouver Island and the central coast of the B.C. mainland from Powell River to Ocean Falls and Bella Coola. The Development Region makes up approximately 17 per cent of the provincial population.
The CPABC Regional Check-Up reports look at British Columbia’s eight Development Regions as a place to work, invest, and live. The reports are available online at: www.bccheckup.com.
About CPA British Columbia
The Chartered Professional Accountants of British Columbia (CPABC) is the training, governing, and regulatory body for over 35,000 CPA members and almost 5,000 CPA students. CPABC carries out its primary mission to protect the public by enforcing the highest professional and ethical standards and contributing to the advancement of public policy. CPAs are recognized internationally for bringing superior financial expertise, strategic thinking, business insight, and leadership to organizations.