How much do Sunshine Coast residents shop off-Coast, and how is that affecting our local economy? The answer, it turns out, is much less than previously thought.
Directors on the Sunshine Coast Regional District (SCRD) board got their first chance to hear the results of a gap analysis - a study of how much of the local economy is spent locally and how much "leaks" out - at a special corporate services committee meeting May 6.
The study, conducted by Best Coast Initiative economic development officer Michael McLaughlin, found that of the Coast's approximate $584-million economy, less than one-third is spent off Coast when you eliminate mortgages from the equation.
"There are some findings in this report which go against the anecdotal impressions that people have and are repeated to me," McLaughlin said. "Realistically, if you look at the kind of money that is leaving the economy that retailers and service providers participate in, then the total leakage is 28.8 per cent and that is fairly low for a rural community next door to a metropolitan area like Vancouver."
McLaughlin said of that 28.8 per cent, a fair amount goes to goods and services that are simply not available on the Coast and never will be, such as certain forms of entertainment.
"There's kind of good news there. As rural economies go, all have drains, and ours is not doing too badly," he said.
But "not doing too badly" doesn't mean there isn't room for improvement, McLaughlin said, and it is entirely possible to get that number as low as 20 per cent.
To help do that, McLaughlin is planning a public meeting with the Coast's Chambers of Commerce and business associations to share the specifics of his report where business owners might find new opportunities.
The directors took a keen interest in the report, asking where local governments fit into shrinking a gap. Specifically they wanted to know the consequences of having a Wal-Mart or other big box stores on the Coast.
McLaughlin said shopping at a local Wal-Mart would be, in effect, no different than shopping off-Coast, to which most directors nodded in agreement.
Gibsons Mayor Barry Janyk reflected on past attempts by Wal-Mart to open on the Coast and the development requirements that caused developers to abandon the attempt and said it was probably for the best.
"Ultimately, I don't think the financial gain really does rest here. All you're doing is shipping your money out," Janyk said. "[Small businesses] really are the generators of wealth in small communities. Not the corporate chains."
John France, chief administrative officer for the SCRD, suggested some inexpensive advertising to encourage more local shopping and said the SCRD board could also review its purchasing policy for smaller-ticket items to support local businesses.
