BusinessMatters

www.victoriachamber.ca#100-852 Fort Street, Victoria BC V8W 1H8

Vol. 6 Issue 1 January/February 2010

Publications Mail Poste-Publications

40005319

2010Economy Meet George Fuller,

2010 Chamber Chair

Regional

ABOUT BUSINESS MATTERSBusiness Matters is the news magazine of the Greater Victoria Chamber of Commerce. It is published six times per year and distributed free-of-charge to members of the GVCC.

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contentsjanuary/february 2010 I vol. 6 issue 1

cover

feature articles

also inside

in every issue

6

Messages from the Chair and CEO

Member News

Events Calendar

Prodigy Group

Greater Victoria Development Agency

New Members

Policy Moves

Ask an Expert

4

5

14

16

17

27

22

24

6

18

17

22

2010 Greater Victoria Business Awards Nominations13

Regional Economy 2010

Building a Built Region

2009 Annual Survey - Member Concerns26

18

R e a c h y o u r T A R G E T AUDIENCEAdvertise in ChamberNews www.victoriachamber.ca or 250.383.7191 ext. 0

Business Matters4

messages

George FullerChair

Bruce CarterCEO

I am honoured to introduce myself as the 2010 Chair of the Greater Victoria Chamber. We’ve just wrapped up the whirlwind year of 2009 with so many changes in our economy. I believe that 2010 will be about building on the economic strengths in our region and capitalizing on the strengths of our Chamber.

Greater Victoria certainly was not immune to the economic buffeting of late 2008 and 2009. We did however, fare better than a number of regions. We are starting to see resurgence in business confidence and believe we will see a return to a better business environment in the year ahead.

The work of the Greater Victoria Development Agency will be important in our regional recovery. The Agency did a great deal of work last year promoting our region and raising awareness of the good business climate of Greater Victoria and our richness as a source of bright young minds. The work of 2009 culminated in the first publication of Business in Greater Victoria, which has been sent to business centres around the world. Our work this year is to build on that healthy base and drive our economic growth through 2010 and beyond.

An area of particular passion for me is the advantage to our region of hosting large events. As a region we have immediate positive economic impacts from welcoming thousands of people to sports and cultural events. We also reap the longer term benefits derived from the memories of visitors and the marketing potential that such gatherings generate. I believe as a community we could do more of this, and I will dedicate considerable effort to supporting that endeavour.

I would like to specifically thank John Juricic, the 2009 Chair for his focus on strengthening the internal working committees of the Chamber. I am committed to continuing to build a member-centric Chamber of Commerce and to keep our organization at the front of the important political decisions that impact on all of our businesses.

With the turbulence of 2009 behind us, businesses in the region are cautiously optimistic about an economic turnaround in 2010. The Chamber is also approaching the New Year in a similar way, with optimism that 2010 will prove to be a bounce-back year in our economy, yet knowing that we will need to keep a close eye on our month to month operations.

A primary focus for us will be to continue bringing value to your membership through informative education opportunities, credit card discounts and benefit packages that save you money on your bottom line and involvement in the issues that matter most to your business operations.

As you will see in the results of our annual survey, our members are significantly concerned over taxation issues this year at all levels of government. The Chamber will be actively involved in bringing attention to taxation, particularly to municipal taxation and how that impacts on business expenses. 2010 may well be the year that the structure of municipal taxation is reviewed by the provincial government, as stated in their 2009 throne and budget speeches. There is opportunity for the Chamber, in partnership with our provincial organization, to bring the business input to the review and we are sure to be busy engaging members on these issues early in the year.

One of the most important issues we addressed in 2009 was the Harmonized Sales Tax. This tax is a significant shift from an embedded tax to consumption tax and the affect on our member businesses and consumers is significant. Our consultation with members led to a series of recommendations for changes to the HST implementation scheme. As of press time we have been successful, with the help of partners, in having the housing threshold increased to $525,000 and we are hopeful we will yet receive further mitigation for our tourism sector. Our work on behalf of members in this area is not done. Indeed, we expect to be working to fine tune the HST for years to come.

Business Matters 5

member news

The Greater Victoria Film Commission is pleased to announce the appointment of Jo Anne Walton as its new Film Commissioner.

Walton brings 20 years of social marketing, production and stakeholder development experience in the film and television sector. As Western Canadian Marketing Manager for the National Film Board of Canada, for five years, Walton developed branded marketing strategies for feature and broadcast documentaries at major festivals and markets across Canada. As a member of the NFB’s national marketing team, she led stakeholder development initiatives with government agencies, national broadcasters and industry partners. Walton assumes her new role on January 4, 2010.

Chef Steve Walker-Duncan, Executive Chef and Co-Owner of the Ambrosia Conference and Event Centre, assisted in the preparation of Christmas Cakes on behalf of the Harbourside Rotary Club for the 4th year in a row. Each year Christmas Cakes are baked and sold to raise funds for local and international projects. The cakes are baked by an army of volunteers made up of Harbourside Rotary Club members and their families. NEPTUNE Canada cabled ocean observatory officially turned on the data flow from hundreds of scientific instruments and sensors installed on the seafloor of the Pacific Ocean.Led by the University of Victoria, NEPTUNE Canada pioneers a new generation of ocean observation systems that use innovative engineering and the Internet to provide

continuous, long-term monitoring of ocean processes and events, as they happen. Every year for the next 25 years, NEPTUNE Canada will amass more than 60 terabytes of scientific data—equivalent to the text in about 60 million books—on biological, physical, chemical and geological processes in the Pacific Ocean. The data will have policy applications in the areas of climate change, hazard mitigation, ocean pollution, port security and shipping, resource development, sovereignty and security, and ocean management. The observatory’s cutting-edge technologies are already generating commercialization and job creation opportunities, and are attracting considerable attention from around the world. National Education Consulting Inc. (NECI) of Victoria, B.C. has announced that, effective December 1, 2009, Maureen Sullivan, LLB has assumed ownership of the company from founding owners Gerald Smeltzer, LLM and Linda Saunders.

Ms. Sullivan has been one of NECI’s principal instructors for more than 15 years. She has helped with the design and delivery of the successful Procurement and Contract Management Program (PCMP) to the B.C. civil service and other public sector organizations.

NECI will continue to offer its popular Signature Seminars, deliver the PCMP and publish The Legal Edge.

Veneto Tapa Bar in the Hotel Rialto has been named one of the best new restaurants in Canada for 2009 by Where magazine. Congratulations to Chef Tod Bosence and General Manager Margaret Lucas for the notable accomplishment!

Business Matters6

E c o n o m yR e g i o n a l

2 0 1 0

Business Matters 7

If you have been a casual observer of global markets over the past year you would not be alone in viewing the world’s economy as more of a roller coaster than an economic and financial system. While Greater Victoria and BC are better positioned

to weather the difficulties of today’s changing economy than other parts of the world, we have not been immune from the impact of these demanding times.

Business Matters8

So what has saved us from the far worse fate that other jurisdictions have experienced?

In a word, diversification. By not having “all our eggs in one basket” and being home to industries that compliment and balance each other, Greater Victoria enjoys a more stable and predictable economic environment that almost any other jurisdiction in North America. Far from being the home of “newlyweds and nearly deads”, the region boasts economic numbers that beat many of the “western tiger” jurisdictions such as Calgary, Edmonton and Vancouver.

The region’s technology sector weighs in at over $1.95 billion dollars annually and employs over 12,000 people. The technology sector itself is a diverse blend of over 860 known companies and represents more traditional Information Communication Technology (ICT) companies as well as leading edge life science, new media and renewable energy, or “clean tech” enterprises. The sector has been a driving force in attracting new workers to the region, as witnessed by the 25% increase from 2001 to 2006 of employees in the sector as of the latest census data. Even given the economic slowdown, recruitment efforts have stepped up significantly in recent months, with senior managers expecting reasonable growth as of year end.

Our hallmark industry, tourism, comes in at over $1 billion and brings over 3.6 million visitors to the region each year. In 2009 the industry experienced significant challenges, having to deal with the slowdown in the US economy, new travel requirements for US visitors as well as a strong Canadian dollar, all of which impacted one of our key

markets for tourists to the region. Even given these difficult challenges the industry has performed better than average with occupancy rates dropping less than the rest of the province, although room rates have dropped just under 10% according to Chemistry Consulting, who closely follows the region’s tourism industry. On a positive note, the Ogden Point Cruise Terminal is predicted to have had another record-breaking year with over 230 ships having visited the region in 2009. Last year total direct spending from cruise tourism was $29 million with a total economic impact of $148 million to the region.

In early 2010, the attention of the world will be focused on the province as Vancouver and the rest of BC prepare to host the 2010 Olympic and Paralympic games. Tourism operators in the region are optimistic about the awareness the Olympics will bring, positioning the region for increased tourism opportunities as the economies of the world continue to recover in 2010. In addition, the region stands to benefit greatly from the recent announcement

In 2010 and beyond the academic sector will play a key role in

supporting the region’s growing ocean and marine sector, which is

estimated to contribute over $1 billion per year for the next decade.

Russ Burke, Manager Canadian Western Bank and Director of VIEA, Cori Lynn Germiquet, President of VIEA and Sasha Angus, Economic Development Officer, Greater Victoria Development Agency at the Vancouver Island Economic Summit.

of “approved destination status” for Canada and new opportunities in the Chinese tourism market. This market which could be worth upwards of $100 million annually, is expected to grow by double digits in the coming years. As Canada’s pacific gateway, our region is well positioned to play a meaningful role in this increasingly important segment of the global tourism industry.

Major economic drivers in their own right, our region’s academic institutions bring over 40,000 bright minds to the region, helping drive research and innovation and contributing to our region’s dynamic workforce where fully 68% of people have a post secondary education. The academic sector annually generates in excess of $2 billion in economic activity, and is an integral part of our region’s knowledge based economy. In 2009, for the first time ever, direct research grants at the University of Victoria exceeded the $110 million mark. Measured in direct jobs, this research supports over 3,000 positions in the region, and most importantly, it is a source of new ideas and innovation which foster next generation technologies and new companies in the capital region.

In 2010 and beyond the academic sector will play a key role in supporting the region’s growing ocean and marine sector, which is estimated to contribute over $1 billion per year for the next decade. Growing by over 5.5% per year over the past five years, the sector employed 5,300 people in the region in 2006, with significant labour shortages anticipated over the coming decade. Over the next 15 years, BC’s shipbuilding and repair industry will be modernizing Canada’s frigates, refitting submarines, renewing the Coast Guard and BC Ferries fleets, and maintaining everything from dredges to cruise ships. The industry expects to add 450 tradespersons over the next 10 years in order to address the over $40 billion worth of contracts that will be up for grabs.As the capital of British Columbia,

Photo credit: Tourism Victoria

Photo courtesy of Schneider Electric

Business Matters10

the public sector plays an integral role in the makeup of our local economy. Over 34,000 people in the region are employed in the sector which includes all orders of government, the military as well as the region’s healthcare and education systems. Next year the Navy celebrates its 100th Anniversary marking a long and rich tradition of service to the country. As an economic engine for Greater Victoria, CFB Esquimalt and the Pacific fleet employ over 6,000 people and directly contribute over half a billion dollars each year to the local economy. During this milestone anniversary it is projected that over 20,000 people will attend the ceremonies and events, culminating in an armada of Canadian and international naval vessels in June of 2010.

At the end of 2009, it is projected that the region’s economy will have declined between 1 and 2 percent according to both the Conference Board of Canada and TD Economics. Based on 2008 figures, this means a dollar value loss to the economy of approximately $160 million in 2009. While the capital region

did not go unscathed in 2009, the relative performance of the region’s economy was better than other western jurisdictions, most notably Greater Vancouver, Edmonton and Calgary which are projected to have declined over 4% on average. This too is relatively good news when compared

to southern Ontario which will likely experience declines of over 5% for the region, with Hamilton projected to drop over 7%.

Growth for the capital region is projected to resume in 2010, coming in at 2.3% in 2010 and increasing to 2.7% in 2011. According to the Conference Board of Canada, this figure will likely remain steady over the next four years averaging 2.5%, and providing for a stable and predictable economic climate in which to invest.

Growth for the capital region

is projected to resume in 2010,

coming in at 2.3% in 2010 and

increasing to 2.7% in 2011.

By 2013 it is anticipated that the region’s economy will have added an additional $1 billion dollars of economic activity on an annual basis. From a high of 7.1%, unemployment in the region is anticipated to decline modestly in 2010, before reaching an average of 5% in the coming years.

This in turn is anticipated to help grow average incomes in the region, eclipsing the $40,000 level in 2010 and growing by an average of 3.3% over the next three years.

In summary, 2010 is set to be a year of slow but steady economic recovery for Greater Victoria. The region’s economy will

return to positive economic growth and employment will stabilize and see moderate growth. As business confidence grows, we expect to see an increase in salaries throughout the region, and increased capital investment on behalf of businesses. As conditions improve, it will be important that the region prepares for this return to economic growth so that we can take advantage of the new opportunities it will present and the new household sustaining jobs that will be created.

Photo courtesy of Victoria Shipyards

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Regional Outlook 2010

Industry Outlook (2010-2013)average annual compound growth rate

Non-commercial services

Wholesale & retail

Transportation & Communications

Office

Industrial

Total

2.0%

4.1%

2.5%

2.5%

1.8%

2.5%

0 1 2 3 54

Business Matters12

Workplace Training for Innovation Program – Update Your Employee Training About the Program:

The Workplace Training for Innovation Pilot program is open for applications from small businesses (less than 50 employees) and not-for-profit employers in British Columbia.

Available to employers in every community across the province, the pilot offers up to $1,500 per employee – to a maximum of $5,000 per employer – to support employee training.

Eligible costs include training purchase costs, books and study materials. The program is designed to provide eligible employers with funding for employee training in order to:

Improve productivity.•

Support the introduction of new technology, machinery or work processes.•

Enhance international competitiveness.•

Introduce innovative training to increase the long-term competitiveness of the organization and its •workforce.

Applications will be accepted until Jan. 31, 2011. They will be processed on a first-come, first-served basis and will be subject to available funding.

To find out more about the program phone 1-877-365-5757 or visit www.aved.gov.bc.ca/workplace_training_program

NOMINATErecognition • promotion • celebration

greater victoria business awards 2010

Recognition in the Greater Victoria business community.

Spotlight on your business during the Awards evening and throughout the three month promotional period.

Promotion • $10,000 in promotional value • In a professional video produced for the Awards evening • In the Awards program • In the chamber’s Business Matters magazine • In all possible media opportunities

Business Leadership

New Business

Business of the Year (1 to 10 employees)

Business of the Year (11 to 25 employees)

Business of the Year (26 to 75 employees)

Business of the Year (76+ employees)

Outstanding Customer Service

Innovation

Employer of the Year

Business Person of the Year

Young Entrepreneur

Employee of the Year

Award CategoriesCompany Categories

Individual Categories

All at no cost to you!Give your business the recognition it deserves!

Nomination Deadline: Before 4:30 p.m. on Wednesday, January 20, 2010Nomination forms available at www.victoriachamber.ca

Sponsorship opportunities still available! Please contact Marsha MacMurchy, Events Manager at mmacmurchy@gvcc.org or

(250) 383-7191 ext. 209 for more information.

Business Matters14

events calendar

For more information or to register, visit www.victoriachamber.ca

Business Mixer • January 21 Business Education Series • January 27

CEO Coffee HourA one hour policy discussion

Business EducationSeries

Business Mixer

Hosted by What’s For Dinner5:00-7:00pm Members & their guests only please#100-3491 Saanich Rd.

Sponsored by Sector Learning Solutions Inc.Client Retention Attention 11:45am-1:00pm Chamber office

Prodigy Group Anniversary Mingle

5:30-7:30pm Salute Restaurant - Lounge525 Fort St.

Hosted by:What’s For Dinner

Networking is a powerful business tool. Use it! Join us for hors d’oeuvres, refreshments and an opportunity to network with the Greater Victoria business community.

Angela Greene Elevate Retention

Client Retention Attention - First-time Triers to Life-time Buyers

Today’s competitive consumer market has put additional pressure on organization

leaders. With customers being more educated, savvy and demanding, it is essential that all members of the organization have the skills necessary to help maintain client retention. With the escalating costs of attracting new customers, retention is a primary focus for an increasingly number of proactive 21st century business leaders.

with Chamber Policy & Commincations Manager Shannon RenaultChamber Office #100-852 Fort Street8:30-9:30 am Members only please

Business Matters 15

For more information or to register, visit www.victoriachamber.ca

Business Education Series • February 3 Business Education Series • February 24

CEO Coffee Hour

Business EducationSeries

Sponsored by Sector Learning Solutions Inc.Media Buying 101 11:45am-1:00pm Chamber office

Business EducationSeries

Sponsored by Sector Learning Solutions Inc.Improving Productivity with Technology You Already Have! 11:45am-1:00pm Chamber office

Gerry Brimacombe Sector Learning Solutions Inc.

Improving Productivity with Technology You Already Have!

Why do more with less, when you can do more with what you already have?

Using the tools available in MS Office 2007, Sector Learning Solutions will demonstrate

how routine tasks like client contact management, document sharing and sales presentations can be done more efficiently.

David Stanger & Shannon Schafer DSA Media

Media Buying 101

Gain practical training in the field of media planning and buying. Learn the characteristics, trends, buying and planning tools and the terminologies associated with television, radio, daily and community papers, and the digital universe.

A one hour policy discussion with Chamber CEO Bruce CarterRoss, Johnson & Associates Barristers & Solicitors 4th Fl - 888 Fort St 8:30-9:30 am Members only please

HST Transitional Rules

8:00am – 10:00amHarbour Towers Hotel & Suites345 Quebec Street

Business Mixer Hosted by Township of Esquimalt. Date & details to be confirmed.Watch our website for updates! www.victoriachamber.ca

Business Matters16

Regan McGrathChair

Happy New Year from the Prodigy Group! As we bring in the New Year, we bring new aspirations to make 2010 the best year for emerging business leaders in Victoria.

In its recent Next Cities media release, NextGen Consulting announced Victoria, British Columbia as the #1 hotspot for young, talented workers - good news if you’re an emerging business professional in our beautiful city! The Prodigy Group’s objective is to do everything we can to help young professionals realize the potential of Victoria, and themselves.

In order to achieve our objective we have recruited 18 dedicated professionals to lead the Prodigy Group Committee this year. We will focus on encouraging the development of our members through opportunities with our programs:

Mentorship and Leadership: Creating meaningful mentor •matches between emerging and established business leaders.Community Connections: Connecting emerging •community leaders with community issues and opportunities.Mingles: Fostering networking and business education •with our new business-focused mingles.

As Chair, I am eager to lead the group to success. My goal for 2010 is to increase recognition of the Prodigy Group among emerging and senior professionals alike. I will strive to help Prodigy Group grow and will work as a passionate advocate for Victoria’s emerging business leaders on the chamber board.

I wish everyone all the best in 2010. May it be the best year yet!

Business Matters 17

Roger SkillingsChair

The Greater Victoria Development Agency (GVDA) is letting the world know Greater Victoria is open for business with a new publication called Business in Greater Victoria. The publication will be distributed to main Canadian cities, San Francisco, Seattle, and to the Department of Foreign Affairs in North America, Europe, Asia and the Middle East. The aim of the publication is to invite investment and further diversify our local economy and all its sectors. An important regional initiative, the publication highlights Greater Victoria’s key business sectors, economic strengths, labour force, as well as lifestyle qualities including real estate, climate, commuting, transportation and green and safe neighborhoods. Our region has a tremendous story to tell regarding economic opportunity, and Business in Greater Victoria will help paint that picture for investors and businesses around the world.

An important mandate of the Greater Victoria Development Agency is to further strengthen economic conditions throughout our region by encouraging new investment and business from across North America and the world. This is why the GVDA has partnered with Page One Publishing Inc. to develop a publication that promotes Greater Victoria and showcases the region as a world-class destination for investment and opportunity.

In addition, the GVDA is delighted to announce the recent support of the Downtown Victoria Business Association and Cube Global Storage as financial contributors to the agency. Their contributions are greatly valued, and will help market our region as a natural place to do business.

If you would like a copy of Business in Greater Victoria, the publication can be found online at www.gvda.ca or feel free to contact our Economic Development Officer, Sasha Angus at sangus@gvda.ca or (250) 383-7191 ext. 204.

The GVDA

presents

its new

publication

Business

In Greater

Victoria

A

19

The Greater Victoria economy relies upon the infrastructure we often take for granted. The infrastructure includes

roads, bridges, electrical grids, fibre optic cable, water, sewers etc. We are truly fortunate to have a very strong infrastructure that supports our community and our economic well being.

The existing structure of the region works very well at maintaining our existing infrastructure. The recent expansion of our water reservoir to meet future growth needs and the replacement of the Admiral’s Road bridge are two examples of our existing infrastructure being improved or replaced.

The task of maintaining this infrastructure rests mainly with municipalities. The municipalities are well equipped with professional staff and a very good understanding of the technical requirements to maintain infrastructure. The CRD does maintain some infrastructure, but its role is very narrow as it is defined by the member municipalities. Given the governance challenges with the sewage treatment

project, one might expect further infrastructure projects are not really on the CRD’s wish list. The gap the region has is in identifying significant regional projects that will enhance our economic well being over the long term. There have been a number of projects discussed publicly but they lack the strength of a champion that a municipality provides. Some interesting potential projects are highlighted here.

Art Gallery in Downtown Victoria

It is a strategic goal of the Art Gallery of Greater Victoria (AGGV) to relocate to the downtown core. And with good reason. We are the only capital city in Canada without an art gallery downtown and the importance of cultural infrastructure to economic vitality is well-documented. The AGGV is cramped and could use space 150 times its current size, and still be full with collections tucked away. A revitalized and central art gallery is a key attraction to tourists and residents alike.

As a community Greater Victoria does a great job maintaining our existing infrastructure. However, our ability to plan into the future ten, twenty or even 50 years is at best inadequate.

Building a Built Region

20

Light Rapid Transit (LRT) The development of Light Rapid Transit has proven in a number of other centres to be the anchor for a collection of new developments. Portland is the example that generally comes to mind. LRT is a permanent commitment to public transportation, unlike bus routes that can be re-routed at any time. The introduction of LRT along strategically planned routes can spur commercial nodes and communities, direct urban growth, and encourage a modal shift from single occupancy vehicle use.

Vancouver Aquarium In 2008 management of the Vancouver Aquarium visited various stakeholder representatives in Greater Victoria to explore the possibility of opening an aquarium of significant proportions in the Capital Region. A new attraction of this proportion could become the next location icon and be another reason for visitors to extend their stay in the area and grow our tourism revenues.

Belleville Street Terminal A number of iterations of a new terminal have been offered over the last few years. Though different in detail, they have been similar in their goal to increase the animation and vibrancy of the inner harbour waterfront, provide continuous access and provide commercial development opportunities. The inner harbour is one of Victoria’s greatest assets. A visionary development of the Belleville Street Terminal and Legislative Precinct could add even more to the list of reasons why people visit from away and locals spend their days in the core.

Tech Park Expansion / Urban Tech Parks

The University of Victoria has done the work to determine that an expansion to the Vancouver Island Technology Park

could accommodate 500 employees and could stimulate another $140 million in annual economic activity. They envision a 80,000 sq. ft environmentally-friendly facility to attract small and medium-sized companies that focus on clean and information communications technology. It’s a good fit for our region, matching economic development goals of building a sustainable business cluster.

Children’s Museum The potential of a Children’s Museum was raised last in 2008 when the City of Victoria was planning redevelopment of the lands surrounding the Crystal Court. The local group advocating for a Children’s Museum has cited the economic impacts in other Canadian cities, like London Ontario, a city of similar size to the CRD, whose facility attracts 100,000 visitors per year without tourists and generates $3.6 million in annual economic impact. Also of note is that the facility builds on the community assets for young families and thereby assists in attraction for the 25 - 45 year old demographic to their region.

Open Air Concert Facility Building on the successes of landmark events such as BC 150, the Tall Ships Festival, the Symphony Splash and others, collective minds have proposed the idea of an open air concert facility on the inner harbour. The structure would be a semi-permanent outdoor amphitheatre that could accommodate up to 3,000. It would support annual summer-long cultural attractions and draw more than half a million residents and visitors. The business proposal suggests that the venue could generate 12 to 14 million dollars annually for the regional economy.

Belleville Street Terminal as seen today

Business Matters 21

Airport Runway Expansion

To promote economic growth and sustainability for Vancouver Island, the Victoria Airport Authority is proposing a 1400 foot runway extension. This $41.2 million dollar project will enable non-stop air service to international destinations such as London.

Pacific Institute for Sport Excellence Phase 2

The first phase of PISE was completed in September 2008, and a second phase is envisioned that would, upon completion contribute over $25 million to the CRD economy each year. The completion of Phase 2 will ensure that the Institute and the CRD remain leaders in sport development in Canada.

Ocean Tech Park The University of Victoria is currently planning the development of North America’s first Oceans Technology Park. An 80,000 sq. ft. $28.3 million environmentally-friendly ocean research facility could be built as the first step toward a 300,000 sq ft park that would provide space for technology companies and research organizations and ultimately house 1,800 highly skilled ocean and marine technology workers. A full scale OTP could stimulate an estimated $440 million in annual economic activity.

E & N Railway There have been a couple of studies into the financial viability of refurbishing the E & N Railway, for commuter rail in some instances and for transport rail in others. There are different economic and environmental impacts for each plan – in our opinion a transport rail with a terminal south of the Malahat holds more promise in terms of economic development and would serve to decrease truck traffic over the Malahat and improve traffic flow.

The One We Haven’t Thought Of What is the next project that will boost tourism revenues, add to the region’s IT industry, and commercialize great academic innovations in a big way? We just don’t know, but those new opportunities that benefit our region’s prosperity and provide household sustaining jobs will come up.

We cannot afford to assume that our municipalities will address these larger regional issues. We as a business community need to identify, prioritize and champion these projects to ensure our long term economic prosperity. We have heard most of these ideas before but we have not embraced one as a community and led a concerted drive to complete that project. We need that drive, we need to follow through.

Pacific Institute for Sport Excellence

Artist rendering of Victoria Children’s Museum

Business Matters22

policy moves

Canada to get Approved Destination Status After years of advocacy, Prime Minister Stephen Harper announced on December 3rd that China has granted Approved Destination Status (ADS) to Canada. The chamber movement has supported the tourism

industry in seeking approved destination status and this announcement marks a significant policy success. ADS will allow Chinese citizens to more easily obtain tourist visas to travel to Canada for leisure purposes, and will allow Canada to actively market its tourism products in China. The ADS agreement will also authorize Chinese travel agencies to market and promote leisure group tours for travel in Canada. Prior to ADS, Chinese travelers to Canada came here only as business travelers or as students and Canada could not promote leisure travel within China. By 2020, China is expected to be the world’s largest outbound market, producing some 100 million outbound tourists. With an emerging middle class that is increasingly looking to spend its disposable income on travel and tourism, there is a tremendous opportunity for Canada to attract a significant flow of visitors across the Pacific. The Conference Board of Canada estimates that an Approved Destination Status agreement will increase the annual rate of travel to Canada from China by as much as 50 per cent by 2015.

Increase in HST Threshold for New Home Construction The BC government has raised the price threshold for applying the Harmonized Sales Tax to the cost of a new home. Upon announcement of the proposed HST, the tax was to apply to new homes priced at $400,000 and more. The Greater Victoria Chamber

joined the advocacy efforts of the Homebuilders Association and the Victoria Real Estate Board and advocated for that threshold to be raised as it in no way reflected the actual

cost of new homes in the majority of the province. On November 19th, the government announced that the threshold for HST application to new housing in British Columbia would be raised to $525,000. While this does not cover the cost of some new housing in the major urban centres, it certainly covers far more new housing in the province than did the $400,000 threshold and is a good mitigation step for the cost of housing.

Infrastructure Funding for the Region More federal funding has been given to the Greater Victoria region for significant infrastructure projects in the last two months. Those include:

$900,000 to the Greater Victoria Harbour Authority •for building new mooring dolphins

$21M to the City of Victoria for rebuilding the •Johnson Street Bridge

In Pursuit of Community Courts The Greater Victoria Chamber joined the DVBA in advocacy calling for a second pilot of Community Courts in Victoria. In discussions with

WIN

WIN

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the Solicitor General and the Attorney General, and based on a report compiled by the DVBA, our two organizations emphasized the community support for a community court pilot project in our city and the efficiencies such a project could bring to the system in our region. Led by the DVBA, our two organizations will continue the advocacy on this point. Bill C-304 The Chamber has written a letter of support to the House of Commons on Bill C-304, which is a bill to ensure secure, adequate, accessible and affordable housing in Canada. The Bill, which is based upon the principles of a National Housing First Strategy, would provide a national framework to deal with the issues of housing in Canada. The Bill has currently passed first reading in the House with 148 votes supporting and 137 opposed. Local MPs that voted in support were Keith Martin and Denise Savoie. MP Gary Lunn voted in opposition. The bill was passed to committee for review before second reading. Municipal Budgets and Policing The Chamber has sent letters to all municipalities in the region calling on prudence in the budgeting process. We need our councils to examine innovative solutions to hold the line on service levels at the same time as reducing the cost of providing those services. The recession has required businesses and individuals to be innovative in cutting costs and we hope to see our

municipal government do the same. At the same time, the Chamber has called upon the City of Victoria to address the shortfall in our policing resources and budgeting, as a prime area of municipal responsibility, to assist in dealing with the ongoing issues of panhandling and property crime in downtown Victoria. No More Cell Phones While Driving! The government has enacted a new law to prevent the use of hand-held cellphones, portable electronic devices and text messaging while driving. The new law, which was enacted on January 1, 2010, allows only hands-free cellphones and devices that require one touch.

Business Matters24

new members2nd Globe StudiosArtist – Designerp: (250) 931-0139e: info@2ndglobe.comw: www.2ndglobe.com

ARRM Electricp: (250) 590-8644e: adam@arrmelectric.com

Adore Jewellery Retail jewellery maker & design.p: (250) 383-7722e: adorejewellery@hotmail.comw: www.adorejewellery.ca

Appreciative Energy p: (778) 433-4417w: www.appreciativeenergy.ca

Edible Arrangements Made up of edible arrangements of fruit design.p: (250) 385-8585w: www.ediblearrangements.com

Edward Jones Financial investments & services. Retirement, education, investments, tax free savings accounts, insurance and account services & tools.p: (250) 658-1299w: www.edwardjones.com

Le Rosey Home furnishings, interior design, furniture sales.p: (250) 590-3345

Fastrac Mail Services Ltd. p: (250) 590-1801e: sales@fastracmail.comw: www.fastracmail.com

Gail Searle - Property Management p: (250) 474-4307

Horus Bicycle Works New bicycle sales and service of pedal powered vehicles.p: (250) 590-5754e: horusbikes@hotmail.com

IPB Consulting Services General management and advisory services including organization trouble shooting and solutions; leadership, coaching and mentoring; negotiation and facilitation; HR management, media and public relations.p: (250) 216-1429E: ipb@shaw.ca

Licorice For Hair Licorice is a full service hair salon in downtown Victoria. This team has passion about what they do, what they use, how they do it and how much you love it!p: (250) 386-4247w: www.licorice.ca

Leduc, Amelie p: (250) 661-4464

Centra Windows Ltd. Centra Windows Ltd. specializes in manufacturing and installation of energy efficient vinyl windows & doors. p: (250) 412-2525e: info@centrawindows.comw: www.centrawindows.com

DataGirl.ca Datagirl.ca works with realtors and other professionals to dramatically increase revenues through proven repeat and referral marketing strategies!p: (250) 588-2337e: debbie@datagirl.caw: www.datagirl.ca

Homes & Living Magazine Homes & Living Magazine is a high quality magazine printed on high gloss paper and perfect bound. 30,000 copies are published seasonally, four times a year.p: (250) 586-5624e: rread@hlmagazine.comw: hlmagazine.com

Island Building Science Group Inc. Providing whole-home energy efficiency building enclosure systems for existing homes and light commercial buildings.p: (250) 385-2768w: www.ibsg.ca

LifeWorks! Training “Inner Game of Success” training with Anthony Hamilton, author: “Mind, Time and Power!” and executive coach. p: (778) 977-0260w: www.anthonyhamilton.org

Nerds On Site Established in 1995, Nerds On Site is a technology services company with operations in nine countries, serving over 65,000 clients worldwide.p: 250-858-0110e: larry.healy@nerdsonsite.com w: www.nerdsonsite.com

Business Matters 25

www.victoriachamber.ca

Patrick Skillings – Realtor Residential Real Estate & Commercial Real Estate.p: (250) 382-8838e: info@burrproperties.comw: www.burrproperties.com

Nevada Bob’s GolfRetail golf outlet for men & women.p: (250) 381-5726

Palmas System Inc. p: (250) 891-0019

Posh Restaurant p: (250) 382-7674w: www.303-posh.com

Shaunna Jones – Realtor p: (250) 592-4422e: shaunnajones@royallepage.caw: www.royallepage.ca

Silva Security Silva Security is a customer service oriented company, family and community based. Security systems for commercial & residential locations.p: (250) 475-2330e: admin@silvasecurity.caw: www.silvasecurity.ca

South Island Printing Services 2009 p: (250) 656-3010e: info@islandprintservices.comw: www.islandprintservices.com

Teldon Print Media High quality commercial printing for publications, catalogues and marketing material.p: (250) 220-4592e: print@teldon.comw: www.teldonprintmedia.com

Victoria Zen Centre Society We provide training & education in Zen Buddhism for members and activities for the broader community of Greater Victoria, including maintaining the Buddhist Chaplaincy at UVic.p: (250) 642-7936w: www.zenwest.ca

Xtreme Mentoring Inc. p: (250) 590-9966w: www.xtremementoring.com

northStudio Inc. / Victoria School of Business and Technology Inc. northStudio is known for its professional grade web design, Drupal, Joomla and WordPress development and internet and social media marketing in Victoria and Vancouver for an advanced web presence.p: (250) 721-9991e: info@northstudio.comw: www.northstudio.com

PCS Wireless Communications PCS Wireless is an exclusive TELUS authorized dealer with 10 locations in BC and in Victoria at the Millstream Village Shopping Centre and the Westshore Shopping Centre.p: (604) 541-9924w: www.pcswireless.ca

STRATEGYLink Consulting StrategyLink Consulting assists businesses, governments and non-profits to manage the execution of their strategic plans through a series of proven Strategy Execution Management processes.p: (250) 386-7655w: www.strategylinkconsulting.com

Victoria Executive Centre The Victoria Executive Centre is centrally located in downtown Victoria. It provides professional, comfortable and healthy meeting rooms for 1 - 40 people.p: (250) 383-6338e: info@vecmeetingspaces.caw: www.vecmeetingspaces.ca

Watoto Canada The Watoto Canada Group (registered NGO, Foundation and Retail) is rescuing abandoned and discarded babies, raising orphans to be future leaders, and rebuilding the lives of widowed and abused women in Africa.p: (250) 361-4554w: www.watotofoundation.com

Business Matters26

The 2009 Annual Member Survey had 195 respondents who collectively, closely reflected the company sizes of members. The vast majority of respondents were from locally owned companies (81%) with 74% of them being in business for more than 10 years.

The Annual Members’ Survey is one way that we take the pulse on the issues that are of most concern to our members. This year, more so than in previous years, respondents clearly said that their major concerns are financial in nature. Whether it is the issue of taxation, government spending, or government cut-backs – taxation and budgets were at the top of everyone’s mind and at all levels of government. Below is a comparison of member stated priorities from 2007 to 2009. The chart represents the frequency that the issues were cited as priorities for chamber members.

The Chamber’s advocacy efforts throughout the year are driven largely by the concerns identified by our members through the Annual Members’ Survey and their direct contact with the members of the Board of Directors.

The survey this year was also informative on the question as

to how the economy of the past year has affected local businesses. To get a clearer picture of that, we compared the financial projections from the 2008 survey to the financial actual from the 2009 survey. We found that the recession impacted on local business more than expected; notwithstanding the financial impact, only 4% of companies believe they will have to downsize in the year ahead.

Comparing answers to questions regarding financial performance over the last year and comparing those answers to the previous year’s expectations of business performance provided an interesting look at how the recession impacted on local companies.

2009 Annual Survey - Member Concerns

2007 2009

Crime Prevention Taxes in general

Homelessness HST

Transportation infrastructure

Cuts to program funding

Amalgamation of services

Crime and public safety

Economic development Homelessness

Labour shortages Planning and development

Amalgamation of municipalities

Economic development

Business taxation Regulations and red tape

Projected revenue for 2009 (from 2008 survey)

Actual revenue for 2009 (from 2009 survey)

Staffing plans for 2010

Business Matters 27

ask an expert

>> Kathy Santini: Life, business and results coach/owner Arbutus Coaching

Success Leaves Clues. Modelling Excellence

When is the right time to sell my business?

>> Mike Lenz: Certified Business IntermediarySunbelt Business Brokers (Victoria) Inc.

Successful people know that success leaves clues, that it’s possible to model excellence. From my training and work as a life, business and results coach, as well as my interest in brain research, and from following leaders in the human potential and coaching fields, I offer the following Coles notes version of success. Because of this article’s length restrictions, I’ve focussed on the psychology of success, which is the most important component in success.

Successful people know that to be successful, you have to manage your thoughts. Dr. Daniel Amen, a well known brain scientist and psychiatrist, tells us that we think some 60,000 thoughts a day and most of them are repetitive and primarily negative.

Tony Robbins, the world’s best known coach, believes that success comes down to communication. Communication with others, but most importantly what and how we communicate to ourselves. Thoughts create emotions, which lead to actions and behaviours, which increase or decrease our chances of success.

Successful people know that there’s no such thing as failure, only learning. The only way to fail is if you tell yourself that you’ve failed. Successful people make their own rules about failure and success. Whatever your rules are, make it easy to succeed.

Successful people know that the past does not equal the future. This knowledge helps them overcome their fear of rejection. A story about Colonel Saunders illustrates this point well. The colonel, while in his sixties, approached 1,008 people before he got someone to agree to be a franchisee. Successful people know the importance of discipline. Many of them establish a “no exceptions policy,” in certain areas of their lives. This involves making a 100 per cent commitment to doing something every time, no matter what.

Short as this advice is, practicing these few steps will increase your chances of success exponentially. Kathy can be reached at kathy@arbutuscoaching.com

Selling a business is most often a life decision not a business decision. Usually there is something next. Retirement, a new opportunity, a move; something external to the business in almost all cases drives the decision to sell. So first look to you, the business owner and know why you want to sell and what you will be doing next. The business timing element is all about preparing to maximize the attractiveness of your business and have it in a position to bring you the greatest amount of money in a sales transaction. First, have your business revenue and profits trending upwards. Too often sellers come to the market because they discover they are no longer enjoying their business as they used to, they have retired in their minds but are still going to work. Without that motivation and effort they displayed earlier they have let things slide. Buyers then think there is something wrong with the business and are reticent to buy. The buyer is right, there is something wrong with the business. The owner is what is wrong with the business and is not driving it forward as they should.

Another important element is the state of your financial statements. Financial statements are created for the taxman. Small business owners tend to be humble at tax time and don’t want to brag to the government about all the money their business has been making. We all understand that business owners want to reduce their tax burden, however, to maximize what you can sell your business for and the terms that you may receive, invest in taxes. That’s right, pay taxes as a money making scheme. Leaving money on your bottom line even for one year will enable bankers to support financing transactions and boost buyer’s confidence in your business. The money you pay in corporate taxes that year will be returned in multiples when you sell. Mike can be reached at mikelenz@sunbeltnetwork.com

TARGET THE BUSINESS COMMUNITY. ADVERTISE IN THE CHAMBER’S BUSINESS MATTERS MAGAZINE. 250.383.7191 ext. 0 • www.victoriachamber.ca