COLUMBIA BASIN BUSINESS RETENTION AND EXPANSION PROJECT R EPORT ON THE T OURISM S ECTOR F ALL 2016 Photo Credit: Columbia River, Golden BC. Photographer: Dave Best Source: http://www.krtourism.ca/image-banks/ The Columbia Basin Rural Development Institute, at Selkirk College, is a regional research centre that supports informed decision-making through the provision of information, applied research and related outreach and extension support. Visit www.cbrdi.ca for more information. EXECUTIVE SUMMARY This report describes findings from Business Retention and Expansion (BRE) surveys conducted with businesses in the tourism sector within the Basin Boundary region between 2012 and 2016. BRE is an action-oriented and community-based approach to business and economic development. It promotes job growth by helping communities to learn about concerns of, as well as opportunities for, local businesses and to set priorities for projects to address those needs. This BRE combines the results of 152 companies, presenting a regional perspective on the tourism sector. KEY RESEARCH FINDINGS Select survey results are summarized below. Survey Module Company Information Finding The highest number of tourism respondents came from Golden (23%), followed by Revelstoke (15%), Slocan Valley (9%), Nelson and area (9%), and Fernie and area (8%). Location was the most important factor for the business locating in a given area, as well in making their business successful. The vast majority of competition reported was coming from within the regional area. Local Workforce Sales Facilities and Equipment Government Services Business Most companies surveyed have been in business for over 20 years. Half of the companies are ‘growing’. Respondents reported a total of 4,071 employees. Employees are split between full-time (41%), part-time (35%), and temporary (24%). The majority of employers (87%) recruit their workforce locally. Safety / First Aid / Food Safe training were the areas most commonly (27%) listed as key areas for training or professional development. The most critical considerations for employees are the cost of living and housing. Businesses indicated the market for their product/service is mostly stable (53%) or increasing (38%). 43% of businesses report that the majority of their sales are to customers within the community or region. The most frequent reason for purchasing products or services outside of the area is that the product is not available locally. 70% of businesses own the facility in which they operate. Just under half of businesses plan to expand within 3 years, with the vast majority (85%) indicating that expansion will occur within the community. Top barriers to expansion are financing and local regulations. Top rated government services include access to highway/roads and access to markets. Services with the lowest ratings include airport facilities, telecommunications, and the development approval process. The Kelowna International Airport and the Calgary International Airport are the most used airport by local businesses in the tourism sector. The overall business climate was rated as good by most businesses, and the majority Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector Climate Assessment and Plans of businesses believe that the business climate will improve over the next five years. Business climate factors that received the highest ratings include the Chamber of Commerce, the cultural and recreational amenities, and tourism services. Tourism and recreational suppliers were the most commonly cited as a potential supplier to the region, and similarly tourism related businesses were thought to be the industry that could be attracted to the region that would have the most strategic benefit to the industry. The business competitiveness factors that are most important to respondents include availability of telecommunications infrastructure and services, and improvement of customer service. The overall health of their company was rated as good by 54% of businesses and excellent by 23% of businesses. The majority of businesses rate their risk of closing or downsizing as low. NEXT STEPS AND SUMMARY OF POTENTIAL ACTIONS The results of this survey can be used to inform short- and long-term planning at the regional, subregional, or community scale. In addition, a number of businesses would benefit from follow-up support. Research findings suggest that the following action areas have the greatest potential to improve the business climate within the tourism sector: Workforce – Recruitment & Retention Actions identified by respondents that could prove helpful include: improved job advertising, assistance with the foreign worker program, and supporting affordable housing. The hospitality and food/beverage service industries featured in areas of future and current recruitment challenges, as did the area of administrative/clerical. Related to recruitment and retention, are the critical considerations for employees identified which include the cost of living, housing, and transportation. Youth Employment Increasing youth employment may assist in addressing the recruitment challenges that 40% of businesses report having. Actions on this theme could involve gaining a better understanding of the reasons for the low youth employment rate, connecting local businesses with youth employment programs (federally, provincially and/or through CBT), and connecting businesses with local schools and post-secondary institutions. Business Growth & Expansion Actions in this area could include supporting existing businesses as they plan for local expansion/growth. Support could come in the form of assistance with navigating local regulations, assistance with accessing new markets, exploring financing options, assisting with recruitment activities, and connecting businesses with resources to assist in expansion projects. These potential actions and any others should be designed to address the stated barriers to expansion which include geographic isolation, difficulties with the development approval process, and general community resistance to change. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector Small to Medium Sized and Independent Businesses Tailoring supports and services to small/medium sized, independent businesses will benefit businesses in the tourism sector. Actions to support and encourage small and medium sized businesses could include specific training targeted to the needs of small businesses and an exploration of shared service provision in the areas of payroll, human resources, employee recruitment, bookkeeping, etc. Additional actions could include promoting existing supports available from Small Business BC, Destination BC, Kootenay Rockies Tourism, and the Basin Business Advisors Program. Supply Sourcing and Procurement There is an opportunity to engage in discussions with local area businesses to understand what opportunities may exist to increase local supply, and actively engage existing businesses or encourage new businesses to fill that role if feasible. Strengthening the link between local food suppliers/producers and local area businesses could also be explored. A regional stakeholder round table discussion could be a way to begin the conversation to increase supply options locally. A potential related impact could be the diversification of the local economy. Training Future initiatives could include supporting networks to help businesses identify shared training needs, increasing awareness of new trends, technologies and changes in the tourism sector, and working with local educational institutions to ensure local skill requirements are considered in programming. Succession and Business Planning Findings suggest that there are opportunities to support the business community by providing succession and business planning assistance, with some tailoring to target small, independent businesses in the tourism sector. Any future business planning support initiatives should be aggressively advertised to ensure uptake among businesses, and may include direct outreach to those businesses identified as part of the BRE survey. Continued Support for Tourism Sector Actions to support the tourism industry could include continued collaboration between governments at all levels and local tourism agencies such as Destination British Columbia, Kootenay Rockies Tourism, local Destination Marketing Organisations, Chambers of Commerce, and local businesses. With most businesses (74%) expressing optimism for an improved business climate over the next five years, there is much positive support and social capital to build on the work already occurring in this area. Improving Connectivity A recurring theme was the need to improve telecommunications services, with 26% of respondents rating the service as poor and 28% rating the service as fair. 93% of businesses rated the availability of telecommunications as somewhat important or very important to ensuring business competitiveness over the next five years. Discussions with telecommunication service providers and stakeholders such as the Columbia Basin Broadband Corporation to identify ways to Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector improve service, as well as community discussions to identify specific areas for improvements would be beneficial to target improvements that would support the tourism sector. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector TABLE OF CONTENTS Executive Summary................................................................................................................... ii Key Research Findings ........................................................................................................... ii Next Steps and Summary of Potential Actions ....................................................................... iii List of Figures .......................................................................................................................... vii Project Overview ...................................................................................................................... 1 The BRE Concept ................................................................................................................... 1 Project Objectives ................................................................................................................. 1 Research Considerations ........................................................................................................... 2 The BRE Survey ..................................................................................................................... 2 The Data Set.......................................................................................................................... 2 Data Collection ...................................................................................................................... 3 Data Input, Analysis and Reporting ........................................................................................ 3 Research Findings ..................................................................................................................... 4 Company Information ........................................................................................................... 4 Local Workforce .................................................................................................................. 12 Sales ................................................................................................................................... 24 Facilities and Equipment...................................................................................................... 29 Government Services .......................................................................................................... 37 Business Climate ................................................................................................................. 42 Assessment and Plans ......................................................................................................... 58 Recommendations .................................................................................................................. 60 Next Steps........................................................................................................................... 60 Potential Action Areas ......................................................................................................... 61 Appendix A: Data Tables ......................................................................................................... 64 Company Information ......................................................................................................... 64 Local Workforce .................................................................................................................. 75 Sales ................................................................................................................................... 96 Facilities and Equipment.................................................................................................... 108 Government Services ........................................................................................................ 123 Business Climate ............................................................................................................... 129 Assessment and Plans ....................................................................................................... 148 Appendix B: North American Industry Classification System (NAICS) codes ............................. 151 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector LIST OF FIGURES Figure 1: Industries Represented ........................................................................................................ 4 Figure 2: Regions Represented ............................................................................................................ 5 Figure 3: Facility function(s) ................................................................................................................ 5 Figure 4: Location of primary competitors .......................................................................................... 6 Figure 5: Key words and respondents' discussions of the factors that make them successful in this region................................................................................................................................................... 6 Figure 6: Choosing the Location .......................................................................................................... 7 Figure 7: Other Locations .................................................................................................................... 8 Figure 8: Location of Other Locations ................................................................................................. 8 Figure 9: Location of headquarters ..................................................................................................... 8 Figure 10: Life cycle stage.................................................................................................................... 9 Figure 11: Length of time in business .................................................................................................. 9 Figure 12: Type of business ............................................................................................................... 10 Figure 13: Ownership and management changes in last 5 years ...................................................... 10 Figure 14: Anticipated timeline for ownership change ..................................................................... 10 Figure 15: Anticipated exit strategy .................................................................................................. 11 Figure 16: Existence of formal succession plan ................................................................................. 11 Figure 17: Existence of current business plan ................................................................................... 11 Figure 18: Total number of employees ............................................................................................. 12 Figure 19: Nature of employment ..................................................................................................... 12 Figure 20: Historical Employment trend ........................................................................................... 13 Figure 21: Employment trend over last 3 years ................................................................................ 13 Figure 22: Employment trend over next 3 years ............................................................................... 14 Figure 23: Age of the majority of essential employees ..................................................................... 14 Figure 24: Wages in relation to other businesses in the region ........................................................ 15 Figure 25: Trend in unfilled positions ................................................................................................ 15 Figure 26: Location of workforce recruitment .................................................................................. 15 Figure 27: Recruitment and retention challenges ............................................................................. 16 Figure 28: Key words and responses in respondents' discussion of retention efforts ..................... 16 Figure 29: Recruitment Activities ...................................................................................................... 17 Figure 30: Current recruitment areas................................................................................................ 18 Figure 31: Future areas where recruitment may be challenging ...................................................... 19 Figure 32: Strategies to overcome employee recruitment challenges ............................................. 19 Figure 33: Skill level of majority of workforce ................................................................................... 20 Figure 34: Training Budget ................................................................................................................ 20 Figure 35: Awareness of any anticipated trends, technologies, significant changes that will be occurring in your industry that will require new skills ...................................................................... 20 Figure 36: Training or professional development needs................................................................... 21 Figure 37: Areas for new Training in next five years ......................................................................... 22 Figure 38: Preferred modes of training ............................................................................................. 22 Figure 39: Usual training locations .................................................................................................... 23 Figure 40: Critical considerations for employees .............................................................................. 23 Figure 41: Annual sales ...................................................................................................................... 24 Figure 42: Status of market for product/service ............................................................................... 24 Figure 43: Market Share in Comparison to Competitors .................................................................. 25 Figure 44: Projected sales growth in the next year ........................................................................... 25 Figure 45: Historic sales trend ........................................................................................................... 26 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector Figure 46: Export sales trend ............................................................................................................. 26 Figure 47: Sales generated by top three customers ......................................................................... 27 Figure 48: Geographic source of majority of sales ............................................................................ 27 Figure 49: International trade status................................................................................................. 27 Figure 50: Engagement with government procurement processes .................................................. 28 Figure 51: Geographic source of majority of supplies....................................................................... 28 Figure 52: Reason for out-of-area purchasing................................................................................... 29 Figure 53: Size of facility .................................................................................................................... 29 Figure 54: Condition of facility .......................................................................................................... 30 Figure 55: Condition of equipment ................................................................................................... 30 Figure 56: Ownership status of facility .............................................................................................. 30 Figure 57: Length of time remaining on lease ................................................................................... 31 Figure 58: Ownership preference...................................................................................................... 31 Figure 59: Historical Investment in facility (past 18 months)............................................................ 31 Figure 60: Room for expansion ......................................................................................................... 32 Figure 61: Plans to expand within three years .................................................................................. 32 Figure 62: Adequacy of current site to support expansion ............................................................... 32 Figure 63: Expansion to occur in community .................................................................................... 33 Figure 64: Estimated expansion investment ..................................................................................... 33 Figure 65: Component of expansion budget for equipment and technology ................................... 33 Figure 66: Component of expansion budget for real estate ............................................................. 34 Figure 67: Size of facility expansion .................................................................................................. 34 Figure 68: Recent facility upgrades ................................................................................................... 34 Figure 69: Planning facility upgrades................................................................................................. 35 Figure 70: Barriers to upgrading ........................................................................................................ 35 Figure 71: Barriers to expansion........................................................................................................ 36 Figure 72: Organizations approached for expansion assistance ....................................................... 36 Figure 73: Considering energy efficiency in expansion plans ............................................................ 37 Figure 74: Awareness of BC Hydro Power Smart .............................................................................. 37 Figure 75: Rating of government services ......................................................................................... 39 Figure 76: Select responses in respondents' suggestions for improvements to government services ........................................................................................................................................................... 41 Figure 77: Airport service used.......................................................................................................... 41 Figure 78: New services at local airport ............................................................................................ 42 Figure 79: Rating of local business climate ....................................................................................... 42 Figure 80: Rating of business climate factors .................................................................................... 44 Figure 81: Business climate today vs. 5 years ago............................................................................. 45 Figure 82: Business climate 5 years from today ................................................................................ 46 Figure 83: Community’s strengths as a place to do business............................................................ 47 Figure 84: Community's weaknesses as a place to do business ........................................................ 48 Figure 85: Barriers to growth in the community ............................................................................... 49 Figure 86: Level of service from business support providers ............................................................ 51 Figure 87: Potential Suppliers............................................................................................................ 52 Figure 88: Sectors, businesses or industries that could be attracted to region ................................ 53 Figure 89: Importance of business competitiveness factors ............................................................. 54 Figure 90: Performance on key productivity drivers ......................................................................... 56 Figure 91: Economic drivers with greatest growth potential ............................................................ 57 Figure 92: Impact of Proximity to Alberta ......................................................................................... 57 Figure 93: Facility’s overall health ..................................................................................................... 58 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector Figure 94: Overall health of parent company ................................................................................... 58 Figure 95: Local management's attitude toward community ........................................................... 58 Figure 96: Parent company's attitude toward local community ....................................................... 59 Figure 97: Risk of facility closing........................................................................................................ 59 Figure 98: Risk of facility downsizing ................................................................................................. 59 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector PROJECT OVERVIEW This report describes findings from Business Retention and Expansion (BRE) surveys of 152 businesses from across the Columbia Basin1. These surveys were conducted between 2012 and 2016. The BRE surveys are initiated by local community partners involved in the area of economic development, typically the local Chamber of Commerce plays a pivotal role. In most instances the BRE surveys are undertaken as part of the regular services that the local agencies provide to local businesses. The agencies then work collaboratively to help implement the recommendations identified in the BRE survey. This report was initiated and prepared by the Rural Development Institute with Kootenay Rockies Tourism providing external review. The Columbia Basin Rural Development Institute (RDI) provided training, data analysis, and report writing support to participating BRE communities. THE BRE CONCEPT BRE is an action-oriented and community-based approach to business and economic development. It promotes job growth by helping communities to learn about the concerns of, as well as opportunities for, local businesses and to set priorities for projects to address those needs. Ultimately, communities will have greater success in attracting new businesses if existing businesses are content with local economic conditions and community support. Business development and job creation are key factors in fostering healthy and vibrant communities— depending on the characteristics of a community’s economy, anywhere from 40 to 90 per cent of new jobs come from existing businesses. A sector based report, such as this report on the tourism sector, allows for a regional overview of a specific sector. It can be used to draw attention to issues that are regional in nature and foster collaboration among stakeholders on areas of mutual interest. PROJECT OBJECTIVES BRE studies typically focus on four objectives: 1. Identify the needs, concerns, and opportunities of existing businesses in order that, where appropriate, action can be taken to respond to the businesses’ needs or development opportunities; 2. Learn of the future plans of the region’s businesses with respect to expansion, relocation and /or retention and follow-up where assistance can be provided; 1 BRE surveys can be downloaded from: http://cbrdi.ca/research-areas/applied-research/businessretention-expansion/ Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 1 3. Demonstrate the region’s pro-business attitude and develop an effective means of communication with local businesses; 4. Encourage the business community’s active involvement in economic development. As this BRE was commissioned by the Columbia Basin RDI the results will be circulated among local governments, economic development organizations, and tourism related organizations (e.g., DMOs) within the region. Those communities with an existing BRE will be able to compare their tourism sector with the regional tourism sector as a whole, potentially identifying new ideas and actions. RESEARCH CONSIDERATIONS THE BRE SURVEY The RDI has a licence agreement with the Economic Development Association of BC for BC Business Counts, a program that provides access to an online BRE survey, contact management, and reporting system called ExecutivePulse. Data presented in this report were collected as part of a comprehensive BRE survey that is aligned with surveys conducted by other participants in the BC Business Counts program across the province of BC. Survey data can therefore be analyzed at a community, sub-regional, regional, and provincial level. The base survey, consisting of 94 questions, includes modules for company information, the local workforce, sales, facilities and equipment, and future plans for growth or succession. Based on feedback from a BRE regional advisory group, thirteen region-specific questions were appended to the base BRE survey. The thirteen Labour Market specific questions were added to the base survey in order to identify and address labour market supply and demand, uncover emerging labour market trends, as well as determine barriers to labour retention. 109 of the 152 tourism sector businesses included in this report completed the additional thirteen region-specific questions. THE DATA SET The companies that participated in the interviews were identified and selected as part of each of their communities’ individual Business Retention and Expansion projects. Selection criteria differs with each community, but typically includes a review of business license information and North American Industry Classification System (NAICS) codes to ensure a representative cross section of the business community. Subsequent to those community based surveys, the companies included in this report were identified as forming part of the tourism sector through an analysis of the North American Industry Classification System (NAICS) codes. Those codes cover businesses from the transportation, accommodation, food and beverage services, recreation and entertainment, and travel services. A list of the NAICS codes used in this report are attached as Appendix B. A total of 152 businesses from the tourism sector within 14 communities from across the region were identified for inclusion in this report. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 2 DATA COLLECTION Researchers within each community are retained by community BRE partners to interview local companies and to enter the data gathered from the interviews into the ExecutivePulse database. On average, the interview process takes approximately 90 minutes to two hours to complete, and the data entry requires an additional hour per interview. The persons interviewed are typically either the owners of the businesses or a senior manager in the company. DATA INPUT, ANALYSIS AND REPORTING The people carrying out the interviews are typically responsible for entering the data into the ExecutivePulse system. The interviewers ensure that all information is maintained in a confidential manner prior to entry into the database. The RDI is responsible for confidentiality of the information after entry into the database. Quantitative data was analysed using descriptive statistics and qualitative data was analysed using the grounded theory method of generating key coding themes. Based on the results of data analysis activities, an initial draft was generated by the RDI and then reviewed by Kootenay Rockies Tourism. Findings and related recommendations were assembled into this report by RDI researchers. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 3 RESEARCH FINDINGS2 COMPANY INFORMATION Regions Represented Businesses selected for this report were selected for their involvement in the tourism sector, and cover businesses from the transportation (9%), accommodation, food and beverage services (43%), recreation and entertainment (45%), and travel services (3%). For a detailed list of the industry codes represented in this report, refer to Appendix B. Figure 1: Industries Represented Travel Services, 3% Recreation and Entertainment, 45% Transportation , 9% Accommodation & Food & Beverage Services, 43% 23% of businesses included in this report are from Golden and area, 15% from Revelstoke, 9% from the Slocan Valley, and 9% from Nelson and area. 2 Some questions allow multiple responses, which can result in more responses than number of respondents. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 4 Figure 2: Regions Represented Sparwood Slocan Valley Rossland Revelstoke Nelson & Area Nakusp Lower Columbia Kootenay Boundary Kimberley Kaslo Golden Fernie & Area Creston & Area Cranbrook 2% 9% 4% 15% 9% 3% 6% 3% 7% 6% 23% 8% 5% 1% 0% 5% 10% 15% 20% 25% Note: 152 respondents Facility Function The vast majority of respondents (96% or 85 respondents) indicated that their facility provides services. Other primary functions include ‘headquarters’ (35% or 31 respondents), ‘manufacturing’ (7% or 6 respondents), and ‘distribution’ (7% or 6 respondents). Fewer respondents indicated that their facility serves an engineering/research and development function or warehousing function. Figure 3: Facility function(s) Services Headquarters Manufacturing Distribution Warehousing Engineering/RD 96% 35% 7% 7% 3% 2% 0% 20% 40% 60% 80% 100% 120% Note: 89 respondents Competition The vast majority of competition (78 % or 46 responses) reported was coming from within the regional area3. 3 Multiple competitors were listed by respondents resulting in more responses than number of respondents. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 5 Figure 4: Location of primary competitors None In Region Outside Canada In Province In Canada 5% 78% 12% 10% 3% 0% 20% 40% 60% 80% 100% Note: 59 respondents Factors for Success Figure 5: Key words and respondents' discussions of the factors that make them successful in this region When asked what factors made their company successful in this region, the highest number of respondents cited the location (25% or 33 businesses), quality of the product or service (9% or 12 businesses), community support (8% or 11 businesses), and tourism (8% or 10 businesses). Excerpts illustrating the factors that make the company successful: “Lovely peaceful area. Great Customer service experience.” “Geographic - proximity to Calgary and its international airport.” “…location - halfway along southern BC route so is a 'handy place.” “have incredibly supportive community which stems from highly committed team who want to make a difference in the community, strong community development piece.” Choosing the Location Respondents most frequently cited the location (23% or 14 respondents) followed by a business opportunity (21% or 13 respondents) for choosing their location. Other factors include the lifestyle (11% or 7 respondents) and existing ties to the area (10% already living here, 5% born and raised here, 3% close to family). Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 6 Figure 6: Choosing the Location Location 23% Business opportunity 21% Lifestyle 11% Already living here 10% Natural resources 8% Established business 7% Market growth 5% Born and raised here 5% Demand for products and services 3% Close to family 3% Hobby turned into a business 2% Great community 2% Business expansion 2% Bought an existing business 2% 0% 5% 10% 15% 20% 25% Note: 61 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 7 Other Locations Figure 7: Other Locations 22% of respondents (22 respondents) indicated that their company has other locations. Yes 22% Note: 98 respondents No 78% 69% of those other locations (9 respondents) are in other areas of the province, 23% (3 respondents) are in other parts of Canada, and 23% (3 respondents) are outside of the country. Figure 8: Location of Other Locations In Province 69% Outside Canada 23% Elsewhere in nation 23% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 13 respondents 93% (81 businesses) of respondents reported that their headquarters are located within British Columbia, 6% (5 businesses) indicated that they are headquartered in other parts of Canada, while 1% (1 business) has their headquarters outside of Canada. Figure 9: Location of headquarters In Province Elsewhere in nation Outside Canada 93% 6% 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Note: 87 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 8 Age and Life Cycle Stage Half of all respondents (50% or 75 respondents) reported that their business is in the ‘growing’ life cycle stage. Another 37% (55 businesses) indicated that their business is in the ‘maturing’ stage. Only 10% (15 businesses) indicated that they are in the ‘emerging’ stages, and just 3% (4 businesses) indicated they were declining. Figure 10: Life cycle stage Maturing Growing Emerging Declining 37% 50% 10% 3% 0% 10% 20% 30% 40% 50% 60% Note: 149 respondents Most businesses (56 respondents or 38%) reported that they have been in business for over 20 years. A significant number reported that they have been in business for 10 - 19 years (38 respondents or 26%), while 18% (27 respondents) indicated they have been in business for between 1 and 4 years, and 16% (23 businesses) have been in business for between 5 and 9 years, and just 3% (4 businesses) have been in business less than 1 year. Figure 11: Length of time in business >20 Years 38% 10-19 Years 26% 5-9 Years 16% 1-4 Years 18% <1 Year 3% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 148 respondents Ownership and Management 93% of all companies are privately owned, with just 7% publicly owned. Most respondents (72 respondents or 48%) indicated that their business is classified as a corporation, while 19% (29 respondents) indicated that they are a sole proprietorship. The remainder of businesses identified as limited liability partnership (6% or 9 respondent), partnership (13% or 19 respondents), nonprofit (11% or 16 respondents), or other (4% or 6 respondents). Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 9 Figure 12: Type of business Other 4% Corporation 48% Sole proprietorship 19% Partnership 13% Non-profit 11% Limited liability partnership (LLP) 6% 0% 10% 20% 30% 40% 50% 60% Note: 151 respondents Figure 13: Ownership and management changes in last 5 years 72% of businesses (97 businesses) have not seen a management or ownership change in the last 5 years, while 28% of businesses (38 businesses) have changed management and/or ownership over that same period of time. Just 15% of businesses (22 respondents) are expecting an ownership change in the near future. Of the 38 respondents that have seen changes in management and or ownership, 70% (26 businesses) report that the change had a positive impact. Yes 28% No 72% Note: 135 respondents Succession and Business Plans Of the 22 businesses (15%) that responded and reported a pending ownership change, 7 (39%) expect the change will happen in a year or less, 6 (33%) expect the process to take 3 or more years, and 28% or 5 businesses anticipate it taking 2 years. Figure 14: Anticipated timeline for ownership change 3 years or more 33% 2 years 28% 1 year or less 39% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Note: 18 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 10 53% of respondents (9 respondents) expect that the current owner will exit the business by selling it to a non-family member, while 24% (4 respondents) expect it to be sold/transferred to another company. 12% (2 businesses) expect it to be sold to a family member. Figure 15: Anticipated exit strategy Other Sell/transfer to a non-family member Sell to another company Sell/transfer to a family member 12% 53% 24% 12% 0% 10% 20% 30% 40% 50% 60% Note: 17 respondents Figure 16: Existence of formal succession plan Not applicable, 12% Yes, 19% Only 19% (24 respondents) of businesses reported that they have a formal succession plan in place, and just 15% have identified a successor for their business. Of those that completed a succession plan, 67% received assistance in its preparation. No, 69% Note: 126 respondents Figure 17: Existence of current business plan Just over half of all respondents (52% or 67 respondents) indicated that they have a business plan in place. No, 48% Note: 129 respondents Yes, 52% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 11 LOCAL WORKFORCE Size of Workforce The 152 businesses interviewed reported a total of 4,071 employees. 38% or 57 of the businesses surveyed indicated that they have less than five employees, and another 20% or 31 businesses indicated that they have between 5 and 9 employees. Figure 18: Total number of employees 50-99 9% 20-49 14% 10-19 14% 5-9 20% Less than 5 38% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 152 respondents 41% (1,669) of employment positions at surveyed businesses are full-time, while 35% (1,436) are part-time, and 24% (966) are temporary. Figure 19: Nature of employment Temporary 24% Part Time 35% Full Time 41% 0% 10% 20% 30% 40% 50% Note: 152 respondents 48% of respondents (64 businesses) indicated that the number of employees at their business has stayed the same historically, while 31% (42 businesses) indicated that the size of their workforce has increased. 21% (28 businesses) indicated a decrease. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 12 Figure 20: Historical Employment trend4 Increasing 31% Staying the same 48% Declining 21% 0% 10% 20% 30% 40% 50% 60% Note: 134 respondents The last three years has generally seen stability in the size of the workforce, with between 57% and 65% of businesses reporting that the number of employees has stayed the same, and between 23% and 28% reporting that employment over that three year time period has increased. Interestingly the employment trend for full-time, part-time, and casual employment was generally consistent over the previous three years. Figure 21: Employment trend over last 3 years 15% 16% 11% Decreased 63% 57% 65% Stayed the same Casual part time full time 23% 28% 24% Increased 0% 10% 20% 30% 40% 50% 60% 70% Note: #of respondents varies The majority of businesses interviewed expect the size of their workforce to stay the same over the next 3 years, with between 54% and 72% of businesses reporting that the number of employees is expected to stay the same, and between 24% and 40% reporting that employment over the next three year time period is expected to increase. Again, the expected employment trends for full-time, part-time and casual employment are generally consistent, with some expected increase in the number of full-time and part-time employees. 4 The question considered a 10 year historical trend. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 13 Figure 22: Employment trend over next 3 years 4% 6% 2% Decreased 72% Stayed the same 54% 59% Casual Part Time Full Time 24% Increased 40% 39% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: #of respondents varies Workforce Demographics 41% (54 respondents) indicated that the majority of their essential employees are between 35 and 49 years old. 31% (40 respondents) of businesses indicated that their workforce is between 26 and 34, 18% (24 businesses) are 50 and older, and 10% (13 businesses) have a workforce under the age of 25. Figure 23: Age of the majority of essential employees 50 or older 18% 35 - 49 41% 26 - 34 31% Less than 25 10% 0% 10% 20% 30% 40% 50% Note: 131 respondents Wages When reporting on average wages for skilled or professional workers, the majority of responses indicated they pay between $20 and $29 per hour (41% or 33 businesses) and between $15 and $19 per hour (19% or 15 businesses). The most commonly reported average hourly wage for semiskilled workers (38% or 27 businesses) was between $15 -$19 and the most commonly reported average wage for entry-level workers (60% or 38 businesses of respondents) was between $10 and Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 14 $12. 48% of respondents (48 respondents) reported that their wage scale is similar to other businesses in the region5. Figure 24: Wages in relation to other businesses in the region Greater than Same as Lower than 40% 48% 13% 0% 10% 20% 30% 40% 50% Note: 101 respondents Recruitment and Retention Of those businesses that responded, 86% (89 respondents) indicated that the number of unfilled positions at their company would remain constant. Figure 25: Trend in unfilled positions Increasing Decreasing Stable 11% 4% 86% 0% 20% 40% 60% 80% 100% Note: 104 respondents The vast majority of respondents (87% or 118 respondents) reported that they primarily recruit employees from local labour markets. 7% (9 respondents) recruit provincially, while 4% (5 respondents) report that they recruit at the international level, and 3% (4 respondents) recruit at a national level. Figure 26: Location of workforce recruitment Locally 87% Provincially 7% Internationally 4% Nationally 3% 0% 20% 40% 60% 80% 100% Note: 136 respondents 5 Detailed wage data is found in Appendix A. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 15 40% (54 respondents) indicated that they have experienced recruitment challenges and 33% (44 respondents) indicated that they have experienced retention challenges. Figure 27: Recruitment and retention challenges Recruitment challenges 40% Retention challenges 33% 0% 10% 20% 30% 40% 50% Note: # of respondents varies When asked what efforts their business has undertaken to retain employees, 51 businesses responded. The most frequent response was fair wages (27% or 14 respondents), followed by supporting a positive environment (22% or 11 respondents), and benefits (22% or 11 respondents). Bonuses (12% or 6 respondents), staff discounts (8% or 4 respondents), and housing (8% or 4 respondents) were also frequently cited. Figure 28: Key words and responses in respondents' discussion of retention efforts “Even though the business is seasonal, I find work for employees in other areas of business to stay busy year round.” “…pay higher than normal wages.” “Bonus incentives for staying past a specific date (seasonal employees).” “Offer subsidized housing.” Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 16 When asked what efforts businesses have undertaken to recruit employees, efforts that emerged most often were word of mouth (23% or 12 respondents) and advertising (23% or 12 respondents). Respondents also cited using a wide variety of other means, including using online job boards, training, staff discounts, social media, and the internet. Figure 29: Recruitment Activities None 13% Word of mouth 23% Advertising 23% Online job boards 8% Training 4% Staff discounts 4% Social media (Facebook/ Linkedin) 4% Post openings on company website 4% Networking 4% International recruitment 4% WorkBC 2% Recruiting Firms 2% Reached out to Colleges 2% Job Fairs 2% Internet 2% Flexible work schedule 2% Employment agencies 2% Cooperative education 2% Benefits 2% 0% 5% 10% 15% 20% 25% Note: 52 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 17 Of the 54 companies that indicated they were experiencing recruitment challenges, the areas currently being recruited for among surveyed businesses include the hospitality service industry (36% or 19 respondents) and food/beverage service (32% or 17 respondents). The responses included in the ‘other’ categories charted below are detailed in Appendix A. Figure 30: Current recruitment areas Other 55% Hospitality Service 36% Food/Beverage Service 32% Administrative/Clerical 17% Sales/Service 13% General Laborer 13% Sales/Retail 9% Maintenance 9% Professional/Other 6% Mechanics 6% Machine Operators 6% Graphics Arts/Printing 6% Electrical/Electronics 6% Professional/Technical 4% Marketing 4% Healthcare Professionals 4% Construction/Contractors 4% Prof/Info Tech/Programming 2% Material/Fabricators 2% CDL Drivers 2% Assembler/Line Workers 2% 0% 10% 20% 30% 40% 50% 60% Note: 53 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 18 41% of respondents (54 businesses) anticipate future recruitment difficulties. The most commonly anticipated recruitment areas which may prove challenging include hospitality service (31% or 16 respondents) and food/beverage service (31% or 16 respondents). The responses included in the ‘other’ categories charted below are detailed in Appendix A. Figure 31: Future areas where recruitment may be challenging Other Hospitality Service Food/Beverage Service Administrative/Clerical General Laborer Sales/Service Mechanics Maintenance Sales/Retail Professional/Other Marketing Machine Operators Graphics Arts/Printing Electrical/Electronics Healthcare Professionals Professional/Technical Prof/Info Tech/Programming Material/Fabricators Construction/Contractors CDL Drivers Assembler/Line Workers 57% 31% 31% 22% 14% 10% 10% 10% 8% 6% 6% 6% 6% 6% 4% 2% 2% 2% 2% 2% 2% 0% 10% 20% 30% 40% 50% 60% Note: 51 respondents Figure 32: Strategies to overcome employee recruitment challenges Yes 40% No 60% 40% of respondents (23 respondents) indicated that they believed there were strategies that could be undertaken to address employee recruitment. 18% (4 respondents) believed that better job advertising could be effective, while 14% (3 respondents) suggested help with the foreign worker program and another 14% (3 respondents) suggested supporting affordable housing. Note: 58 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 19 Skills and Training The majority of respondents (42%) indicated that over half of their workforce is comprised of skilled or professional workers, 22% indicated that their workforce is mainly semi-skilled workers and 17% indicated that entry-level workers make up the majority of their workforce. Figure 33: Skill level of majority of workforce Entry-level Semi-skilled Skilled/Professional 17% 22% 42% 0% 10% 20% 30% 40% 50% Note: # of respondents varies 50% (62 businesses) indicated that there is a training budget to upgrade employee skills. 83% (52 businesses) indicated that their company offers in-house training, 39% (24 businesses) use contracted training. Figure 34: Training Budget 61% No 17% 50% contracted training in-house training 39% training budget Yes 83% 50% 0% 20% 40% 60% 80% 100% Note: # of respondents varies Yes 38% No 62% Figure 35: Awareness of any anticipated trends, technologies, significant changes that will be occurring in your industry that will require new skills 38% of respondents (48 businesses) indicated that they were aware of trends, technologies, and other significant changes that will be occurring in their industry that will require new skills. Note: 127 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 20 74% or 97 respondents indicated that there are areas of training or professional development that would be of benefit. Most commonly listed among these areas were safety, first aid, food safe (27% or 26 businesses), and customer service (14% or 13 businesses). Figure 36: Training or professional development needs Safety/First Aid/Food Safe 27% Customer service 14% Sales/Marketing 12% Business Management 12% Accounting/Bookeeping 12% Emerging industry practices 9% Computer skills 9% Web site design 5% Managerial training 5% Industrial equipment operations 5% Technical training 3% Social media 2% Cooking skills 2% Communications 2% Business management 2% Workshops -- Local 1% WHMIS 1% Theatre Technical Skills 1% Professional development 1% Hospitality training 1% Franchise Training 1% Emerging technologies 1% Continued education 1% Conflict Resolution 1% Bookkeeping 1% Bartending 1% 0% 5% 10% 15% 20% 25% 30% Note: 95 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 21 When asked what new training might need to be considered in the next five years, the most commonly cited response was marketing and social media (24% or 7 businesses) and computer and technology training (21% or 6 businesses). Figure 37: Areas for new Training in next five years None 3% Marketing / Social Media 24% Computer and technology training 21% Water management 3% Technology Skills 3% Technical Theatre production 3% Safety 3% Property Management 3% Professional development 3% Not sure 3% Government regulations 3% Food Safe 3% Emerging technologies 3% Customer service 3% Climate change 3% Avalanche safety training 3% 0% 5% 10% 15% 20% 25% 30% Note: 29 respondents 58% of respondents (66 businesses) stated that they prefer training when it is delivered through a classroom setting, while 49% (56 businesses) preferred individual coaching, and 39% had a preference for online / webinar training (45 businesses). Figure 38: Preferred modes of training Other 17% Classroom 58% Individual coaching 49% Online/ Webinar training 39% 0% 10% 20% 30% 40% 50% 60% 70% Note: 114 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 22 66% of respondents (71 businesses) typically seek training opportunities that are offered locally, and 31% (33 businesses) travel to other areas in the province for their training or within the region (22% or 23 businesses). Fewer training opportunities are sought elsewhere in the country or in the United States. Figure 39: Usual training locations Local British Columbia Regional Rest of Canada United States 66% 31% 22% 12% 5% 0% 10% 20% 30% 40% 50% 60% 70% Note: 107 respondents Unions 7 businesses (5%) surveyed reported that they have union status. Employees The most frequently cited critical issues for employees are the cost of living (71% or 55 businesses) and housing (53% or 41 businesses). Child care (35% or 27 businesses) and transportation (43% or 33 businesses) issues were also cited. For a list of factors included in the “other” category charted below, refer to Appendix A. Figure 40: Critical considerations for employees Other 26% Cost of living 71% Housing 53% Transportation 43% Child care 35% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 77 respondents 95% of businesses (79 businesses) interviewed reported that over 75% of their employees live within the community, 15% (3 businesses) indicated that 75% of the employees live elsewhere in the region, and 9% (1 business) indicated that over 75% of their workforce lives outside of the region. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 23 SALES Market Size and Share The highest number of respondents (31 businesses or 35%) reported annual sales between $100,000 and $499,999. The second highest number of respondents (26 businesses or 29%) reported annual sales of between $1 million and $4.9 million. Figure 41: Annual sales $50 million to 20 million 1% $9.9 million to 5 million 3% $4.9 million to 1 million 29% $999,999 to $500,000 13% 499,999 to $100,000 35% $99,999 to $50,000 7% $49,999 to $25,000 6% Under $25,000 6% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 89 respondents6 The majority of businesses interviewed (53% or 62 businesses) indicated that the size of the market for their product or service is stable. Another 38% (44 businesses), reported that the market is increasing. Figure 42: Status of market for product/service Increasing Decreasing Stable 38% 9% 53% 0% 10% 20% 30% 40% 50% 60% Note: 116 respondents 6 Note: question was optional for respondents. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 24 53% (62 businesses) of respondents indicated that their share of the market for their product in comparison with their competitors is stable, while 38% (44 businesses) indicated that it is increasing. A small number of respondents (9% or 10 businesses) indicated that their market share is decreasing. Figure 43: Market Share in Comparison to Competitors Increasing Decreasing Stable 38% 9% 53% 0% 10% 20% 30% 40% 50% 60% Note: 116 respondents Growth 40% of respondents (54 businesses) expect to see low growth in sales in the realm of 1 - 9%. Moderate growth in sales of 10-24% over the next year is projected by30% of respondents (41 businesses). A combined 17% (total of 24 businesses) expect strong sales growth of over 25%. 10% (14 businesses) of respondents expect their sales to remain stagnant, while a further 2% (3 businesses) expect sales to decline. Figure 44: Projected sales growth in the next year Over 100% 2% 50 - 99% 5% 25 - 49% 10% 10 - 24% 30% 1 - 9% 40% 0% 10% Declining 2% 0% 10% 20% 30% 40% 50% Note: 136 respondents The majority of responses (62% or 82 businesses) indicated that sales at their business have increased over time, 17% (23 businesses) indicated that sales have remained relatively stable, and 17% (23 businesses) reported that sales have declined. 13% or 12 businesses reported that sales at their parent company have historically increased, 4% (4 businesses) reported that they have stayed the same, and 1% (1 business) reported a decline. It is worth noting the high non response/not applicable response to this question. Data indicates that the sales trend within respondents’ respective industries has more closely followed the sales trend reported at the location rather than the parent company. 46% percent of Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 25 respondents (56 businesses) reported that sales within their industry have been increasing, while 22% (27 businesses) reported that they have stayed the same, and an additional 24% (29 businesses) indicated sales in their industry are declining. Figure 45: Historic sales trend 8% Not applicable 82% 4% 46% Increasing 13% 62% within the industry At the parent company 22% Staying the same 4% At this business 17% 24% Declining 1% 17% 0% 20% 40% 60% 80% 100% Note: # of respondents varies Export Sales Of the 8 businesses that reported exporting to international markets, 4% (4 businesses) indicated that their export sales have declined, 2% (2 businesses) indicated that they have been stable, and 2% (2 businesses) reported any decline in sales. Figure 46: Export sales trend Not applicable Increasing Staying the same Declining 92% 2% 2% 4% 0% 20% 40% 60% 80% 100% Note: 106 respondents Source of Sales The customer base among tourism related businesses appears to be reliant on a diverse customer base, with the largest percentage of respondents (59% or 13 businesses) indicating that 1 – 9% of their sales are generated by their top three customers. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 26 Figure 47: Sales generated by top three customers 76 - 100% 51 - 75% 26 - 50% 10 - 25% 1 - 9% 5% 5% 18% 14% 59% 0% 10% 20% 30% 40% 50% 60% 70% Note: 22 respondents Respondents most commonly (43%) indicated that over 50% of their sales are to customers within the local community or region. 21% indicated that over 50% of their sales are within the country and 7% indicated the majority of sales are within the provincial market. Significantly fewer respondents reported that the majority of their sales to the U.S. (2% or 2 respondents) or to international markets (3% or 4 respondents). Additionally, when asked whether they supply products or services to any company in the community, 48% (27 respondents) indicated that they did. Figure 48: Geographic source of majority of sales International United States National Provincial Local 3% 2% 21% 7% 43% 0% 10% 20% 30% 40% 50% Note: # of respondents varies Just 8 respondents (7%) indicated that they import goods or services from other countries and 2 respondents (2%) indicated that they export goods or services to other countries. 93% of respondents did not find the question applied to them, or responded that they had no international trade status. Figure 49: International trade status Not applicable None Import Export 76% 16% 7% 2% 0% 20% 40% 60% 80% 100% Note: 123 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 27 Procurement Figure 50: Engagement with government procurement processes Only 29% (15 respondents) indicated that they engage in government procurement. Yes 29% No 71% Note: 52 respondents 44% of respondents (44 businesses) interviewed reported that they purchase a majority of their supplies from local sources. 23% (23 businesses) indicated that the majority of their supplies come from national businesses, while 22% (22 businesses) indicated that provincial businesses supplied their business. Figure 51: Geographic source of majority of supplies International 7% United States 4% National 23% Provincial 22% Local 44% 0% 10% 20% 30% 40% 50% Note: # of respondents varies Purchasing When reflecting on their reasons for purchasing products or services from out-of-area suppliers, the most common response (84% or 59 businesses) indicated that the products they need are not available locally. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 28 Figure 52: Reason for out-of-area purchasing Other 3% Product not available here 84% Higher costs locally 34% No applicable to this business 11% Quality of available products 9% Unaware of local venders 6% No control - head office decision 4% Loyalty to current supplier 4% Long term contract with outside supplier 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Note: 70 respondents The most commonly referenced products that businesses stated they would like to source from a local supplier include meats, dairy, fruits, vegetables and grains. FACILITIES AND EQUIPMENT Size and Condition 31% (33 businesses) of respondents reported that their facility is between 1,000 square feet and 4,999 square feet in size. Figure 53: Size of facility 20,000 sq ft or more 20% 10,000-19,999 sq ft 9% 5,000-9,999 sq ft 20% 1,000-4,999 sq ft 31% less than 1,000 sq ft 20% 0% 5% 10% 15% 20% 25% 30% 35% Note: 106 respondents 45% of respondents (59 businesses) indicated that their facility is in good condition. Another 39% (51 businesses) indicated that it is in excellent condition and 16% (21 businesses) reported that their facility is in fair condition. No businesses reported that their facility is in poor condition. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 29 Figure 54: Condition of facility Fair Good Excellent 16% 45% 39% 0% 10% 20% 30% 40% 50% Note: 131 respondents 51% (69 businesses) of respondents indicated that their equipment is in good condition. 39% (52 businesses) indicated that it is in excellent condition and 10% (14 businesses) report their equipment is in fair condition, and none were in poor condition. Figure 55: Condition of equipment Fair 10% Good 51% Excellent 39% 0% 10% 20% 30% 40% 50% 60% Note: 135 respondents Ownership Figure 56: Ownership status of facility Leased, 31% Owned, 70% 70% of respondents (98 businesses) own the facility in which they operate and 31% (43 businesses) lease it. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector Note: 141 respondents 30 Of the 43 businesses that lease their facility, and provided a response to the question, 44% have less than 1 year remaining on their lease and another 31% have more than five years remaining. The majority of respondents that lease their facility (71% or 29 businesses) intend to renew their current lease agreement. Figure 57: Length of time remaining on lease >5 Years 31% 3-5 Years 13% 1-2 Years 13% <1 Year 44% 0% 10% 20% 30% 40% 50% Note: 32 respondents Figure 58: Ownership preference Lease, 24% 76% of respondents (35 businesses) would prefer to own their facility. Own, 76% Note: 46 respondents Investment and Expansion 51% of respondents (59 businesses) indicated that their company’s investment in their facility has stayed the same over the past 18 months, while 42% (48 businesses) indicated that the investment has increased. Only eight businesses (7%) indicated that investment in their facility has decreased over the same time period. Figure 59: Historical Investment in facility (past 18 months) Increasing Staying the same Declining 42% 51% 7% 0% 10% 20% 30% 40% 50% 60% Note: 115 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 31 62% of respondents (78 businesses) indicated that there was room for expansion at their site, and 30% (38 businesses) indicated that there was not room at their site. Figure 60: Room for expansion Maybe No Yes 8% 30% 62% 0% 10% 20% 30% 40% 50% 60% 70% Note: 126 respondents Figure 61: Plans to expand within three years No, 51% Yes, 49% 49% of respondents (69 businesses) plan to expand within three years,51% (72 businesses) do not. Additionally, 33% (41 businesses) plan to expand in the next 12 – 18 months. Note: 141 respondents Figure 62: Adequacy of current site to support expansion No, 30% Yes, 65% Of the 69 businesses planning expansion within the next three years, 65% (45 businesses) reported that their current site will be adequate. Notably however, 21 businesses (30%) reported that they will have to look for a new site to meet their planned expansion needs. Note: 69 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 32 Figure 63: Expansion to occur in community No 8% The vast majority of respondents (85% or 61 businesses) indicated that expansion will occur within the community. Yes 85% Note: 72 respondents The total investment anticipated for the planned expansion plans ranges substantially. 28% (11 businesses) anticipate investing between $1 million and $4.9 million, and an additional 23% (9 businesses) are planning investments in the range of $100,000 to $499,999. Figure 64: Estimated expansion investment $20 million and over 3% $10-19.9 million 5% $5-$9.9 million 3% $1-$4.9 million 28% $500,000-$999,999 10% $100,000-$499,999 23% $25,000-$99,999 15% Less than $25,000 13% 0% 5% 10% 15% 20% 25% 30% Note: 39 respondents Of the 69 businesses planning expansion, 37% (14 businesses) responded to state that they expect to spend under 50% of their expansion budget on equipment and technology, while 34% (13 businesses) responded to indicate that 100% of their expansion budget will be devoted to equipment and technology. Figure 65: Component of expansion budget for equipment and technology 100% 50 to 99% Under 50% 0% 34% 26% 37% 3% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 38 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 33 12 respondents (41% of businesses) expect to spend 50 - 99% of their expansion budget on real estate, while another 28% (8 businesses) expect to spend under 50%. Figure 66: Component of expansion budget for real estate 100% 50 to 99% Under 50% 0% 17% 41% 28% 14% 0% 10% 20% 30% 40% 50% Note: 29 respondents 44% (14 respondents) of businesses indicated that expansion plans will be between 1,000 and 4,999 square feet. 31% (10 respondents) of businesses anticipated an expansion of less than 1,000 square feet, while just four respondents (13%) expected an expansion of between 5,000 and 9,999 square feet. Figure 67: Size of facility expansion 20,000 sq ft or more 9% 10,000-19,999 sq ft 3% 5,000-9,999 sq ft 13% 1,000 to 4,999 sq ft 44% Less than 1,000 sq ft 31% 0% 10% 20% 30% 40% 50% Note: 32 respondents Facility Upgrades Figure 68: Recent facility upgrades 73% of businesses (43 businesses) indicated that there had been recent facility upgrades. Of those 43 businesses, 31% (13 businesses) indicated that those upgrades were completed in the last 12 months. No 27% Yes 73% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector Note: 59 respondents 34 Figure 69: Planning facility upgrades 68% (39 businesses) indicated that they are planning facility upgrades, and 26% (10 businesses) anticipate those upgrades occuring within 3 months, and another 26% (10 businesses) expect them to occur within 6 months. No 32% Yes 68% Note: 39 respondents Respondents planning to upgrade were also asked to identify any barriers to upgrading. The most frequently cited barrier was financing (33% or 3 businesses). Figure 70: Barriers to upgrading None Financing Owership Lease issues Change in owership Business capacity Building code restrictions 22% 33% 11% 11% 11% 11% 11% 0% 5% 10% 15% 20% 25% 30% 35% Note: 9 respondents Respondents cited a variety of factors that act as constraints to their expansion. The most common of those were financing (36% or 26 businesses), local regulations (32% or 23 businesses), and lack of suitable premises (18% or 13 businesses). Refer to Appendix A for a list of the ‘other’ responses. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 35 Figure 71: Barriers to expansion Finance 36% Local regulations e.g. zoning 32% Other (please specify): 23% Lack of suitable premises 18% Problems with Development Approvals 16% Energy costs 15% Broadband access 15% Roads 11% Lack of skilled staff 11% Identifying and accessing new markets 10% Energy reliability 10% Transport/freight 4% Warehousing 1% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 73 respondents 49% of respondents (32 businesses) indicated that they have sought assistance with their expansion efforts from an external organization. Of those businesses, the highest numbers had approached the local council (38% or 10 businesses), BC Ministry responsible for Economic Development (31% or 8 businesses), and the local Economic Development Office (27% or 7 businesses). Figure 72: Organizations approached for expansion assistance Other (please specify): 62% Local Council 38% BC Ministry responsible for Economic… 31% Local Economic Development Office 27% Community Futures 8% Chamber of Commerce 8% BC Hydro 8% 0% 10% 20% 30% 40% 50% 60% 70% Note: 26 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 36 Energy Efficiency Figure 73: Considering energy efficiency in expansion plans 64% of those who responded (23 businesses) are considering energy efficiency in their expansion plans. No 36% Yes 64% Note: 36 respondents Figure 74: Awareness of BC Hydro Power Smart 71% of respondents (92 businesses) are familiar with the energy efficiency support available through the BC Hydro Power Smart program. No, 29% Note: 130 respondents Yes, 71% GOVERNMENT SERVICES Respondents were asked to rate a list of government services as poor, fair, good, or excellent. Respondents also had the option to rate a service as not applicable to their business7.   The services that received the highest number of POOR ratings are access to airport facilities (32%), telecommunications (internet, cell service, etc.) (26%), and the development approval process (18%). The services that received the highest number of FAIR ratings were access to markets (34%), availability of road transport services (34%), and telecommunications (28%). 7 Only percentages are reported, as the number of respondents varied widely with each government service, resulting in numbers that are not comparable. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 37    The services that received the highest number of GOOD ratings were inspections and licensing (50%), access to highway/roads (48% or 72 businesses) and access to US border (46%). The services that received the highest number of EXCELLENT ratings were access to highway/roads (25%) and access to markets (15%). The services that the highest number of respondents felt are NOT APPLICABLE to their business were access to port facilities (92%), availability of rail transport (75%) and the availability of warehousing (74%). Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 38 Figure 75: Rating of government services 2% 7% 10% 7% Availability of warehousing 74% 6% Availability of road transport services 36% 34% 15% 9% 3% 5% 3% Availability of rail transport 3% Availability of buildings for lease or purchase 14% 75% 16% 12% 16% 54% 3% 20% 10% 14% Availability of appropriately zoned land 8% Access to suppliers 25% 9% % Fair % Not Applicable 39% 34% 6% 6% 1% % Good % Poor 15% Access to highway/ roads % Excellent 39% 33% 13% 7% Access to markets 53% 17% 48% 9% 20% 27% 32% 12% Access to airport facilities 13% Access to US Border Access to Port Facilities 10% 13% 19% 46% 2% 0% 2% 5% 0% 20% 92% 40% 60% 80% 100% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 39 11% Water and sewerage supply 44% 15% 7% 22% 7% Telecommunications (internet, cell) 28% 26% 1% 13% Recycling 26% 13% 9% 38% 39% % Good % Fair 5% Inspections /licensing 6% 50% 23% Development approval process 45% 18% 10% 18% 2% 25% 18% 18% % Poor % Not Applicable 16% 9% Disposal of waste material % Excellent 36% 0% 10% 20% 30% 40% 50% 60% Note: # of respondents varies When asked whether there were any suggestions on how to improve any of the services and infrastructure, 70% respondents (95 businesses) indicated they had suggestions. The highest number of responses (27% or 26 businesses) discussed expansion of the electronic communication services (cell phone, internet, broadband, fiber, etc.) along with improvements to highway and road quality and service (16% or 15 businesses), and improvements to the airport service (16% or 15 businesses). Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 40 Figure 76: Select responses in respondents' suggestions for improvements to government services “Business Support Services - it would be nice to have someone local available to provide support for business support services.” “Work with Provincial and Financial government to fulfill promises of improving highways.” “Better cell reception for all carriers.” “Quality of transcanada highway affects tourists ability/ willingness to travel ... Maintenance and upkeep of highway needs to be addressed.” “Incentives on commercial real estate development.” Airport Service The Kelowna International Airport is the most used airport, with 41% of respondents (23 businesses) indicating they use that airport. The Calgary International Airport was the second most used with 39% (22 businesses). Figure 77: Airport service used None Kelowna Calgary Cranbrook Castlegar Spokane Trail Kalispell Vancouver Springbank Seattle Revelstoke Nelson Creston Bellingham 9% 41% 39% 21% 18% 14% 11% 7% 5% 2% 2% 2% 2% 2% 2% 0% 10% 20% 30% 40% 50% Note: 56 respondents Respondents indicated that they would most like to see improved flight reliability (11% or 5 businesses), more flights (9% or 4 businesses), improvements to navigational aids (9% or 4 businesses), and commuter flights (9% or 4 businesses). Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 41 Figure 78: New services at local airport Better flight reliability More flights Improvements to navigational aids Commuter flights Regular flights Larger aircraft Passenger service Extended runway Tourist information center Tourism services Shuttle service Scheduled flights Parking More destinations More Airlines Medivac Lower fares Local flights to Calgary and Vancouver Hanger facilities Courier service Commercial flights Charter service 11% 9% 9% 9% 7% 7% 4% 4% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 0% 2% 4% 6% 8% 10% 12% Note: 45 respondents BUSINESS CLIMATE Quality of Business Climate The majority of responses rated the overall business climate as good (46% or 64 businesses). Figure 79: Rating of local business climate Poor Fair Good Excellent 14% 37% 46% 3% 0% 10% 20% 30% 40% 50% Note: 140 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 42 Respondents rated the quality of a list of specific business climate factors as either poor, fair, good, excellent, or not applicable to their business.      The factors that received the highest number of POOR ratings included workforce stability (27% or 37 businesses), economic development (25% or 34 businesses), and workforce availability (24% or 33 businesses). The factors that received the highest number of FAIR ratings included workforce quality (42% or 57 businesses), housing (41% or 57 businesses), workforce stability (39% or 54 businesses), and economic development (36% or 49 businesses). The factors that received the highest number of GOOD ratings included tourism services (51% or 33 businesses), K-12 education (46% and 62 businesses), and cultural/recreational amenities (46% or 62 businesses). The factors that received the highest number of EXCELLENT ratings included chamber of commerce (25% or 16 businesses), cultural and recreational amenities (18% or 25 businesses), and tourism services (18% or 12 businesses). The factors that received the highest number of NO OPINION ratings include Business Improvement Associations (BIA) (79% or 26 businesses) and Community Futures (31% or 20 businesses). Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 43 Figure 80: Rating of business climate factors 5% Local Government 8% 42% 27% 18% 14% K-12 education 11% 8% 46% 21% 2% 27% Housing 23% 7% 4% 24% Economic Development 12% 25% 41% 36% % Excellent 18% Cultural/Recreational Amenities 1% 9% % Fair % Poor 13% Community Futures 31% 6% Colleges/Universities 9% % No Opinion 39% 9% 8% 24% 36% 25% 25% Chamber of Commerce 19% 10% 3% 43% 3% 6% 6% 6% BIA 0% % Good 46% 25% 20% 79% 40% 60% 80% 100% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 44 5% 26% Workforce Stability 39% 27% 4% 11% Workforce Quality 39% 42% 5% 4% 7% Workforce Availability 32% 33% 24% 4% % Excellent % Good % Fair 18% Tourism services 51% 17% 12% 2% 3% % No Opinion 22% Technical Training 29% 16% 3% 29% 20% Local Tax Structure 23% 20% 0% 10% % Poor 20% 30% 35% 40% 50% 60% Note: # of respondents varies 41% of respondents (56 businesses) felt that the business climate is better today than it was 5 years ago. 24% (33 businesses) thought that it is worse, and 24% (32 businesses) believed there was no change in the business climate. The main reasons given from those who believe the business climate is worse is the declining economy (28% or 9 respondents) and business failures (13% or 4 respondents). Figure 81: Business climate today vs. 5 years ago No opinion Worse today No change Better today 11% 24% 24% 41% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Note: 136 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 45 74% of respondents (102 businesses) expect that the business climate will be better 5 years from today. 6% (8 businesses) expect that it will be worse. Figure 82: Business climate 5 years from today No opinion 7% Will be worse 6% No change 12% Will be better 74% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 137 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 46 Strengths and Weaknesses of Business Climate 147 responses were provided when respondents were asked to list the community’s strengths as a place to do business; the highest number of responses (21% or 28 responses) cited the location as the community’s primary strength. 12% (16 businesses) indicated the supportive community and 12% (16 businesses) indicated the lifestyle. Figure 83: Community’s strengths as a place to do business Location Supportive community Lifestyle Friendliness Tourism Recreational opportunities Environment Social network Great place to live Stable economy Outdoor activities Customer loyalty Community commitment to local businesses Shop local awareness Quality of life Low competition Climate Chamber of Commerce Affordable Above average household incomes Vibrant downtown Unique shops Small town Skilled workforce Self reliant Proximity to US Natural beauty Natural attractions Low crime Good restaurants Good demographics Creative business owners Collaboration among businesses 21% 12% 12% 10% 6% 5% 5% 4% 4% 3% 3% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 0% 5% 10% 15% 20% 25% Note: 136 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 47 Respondents were asked to list the community’s weaknesses as a place to do business. The highest number of responses (9% or 12 respondents) were received for the high cost of living. Development constraints were cited by 8% of respondents (11 businesses), and the seasonality and location were both cited by 7% (10 respondents) of businesses. Figure 84: Community's weaknesses as a place to do business High cost of living Development Constraints (Zoning/Bureaucracy/Permits) Seasonality Location Tax structure Population (size/growth/aging) Geographic isolation Shipping and Receiving costs Cross border shopping (US/Alberta) Resistance to change Low average income Internet access Cost of doing business Available space Low population Limited market Lack of local services Weather Vacant commercial buildings Transient population Too dependent on tourism Small market Reliable transportation Poor road conditions Planning and development process Lack of suppliers Lack of motivation Lack of amenities Kootenay time or laissez fair attitude Economic climate Competition Airport limitations 9% 8% 7% 7% 5% 5% 5% 4% 3% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 0% 1% 2% 3% 4% 5% 6% 7% 8% Note: 136 respondents Business Growth 85% of respondents (121 businesses) indicated that there are barriers to growth. The highest number of respondents (12% or 14 businesses respectively) stated that geographic isolation and the development approval process are important barriers to growing the community’s economy. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 48 9% 10% Other commonly cited barriers include the resistance to change (11% or 13 businesses) and population (size/growth/age) (11% or 13 businesses). Figure 85: Barriers to growth in the community Geographic isolation 12% Developmental approval process 12% Resistance to change 11% Population (size / growth / age) 11% Seasonality 7% Availability of land 6% Low economic diversification 5% Infrastructure supporting local economy 5% Tax structure 4% Cost of doing business 4% Poor road conditions 3% Low growth 3% Zoning 2% Skilled labour 2% Low population 2% Job market is small 2% Internet access 2% Cost of living 2% Competition 2% Airport service 2% Affordable housing 2% Weather 1% Small market 1% Shipping costs 1% Negative attitude 1% Low income levels 1% Land availability 1% Lack of a anchor industry 1% Geographic constraints 1% Economy 1% Economic seasonality 1% Access to markets 1% Access to capital 1% 0% 2% 4% 6% 8% 10% 12% 14% Note: 119 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 49 The following excerpts illustrate the barriers cited: “Tourists do not stay for an extended time.” “Lots of red tape when setting up or doing expansions on properties.” “Letting growth happen (not in my backyard - NIMBY - opposition).” Respondents were asked about the level of support they received from various business support providers. The Chamber of Commerce received the highest poor response (8% or 5 businesses), but was also cited as providing an excellent level of service by 25% of respondents (15 businesses) and a good level of service by 38% of respondents (23 businesses). Respondents found Community Futures (9% or 5 businesses) as most commonly unable to assist. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 50 Figure 86: Level of service from business support providers National Research Council Industrial Research Assistance Kootenay Aboriginal Business Advocates Society Invest Kootenay Innovation Councils (Kootenay Association for Science and Technology, Kootenay Rockies Innovation Council) 2% 2% 0% 0% 2% 0% 0% 0% 0% 2% 87% 9% 17% 4% 4% 2% 12% 7% 2% 2% % Excellent % Good 64% 2% 2% 0% % Poor % Unable to assist 44% % Not Applicable 57% 17% 15% 8% 3% 8% 65% 25% 38% 18% 2% 9% 6% 0% 4% 0% % Fair 33% 10% 22% 2% 0% 9% Chamber of Commerce Basin Business Advisors 85% 0% 5% 5% 0% 2% Continuing Education and Workforce Training College Industry Liaison Officer 98% 0% 6% 4% 2% 4% Economic Development Organization / Commission Community Futures 94% 80% 20% 40% 60% 80% 100% 120% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 51 Scientific Research and Experimental Development Tax Incentive Program % Excellent 2% 2% 0% 0% 0% % Good % Fair 96% 0% 20% 40% 60% 80%100%120% % Poor % Unable to assist Note: # of respondents varies 33% of respondents (44 businesses) indicated that there are suppliers that could locate in the region that do not currently serve the area. Tourism and recreation suppliers were most commonly cited by 16% of respondents (6 businesses). Figure 87: Potential Suppliers Tourism and Recreation 16% Restaurants 8% Meats & Dairy / Fruits and Vegetables / Grains 8% Retail stores 5% Manufacturers 5% High Tech services 5% Wood Waste Management 3% Technology companies 3% Sofware developers 3% Mining services 3% Helicopter services 3% Heavy Equipment dealers 3% Distributors 3% Courier service 3% Cleaning services 3% Agricultural suppliers 3% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Note: 37 respondents When asked what business, sector, or industry could be attracted to most strategically benefit the industry, the most common response was tourism (46% or 57 respondents), technology businesses (9% or 11 businesses), manufacturing (6% and 7 businesses), and arts and culture (6% or 7 businesses). Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 52 Figure 88: Sectors, businesses or industries that could be attracted to region Tourism Technology businesses Manufacturing Arts & Culture Creative businesses Agriculture Retail Stores Hospitality Green Businesses Transportation Forestry Food businesses Construction Conference Centre Airport services Snow mobiling Shipping companies Restaurants Recycling Services Recreational services Mountain biking Internet services Health and Wellness Grocery stores Educational services Art gallery Agriculture value-added industries 46% 9% 6% 6% 3% 3% 2% 2% 2% 2% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Note: 124 respondents Business Competitiveness and Productivity Businesses were asked to consider the importance of various factors for ensuring business competitiveness over the next five years. Those factors that received the highest number of somewhat important or very important ratings include availability of telecommunications infrastructure and services (93% or 81 businesses) and improvement of customer service (91% or 79 businesses). Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 53 Figure 89: Importance of business competitiveness factors Workplace health and safety 9% Workforce skill development 71% 20% 83% 9% 8% Water/sewer costs 14% 27% Water/sewer availability 9% Strategic alliances (joining with other businesses to provide… 8% 6% 68% 23% 86% Reliable air transportation 26% 21% New product research and development 13% 24% New market development outside of region 15% 11% New market development locally 12% 5% Improving worker productivity 53% 63% 74% 84% 23% 15% Improvement of customer services 59% % Somewhat important, very important 62% 91% 8% 1% Improvement business management 12% 4% Expansion of workforce employees 13% Exchange rate for Canadian dollar 16% 8% Energy costs 16% 7% Availability of telecommunications… 85% 36% % Not applicable 52% 76% 77% 93% 3% 3% Affordable shipping/freight 21% 16% Add or change in business, products or services 14% 13% Accessing capital 24% 11% Access to exporting and international markets 28% 22% 0% % Not important at all or not very important 63% 73% 64% 51% 20% 40% 60% 80% 100% Note: # of respondents varies Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 54 When asked to rate their business’ performance on a list of productivity drivers, the drivers that received the highest number of:     EXCELLENT ratings include leadership and management capacity (30% or 25 businesses) and productive workplace culture (29% or 24 businesses); GOOD ratings include leadership and management capacity (58% or 48 businesses), productive workplace culture (56% or 47 businesses), and organising work (structures and processes) (55% or 46 businesses); FAIR ratings include measuring impact of productivity efforts/investments (35% or 29 businesses); POOR ratings include networking and collaboration with other businesses (6% or 5 businesses). Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 55 Figure 90: Performance on key productivity drivers 29% 56% Productive workplace culture 10% 2% 4% 19% Organizing work (structures & processes) 55% 17% 0% 8% 24% Networking and collaboration with other businesses 43% 24% 6% 2% % Excellent 12% Measuring impact of productivity efforts/ investments % Good 39% 35% % Fair 2% 12% % Poor % Not Applicable 30% 58% Leadership and management capacity 7% 2% 2% 14% 49% Investing in people and skills 25% 4% 8% 19% 43% Innovation & the use of technology 27% 5% 6% 0% 20% 40% 60% 80% Note:# of respondents varies Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 56 Economic Drivers Respondents believe that the economic drivers with the highest growth potential over the next 5 to 10 years include tourism (83% or 72 businesses), relocation of people from urban centres (32% or 28 businesses), health and wellness (24% or 21 businesses), and forestry (23% or 20 businesses). For a list of drivers identified as “other”, refer to Appendix A. Figure 91: Economic drivers with greatest growth potential Other Tourism Relocation of people from urban centres Health & wellness Forestry culture and creative businesses Construction Arts Technology-based businesses Green or environmental businesses Education Other niche service businesses (e.g. services… Manufacturing Agriculture Government 26% 83% 32% 24% 23% 22% 22% 22% 20% 17% 10% 9% 9% 7% 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Note: 87 respondents Proximity to Alberta 42 respondents (79%) reported that they were impacted by their proximity to Alberta. The general positive impact of the customer base coming from Alberta was the most significantly noted by 70% of respondents (28 businesses), while 13% (5 businesses) indicated a similar positive impact of tourists coming from Alberta. Figure 92: Impact of Proximity to Alberta Positive - Alberta customers 70% Positive - Alberta tourists 13% Negative - Alberta competition 5% Positive - Workforce migration from Alberta 3% Positive - Alberta has higher recycling fees 3% Negative - Loss of sales to Alberta 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 40 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 57 ASSESSMENT AND PLANS Overall Health The majority of businesses surveyed reported that their facility is in overall good health (55% or 69 businesses), 23% (29 businesses) reported that their facility’s health is excellent, and 20% (26 business) reported that it is fair. 2% (3 businesses) of respondents indicated that their company is in poor health. Figure 93: Facility’s overall health Poor Fair Good Excellent 2% 20% 54% 23% 0% 10% 20% 30% 40% 50% 60% Note: 127 respondents Most businesses with a parent company indicated that the health of that parent company is good (13% or 13 businesses). Figure 94: Overall health of parent company Not applicable Fair Good Excellent 75% 1% 13% 12% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 103 respondents Attitude toward Community 48% of respondents (61 businesses) indicated that their local management’s attitude toward the community is excellent and 40% (51 businesses) indicated that it is good. Figure 95: Local management's attitude toward community Poor Fair Good Excellent 1% 8% 40% 48% 0% 10% 20% 30% 40% 50% 60% Note: 126 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 58 Respondents indicated that their parent company’s attitude toward the local community is most commonly good (11% or 11 businesses) or excellent (10% or 10 businesses). Figure 96: Parent company's attitude toward local community Not applicable Poor Fair Good Excellent 75% 2% 3% 11% 10% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 102 respondents Risk of Closing or Downsizing Data indicates that the risk of tourism related businesses closing is low. Just 3% (4 businesses) of the respondents reported that they are at a high risk of closing in the next 1-3 years, and just 9% (12 businesses) indicated they were at a moderate risk. Figure 97: Risk of facility closing Low 88% Moderate 9% High 3% 0% 20% 40% 60% 80% 100% Note: 134 respondents Similarly, the data indicates that the risk of downsizing is low, with just 4% (5 businesses) indicating that the risk is high. Figure 98: Risk of facility downsizing Low Moderate High 86% 10% 4% 0% 20% 40% 60% 80% 100% Note: 132 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 59 RECOMMENDATIONS NEXT STEPS The results of this survey can be used to inform short- and long-term business retention and expansion action planning at the regional, sub-regional, or community scale. Additionally, the regional overview of the tourism sector that this report provides may encourage or support future collaboration amongst stakeholder groups. Many Business Retention and Expansion (BRE) programs attempt to ensure that follow-up actions occur as soon as possible following completion of the survey stage. This approach builds credibility, a sense of success and momentum to carry out long-term actions. Successful BRE programs pick an initial set of short-term actions that:  can be completed in 6 months or less;  are highly visible to businesses and the community as a whole; and  have the potential for considerable impact with minimal input (i.e., the “low hanging fruit”). As this study was commissioned by the Columbia Basin RDI, the immediate follow-up steps will be the distribution of the report to all potentially interested organizations with an offer to discuss further how this report may help them. Many BRE actions also lead to long-term programs (e.g., a ‘Buy Local’ program), or ongoing plans and policies. Patience and a commitment over the long-term are critical in determining the success of these initiatives. For this reason, BRE should be thought of, and implemented as, an ongoing process as opposed to a one-time project. Some communities/stakeholder groups form committees or action groups around the themes or action areas identified in the BRE report to ensure success in implementation. The following steps could be taken by stakeholders in the tourism sector to support links to planning and action: 1. Continually communicate (through press, presentations, electronic media, etc.) with the business community regarding actions and be clear that the actions are tied to the BRE process. 2. Build on the momentum of the BRE report and ensure actions and next steps are taken and kept on track. Include follow-up discussions with individual businesses (particularly to address red and green-flags). Consider using the “Business Walk” survey as a tool to connect with businesses annually. 3. Host a business stakeholder forum to present findings, discuss common issues and potential solutions. 4. Host a facilitated action planning session with economic development stakeholders and industry representatives. 5. Based on results from the forums and action planning session, finalize priority actions, develop related action plans, update existing economic development plans and develop Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 60 relationships with a broader network of support providers (at regional, provincial and national scales) to support implementation. 6. Establish a monitoring program to assess the impact of implementation efforts. POTENTIAL ACTION AREAS Workforce – Recruitment & Retention The businesses interviewed reported a total of 4,071 employees. 41% of employees are full-time, followed by 35% part-time employees, and 24% are temporary. The size of the workforce appears stable and healthy, with 48% of businesses indicating that the number of employees at their business has stayed the same. Anticipated employment trends are also stable with the majority of businesses expecting the number of casual, part time and full time employees to stay the same or slightly increase. The majority of businesses (87%) recruit locally. 40% of businesses indicate that they currently face recruitment challenges, 41% anticipate future difficulties, and 40% of businesses stated they did believe there were strategies that could address recruitment. Respondents most commonly rely on advertising and word of mouth when recruiting, followed by online job boards. Actions identified by respondents that could prove helpful include: improved job advertising, assistance with the foreign worker program, and supporting affordable housing. The hospitality and food/beverage service industries featured in areas of future and current recruitment challenges, as did the area of administrative/clerical. Related to recruitment and retention, are the critical considerations for employees identified which include the cost of living, housing, and transportation. Youth Employment Findings indicate that employees under the age of 26 are in the minority, with just 10% of essential employees under the age of 25. Increasing youth employment may assist in addressing the recruitment challenges that 40% of businesses report having. Actions on this theme could involve gaining a better understanding of the reasons for the low youth employment rate, connecting local businesses with youth employment programs (federally, provincially and/or through CBT), and connecting businesses with local schools and post-secondary institutions. Business Growth & Expansion 50% of businesses in the region report being in a growth cycle and 37% are maturing, and similarly 53% indicate the status for their product/service is stable and 38% indicate it is increasing. The majority of businesses are anticipating low to moderate sales growth over the next year, with 40% expecting moderate sales growth between 1 – 9% and 30% expecting 10-24% sales growth. 43% of businesses indicate that the majority of their sales are to local markets, with 21% indicating their sales are to a national market. Further review into this is warranted to understand how this correlates to the geographic source of tourists. 49% indicate that they are planning to expand within the next three years. Over half (65%) of those businesses planning to expand feel their existing site is adequate, and 85% indicated that expansion would occur within the community. Businesses also report that employment rates are stable, and that they anticipate continued stability over the next three years. This data coupled with the general positive business climate and the optimism for the future provides a positive, stable report on business conditions in the tourism sector. Actions in this area could include supporting existing businesses as they plan for Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 61 local expansion/growth. Support could come in the form of assistance with navigating local regulations, assistance with accessing new markets, exploring financing options, assisting with recruitment activities, and connecting businesses with resources to assist in expansion projects. These potential actions and any others should be designed to address the stated barriers to expansion which include geographic isolation, difficulties with the development approval process, general community resistance to change, and the population (demographics, size, etc.). It is worth noting that just less than half (49%) of businesses sought assistance with expansion efforts from an external organisation. This is an area where improvements could be made to have local resources approach businesses proactively to understand barriers and work collaboratively towards solutions. Small to Medium Sized and Independent Businesses The profile of businesses surveyed indicates that businesses tend to be small to medium in size (38% have fewer than five employees, 51%are located in a facility that is less than 4,999 sq.ft., and 54% have annual sales under $1 million) and independent (just 22% have other locations). The customer base for businesses appears to be diverse, with 59% of businesses indicating that just 1 9% of their sales are generated by their top three customers. It is noteworthy that temporary employees make up just 24% of the workforce. Tailoring supports and services to small/medium sized, independent businesses will benefit businesses in the tourism sector. Services and supports should consider that 96% of functions provided by a business are ‘services’. Actions to support and encourage small and medium sized businesses could include specific training targeted to the needs of small businesses and an exploration of shared service provision in the areas of payroll, human resources, employee recruitment, bookkeeping, etc. Additional actions could include promoting existing supports available from Small Business BC, Destination BC, Kootenay Rockies Tourism, and the Basin Business Advisors Program. Supply Sourcing and Procurement The data indicates that 44% of supplies come from within the local region. The most common response (84%) for the reason why supplies are sourced outside of the local area is that they are not available locally. The ability to source local supplies of meats, dairy, fruits, vegetables and grains were the most frequently desired by respondents. There is an opportunity to engage in discussions with local area businesses to understand what opportunities may exist to increase local supply, and actively engage existing businesses or encourage new businesses to fill that role if feasible. Strengthening the link between local food suppliers/producers and local area businesses could also be explored. A regional stakeholder round table discussion could be a way to begin the conversation to increase supply options locally. A potential related impact could be the diversification of the local economy. Training Improving technical training and workforce skill development is important for business competitiveness. Findings indicate that 50% of businesses do have a training budget and 66% indicated that training typically occurs locally. Just 38% of businesses were aware of new trends, technologies and industry changes that will require new skills, indicating that there is room for education among businesses on the latest trends and technologies specific to the tourism Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 62 sector.74% identified specific areas for current training/professional development, and those include safety/first aid/food safe and customer service. Respondents also indicated that over the next five years additional training in marketing/social media and computer and technology training would be needed. There is a preference for classroom (58%) or individual coaching (49%) style formats. Future initiatives could include supporting networks to help businesses identify shared training needs, increasing awareness of new trends, technologies and changes to the tourism sector, and working with local educational institutions to ensure local skill requirements are considered in programming. Succession and Business Planning Business and succession planning are critical to the health and longevity of businesses, yet only 19% of respondents indicated that they have a formal succession plan and just over half (52%) have an up-to-date business plan. Findings suggest that there are opportunities to support the business community by providing succession and business planning assistance, with some tailoring to target small, independent businesses in the tourism sector. Open, instructive training sessions have the potential to provide a base level of support to a large number of businesses; however, given the importance of individual circumstances in business and succession planning, a one-onone assistance program could result in greater overall benefit by providing a higher level of support to businesses. Any future business planning support initiatives should be aggressively advertised to ensure uptake among businesses, and may include direct outreach to those businesses identified as part of the BRE survey. Continued Support for Tourism Sector An overwhelming 83% of respondents indicated that tourism was the economic driver with the greatest growth potential. 16% of Respondents also noted that suppliers of tourism and recreational services/products are potential suppliers that could be increased, and 46% indicated that attracting more tourism related businesses would most strategically benefit the industry. Actions to support the tourism industry could include continued collaboration between governments at all levels and local tourism agencies such as Destination British Columbia, Kootenay Rockies Tourism, local Destination Marketing Organisations, Chambers of Commerce, and local businesses. With most businesses (74%) expressing optimism for an improved business climate over the next five years, there is much positive support and social capital to build on the work already occurring in this area. Improving Connectivity A recurring theme was the need to improve telecommunications services, with 26% of respondents rating the service as poor and 28% rating the service as fair. 93% of businesses rated the availability of telecommunications as somewhat important or very important to ensuring business competitiveness over the next five years. Discussions with telecommunication service providers to identify ways to improve service, as well as community discussions to identify specific areas for improvements would be beneficial to target improvements that would support the tourism sector. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 63 APPENDIX A: DATA TABLES COMPANY INFORMATION Figure 1.: NAICS Classification Transportation (48, 53) Accommodation & Food & Beverage Services(72) Recreation and Entertainment (71, 51) Travel Services (56) Total 14 66 68 4 152 Figure 2.: Industry Classification by Region Industry Classification by Region Tourism 9% 43% 45% 3% 100% Percent of Question Respondent s Count RDI Region Year Cranbrook 2014 1 1% 2016 8 5% Kimberley 2012 2016 2013 2014 2014 2015 2014 1 10 31 5 1 7 10 Boundary 2012 4 3% Lower Columbia 2012 9 6% Nakusp Nelson & Area 2013 5 3% 2015 13 9% Revelstoke 2015 23 15% Creston & Area Fernie & Area Golden Kaslo Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 8% 23% 6% 7% 64 Rossland Slocan Valley 2012 2013 2014 2013 2014 Sparwood Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 3.: Functions located at this facility Engineering/RD Distribution Warehousing Manufacturing Headquarters Services Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 4.: Who are your competitors?: Where are your competitors located? In Canada In Province Outside Canada In Region None Total Survey Participants: Question Respondents: No Response Count: Response Rate: 6 12 2 2 2 152 4% 9% 2% 100% 152 152 0 100% Count Percent of Question Respondents 4 5% 5 5 10 15 65 104 7% 7% 14% 21% 89% 75 73 2 97% Count 2 6 7 46 3 64 Percent of Question Respondents 3% 10% 12% 78% 5% 152 59 93 39% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 65 Figure 5.: What are the factors that make your company successful here? Count Diversified product / services Knowledgeable staff Niche market Pricing Technical expertise Branding Competitive pricing Hard work Knowledge Supportive community Customer loyalty Demand for products and services Lack of competition Niche product Established business Experience Workforce Word of mouth Reputation Customer Service Tourism Community support Quality product / service Location Total 1 1 1 1 1 2 2 2 2 2 3 3 3 3 4 4 4 5 8 9 10 11 12 33 127 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 130 22 86% Figure 6.:Why did you choose this community to locate your business? Bought an existing business Business expansion Great community Hobby turned into a business Percent of Question Respondents 0.77% 0.77% 0.77% 0.77% 0.77% 1.54% 1.54% 1.54% 1.54% 1.54% 2.31% 2.31% 2.31% 2.31% 3.08% 3.08% 3.08% 3.85% 6.15% 6.92% 7.69% 8.46% 9.23% 25.38% Count Percent of Question Respondents 1 1 1 1 2% 2% 2% 2% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 66 Close to family Demand for products and services Born and raised here Market growth Established business Natural resources Already living here Lifestyle Business opportunity Location Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 7.:Does this company have another location elsewhere? 2 2 3 3 4 5 6 7 13 21% 23% 63 14 152 61 91 40% Count Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Percent of Question Respondents 22 76 98 22% 78% 152 98 54 64% Figure 8.: Does this company have another location elsewhere?: If Yes, where? Elsewhere in nation Outside Canada In Province 3% 3% 5% 5% 7% 8% 10% 11% Count Percent of Question Respondents 3 3 9 15 23% 23% 69% 152 13 9 22 98 59% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 67 Figure 9.: Location of company's headquarters Outside Canada Elsewhere in nation In Province Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 9b: Location of company's headquarters: Province AB BC Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 9c: Location of company's headquarters: Nation Count 1 5 81 87 Percent of Question Respondents 1% 6% 93% 152 87 65 57% Count 2 54 56 Percent of Question Respondents 3.57% 96.43% 152 56 96 37% Count Canada Total 50 50 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 50 102 33% Percent of Question Respondents 100.00% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 68 Declining 4 Percent of Question Respondents 3% Emerging 15 10% Growing 75 50% Maturing 55 37% Total 149 Survey Participants: 152 Question Respondents: 149 No Response Count: 3 Figure 10.: Life cycle stage of firm's primary product/service Response Rate: Count 98% <1 Year 4 Percent of Question Respondents 3% 1-4 Years 27 18% 5-9 Years 23 16% 10-19 Years 38 26% >20 Years 56 38% Total 148 Survey Participants: 152 Question Respondents: 148 No Response Count: 4 Figure 11.:How long has this facility operated Response Rate: Count 97% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 69 Figure 12.: What is this company's ownership status? Publicly owned Privately owned Total Survey Participants: Question Respondents: No Response Count: Response Rate: Count 9 119 128 7% 93% 152 128 24 84% Figure 12b: What is this company's legal status? Count Limited liability partnership (LLP) Non-profit Partnership Sole proprietorship Corporation Other Total 9 16 19 29 72 6 151 Survey Participants: Question Respondents: No Response Count: Response Rate: Percent of Question Respondents Percent of Question Respondents 6% 11% 13% 19% 48% 4% 152 151 1 99% Count Percent of Question Respondents Family Trust 1 1% Non-profit Sole proprietorship Partnership/Corporation Total 1 1 3 6 1% 1% 2% Figure 12c: What is this company's legal status?: If Other, please specify Survey Participants: Question Respondents: 152 6 No Response Count: 0 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 70 Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: Figure 13.: Has the local facility changed owners or managers in the past 5 years? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 13b: If Yes, describe the local impact of the change Negative Neutral Positive Total 6 151 100% Count 38 97 135 Percent of Question Respondents 28% 72% 152 135 17 89% Count Percent of Question Respondents 2 5.41% 9 24.32% 26 70.27% 37 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 152 37 1 38 135 97% Figure 13c: Is an ownership change pending for this facility? Count Percent of Question Respondents Yes 22 15.07% No Total 124 146 84.93% Survey Participants: Question Respondents: 152 146 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 71 No Response Count: Response Rate: Figure 14.: If Yes what is the anticipated time frame 6 96% Count Percent of Question Respondents 1 year or less 2 years 3 years or more Total 7 5 6 18 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 152 18 4 22 146 82% Figure 15.: If Yes, how do you intend to exit the business? Count Percent of Question Respondents Sell/transfer to a family member Sell to another company Sell/transfer to a non-family member 2 4 12% 24% 9 53% Other 2 12% Total 17 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 152 17 5 22 146 77% Figure 15b: If Yes, how do you intend to exit the business?: If other, please explain Change in board Changing to corporation Total Count 39% 28% 33% Percent of Question Respondents 1 5.88% 1 5.88% 2 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 72 Survey Participants: 152 Question Respondents: 2 No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: 0 Figure 16.:Is there a formal succession plan? Yes No Not applicable 2 17 77% Count Total 24 87 15 126 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 126 26 83% Figure 16b: Have you identified a successor to your business? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 16c: If Yes, have you been assisted in preparation of a succession plan? Yes No Total Count 18 104 122 Percent of Question Respondents 19% 69% 12% Percent of Question Respondents 15% 85% 152 122 30 80% Count 14 6 20 Percent of Question Respondents 66.67% 28.57% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 73 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 152 21 3 24 126 88% Figure 16d: If Yes, by whom Count Accountant Business partner Lawyer Other Total 1 1 2 3 7 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 152 8 6 14 21 57% Figure 16e: If Yes, by whom: If other, please explain Count Banker Board members Board of Directors Business Partner Consultant Accountant Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: 1 1 1 1 1 4 9 Percent of Question Respondents 12.50% 12.50% 25.00% 37.50% Percent of Question Respondents 12.50% 12.50% 12.50% 12.50% 12.50% 50.00% 152 7 0 3 8 57% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 74 Figure 17.:Does this firm have a current written business plan? Yes No Total Count 67 62 129 Survey Participants: Question Respondents: No Response Count: Response Rate: Percent of Question Respondents 52% 48% 152 129 23 85% LOCAL WORKFORCE Figure 18.: Total number of employees at this facility*: Total employees Less than 5 5-9 10-19 20-49 50-99 Over 100 Total Total employees: Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 19.: Nature of Employment Full Time Part Time Temporary Total Survey Participants: Question Respondents: Response Rate: Count 57 31 21 22 14 7 152 Percent of Question Respondents 38% 20% 14% 14% 9% 5% 4071 152 152 0 100% Count 1669 1436 966 4071 Percent of Question Respondents 41% 35% 24% 152 152 100.00% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 75 Figure 19b: Total number of employees at this facility*: Full-time employees Less than 5 5-9 10-19 20-49 50-99 Over 100 Total Count 98 21 10 14 5 4 152 Total full-time employees: 1669 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 152 0 100% Figure 19c: Total number of employees at this facility*: Part-time employees Less than 5 5-9 10-19 20-49 50-99 Over 100 Total Count 112 12 13 10 3 2 152 Total part-time employees: 1436 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 152 0 100% Figure 19d: Total number of employees at this facility*: Temporary employees Less than 5 Count 121 Percent of Question Respondents 64.47% 13.82% 6.58% 9.21% 3.29% 2.63% Percent of Question Respondents 73.68% 7.89% 8.55% 6.58% 1.97% 1.32% Percent of Question Respondents 79.61% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 76 5-9 10-19 20-49 50-99 Over 100 12 7 7 4 2.63% 1 0.66% Total 152 Total temporary employees: 966 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 20.: Historical employment trend Declining Staying the same Increasing Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 21.:How did the number of staff change, if at all, in the last 3 years?: Fulltime Increased Stayed the same Decreased Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 21b: How did the number of staff change, if at all, in the last 3 years?: 7.89% 4.61% 4.61% 152 152 0 100% Count 28 64 42 134 Percent of Question Respondents 21% 48% 31% 152 134 18 88% Count 31 84 14 129 Percent of Question Respondents 24% 65% 11% 152 129 23 85% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 77 Part-time Increased Stayed the same Decreased Total 32 66 18 116 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 116 36 76% Figure 21c: How did the number of staff change, if at all, in the last 3 years?: Casual Increased Stayed the same Decreased Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 22.:How do you expect the number of staff to change, if at all over the next 3 years?: Fulltime Increased Stayed the same Decreased Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 22b: How do you expect the number of staff to change, if at all over the next 3 years?: Count 20 55 13 88 28% 57% 16% Percent of Question Respondents 23% 63% 15% 152 88 64 58% Count 49 74 3 126 Percent of Question Respondents 39% 59% 2% 152 126 26 83% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 78 Part-time Increased Stayed the same Decreased Total 46 61 7 114 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 114 38 75% Figure 22c: How do you expect the number of staff to change, if at all over the next 3 years?: Casual Increased Stayed the same Decreased Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 23.: Describe the majority of essential personnel at this location Less than 25 26 - 34 35 - 49 50 or older Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 24.: Describe the wage scale here compared to all other firms locally Count 40% 54% 6% Percent of Question Respondents 20 60 3 4% 83 24% 72% 152 83 69 55% Count 13 40 54 24 131 Percent of Question Respondents 10% 31% 41% 18% 152 131 21 86% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 79 Lower than Same as Greater than Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 24b: Average hourly wage: Skilled/Professional Under $10 $10-$12.99 $13-$14.99 $15-$19.99 $20-$29.99 $30-49.99 $50-$99 $100 or more Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 24c: Average hourly wage: Semi-skilled Under $10 $10-$12.99 $13-$14.99 $15-$19.99 $20-$29.99 $30-49.99 Total Survey Participants: Question Respondents: No Response Count: Response Rate: 13 48 40 101 13% 48% 40% 152 101 51 66% Count 5 4 6 15 33 11 4 2 80 Percent of Question Respondents 6.25% 5.00% 7.50% 18.75% 41.25% 13.75% 5.00% 2.50% 152 80 72 53% Count 3 14 15 27 11 2 72 Percent of Question Respondents 4.17% 19.44% 20.83% 37.50% 15.28% 2.78% 152 72 80 47% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 80 Figure 24d: Average hourly wage: Entry-level Under $10 $10-$12.99 $13-$14.99 $15-$19.99 $20-$29.99 Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 25.:Is the number of unfilled positions Stable Decreasing Increasing Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 26.: Where does the company attract the majority of its workers from? Nationally Internationally Provincially Locally Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 27.: Recruitment and retention challenges Retention challenges Count 7 38 8 9 1 63 Percent of Question Respondents 11.11% 60.32% 12.70% 14.29% 1.59% 152 63 89 41% Count 89 4 11 104 Percent of Question Respondents 86% 4% 11% 152 104 48 68% Count Percent of Question Respondents 4 5 9 118 136 3% 4% 7% 87% 152 136 16 89% Count 44 Percent 33% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 81 Recruitment challenges Figure 27b: Is employee retention a problem? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 27c: Is the company experiencing recruitment problems with any employee positions or skills? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 28.: If applicable, please describe any challenges and / or efforts you have undertaken to retain employees. Avoid layoffs (find extra work) Provide housing Find addition work for slow times Flex Time Support personal growth and skill development Training Housing 54 Count 44 89 133 40% Percent of Question Respondents 33% 67% 152 133 19 88% Count 54 81 135 Percent of Question Respondents 40.00% 60.00% 152 135 17 89% Count Percent of Question Respondents 1 1.96% 1 1.96% 2 3.92% 3 5.88% 3 5.88% 3 4 5.88% 7.84% Staff discounts 4 7.84% Bonuses 6 11.76% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 82 Benefits Support a positive environment 11 21.57% 11 21.57% Fair wages 14 27.45% None Total Survey Participants: Question Respondents: No Response Count: Response Rate: 6 69 109 51 58 47% 11.76% Figure 29.:If applicable, please describe any recruitment activities or strategies you have undertaken to attract employees. Benefits Cooperative education Employment agencies Flexible work schedule Internet Job Fairs Reached out to Colleges Recruiting Firms WorkBC Count Percent of Question Respondents 1 1 1 1 1 1 1 1 1 2% 2% 2% 2% 2% 2% 2% 2% 2% International recruitment 2 4% Networking Post openings on company website Social media (Facebook/ Linkedin) Staff discounts Training Training Online job boards Advertising Word of mouth None Total 2 4% Survey Participants: Question Respondents: 2 4% 2 4% 2 2 2 4 12 12 7 56 4% 4% 4% 8% 23% 23% 13% 109 52 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 83 No Response Count: Response Rate: Figure 30.: Is the company experiencing recruitment problems with any employee positions or skills?: If Yes, in which category(s)? Assembler/Line Workers 57 48% Count Percent of Question Respondents 1 2% CDL Drivers 1 2% Material/Fabricators Prof/Info Tech/Programming Construction/Contractors Healthcare Professionals Marketing Professional/Technical Electrical/Electronics Graphics Arts/Printing Machine Operators Mechanics Professional/Other Maintenance Sales/Retail General Laborer Sales/Service Administrative/Clerical Food/Beverage Service Hospitality Service Other Total 1 2% 1 2% 2 2 2 2 3 3 3 3 3 5 5 7 7 9 17 19 29 125 4% 4% 4% 4% 6% 6% 6% 6% 6% 9% 9% 13% 13% 17% 32% 36% 55% Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 152 53 1 54 135 98% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 84 Figure 30b: Is the company experiencing recruitment problems with any employee positions or skills?: Other (specify job roles/titles) Commercial drivers Fitness instructors Groundskeepers Count Percent of Question Respondents 1 1 1 1.89% 1.89% 1.89% Guiding trip leaders 1 1.89% Gymnastics Coaches 1 1.89% Labourers 1 1.89% Machine operators Marketing Recreation Students Yoga Instructors Managers Sales Skilled trades Chef / Bakers / Butchers 1 1 1 1 1 2 2 2 4 1.89% 1.89% 1.89% 1.89% 1.89% 3.77% 3.77% 3.77% 7.55% Housekeeping 5 9.43% Total 26 Survey Participants: Question Respondents: No Response Count: 152 27 2 Parent Question 'Other' Respondents: 29 Figure 31.: Do you anticipate future recruiting difficulties i.e. 3-5 year? Yes No Total Survey Participants: Question Respondents: No Response Count: Count 54 79 133 Percent of Question Respondents 40.60% 59.40% 152 133 19 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 85 Response Rate: Figure 31b: Do you anticipate future recruiting difficulties i.e. 3-5 year?: If Yes, in what area(s)? Assembler/Line Workers 88% Count Percent of Question Respondents 1 2% CDL Drivers 1 2% Construction/Contractors Material/Fabricators Prof/Info Tech/Programming Professional/Technical Healthcare Professionals Electrical/Electronics Graphics Arts/Printing Machine Operators 1 1 2% 2% 1 2% 1 2 3 3 3 2% 4% 6% 6% 6% Marketing 3 6% Professional/Other Sales/Retail Maintenance Mechanics Sales/Service General Laborer Administrative/Clerical Food/Beverage Service Hospitality Service Other Total 3 4 5 5 5 7 11 16 16 29 121 6% 8% 10% 10% 10% 14% 22% 31% 31% 57% Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 152 51 3 Figure 31c: Do you anticipate future recruiting difficulties i.e. 54 133 94% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 86 3-5 year? : Other (specify job roles/titles) Bakers Guides Gymnastics Coaches Heavy Equipment Operators Kitchen staff River guides Service staff Skilled professional Teachers Accountants Bookkeepers Commercial Truck Drivers Skilled/Professional Managers Housekeeping Total Survey Participants: 152 Question Respondents: No Response Count: Parent Question 'Other' Respondents: 27 2 Figure 32.: Is there anything we can do to help overcome issues with employee recruitment? Yes No Total 1 1 1 1.96% 1.96% 1.96% 1 1.96% 1 1 1 1 1 2 2 2 2 4 5 26 1.96% 1.96% 1.96% 1.96% 1.96% 3.92% 3.92% 3.92% 3.92% 7.84% 9.80% 29 Count 23 35 58 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 58 94 38% Figure 32b: Is there anything we can do to help overcome issues with employee recruitment?: If Yes, Count Percent of Question Respondents 40% 60% Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 87 please explain Better airport Encourage leadership and funding Establish a job bank Improve visitor and business information centres Streamline process to hire temporary foreign workers Support staff and short term employment during shoulder seasons Provide training and education Subsidize wages Help with foreign worker program Support affordable housing Better job advertising 1 4.55% 1 4.55% 1 4.55% 1 4.55% 1 4.55% 2 9.09% 9.09% 3 13.64% 3 13.64% 4 18.18% 20 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 152 22 1 Figure 33b: Percent of workforce: Skilled/Professional 4.55% 2 Total Figure 33.: Skill Level of Majority of Workforce Skilled/Professional Semi-skilled Entry-level Total 1 23 58 96% Count 46 24 19 89 Count Percent of Question Respondents 42% 22% 17% Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 88 less than 25% 25 to 49% 50 to 74% 75 to 100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 33c: Percent of workforce: Semi-skilled less than 25% 25 to 49% 50 to 74% 75 to 100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 33d: Percent of workforce: Entry-level less than 25% 25 to 49% 50 to 74% 75 to 100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 34.: Does the company provide a training budget in order to upgrade employee's skills? Yes No 25 25 18 41 109 22.94% 22.94% 16.51% 37.61% 152 109 43 72% Count 25 24 26 12 87 Percent of Question Respondents 28.74% 27.59% 29.89% 13.79% 152 87 65 57% Count 28 14 17 11 70 Percent of Question Respondents 40.00% 20.00% 24.29% 15.71% 152 70 82 46% Count 62 63 Percent of Question Respondents 50% 50% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 89 Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 34b: Does the company offer in-house training? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 34c: Does the company use Contracted Training? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 35.: Are you aware of any anticipated trends, technologies, significant changes that will be occurring in your industry that will require new skills? Yes No Total Survey Participants: Question Respondents: No Response Count: 125 152 125 27 82% Count 52 11 63 Percent of Question Respondents 83% 17% 152 63 89 41% Count 24 37 61 Percent of Question Respondents 39% 61% 152 61 91 40% Count 48 79 127 Percent of Question Respondents 38% 62% 152 127 25 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 90 Response Rate: Figure 36.:Are there any areas of training or professional development that would be of benefit to you or your employees? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 37.:Are there any areas of training or professional development that would be of benefit to you or your employees?: If Yes, what are they? 84% Count 97 34 131 Percent of Question Respondents 74.05% 25.95% 152 131 21 86% Count Percent of Question Respondents Bartending 1 1% Bookkeeping Conflict Resolution Continued education Emerging technologies Franchise Training Hospitality training Professional development Theatre Technical Skills WHMIS Workshops -- Local 1 1 1 1 1 1 1 1 1 1 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% Business management 2 2% Communications Cooking skills Social media 2 2 2 2% 2% 2% Technical training 3 3% Industrial equipment operations 5 5% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 91 Managerial training Web site design Computer skills Emerging industry practices 5 5% 5 9 5% 9% 9 9% Accounting/Bookkeeping 11 12% Business Management Sales/Marketing Customer service Safety/First Aid/Food Safe Total 11 11 13 12% 12% 14% 26 27% Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 152 95 2 Figure 38.: What modes of education/training work best for you? Online/ Webinar training Individual coaching Classroom Other Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 38b: What modes of education/training work best for you?: Other Name Mentor National Coaching Programs Online/ Webinar training 127 97 131 98% Count 45 56 66 19 186 Percent of Question Respondents 39% 49% 58% 17% 152 114 38 75% Count Percent of Question Respondents 1 0.88% 1 0.88% 1 0.88% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 92 Technical training sessions Trade shows / Conferences In-house / Hands on / Workshop 1 0.88% 3 2.63% 11 9.65% Total 18 Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: 152 18 1 Figure 39.: When your staff attend training/certification, where do they usually access the training? United States Rest of Canada Regional British Columbia Local Total Survey Participants: Question Respondents: No Response Count: Response Rate: 19 114 95% Count 5 13 23 33 71 145 5% 12% 22% 31% 66% 152 107 45 70% Union status Count Yes No Not applicable Total 7 100 22 129 Survey Participants: Question Respondents: No Response Count: Percent of Question Respondents Percent of Question Respondents 5.43% 77.52% 17.05% 152 129 23 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 93 Response Rate: Figure 40.: Please indicate which issues you believe are critical to your employees? Child care Transportation Housing Cost of living Other Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 40b: Please indicate which issues you believe are critical to your employees?: If Other, please list any other issues Benefits Flextime Getting enough work hours Healthy Work environment 85% Count 27 33 41 55 20 176 Percent of Question Respondents 35% 43% 53% 71% 26% 109 77 32 71% Count Percent of Question Respondents 1 1 1.30% 1.30% 1 1.30% 1 1.30% Training 1 1.30% Transportation Seasonality of work Affordable housing Wages 1 2 4 7 1.30% 2.60% 5.19% 9.09% Total 19 Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: 109 21 0 20 77 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 94 Response Rate: In general terms, what percent of your workforce lives in the: Community (%) 25-49% 50-74% 75-100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: In general terms, what percent of your workforce lives in the: Region (%) includes entire Columbia Basin-Boundary region 0-24% 25-49% 75-100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: In general terms, what percent of your workforce lives in the: Outside of region (%) 0-24% 25-49% 50-74% 75-100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: 100% Count 2 2 79 83 Percent of Question Respondents 2.41% 2.41% 95.18% 109 83 26 76% Count 14 3 3 20 Percent of Question Respondents 70.00% 15.00% 15.00% 109 20 89 18% Count 7 1 2 1 11 Percent of Question Respondents 63.64% 9.09% 18.18% 9.09% 109 11 98 10% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 95 SALES Figure 41.: Annual sales at this facility (optional) Count Under $25,000 $49,999 to $25,000 $99,999 to $50,000 499,999 to $100,000 $999,999 to $500,000 $4.9 million to 1 million $9.9 million to 5 million $50 million to 20 million Total 5 5 6 31 12 26 3 1 89 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 89 63 59% Figure 42.: Is the market for your product Count Stable Decreasing Increasing Total 62 10 44 116 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 116 36 76% Figure 43.: Is the market share (compared to your competitors) of your company's products Count Percent of Question Respondents 6% 6% 7% 35% 13% 29% 3% 1% Percent of Question Respondents 53% 9% 38% Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 96 Stable Decreasing Increasing Total 62 10 44 116 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 116 36 76% Figure 44.: What is the projected sales growth in the next year at this business? Count Declining 0% 1 - 9% 10 - 24% 25 - 49% 50 - 99% Over 100% Total 3 14 54 41 14 7 3 136 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 136 16 89% Figure 45.: Historical sales trend: At this business (past five years) Count Declining Staying the same Increasing Not applicable Total 23 23 82 5 133 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 133 19 88% 53% 9% 38% Percent of Question Respondents 2% 10% 40% 30% 10% 5% 2% Percent of Question Respondents 17% 17% 62% 4% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 97 Figure 45b: Historical sales trend: At the parent company Declining Staying the same Increasing Not applicable Total Count 1 4 12 77 82% 94 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 94 58 62% Figure 45c:: Historical sales trend: Within the industry Count Declining Staying the same Increasing Not applicable Total 29 27 56 10 122 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 122 30 80% Figure 46.: Historical export sales trend Declining Staying the same Increasing Not applicable Total Percent of Question Respondents Count 4 2 2 98 106 1% 4% 13% Percent of Question Respondents 24% 22% 46% 8% Percent of Question Respondents 4% 2% 2% 92% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 98 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 47.:Percent of total sales generated by top 3 customers 152 106 46 70% Count 1 - 9% 10 - 25% 26 - 50% 51 - 75% 76 - 100% Total 13 3 4 1 1 22 Survey Participants: Question Respondents: No Response Count: Response Rate: 109 22 87 20% Figure 48.: Source of Majority of Sales Local Provincial National United States International Total Figure 48b: Please identify the source of your sales by percentage: International 0% 1-9% 10-19% 20-29% 30-39% Percent of Question Respondents 59% 14% 18% 5% 5% Percent of Question Respondents Count 50 8 24 2 4 88 43% 7% 21% 2% 3% Count Percent of Question Respondents 12 25 19 13 8 13.33% 27.78% 21.11% 14.44% 8.89% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 99 40-49% 50-59% 60-69% 70-79% 90-99% Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 48c: Please identify the source of your sales by percentage: United States 7 2 2 1 1 90 152 90 62 59% Count 0% 1-9% 10-19% 20-29% 30-39% 50-59% 60-69% 70-79% Total 7 29 26 14 7 2 1 1 87 7.78% 2.22% 2.22% 1.11% 1.11% Percent of Question Respondents 8.05% 33.33% 29.89% 16.09% 8.05% 2.30% 1.15% 1.15% Survey Participants: Question Respondents: No Response Count: Response Rate: 152 87 65 57% Figure 48d: Please identify the source of your sales by percentage: National Count Percent of Question Respondents 7 12 16 19 13 10 9 6.60% 11.32% 15.09% 17.92% 12.26% 9.43% 8.49% 0% 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 100 60-69% 70-79% 80-89% 90-99% Total 10 6 3 1 106 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 106 46 70% Figure 48e: Please identify the source of your sales by percentage: Provincial Count 0% 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 70-79% 80-89% 90-99% Total 5 16 34 20 14 7 8 4 1 2 111 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 111 41 73% Figure 48f: Please identify the source of your sales by percentage: Local / Regional 0% 1-9% 10-19% 20-29% 30-39% 50-59% 9.43% 5.66% 2.83% 0.94% Percent of Question Respondents 4.50% 14.41% 30.63% 18.02% 12.61% 6.31% 7.21% 3.60% 0.90% 1.80% Count Percent of Question Respondents 4 15 15 12 7 12 3.48% 13.04% 13.04% 10.43% 6.09% 10.43% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 101 60-69% 70-79% 80-89% 90-99% 100% Total 5 7 9 8 21 115 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 115 37 76% Figure 49.: International trade status Count Export Import None Not applicable Total 2 8 20 94 124 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 123 29 81% 4.35% 6.09% 7.83% 6.96% 18.26% Percent of Question Respondents 2% 7% 16% 76% Figure 50.: Do you engage in government procurement? Count Percent of Question Respondents Yes 15 29% No Total 37 52 Survey Participants: Question Respondents: No Response Count: Response Rate: 109 52 57 48% 71% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 102 Figure 51.:Source of Majority of Supplies Percent of Question Respondents Count Local Provincial National United States International Total 44 22 23 4 7 100 44% 22% 23% 4% 7% Figure 51b: Please identify the source of your supplies by percentage: Local / Regional Count Percent of Question Respondents 0% 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% 90-99% 100% Total 2 4 13 12 4 8 12 2 5 10 11 16 99 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 99 53 65% Figure 51c: Please identify the source of your supplies by percentage: Provincial Count Percent of Question Respondents 4 7 5.13% 8.97% 0% 1-9% 2.02% 4.04% 13.13% 12.12% 4.04% 8.08% 12.12% 2.02% 5.05% 10.10% 11.11% 16.16% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 103 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% 90-99% 100% Total 10 10 8 6 11 3 4 7 4 4 78 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 78 74 51% Figure 51d: Please identify the source of your supplies by percentage: National Count 0% 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% 90-99% 100% Total 9 7 12 14 5 2 10 4 7 2 4 6 82 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 82 70 54% 12.82% 12.82% 10.26% 7.69% 14.10% 3.85% 5.13% 8.97% 5.13% 5.13% Percent of Question Respondents 10.98% 8.54% 14.63% 17.07% 6.10% 2.44% 12.20% 4.88% 8.54% 2.44% 4.88% 7.32% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 104 Figure 51e: Please identify the source of your supplies by percentage: United States Count 0% 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 90-99% 100% Total 10 8 16 4 2 3 6 1 3 53 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 53 99 35% Figure 51f: Please identify the source of your supplies by percentage: International Count 0% 1-9% 10-19% 40-49% 70-79% 80-89% 90-99% 100% Total 16 7 4 1 3 1 1 2 35 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 35 117 23% Percent of Question Respondents 18.87% 15.09% 30.19% 7.55% 3.77% 5.66% 11.32% 1.89% 5.66% Percent of Question Respondents 45.71% 20.00% 11.43% 2.86% 8.57% 2.86% 2.86% 5.71% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 105 Do you supply your products or services to any company in the community or region? Count Yes No Total 27 29 56 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 56 96 37% What products or services, if any, are you purchasing from outside the area for which you would like to have a local supplier? Alarm testing Automotive parts & equipment Building maintenance services Chemicals Cleaning Products Computers / Software Confection suppliers Electronics Farming Supplies Film Furniture Giftware Heavy equipment/parts House hold items Laundry services Office furniture Printing services Produce Recreational equipment Shipping Services Tour services Travel service Percent of Question Respondents 48% 52% Count Percent of Question Respondents 1 2.17% 1 2.17% 1 2.17% 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2.17% 2.17% 2.17% 2.17% 2.17% 2.17% 2.17% 2.17% 2.17% 2.17% 2.17% 2.17% 2.17% 2.17% 2.17% 2.17% 2.17% 2.17% 2.17% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 106 Wholesale services Art supplies Office supplies Bedding / Linens Meats & Dairy / Fruits and Vegetables / Grains None Total Survey Participants: Question Respondents: No Response Count: Response Rate: 109 46 63 42% Figure 52.: If majority of products/services are being purchased from outside of the area, why are they NOT being purchased from within the area? Long term contract with outside supplier Loyalty to current supplier No control - head office decision Unaware of local venders Quality of available products No applicable to this business Higher costs locally 1 2 2 4 2.17% 4.35% 4.35% 8.70% 6 13.04% 1 38 2.17% Count Percent of Question Respondents 1 1% 3 4% 3 4% 4 6% 6 9% 8 11% 24 34% Product not available here Other Total 59 84% 2 110 3% Survey Participants: Question Respondents: No Response Count: Response Rate: 109 70 39 64% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 107 Figure 52b: If majority of products/services are being purchased from outside of the area, why are they NOT being purchased from within the area?: If Other, specify Franchise restrictions Count Percent of Question Respondents 1 1.43% Total 1 Survey Participants: 109 Question Respondents: 2 No Response Count: 0 Parent Question 'Other' Respondents: 2 Parent Question Respondents: 70 Response Rate: 100% FACILITIES AND EQUIPMENT Figure 53.:What is the square footage of your current facility?: Square feet Count less than 1,000 sq ft 1,000-4,999 sq ft 5,000-9,999 sq ft 10,000-19,999 sq ft 20,000 sq ft or more Total 21 33 21 10 21 106 Survey Participants: Question Respondents: No Response Count: 152 Percent of Question Respondents 20% 31% 20% 9% 20% 106 46 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 108 Response Rate: Figure 54.: Condition of facility 70% Count Excellent Good Fair Total 51 59 21 131 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 Figure 55.: Condition of equipment 39% 45% 16% 131 21 86% Count Excellent Good Fair Total 52 69 14 135 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 Figure 56.: Status of facility Percent of Question Respondents Percent of Question Respondents 39% 51% 10% 135 17 89% Count Leased Owned Total 43 98 141 Survey Participants: 152 Percent of Question Respondents 31% 70% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 109 Question Respondents: No Response Count: Response Rate: Figure 57.: Status of facility: If Leased, what is the length of term remaining 141 11 93% Count <1 Year 1-2 Years 3-5 Years >5 Years Total 14 4 4 10 32 Survey Participants: Question Respondents: 152 No Response Count: 11 Parent Question 'Leased' Respondents: Parent Question Respondents: Response Rate: Figure 57b: Are you planning on renewing current lease? 44% 13% 13% 31% 32 43 141 74% Count Yes No Total 29 9 38 Survey Participants: Question Respondents: 152 No Response Count: 2 Parent Question 'Leased' Respondents: Parent Question Respondents: Percent of Question Respondents Percent of Question Respondents 70.73% 21.95% 41 43 141 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 110 Response Rate: Figure 58.: Do you have a preference of lease vs own? 95% Count Lease Own Total 11 35 46 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 Figure 59.: Historical investment trends: Over past 18 months in the facility 106 30% Count 8 59 48 115 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 Yes No Maybe Total 24% 76% 46 Declining Staying the same Increasing Total Figure 60.: Is there room for expansion at this site? Percent of Question Respondents Percent of Question Respondents 7% 51% 42% 115 37 76% Count 78 38 10 126 Percent of Question Respondents 62% 30% 8% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 111 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 61.: Does the company plan to expand in the next three years? 152 126 26 83% Count Yes No Total 69 72 141 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 Figure 61b: Are there any local expansion plans in the next 12 18 months? 49% 51% 141 11 93% Count Yes No Total 41 85 126 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 Figure 62.: Does the company plan to expand in the next three years?: Is your current site adequate for the proposed expansion? Yes No Percent of Question Respondents Percent of Question Respondents 32.54% 67.46% 126 26 83% Count Percent of Question Respondents 45 21 65% 30% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 112 Total 66 Survey Participants: Question Respondents: 152 No Response Count: 0 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 63.: Does the company plan to expand in the next three years?: Will it be in this community? Yes No Total 69 69 141 100% Count 61 6 67 Survey Participants: Question Respondents: 152 No Response Count: 0 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 64.: Does the company plan to expand in the next three years?: Estimated total investment Less than $25,000 $25,000-$99,999 $100,000-$499,999 $500,000-$999,999 $1-$4.9 million $5-$9.9 million Percent of Question Respondents 85% 8% 72 69 141 100% Count Percent of Question Respondents 5 6 9 4 11 1 13% 15% 23% 10% 28% 3% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 113 $10-19.9 million $20 million and over Total 2 1 3% 39 Survey Participants: Question Respondents: 152 No Response Count: 30 Parent Question 'Yes' Respondents: 69 Parent Question Respondents: 141 Response Rate: 57% Figure 65.: Does the company plan to expand in the next three years?: Approximate percentage equipment/technology 0% Under 50% 50 to 99% 100% Total 39 Percent of Count Question Respondents 1 14 10 13 38 Survey Participants: Question Respondents: 152 38 No Response Count: 31 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 66.: Does the company plan to expand in the next three years?: Approximate percentage real estate 5% 3% 37% 26% 34% 69 141 55% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 114 0% Under 50% 50 to 99% 100% Total 4 8 12 5 29 Survey Participants: Question Respondents: 152 No Response Count: 40 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 67.: Does the company plan to expand in the next three years?: Estimated facility size increase (square feet) Less than 1,000 sq ft 1,000 to 4,999 sq ft 5,000-9,999 sq ft 10,000-19,999 sq ft 20,000 sq ft or more Total 14% 28% 41% 17% 29 69 141 42% Count 10 14 4 1 3 32 Survey Participants: Question Respondents: 152 No Response Count: 37 Parent Question 'Yes' Respondents: 69 Parent Question Respondents: 141 Response Rate: 46% Percent of Question Respondents 31% 44% 13% 3% 9% 32 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 115 Figure 68.: Have there been any recent facility upgrades? Count Yes No Total 43 16 59 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 Figure 68b: Have there been any recent facility upgrades? If Yes, when?: Month scale 93 39% Count 8 7 13 4 2 8 42 Survey Participants: Question Respondents: 152 No Response Count: 1 Figure 69.: Planning any upgrades to the facility? 73% 27% 59 3 6 12 18 24 36 Total Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Percent of Question Respondents Percent of Question Respondents 19.05% 16.67% 30.95% 9.52% 4.76% 19.05% 42 43 59 98% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 116 Yes No Total 39 18 57 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 Figure 69b: Planning any upgrades to the facility? If Yes, when?: Month scale 3 6 12 18 24 36 Total 57 95 38% Count 152 No Response Count: 0 Figure 70.: If No, are there any barriers to upgrading you wish to identify? Percent of Question Respondents 10 25.64% 10 25.64% 9 23.08% 1 2.56% 7 17.95% 2 5.13% 39 Survey Participants: Question Respondents: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 68% 32% 39 39 57 100% Count Percent of Question Respondents 1 11% 1 11% Change in owership 1 11% Lease issues 1 11% Building code restrictions Business capacity Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 117 Ownership Financing 1 3 11% 33% None 2 22% Total 10 Survey Participants: Question Respondents: No Response Count: Parent Question 'No' Respondents: Response Rate: Figure 71.: What, if any, are the major constraints on your expansion? (Please check all that are applicable) Warehousing Transport/freight Energy reliability Identifying and accessing new markets Lack of skilled staff Roads 152 9 9 18 50% Count Percent of Question Respondents 1 3 7 1% 4% 10% 7 10% 8 8 11% 11% Broadband access 11 15% Energy costs Problems with Development Approvals Lack of suitable premises Other (please specify): Local regulations e.g. zoning Finance Total 11 15% 12 16% 13 18% 17 23% 23 32% 26 147 36% Survey Participants: 152 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 118 Question Respondents: 73 No Response Count: 0 Parent Question 'Yes' Respondents: 69 Parent Question Respondents: 141 Response Rate: 100% Figure 71b: What, if any, are the major constraints on your expansion? (Please check all that are applicable): Other (please specify) Count Percent of Question Respondents Demand for service / product 1 4.76% Financing 1 4.76% Government Lack of suitable airport 1 1 4.76% 4.76% Language 1 4.76% Skilled labour supply Snow Taxes Communications infrastructure Expansion costs Lack of Suitable Premises Time 1 1 1 2 2 2 2 4.76% 4.76% 4.76% 9.52% 9.52% 9.52% 9.52% Local Regulations 3 14.29% Total 19 Survey Participants: Question Respondents: No Response Count: 152 21 0 Parent Question 'Other (please specify):' Respondents: 21 Parent Question Respondents: Response Rate: 73 100% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 119 Figure 72.: Have you approached anybody in local/provincial/federal government or business development organizations to discuss your expansion plans? Yes No Total Count 32 34 66 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 72b: If Yes, which have you approached? Percent of Question Respondents 48.48% 51.52% 152 66 86 43% Count Percent of Question Respondents BC Hydro 2 8% Chamber of Commerce 2 8% Community Futures 2 8% 7 27% 8 31% 10 38% Local Economic Development Office BC Ministry responsible for Economic Development Local Council Other (please specify): Total 16 62% 47 Survey Participants: Question Respondents: 152 No Response Count: 6 26 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 120 Parent Question 'Yes' Respondents: 32 Parent Question Respondents: 66 Response Rate: 81% Figure 72c: If Yes, which have you approached?: Other (please specify) Count Percent of Question Respondents 1 3.85% 1 1 1 1 1 3.85% 3.85% 3.85% 3.85% 3.85% 1 3.85% BBA (Basin Business Advisors) BC Transportation CBT Canadian Heritage City Planners Front Counter BC Industry Canada Ktunaxa Nation Liquor Control and Licensing Branch Ministry of Justice Ministry of Transportation Nav Canada RDCK (Regional District of Central Kootenay) Provincial Government 1 3.85% 1 3.85% 1 3.85% 1 3.85% 1 3.85% 4 15.38% Total 16 Survey Participants: 152 Question Respondents: 15 No Response Count: 1 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 121 Parent Question 'Other' Respondents: 16 Parent Question Respondents: 26 Response Rate: 94% Figure 73.: Have you factored improvements in energy efficiency in your expansion plans? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 74.: Are you aware of BC Hydro Power Smart resources that are available to you? Count 23 13 36 Percent of Question Respondents 64% 36% 109 36 73 33% Count Yes No Total 92 38 130 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 Percent of Question Respondents 71% 29% 130 22 86% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 122 GOVERNMENT SERVICES Figure 75.: Government Services Not Applicable % Not Applicable Poor % Poor Fair % Fair Good % Good Excellent % Excellent Respondents Access to Port Facilities 55 92% 3 5% 1 2% 0 0% 1 2% 60 Access to US Border 12 19% 8 13% 6 10% 29 46% 8 13% 63 Access to airport facilities 17 12% 45 32% 38 27% 28 20% 12 9% 140 Access to highway/ roads 1 1% 13 9% 26 17% 72 48% 37 25% 149 Access to markets 8 6% 9 6% 49 34% 56 39% 21 15% 143 Access to suppliers 10 7% 19 13% 49 33% 57 39% 12 8% 147 Availability of appropriately zoned land 66 53% 17 14% 12 10% 25 20% 4 3% 124 Availability of buildings for lease or purchase 68 54% 20 16% 15 12% 20 16% 4 3% 127 Availability of rail transport 95 75% 18 14% 4 3% 6 5% 4 3% 127 Availability of road transport services 13 9% 22 15% 49 34% 51 36% 8 6% 143 Availability of warehousing 96 74% 9 7% 13 10% 9 7% 3 2% 130 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 123 Development approval process 48 36% 24 18% 24 18% 33 25% 3 2% 132 Disposal of waste material 24 18% 14 10% 24 18% 62 45% 13 9% 137 Inspections /licensing 22 16% 9 6% 32 23% 71 50% 7 5% 141 Recycling 13 9% 19 13% 38 26% 57 39% 19 13% 146 Telecommunications (internet, cell) 2 1% 37 26% 41 28% 55 38% 10 7% 145 Water and sewerage supply 31 22% 10 7% 21 15% 62 44% 16 11% 140 Survey Participants: 152 152 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 124 Figure 75b: Please rate the following: Other (please specify) Please rate the following: Other (please specify) Count Percent of Question Respondents Access to grants and funds Poor 1 2.56% Availability of Parking Poor 1 2.56% BCSA Poor 1 2.56% Cell Service Poor 3 7.69% Emergency Services Poor 1 2.56% Federal- Employment and Migration Poor 1 2.56% Ferry Service Poor 4 10.26% Front Counter BC Poor 1 2.56% Highway Services Poor 2 5.13% Hospital services Fair 1 2.56% Liquor control Board Poor 1 2.56% Maintenance of landscaping Poor 1 2.56% Power outages Poor 1 2.56% Regional director Excellent 1 2.56% Resort Development BranchProvincial Government Good 1 2.56% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 125 Signage regulations Poor 1 2.56% Excellent 1 2.56% Fair 1 2.56% Good 4 10.26% Not applicable 2 5.13% Poor 2 5.13% Tourism BC Poor 1 2.56% Transit (local) Poor 1 2.56% Work BC Good 1 2.56% 35 89.74% Snow Removal Total Survey Participants: 152 Question Respondents: 39 No Response Count: 113 Response Rate: 26% Figure 76.: Do you have any suggestions on how to improve any of the services and infrastructure listed above? Yes No Total Count 95 40 135 Percent of Question Respondents 70.37% 29.63% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 126 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 135 17 89% Figure 76b: Do you have any suggestions on how to improve any of the services and infrastructure listed above?: If Yes, how? Assist the development process Bring down cost of commercial buildings Expand high speed internet services Percent of Question Respondents Count 1 1.05% 1 1.05% 1 1.05% 1 1.05% 1 1.05% 1 1.05% Snow removal 1 1.05% Streamline granting of permits Access to information 1 2 1.05% 2.11% Improve Border services 2 2.11% 2 2.11% 2 2 2 2.11% 2.11% 2.11% 4 4.21% Fire station Improve sewage and waste water management Land zoning Increase attention to community and business needs Provide emergency services Provide reliable electric power Restructure taxes Address land zoning issues Consider more and proper signage Improve shipping and receiving 4 4 4.21% 4.21% Improve ferry service 5 5.26% Increase public transportation 5 5.26% More support for tourism Streamline development approval processes Improve recycling and waste management 6 6.32% 6 6.32% 14 14.74% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 127 Improve Airport service Improve highway and road quality and service Expand electronic communication services (Cell phone/ Internet/ Broadband/Fiber) 15 15.79% 15 15.79% 26 27.37% Total 124 Survey Participants: 152 Question Respondents: 95 No Response Count: 0 Parent Question 'Yes' Respondents: 95 Parent Question Respondents: 135 Response Rate: 100% Figure 77.: Which airport services do you use? Bellingham Creston Nelson Revelstoke Seattle Springbank Vancouver Kalispell Trail Spokane Castlegar Cranbrook Calgary Kelowna None Total Count 1 1 1 1 1 1 3 4 6 8 10 12 22 23 5 99 Percent of Question Respondents 2% 2% 2% 2% 2% 2% 5% 7% 11% 14% 18% 21% 39% 41% 9% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 128 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 78.: Which airport services do you use?: What services would you like to see at the local airport? (where appropriate) Charter service Commercial flights Courier service Hanger facilities Local flights to Calgary and Vancouver Lower fares Medivac More Airlines More destinations Parking Scheduled flights Shuttle service Tourism services Tourist information center Extended runway Passenger service Larger aircraft Regular flights Commuter flights Improvements to navigational aids More flights Better flight reliability Total Survey Participants: Question Respondents: No Response Count: Response Rate: 152 56 96 37% Percent of Question Respondents Count 1 1 1 1 2% 2% 2% 2% 1 2% 1 1 1 1 1 1 1 1 1 2 2 3 3 4 4 4 5 41 2% 2% 2% 2% 2% 2% 2% 2% 2% 4% 4% 7% 7% 9% 9% 9% 11% 152 45 107 30% BUSINESS CLIMATE Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 129 Figure 79.: Please rate the local business climate Count Excellent Good Fair Poor Total 4 64 52 20 140 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 140 12 92% Percent of Question Respondents 3% 46% 37% 14% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 130 Figure 80.: Business climate ratings No % No Opinion Opinion Poor % Poor Fair % Fair Good % Good Excellent % Excellent Respondents BIA 26 79% 2 6% 2 6% 2 6% 1 3% 33 Chamber of Commerce 2 3% 6 10% 12 19% 27 43% 16 25% 63 Colleges/Universities 34 25% 13 9% 33 24% 49 36% 8 6% 137 Community Futures 20 31% 5 8% 6 9% 25 39% 8 13% 64 Cultural/Recreational Amenities 2 1% 12 9% 35 25% 64 46% 25 18% 138 Economic Development 16 12% 34 25% 49 36% 33 24% 5 4% 137 Housing 10 7% 32 23% 57 41% 37 27% 3 2% 139 K-12 education 29 21% 11 8% 15 11% 62 46% 19 14% 136 Local Government 11 8% 24 18% 36 27% 57 42% 7 5% 135 Local Tax Structure 27 20% 31 23% 47 35% 27 20% 4 3% 136 Technical Training 38 29% 21 16% 38 29% 28 22% 4 3% 129 Tourism services 1 2% 8 12% 11 17% 33 51% 12 18% 65 Workforce Availability 5 4% 33 24% 46 33% 44 32% 10 7% 138 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 131 Workforce Quality 5 4% 7 5% 57 42% 53 39% 15 11% 137 Workforce Stability 5 4% 37 27% 54 39% 36 26% 7 5% 139 Survey Participants: 152 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 132 Figure 81.: Please compare the local business climate today versus 5 years ago Percent of Question Respondents Count Better today No change Worse today No opinion Total 56 32 33 15 136 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 136 16 89% Figure 81b: Please compare the local business climate today versus 5 years ago: If worse today, why? Decline of resource industries Declining employment Disposable income is down Expensive commercial real estate Lack of affordable accommodation Mine closure 41% 24% 24% 11% Percent of Question Respondents Count 1 3.12% 1 3.12% 1 3.12% 1 3.12% 1 3.12% 1 3.12% Online shopping 1 3.12% Cost of doing business Locals shopping elsewhere 2 6.25% 2 6.25% Population (low/aging/declining) 2 6.25% Recession Strong Canadian dollar Forestry downturn Less tourists Business failures Declining economy 2 2 3 3 4 9 6.25% 6.25% 9.38% 9.38% 12.50% 28.12% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 133 Total 36 Survey Participants: Question Respondents: No Response Count: Parent Question 'Worse today' Respondents: Parent Question Respondents: Response Rate: 152 32 1 Figure 82.: Do you have any forecast for the condition of the local business climate 5 years from today? Will be better No change Will be worse No opinion Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 83.: What are the community's strengths as a place to do business? Collaboration among businesses Creative business owners Good demographics Good restaurants Low crime 33 136 97% Percent of Question Respondents Count 102 17 8 10 137 74% 12% 6% 7% 152 137 15 90% Percent of Question Respondents Count 1 1% 1 1% 1 1 1 1% 1% 1% Natural attractions 1 1% Natural beauty Proximity to US Self reliant Skilled workforce 1 1 1 1 1% 1% 1% 1% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 134 Small town 1 1% Unique shops 1 1% Vibrant downtown Above average household incomes Affordable 1 1% 2 1% 2 1% Chamber of Commerce 2 1% Climate Low competition Quality of life Shop local awareness Community commitment to local businesses Customer loyalty Outdoor activities Stable economy Great place to live Social network Environment Recreational opportunities Tourism Friendliness Lifestyle Supportive community Location Total 2 2 2 2 1% 1% 1% 1% 3 2% Survey Participants: Question Respondents: No Response Count: Response Rate: 3 4 4 5 6 7 2% 3% 3% 4% 4% 5% 7 5% 8 13 16 16 28 147 6% 10% 12% 12% 21% 152 136 16 89% Figure 84.: What are the community's weaknesses as a place to do business? Airport limitations Competition Economic climate Count Percent of Question Respondents 1 1 1 1% 1% 1% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 135 Kootenay time or laissez fair attitude Lack of amenities 1 1% 1 1% Lack of motivation 1 1% Lack of suppliers Planning and development process Poor road conditions Reliable transportation 1 1% 1 1% 1 1 1% 1% Small market 1 1% Too dependent on tourism Transient population Vacant commercial buildings Weather 1 1 1 1 1% 1% 1% 1% Lack of local services 2 1% Limited market Low population 2 2 1% 1% Available space 3 2% Cost of doing business Internet access Low average income Resistance to change Cross border shopping (US/Alberta) Shipping and Receiving costs 3 3 3 3 2% 2% 2% 2% 4 3% 6 4% Geographic isolation 7 5% 7 5% 7 5% Location 10 7% Seasonality 10 7% Development Constraints 11 (Zoning/Bureaucracy/Permits) 8% High cost of living 12 9% Total 110 Population (size/growth/aging) Tax structure Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 136 Survey Participants: 152 Question Respondents: 136 No Response Count: 16 Response Rate: 89% Figure 85.: Are there any barriers to growth in this community? Percent of Question Respondents Count Yes No Total 121 22 143 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 143 9 94% Figure 85b: Are there any barriers to growth in this community? : If Yes, what are they? 84.62% 15.38% Percent of Question Respondents Count Access to capital Access to markets 1 1 1% 1% Economic seasonality 1 1% Economy 1 1% Geographic constraints 1 1% Lack of an anchor industry 1 1% Land availability 1 1% Low income levels 1 1% Negative attitude Shipping costs Small market 1 1 1 1% 1% 1% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 137 Weather Affordable housing Airport service Competition Cost of living Internet access 1 2 2 2 2 2 1% 2% 2% 2% 2% 2% Job market is small 2 2% Low population 2 2% Skilled labour 2 2% Zoning Low growth Poor road conditions Cost of doing business Tax structure Infrastructure supporting local economy Low economic diversification Availability of land Seasonality Population (size / growth / age) Resistance to change Developmental approval process Geographic isolation Total 2 3 3 5 5 2% 3% 3% 4% 4% 6 5% 6 5% 7 8 6% 7% 13 11% 13 11% 14 12% 14 127 12% Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 152 119 2 121 143 98% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 138 Figure 86.: Level of service from business support providers Basin Business Advisors Chamber of Commerce College Industry Liaison Officer Community Futures Continuing Education and Workforce Training Economic Development Organization / Commission Innovation Councils (Kootenay Association for Science and Technology, Kootenay Rockies Innovation Council) Invest Kootenay Kootenay Aboriginal Business Advocates Society National Research Council Industrial Research Assistance Scientific Research and Experimental Development Tax Incentive Program Survey Participants: Not Applicable % Not Applicable Unable to assist 43 5 80% 8% 2 2 % Unable to assist 4% 3% 35 65% 0 33 57% 25 Poor % Poor Fair % Fair Good % Good Excellent % Excellent Respon -dents 0 5 0% 8% 3 11 6% 18% 5 23 9% 38% 1 15 2% 25% 54 61 0% 1 2% 1 2% 8 15% 9 17% 54 5 9% 0 0% 1 2% 13 22% 6 10% 58 44% 1 2% 1 2% 4 7% 19 33% 7 12% 57 34 64% 1 2% 2 4% 2 4% 9 17% 5 9% 53 48 87% 1 2% 0 0% 3 5% 3 5% 0 0% 55 45 85% 2 4% 1 2% 2 4% 3 6% 0 0% 53 52 98% 1 2% 0 0% 0 0% 0 0% 0 0% 53 49 94% 1 2% 0 0% 0 0% 1 2% 1 2% 52 50 96% 0 0% 0 0% 0 0% 1 2% 1 2% 52 109 109 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 139 Figure 87.: Are there suppliers you think could locate in this region? Percent of Question Respondents Count Yes No Total 44 88 132 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 132 20 87% Figure 87b: Are there suppliers you think could locate in this region?: If Yes, please list Agricultural suppliers Cleaning services Courier service Distributors Heavy Equipment dealers Helicopter services Mining services Software developers Technology companies Wood Waste Management High Tech services Manufacturers Retail stores Meats & Dairy / Fruits and Vegetables / Grains Restaurants Tourism and Recreation Total Survey Participants: Question Respondents: No Response Count: 33.33% 66.67% Percent of Question Respondents Count 1 1 1 1 3% 3% 3% 3% 1 3% 1 1 1 1 3% 3% 3% 3% 1 3% 2 2 5% 2 5% 5% 3 8% 3 8% 6 16% 28 152 37 7 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 140 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 88.:Tell us which business, sector, or industry to attract that would strategically benefit you or your industry Agriculture value-added industries 44 132 84% Percent of Question Respondents Count 1 1% Art gallery 1 1% Educational services 1 1% Grocery stores 1 1% Health and Wellness 1 1% Internet services 1 1% Mountain biking 1 1% Recreational services 1 1% Recycling Services 1 1% Restaurants 1 1% Shipping companies 1 1% Snow mobiling 1 1% Airport services 2 2% Conference Centre 2 2% Construction 2 2% Food businesses 2 2% Forestry 2 2% Transportation 2 2% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 141 Green Businesses 3 2% Hospitality 3 2% Retail Stores 3 2% Agriculture 4 3% Creative businesses 4 3% Arts & Culture 7 6% Manufacturing 7 6% Technology businesses 11 9% Tourism 57 46% Total 123 Survey Participants: 152 Question Respondents: 124 No Response Count: 28 Response Rate: 82% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 142 Not applicable % Not applicable Not important at all or not very important 44 51% 19 22% 24 28% 87 10 11% 21 24% 56 64% 87 Add or change in business, products or services 11 13% 12 14% 62 73% 85 Affordable shipping/freight 14 16% 18 21% 55 63% 87 Availability of telecommunications infrastructure and services 3 3% 3 3% 81 93% 87 6 7% 14 16% 67 77% 87 7 8% 14 16% 65 76% 86 Expansion of workforce employees 11 13% 31 36% 45 52% 87 Improvement business management 3 4% 10 12% 71 85% 84 Improvement of customer services 1 1% 7 8% 79 91% 87 Improving worker productivity 13 15% 20 23% 54 62% 87 Figure 89.: Business competitiveness factors Access to exporting and international markets Accessing capital Energy costs Exchange rate for Canadian dollar % Not important at all or not very important Somewhat important, very important % Somewhat important, very important Respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 143 New market development locally 4 5% 10 12% 72 84% 86 New market development outside of region 10 11% 13 15% 64 74% 87 New product research and development 21 24% 11 13% 55 63% 87 Reliable air transportation 18 21% 23 26% 46 53% 87 Strategic alliances (joining with other businesses to provide products/services) 5 6% 7 8% 74 86% 86 20 23 23% 27% 8 12 9% 14% 59 51 68% 59% 87 86 7 8% 8 9% 72 83% 87 Workplace health and safety 8 9% 17 20% 62 71% 87 Survey Participants: 109 Water/sewer availability Water/sewer costs Workforce skill development Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 144 Figure 90.: Performance of key productivity drivers Innovation & the use of technology Not Applicable % Not Applicable Poor % Poor Fair % Fair Good % Good Excellent 5 6% 4 5% 23 27% 36 43% 16 19% 84 Investing in people and skills 7 8% 3 4% 21 25% 41 49% 12 14% 84 Leadership and management capacity 2 2% 2 2% 6 7% 48 58% 25 30% 83 Measuring impact of productivity efforts/ investments 10 12% 2 2% 29 35% 32 39% 10 12% 83 Networking and collaboration with other businesses 2 2% 5 6% 20 24% 36 43% 20 24% 83 Organizing work (structures & processes) 7 8% 0 0% 14 17% 46 55% 16 19% 83 Productive workplace culture 3 4% 2 2% 8 10% 47 56% 24 29% 84 Survey Participants: 109 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 145 % Respondents Excellent Figure 91.: Please indicate which economic drivers have the greatest potential for growth in the region over the next 5 to 10 years. (please pick top 3) Government Agriculture Manufacturing Other niche service businesses (e.g. services to seniors) Education Percent of Question Respondents Count 3 6 8 3% 7% 9% 8 9% 9 10% 15 17% 17 20% 19 19 22% 22% 19 22% Forestry 20 23% Health & wellness 21 24% Green or environmental businesses Technology-based businesses Arts Construction culture and creative businesses Relocation of people from urban centres Tourism Other Total 28 32% 72 23 287 83% 26% Survey Participants: Question Respondents: No Response Count: Response Rate: 109 87 22 80% Figure 91b: Please indicate which economic drivers have the greatest potential for growth in the region over the next 5 to 10 years. (please Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 146 pick top 3): If Other please specify Hydroelectricity Recycling Senior Services Sports and recreation Transportation Mining Total 1 1 1 1 1 10 15 Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: 109 16 7 Figure 92.: Is your business impacted by its proximity to the Alberta border? 23 87 70% Percent of Question Respondents Count Yes No Total 42 11 53 Survey Participants: Question Respondents: No Response Count: Response Rate: 109 53 56 49% Figure 92b: Is your business impacted by its proximity to the Alberta border?: If Yes, please explain Negative - Loss of sales to Alberta Positive - Alberta has higher recycling fees 1.15% 1.15% 1.15% 1.15% 1.15% 11.49% 79.25% 20.75% Percent of Question Respondents Count 1 3% 1 3% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 147 Positive - Workforce migration from Alberta 1 3% Negative - Alberta competition 2 5% Positive - Alberta tourists 5 13% Positive - Alberta customers 28 70% Total 38 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: 109 40 2 Response Rate: 95% 42 53 ASSESSMENT AND PLANS Figure 93.: Rate the following: Facility's overall health Count Excellent Good Fair Poor Total 29 69 26 3 127 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 Percent of Question Respondents 23% 54% 20% 2% 127 25 84% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 148 Figure 94.: Rate the following: Overall health of the parent company Count Excellent Good Fair Not applicable Total 12 13 1 77 103 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 Figure 95.: Rate the following: Local management's attitude toward the community Percent of Question Respondents 12% 13% 1% 75% 103 49 68% Count Percent of Question Respondents Excellent Good Fair Poor Not applicable Total 61 51 10 1 3 126 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 126 26 83% Figure 96.: Rate the following: Parent company's attitude towards the community Count Percent of Question Respondents 10 11 3 2 76 10% 11% 3% 2% 75% Excellent Good Fair Poor Not applicable 48% 40% 8% 1% 2% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 149 Total 102 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 Figure 97.: Rate the risk: Facility closing in the next 1 - 3 years 102 50 67% Count High Moderate Low Total 4 12 118 134 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 Figure 98.: Rate the risk: Facility downsizing in the next 1 - 3 years Percent of Question Respondents 3% 9% 88% 134 18 88% Count High Moderate Low Total 5 13 114 132 Survey Participants: Question Respondents: No Response Count: Response Rate: 152 Percent of Question Respondents 4% 10% 86% 132 20 87% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 150 APPENDIX B: NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS) CODES Transportation  Air transportation   4811 Scheduled air transport 4812 Non-scheduled air transport  All other transportation industries  4821 Rail transportation o of which: o Tourism sub-industries o 482114 Passenger rail transportation o Non-tourism sub-industries o 482112 Short-haul freight rail transportation o 482113 Mainline freight rail transportation 4831 Deep sea, coastal and great lakes water transportation 4832 Inland water transportation 4851 Urban transit systems 4852 Interurban and rural bus transportation 4853 Taxi and limousine service 4854 School and employee bus transportation 4855 Charter bus industry 4859 Other transit and ground passenger transportation 4871 Scenic and sightseeing transportation, land 4872 Scenic and sightseeing transportation, water 4879 Scenic and sightseeing transportation, other 5A05101 Automotive equipment rental and leasing o of which: o Tourism sub-industries o 532111 Passenger car rental o 532120 Truck, utility trailer and RV (recreational vehicle) rental and leasing o Non-tourism sub-industries o 532112 Passenger car leasing             Accommodation   7211 Traveller accommodation 721A1 RV (recreational vehicle) parks and recreational camps o of which: o Tourism sub-industries o 721211 RV (recreational vehicle) parks and campgrounds Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 151 o o o o 721212 Hunting and fishing camps 721213 Recreational (except hunting and fishing) and vacation camps Non-tourism sub-industries 721310 Rooming and boarding houses Food and beverage services  7220 Food services and drinking places o of which: o Tourism sub-industries o 72211 Full-service restaurants o 72221 Limited-service eating places o 72241 Drinking places (alcoholic beverages) o Non-tourism sub-industries o 72231 Food service contractors o 72232 Caterers o 72233 Mobile food services Recreation and entertainment  51213 Motion picture and video exhibition 7110 Performing arts, spectator sports and related industries o of which: o Tourism sub-industries o 7111 Performing arts companies o 7112 Spectator sports o 7115 Independent artists, writers and performers o Non-tourism sub-industries o 7113 Promoters (presenters) of performing arts, sports and similar events o 7114 Agents and managers for artists, athletes, entertainers and other public figures      7121 Heritage institutions 713A1 Amusement and recreation industries 7131 Amusement parks and arcades 7132 Gambling industries 7139 Other amusement and recreation industries o of which: o Tourism sub-industries o 71391 Golf courses and country clubs o 71392 Skiing facilities o 71393 Marinas o 71395 Bowling centres o 71399 All other amusement and recreation industries o Non-tourism sub-industries o 71394 Fitness and recreational sports centres Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 152 Travel services  5615 Travel arrangement and reservation services Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Tourism Sector 153