State of the Southern Interior Region

State of the 

Southern 

Interior Region

© 2022 Kelowna Chamber of Commerce

CONTENTS 

1. Introduction 1 

2. Limitations 1 

3. Macroeconomic Indicators 2 

GDP 2 

Exchange Rate 3 

4. Overview of the Southern Interior 4 

Labour Market 5 

Major Infrastructure Projects 7 

Indigenous People – Southern Interior 9 

Okanagan 11 

Population 11 

Employment 13 

Business Environment 13 

Tourism 16 

Agriculture 17 

Forestry 18 

Housing and Affordability 19 

Kootenay 20 

Population 20 

Employment 21 


Mining 24 

Tourism 24 



Thompson-Columbia 28 

Population 28 

Employment 29 


Forestry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 

Mining 31 

Tourism 32 



Hope-Fraser Valley 34 

Population 34 



Housing 37

Cross-Country skiing at night at Silver Star Mountain Resort, Vernon | Credit: Destination BC/Blake Jorgenson

2022 STATE OF THE SOUTHERN INTERIOR 

REPORT 

1. INTRODUCTION 

The Southern Interior Region of British Columbia is a vast geographic area, spanning 

mountain ranges, verdant farmland, rich forests, wildlife and ranches, ski hills and lakes, 

and numerous interior cities and towns. From Hope to Sparwood, to Valemount and 

Merritt, to Kamloops and Revelstoke, Kelowna to Nelson and Cranbrook – the geography 

creates physical barriers which economic development practitioners wrestle with every 

day. Indigenous businesses, tourism magnets, agricultural endeavours, mining and 

forestry and thousands of retail organizations all contribute to a lively economy. 

The theme of the inaugural 2022 Southern Interior Regional Economic Summit is Elevating 

our Potential, Together. Working together, recovery and resilience are key to a continuing 

strong economy in this region of British Columbia. The Kelowna Chamber of Commerce 

commissioned an economic report from MNP 

LLP in 2022 which would capture a snapshot 

of where the economy of this region is with 

up-to-date data and statistics just in time 

for the October 2022 Summit. The Report is 

intended for use by economic practitioners 

throughout the Southern Interior and has 

information of interest to elected officials and 

businesses as well. 

Image courtesy 

of ETSI-BC 

We hope that you find the Report 

informative, and useful as a basis for some 

of the decision-making and planning with 

which you are engaged this year and into 2023.We thank the Economic Trust of the 

Southern Interior BC (ETSI-BC) for their financial assistance in helping the Kelowna 

Chamber of Commerce initiate this project, and our partners MNP LLP – particularly 

Susan Mowbray, Chief Economist and Andre Gailits, Manager, Consulting - Economics 

and Research – for their work on the Report. 

2. LIMITATIONS 

This report is provided for information purposes and is intended for general guidance 

only. It should not be regarded as comprehensive or as a substitute for personalized, 

professional advice. 

We have relied upon the completeness, accuracy and fair presentation of all information 

and data obtained from public sources, believed to be reliable. The accuracy and reliability 

of the findings and opinions expressed in the presentation are conditional upon the 

completeness, accuracy and fair presentation of the information underlying them. As a 

result, we caution readers not to rely upon any findings or opinions expressed for business 

or investment decisions and disclaim any liability to any party who relies upon them as 

such. Before taking any particular course of action, readers 

should contact their own professional advisor to discuss 

matters in the context of their particular situation. 

1. INTRODUCTION / 2. LIMITATIONS 

1

3. MACROECONOMIC INDICATORS 

3. Macroeconomic Indicators 

GDP 

GDP 

BC Real BC Real GDP GDP Growth Growth Rate Rate 

8.0% 

6.0% 

4.0% 

2.0% 

0.0% 

-2.0% 

2017 2018 2019 2020 2021 2022F 2023F 

-4.0% 

BC Real GDP Growth Rate 

RBC Economics Forecast 

TD Economics Forecast 

Central 1 Forecast 

Source: Statistics Canada. Table 36-10-0402-01 GDP at basic prices, by industry, provinces and territories; TD 

Source: Statistics Canada. Table 36-10-0402-01 GDP at basic prices, by industry, provinces and territories; TD Economics, 

Economics, Provincial Economic Forecast (June 2022); RBC Economic Research, Provincial Outlook (June 2022); 

Provincial Economic Forecast (June 2022); RBC Economic Research, Provincial Outlook (June 2022); Central 1 (May 2022) 

Central 1 (May 2022) 

BC’s GDP grew by 6.2% in 2021, ending the year 3% higher than in 2019. Key factors were continued 

migration from other regions of Canada which increased demand for housing, retail and personal 

services; continuation of construction on major projects and higher commodity prices that provided a 

boost BC’s to GDP resource grew sectors. by 6.2% Acceleration in 2021, ending the the adoption year 3% of higher digital technologies than in 2019. through Key factors the pandemic 

supported were continued growth in migration the tech from sector, other while regions ongoing of Canada travel restrictions which increased key demand markets for and testing 

requirements housing, retail slowed and recovery personal of tourism. services; Healthcare continuation and of public construction administration major also expanded. projects and 

Mid-year higher projections commodity for prices BC’s GDP that growth provided are in a boost the 3.6% to to resource 4.2% range sectors. for 2022 Acceleration and then between in the 1.7% 

and adoption 2.3% in 2023. of digital Despite technologies the relatively through positive projections, the pandemic there supported is significant growth uncertainty the in tech the forecast 

and sector, how demand while ongoing for goods travel and restrictions services will in key evolve markets as the and pandemic’s testing requirements effects wane slowed and activity 

normalizes. recovery Pandemic of tourism. restrictions Healthcare on travel and public and gathering administration groups also led to expanded. significant increases in demand 

for goods and declines for services. As restrictions have been lifted consumption patterns have pivoted 

Mid-year projections for BC’s GDP growth are in the 3.6% to 4.2% range for 2022 and 

toward services and demand for goods has declined year-over-year. As a result, major retailers have 

then between 1.7% and 2.3% in 2023. Despite the relatively positive projections, there 

reported growing inventories and have had to discount products. Similarly, there is expected to be a shift 

from 

is 

remote 

significant 

to hybrid 

uncertainty 

work as 

in 

business 

the forecast 

activity 

and 

normalizes, 

how demand 

which 

for 

could 

goods 

affect 

and 

migration 

services will 

patterns and 

regional evolve impacts. as the pandemic’s effects wane and activity normalizes. Pandemic restrictions 

on travel and gathering in groups led to significant increases in demand for goods 

In the Southern Interior, strong population growth and a large increase in visitation through the pandemic 

and declines for services. As restrictions have been lifted consumption patterns have 

period have supported the real estate and tourism sectors. Going forward, population growth is expected 

pivoted toward services and demand for goods has declined year-over-year. As a result, 

to continue to play an important role in growth in urban areas such as Kelowna and Kamloops. The 

major retailers have reported growing inventories and have had to discount products. 

outlook for mining is stable, while tourism is expected to revert to pre-pandemic patterns. 

Similarly, there is expected to be a shift from remote to hybrid work as business activity 

normalizes, which could affect migration patterns and regional impacts. 

In the Southern Interior, strong population growth and a large increase in visitation 

through the pandemic period have supported the real estate and tourism sectors. Going 

forward, population growth is expected to continue to play an important role in growth 

in urban areas such as Kelowna and Kamloops. The outlook for mining is stable, while 

tourism is expected to revert to pre-pandemic patterns. 

5 

2 3. MACROECONOMIC INDICATORS

Inflation 

Through the second half of 2021 and into the first half of 2022, inflation 

rates accelerated in Canada as well as much of the rest of the world. 

Rising inflation has been the result of a mix of global and domestic 

factors. Increases in global energy prices and drought conditions in 

many areas have led to higher costs for fuel and food. The invasion of 

Wayside: redesign the boxes throughout the report. Use whatever colour you like for background. 

Ukraine by Russia further increased commodity prices in the second 

quarter. Domestically, demand has increased, and labour shortages and 

continuing Inflation supply chain constraints mean businesses have struggled to 

increase Through the production. second half As of a result, 2021 and both into prices the first and half wages of 2022, are inflation rising. rates accelerated in Canada 

Against as well as this much backdrop of the rest there of is the some world. indication Rising inflation that expectations has been the of result higher of a mix of global and 

inflation domestic may factors. be setting Increases in in among global businesses energy prices and and consumers. drought conditions Higher in many areas have led 

inflation to higher expectations costs for fuel can and lead food. to The higher invasion long-term of Ukraine inflation by Russia as businesses further increased commodity 

factor prices in these second into wage quarter. and price Domestically, adjustments. demand In response, has increased, the Bank and labour of shortages and 

Canada 

continuing 

has 

supply 

taken 

chain 

steps 

constraints 

to reduce 

mean 

demand 

businesses 

and slow 

have 

inflation 

struggled 

by increasing 

to increase production. As a 

result, both prices and wages are rising. 

interest rates. Between March 2022 and September 2022 the key policy 

rate Against increased this backdrop from 0.25% there to is some 3.25%. indication Further increases that expectations are expected. of higher inflation may be setting in 

among businesses and consumers. Higher inflation expectations can lead to higher long-term 

As of September 2022, the Bank of Canada expects inflation to gradually 

inflation as businesses factor these into wage and price adjustments. In response, the Bank of 

decline as demand slows but to remain elevated through 2024. 

Canada has taken steps to reduce demand and slow inflation by increasing interest rates. Between 

March 2022 and September 2022 the key policy rate increased from 0.25% to 3.25%. Further 

Source: Bank of Canada. Monetary Policy Report 

increases are expected. 

https://www.bankofcanada.ca/publications/mpr/ 

As of September 2022, the Bank of Canada expects inflation to gradually decline as demand slows 

but to remain elevated through 2024. 

Source: Bank of Canada. Monetary Policy Report (https://www.bankofcanada.ca/publications/mpr/) 

Exchange Exchange Rate Rate 

Source: Bank of Canada. RBC Economics. TD Economics. 

1.50 

1.40 

CAD : USD 

1.30 

1.20 

1.10 

1.00 

2020-09 

2020-10 

2020-11 

2020-12 

2021-01 

2021-02 

2021-03 

2021-04 

2021-05 

2021-06 

2021-07 

2021-08 

2021-09 

2021-10 

2021-11 

2021-12 

2022-01 

2022-02 

2022-03 

2022-04 

2022-05 

2022-06 

2022-07 

2022-08 

2022 Q3 

2022 Q4 

2023 Q1 

2023 Q2 

2023 Q3 

2023 Q4 

Exchange Rate RBC Forecast TD Forecast 

Source: Bank of Canada. RBC Economics. TD Economics. 

3. MACROECONOMIC INDICATORS 

3 

6

After gaining significant value through the end of 2020 and into the first half of 2021, the 

Canadian dollar gradually fell back to near pre-pandemic levels by mid-2022. Global market 

declines, interest rate hikes and recession fears have led to a flight-to-safety to the US 

dollar and corresponding depreciation of the Canadian dollar. As of September 2022, the 

Canadian dollar was trading at $0.75 USD. 

Looking forward, the value of the Canadian dollar will be heavily influenced by the price 

of oil and other export commodities. The ongoing conflict in Ukraine and tightening of 

monetary policy to combat inflation by central banks around the world is expected to slow 

global growth and reduce demand for commodities. In Q3 prices for oil and industrial 

inputs declined modestly, while the price of natural gas rose significantly. This suggests that 

demand is moderating, and that the CAD may trend lower in the near term. 

At this level, the exchange rate is not expected to have a significant impact on tourism or 

export activity in the Southern Interior. 

4. OVERVIEW OF THE SOUTHERN INTERIOR 

Resource sectors, manufacturing and tourism are relatively large components of the 

economy of the Southern Interior; however, there are substantial differences by region. The 

Okanagan is the most urban region and has a more diversified economy than the Kootenay, 

Thompson-Columbia or Hope-Fraser Valley. The Kootenay region is the most dependent on 

resource sectors, while there are indications that there has been some diversification in the 

Thompson-Columbia. 

Population growth has been an important factor in 

economic growth across the region. Between 2016 and 

2021 the population of the Southern Interior grew by 

nearly 60,000 people, an overall increase of 8.1% 1 . This 

exceeded the growth rate of the province (7.3%) and 

the Lower Mainland (7.6%). Over 60% of the population 

growth occurred in the Okanagan region, followed by the 

Thompson-Columbia (24%) and Kootenay (13%). 

Population growth in the Southern Interior is primarily 

due to migration within Canada. Prior to the pandemic 

migration from other provinces had been slowing, 

while migration from within BC was increasing. Over the 

pandemic, migration from other parts of BC continued 

to grow modestly, while migration from other provinces 

increased substantially, and international migration was 

close to zero due to pandemic related restrictions in travel 

and delays in processing applicants. 

There are indications from the housing market that 

in 2020 and 2021 the relative affordability of parts 

of the region as well as the shift to remote working 

arrangements led to an increase in migration from the 

Lower Mainland. 

1 

BC Stats. BC Population Estimates. 

Economic Base 

The economic base of a region comprises the 

industries that attract people to the region, 

drive employment, and support the retention of 

workers. In turn, workers and businesses within 

the economic base require supporting services, 

such as retail, public services, real estate, and 

support services for their businesses. These 

supporting industries are known as the local 

area market and are industries that exist to 

support the needs of residents and local 

businesses. 

Population growth has been an important 

factor in economic growth across the interior. 

Most of the growth has occurred in the 

Central-Okanagan and Thompson Columbia 

regions around urban centres such as Kelowna 

and Kamloops. In less urban areas growth has 

been slow and there is some indication that 

there are fewer opportunities in these areas. 

4 3. MACROECONOMIC INDICATORS / 4. OVERVIEW OF THE SOUTHERN INTERIOR

Preliminary population estimates from 2022 suggest that international immigration has 

increased significantly as backlogs due to COVID-19 delays have cleared. Interprovincial 

and intraprovincial migration are expected to settle back into their long-term trends, 

along with international immigration, as post-COVID-19 economic conditions stabilize. 

Labour Market 

2016 2019 2022 

(January - August) 

UNEMPLOYMENT RATE 

Thompson-Okanagan (excluding Kelowna) 7.6% 5.4% 5.9% 

Kelowna 8.2% 4.1% 5.3% 

Kootenay 7.9% 5.3% 5.0% 

BC 6.1% 4.7% 4.9% 

LABOUR FORCE 

Thompson-Okanagan (excluding Kelowna) 182.7 194.8 185.7 

Kelowna 105.3 117.9 115.4 

Kootenay 79.4 84.7 79.5 

PARTICIPATION RATE 

Thompson-Okanagan (excluding Kelowna) 61.4 62.1 62.2 

Kelowna 64.4 66.8 61.4 

Kootenay 60.2 62 59.5 

BC 64.9 66 65 

Source: Statistics Canada, Labour Force Survey 

Population growth in the Okanagan and Thompson-Columbia has been primarily among 

the working age population. This led to increases in the labour force and increases in 

the labour force participation rate between 2016 and 2019. Over the same period, the 

unemployment rate trended down, indicating that people entering the regional labour 

market were able to find jobs. Pandemic-related restrictions led to layoffs in hospitality, 

entertainment and recreation and an increase in the number of people who chose to 

retire early. This resulted in declines in labour force participation. As restrictions were 

lifted labour force participation increased, but as of August 2022 remains below 2019 

levels. The unemployment rate is above pre-pandemic levels which suggests that there 

are fewer employment opportunities available or that there may be a skill mismatch 

between available employment opportunities and those seeking employment. 

2 

Statistics Canada. Table: 17-10-0040-01. Estimates of the components of international migration. 


5

In the Kootenay region population growth has been largely driven by migration among 

those 45 and over. This led to an increase in labour force participation between 2016 and 

2019. However, as of August 2022 labour force participation rates are below 2016 levels and 

the unemployment rate is consistent with 2019 levels. This suggests that there are fewer 

employment opportunities available and that a substantial number of 

people exited the labour force during the pandemic. 

In the Kootenay region population growth has been largely driven by migration among those 45 and 

In over. the This Kootenay led to an region increase population in labour growth force participation has been largely between driven 2016 by and migration 2019. However, among those as of 45 August and 

Old Growth Deferrals 

over. 2022 labour This led force to an participation increase in labour rates are force below participation 2016 levels between and the 2016 unemployment and 2019. However, rate is consistent as of August with 

2022 2019 levels. labour This force suggests participation that there rates are fewer below employment 2016 levels and opportunities the unemployment available rate and In that is November consistent a substantial 2021, with based on 

2019 number Resource levels. of people This Industries suggests exited the that labour there are force fewer during employment the pandemic. opportunities available and recommendations that a substantial from the Old 

number of people exited the labour force during the pandemic. 

Growth Strategic Review, the 

Resource Industries 

BC government announced it 


Annual Harvest Volumes Relative (Southern to 2016 Interior) Levels Relative to 2016 Old Levels 

would work with First Nations 

Growth Deferrals 

Annual Harvest Volumes Relative to 2016 Levels 

to defer 2.6 million hectares of 

Old Growth Deferrals 

120% 

In November 2021, based old growth on forest. The intent 

120% 

In recommendations November 2021, from based of the on Old deferrals Growth is to prevent 

100% 

recommendations Strategic Review, the from BC the government Old Growth 

100% 

irreversible biodiversity loss while 

80% 

Strategic announced Review, it would the work BC 

First 

government with Nations, First the Province and 

80% 

announced Nations to defer it would 2.6 work million with hectares First 

other partners 

of 

develop a new 

60% 

Nations old growth to defer forest. 2.6 The million intent hectares of the of 

approach to sustainable forest 

60% 

old deferrals growth is to forest. prevent The irreversible intent of the 

40% 

management that prioritizes 

deferrals biodiversity is to loss prevent while First irreversible Nations, the 

40% 

20% 

biodiversity Province and loss other while 

ecosystem 

partners First Nations, 

health 

develop the 

and community 

a 

Province new approach and other to sustainable partners prosperity develop forest 

throughout a BC. The 

20% 

0% 

new management approach that to sustainable prioritizes deferred ecosystem forest area was in addition 

0% 2016 2017 2018 2019 2020 2021 management health and community that prioritizes to prosperity the 3.5 ecosystem million hectares 

In the Kootenay 2016 region 2017 population 2018 growth 2019 has 2020been 2021 largely driven health throughout by and migration community BC. The among deferred already prosperity those area off limits 45 was and to harvesting 

Annual Harvest 2016 Levels 

over. This led to an increase in labour force participation between throughout in 2016 addition and to BC. 2019. the The 3.5 However, deferred in million BC. Of as hectares area the of August was 11 areas in BC that 

Annual Harvest 2016 Levels 

2022 Source: labour BC Ministry force participation of Forests, Harvest rates Billing are System below 2016 levels and the in already addition unemployment off limits to the to 3.5 rate harvesting are million is designated consistent hectares in BC. Of with for harvesting 

2019 levels. This suggests that there are fewer employment opportunities already the 11 areas off available limits in BC to that and harvesting deferrals, are that designated a substantial in four BC. Of of them are 

number of people exited the labour force during the pandemic. the for harvesting 11 areas deferrals, BC that located are four designated of in them 

Southern Interior. 

Source: BC Ministry of Forests, Harvest Billing System 

for are harvesting located the deferrals, Southern four Interior. of them 



are located in the Southern Interior. 

Annual Softwood Lumber Production (Southern 

Source: Province of BC, Old Source: growth Province deferral of BC, Old growth deferral 

Annual areas. Available here: 

Interior) 

Harvest Softwood Softwood Volumes Lumber Lumber Relative Production Production to 2016 (Southern Levels (Southern Interior) Old Source: Growth Province Deferrals of BC, Old areas. growth Available deferral here: https://www2.gov. 

areas. https://www2.gov.bc.ca/gov/content/indust 

Available here: bc.ca/gov/content/industry/forestry/ 

Interior) Relative to 2016 Levels 

120% 

In https://www2.gov.bc.ca/gov/content/indust 

ry/forestry/managing-our-forestresources/old-growth-forests/deferral-areas 

from the Old Growth 

November 2021, based managing-our-forest-resources/oldgrowth-forests/deferral-areas 

on 

120% 

recommendations ry/forestry/managing-our-forestresources/old-growth-forests/deferral-areas 

Review, the BC government 

100% 

Strategic 

100% 

80% 

announced it would work with First 

80% 

Nations to defer 2.6 million hectares of 

60% 

60% 

old growth forest. The intent of the 

60% 

40% 

deferrals is to prevent irreversible 

40% 

40% 

biodiversity loss while First Nations, the 

20% 

20% 

Province and other partners develop a 

20% 

0% 

new approach to sustainable forest 

0% 

1 2 3 4 5 6 management that prioritizes ecosystem 

2016 1 2017 2 2018 3 2019 4 2020 5 2021 6 health and community prosperity 

Annual Softwood Production 2016 Levels 

throughout BC. The deferred area was 

Annual Annual Softwood Harvest Production 2016 Levels 2016 Levels 

in addition to the 3.5 million hectares 

Source: Statistics Canada. Table 16-10-0017-01 Lumber production, shipments, and stocks by species, monthly (x 1,000) 

Source: Statistics Canada. Table 16-10-0017-01 Lumber production, shipments, already and stocks off limits by species, to harvesting monthly (x in 1,000) BC. Of 

Source: Statistics Canada. Table 16-10-0017-01 Lumber production, shipments, the and 11 areas stocks in by BC species, that are monthly designated (x 1,000) 

for harvesting deferrals, four of them 


are located in the Southern Interior. 

%age %age Percentage of 2016 of 2016 Levels of 2016 Levels Levels (%) (%) 

%age Percentage of of of 2016 of 2016 Levels (%) (%) 

Annual Softwood Lumber Production (Southern 

Interior) 6 4. OVERVIEW OF THE SOUTHERN INTERIOR 

120% 

Source: Province of BC, Old growth deferral 

areas. Available here: 

https://www2.gov.bc.ca/gov/content/indust 

ry/forestry/managing-our-forest- 

9 

9

BC’s forest industry has undergone a significant rationalization in response to fibre 

supply constraints. In the Southern Interior, production capacity has been relatively 

stable while harvesting activity and production has declined. This has resulted in lower 

levels of employment in some areas. 

Mining and associated manufacturing activity has remained stable, while exploration 

activity in BC has increased in response to a favourable outlook for key commodities. 

Agriculture and Food and Beverage Manufacturing 

Increasing interest in food security and local food has led to growth 

in agriculture and associated manufacturing in the Okanagan 

region. This growth has supported growth in culinary tourism and 

there are indications that some investments are being made in agrifood 

production in the Thompson-Columbia. 

Tourism 

Tourism in the Southern Interior is primarily related to a 

combination of outdoor recreation (e.g., hiking, mountain biking, 

camping, skiing and snowmobiling) and culinary activities. As such 

it tends to serve a regional market. The majority of visitors are from 

the Lower Mainland and Alberta, with some visitation from western 

US states. Pandemic related restrictions led to significant increases 

in visitation to the Okanagan and Kootenays in 2021. As travel 

restrictions lifted, there are indications that visitation is reverting to 

pre-pandemic patterns. 

Dinner at the Bear, Fish, Root 

and Berry - Osoyoos - ITBC - 

Dining | Credit: Indigenous 

Tourism BC/Brendin Kelly/ 

The Bear, Fish, Root and Berry 

Major Infrastructure Projects 

There are a number of major projects underway to upgrade infrastructure in the 

Southern Interior. In addition, damage to highway infrastructure and housing from 

floods in November 2021 is being undertaken. 

Major Infrastructure Projects 

in the Southern Interior, by Type 

Education 

1 Project 

$35 

MILLION 

Healthcare 

2 Projects 

$98 

MILLION 

Utilities 

6 Projects 

$618 

MILLION 

Transportation 

7 Projects 

$1.8 

BILLION 


7

Rose Valley Water Treatment Plant Construction 3 

The Rose Valley Water Treatment 

Plant construction is the largest 

project ever undertaken by the 

City of West Kelowna. The multiyear 

construction began in 2020 

and has four primary phases. The 

design and earthworks phases 

are complete, while the water 

treatment plant and transmission 

main construction phases are 

underway. The project is expected 

to be complete in spring 2023, 

and once operational will provide 

clean drinking water to 18,000 

residents. 

Inland Gas Upgrades 4 

FortisBC is upgrading 29 sections of their natural gas lines throughout the interior of BC, 

including one line in the Thompson-Nicola region, three in the Kootenay region and 15 in 

the North Okanagan-Shuswap region. Upgrades include reducing bends, replacing fittings, 

replacing gas lines and adding pressure reduction stations. Construction in 2022 took place 

in 12 communities across the BC Interior and construction in 2023 and 2024 is expected to 

continue seasonally at 18 communities. 

Pipe connection to the Rose 

Valley treated water reservoir. 

Credit: City of West Kelowna 

Kootenay Boundary Regional Hospital Upgrades 5 

The Kootenay Boundary Regional Hospital is undertaking a construction project to build 

a new ambulatory care clinic and expand the existing pharmacy. This will include a new 

emergency department, the creation of new outpatient rooms and add telehealth services. 

The pharmacy will triple in size, adding new patient consultation rooms. Construction began 

in 2021 and is expected to be complete in 2023. The project is estimated to create 156 direct 

jobs and 58 indirect jobs during the construction phase. 

Kicking Horse Canyon Project - Highway 1 Improvements 6 

Kicking Horse Canyon is located east of Golden, BC in the Columbia-Shuswap Regional District. 

The construction project involves transforming 21 kilometres of a narrow, winding two-lane 

section of the Trans-Canada Highway into a four-lane, 100km/h standard road. Construction on 

this phase (Phase 4) began in 2021 and is expected to be complete in 2023/24. 

3 

City of West Kelowna. 

Available here: https://www.westkelownacity.ca/en/our-community/rose-valley-water-treatment-plant-project.aspx?_mid_=38297 

4 

FortisBC. Available here: https://talkingenergy.ca/project/inland-gas-upgrades 

5 

BC Government. Available here: https://news.gov.bc.ca/releases/2021HLTH0038-000293 

6 

Kicking Horse Canyon. Available here: https://www.kickinghorsecanyon.ca 

8 4. OVERVIEW OF THE SOUTHERN INTERIOR

12 

Trans-Canada Highway into a four-lane, 100km/h standard road. Construction on this phase (Phase 4) 

began in 2021 and is expected to be complete in 2023/24. 

INDIGENOUS PEOPLE – SOUTHERN INTERIOR 

Indigenous The contributions People of – Indigenous Southern Interior People to the Southern Interior include the activities of 

The Indigenous contributions households, of Indigenous Indigenous People businesses to the Southern and First Interior Nations include Administration. the activities of Indigenous 

households, Indigenous businesses and First Nations Administration. 

Indigenous People, People, 2016 to 2016 2021 to 2021 

50,000 

40,000 

30,000 

20,000 

10,000 

0 

30,200 

32,800 

27,200 

23,800 

400 300 1,500 2,400 

First Nations Metis Inuit Other 

2016 2021 

Source: Statistics Canada Census 2016 and 2021 


Indigenous Peoples of the 

Southern Interior account for 

8% of the population. Prior 

Destination to BC the Asset pandemic, 92886 there was 

Include credit some name indication that the gap in 

employment outcomes between 

Sent in photo file #2 including credit 

Indigenous and non-Indigenous 

people was closing. 

Horseback riding with Indian Grover Riding Stables in Osoyoos - ITBC 

Credit: Indigenous Tourism BC/Indian Grover Riding Stables 

INDIGENOUS PEOPLE – SOUTHERN INTERIOR 

9

Unemployment Rate, Off-Reserve Indigenous and Non-Indigenous People, Thompson-Okanagan Region 

- 2016, 2019, 2021 

Unemployment Rate, Rate, Off-Reserve Off-Reserve Indigenous Indigenous and Non-Indigenous and Non-Indigenous People, Thompson-Okanagan People, Region 

- Thompson-Okanagan 2016, 2019, 2021 

20% 

Region - 2016, 2019, 2021 

20% 

15% 

15% 

10% 

10% 

5% 

5% 

0% 

0% 

14% 

7% 

Indigenous Non-Indigenous 

Note: Unemployment rate data for Indigenous peoples were unavailable for the Kootenay region 


Source: Note: Unemployment Statistics Canada rate Labour data for Force Indigenous Survey peoples were unavailable for the Kootenay region 

Source: Statistics Canada Labour Force Survey 

Age Distribution, Indigenous and Total Population, 2021 

100% 

100% 80% 

60% 80% 

40% 60% 

40% 20% 

20% 

0% 

14% 

24% 

7% 

8% 

2016 

Indigenous 

2019 

Non-Indigenous 

2021 

Age Distribution, Indigenous Indigenous and Total People Population, and Total 2021 Population, 2021 

24% 

13% 

65% 

62% 

5% 

Source: Statistics Canada Labour Force Survey. Custom The tabulation. Indigenous population of the Southern Interior grew 

Spending by First Nations 

The from Indigenous approximately population 56,000 of in the 2016 Southern to 62,700 Interior in 2021, grew a 

The Spending Administration Indigenous by First population Nations of the Southern Interior grew 

from growth approximately rate of 12%, which 56,000 is slightly in 2016 greater to 62,700 than the in 2021, growth 

from a 

Administration 

In 2021 

approximately 

First Nations 

56,000 

Administrations 

in 2016 to 62,700 in 2021, 

growth in the rate overall of 12%, region’s which Spending is population slightly greater by (11.3%). First than 7 Nations the The growth Métis Administration 

a 

In in 

growth 

the 2021 Southern 

rate of 

First Nations Interior 

12%, which 

Administrations 

spent 

is 

over 

slightly greater than the 

population in the overall of the region’s Southern population Interior grew (11.3%). by 14% 7 The over Métis the 

growth 

in $300 the million 

in the 

Southern on 

overall 

Interior their operations. 

region’s population 

spent over This 

(11.3%) 7 . The In 2021 First Nations Administrations in the 

population same period, of while the Southern First Nations Interior population grew by 14% grew over at 9%. 

Métis 

the 

$300 included population 

million wages on and of 

their salaries the Southern 

operations. and Interior grew by 14% Southern Interior spent over $300 million on their 

This same Approximately period, while 70% the of First the Southern Nations population Interior’s First grew Nations 

over 9%. 

included spending the same 

wages on suppliers period, 

and salaries in while their the 

and local First Nations population operations. This included wages and salaries and 

population Approximately lives 70% off-reserve. 

grew the Southern Interior’s First Nations 

spending area. at 9%. Approximately 70% of the Southern 

spending on suppliers in their local area. 

on suppliers in their local 

Within population the lives Southern off-reserve. 

Interior’s First Nations population lives off-reserve. 

Interior, the largest populations of 

area. Source: Financial Statements published 

Within Indigenous the people Southern reside Interior, in the Central largest Okanagan populations and 

Within 


Source: 

through the 

Financial First Southern 

Statements 

Nations Interior, Financial the largest populations of 

Source: Financial Statements published through the First 

published Indigenous Thompson-Nicola people regions, reside Nations which in the Financial includes Central Transparency the Okanagan areas Actaround 

Indigenous 

and 

through 

Transparency 

the First people Act 

Nations reside Financial in the Central Okanagan and 

Thompson-Nicola Kelowna and Kamloops. regions, which The Thompson-Nicola includes the areas region’s 

Thompson-Nicola 

around 

Transparency Act regions, which includes the areas 

around Kelowna and Kamloops. The Thompson-Nicola 

Kelowna and Kamloops. The Thompson-Nicola region’s 

7 

Statistics region’s Canada population Census 2016 is approximately and 2021 13% Indigenous, 

7 

Statistics the highest Canada concentration Census 2016 and 2021 of Indigenous peoples in the Southern Interior 8 . The region is home 

13 

to the Shuswap Nation Tribal Council, a group of nine First Nations, including Tk’emlúps te 

Secwépemc, Simpcw First Nation, Adams Lake and Shuswap Band. 

13 

11% 

11% 

25% 

0 to 14 

Indigenous Identity 

15 to 64 

Total Population 

65 and over 

Source: Statistics Canada Labour Force Indigenous Survey. Custom Identity tabulation. Total Population 

Source: Statistics Canada Labour Force Survey. Custom tabulation. 

8% 

2016 2019 2021 

13% 

65% 

62% 

0 to 14 15 to 64 65 and over 

5% 

11% 

11% 

25% 

6% 

6% 

7 

Statistics Canada Census 2016 and 2021 

8 

Statistics Canada Census 2021 

10 INDIGENOUS PEOPLE – SOUTHERN INTERIOR

The Indigenous population of the Southern Interior, and the rest of the country, is 

significantly younger than the overall population. Approximately 24% of the Indigenous 

population is under age 15 and 11% are 65 and over, compared to 13% and 25% of the 

overall population, respectively. 9 

population is approximately 13% Indigenous, the highest concentration of Indigenous peoples in the 

In 2016, the Indigenous population of the Southern Interior had an unemployment 

Southern Interior. 8 The region is home to the Shuswap Nation Tribal Council, a group of nine First Nations, 

rate double that of the non-Indigenous population (14% vs. 7%) 

including Tk'emlúps te Secwépemc, Simpcw First Nation, Adams Lake and 10 . This gap narrowed 

Shuswap Band. 

between 2016 and 2019, largely due to a reduction in Indigenous unemployment 

The 

while 

Indigenous 

the Indigenous 

population 

labour 

of the 

force 

Southern 

was 

Interior, 

stable. 

and 

However, 

the rest 

the 

of the 

unemployment 

country, is significantly 

rate gap 

younger 

than the overall population. Approximately 24% of the Indigenous population is under age 15 and 11% 

widened throughout the pandemic due in part to the greater proportion of Indigenous 

are 65 and over, compared to 13% and 25% of the overall population, respectively. 9 

peoples employed in sectors most affected by the pandemic like retail trade and 

In accommodation 2016, the Indigenous and population food services. of the Southern Interior had an unemployment rate double that of 

the non-Indigenous population (14% vs. 7%). 10 This gap narrowed between 2016 and 2019, largely due to 

a There reduction was in no Indigenous information unemployment available on while the the footprint Indigenous of Indigenous-owned labour force was stable. businesses However, in the 

unemployment the Southern rate Interior. gap widened throughout the pandemic due in part to the greater proportion of 

Indigenous peoples employed in sectors most affected by the pandemic like retail trade and 

accommodation and food services. 

OKANAGAN 

There was no information available on the footprint of Indigenous-owned businesses in the Southern 

Interior. The Okanagan region is the largest region in the Southern Interior by population. 

It comprises the North Okanagan, Central Okanagan and Okanagan-Similkameen 

Okanagan 

regional districts. Kelowna is the largest urban centre in the region with over one-third 

The 


Okanagan 

the region’s 

region 

population. 

is the largest region in the Southern Interior by population. It comprises the North 

Okanagan, Central Okanagan and Okanagan-Similkameen regional districts. Kelowna is the largest urban 

centre in the region with over one-third of the region’s population. 

Population 

Population 

Population Growth Growth Rate, Rate, Okanagan, Okanagan, 2017 to 2017 2021 to 2021 

3.0% 

Source: BC Stats Population Estimates 

2.5% 

2.0% 

1.8% 

2.1% 

1.7% 1.8% 

2.0% 

1.5% 

1.0% 

0.5% 

0.0% 

2017 2018 2019 2020 2021 


Total Population, Okanagan, 2016, 2019, 2016, 2021 2019, 2021 


500,000 

400,000 

300,000 

377,350 

398,936 414,038 

8 

Statistics 200,000Canada Census 2021 

9 

Ibid. 

10 Statistics 100,000 Canada Labour Force Survey. Custom tabulation. 

0 

2016 2019 2021 

14 


The 9 

Statistics Okanagan Canada region Census 2021 was the fastest growing area in BC between 2016 and 2021, with a growth rate of 

10 

9.7%. Statistics 11 The Canada region’s Labour major Force urban Survey. Custom centre, tabulation. Kelowna, grew by 12.1% over the same period, accounting for 

over 40% of growth in the region. 

Migration from INDIGENOUS other provinces, primarily PEOPLE Alberta – SOUTHERN and Ontario INTERIOR accounts for / the OKANAGAN 

majority of population 11 

growth and approximately two thirds of those migrating to the region from other provinces are between

The Okanagan region was the fastest growing area in BC between 2016 and 2021, with a 

growth rate of 9.7% 11 . The region’s major urban centre, Kelowna, grew by 12.1% over the same 

period, accounting for over 40% of growth in the region. 

Migration from other provinces, primarily Alberta and Ontario accounts for the majority of 

population growth and approximately two thirds of those migrating to the region from other 

provinces are between 15 and 55 years of age. Among migrants from within BC, over half 

are between 15 and 55 years of age. Most migration is to the Central Okanagan which is the 

most urban region, with the most diversified economy. This suggests that migration is related 

to economic opportunities and that the demand for services and housing to support the 

growing population has grown. 

As population has grown there are indications that affordability has become a concern, 

particularly in Kelowna, both in the re-sale and rental markets. Looking forward, the erosion of 

affordability in the Kelowna area would be expected to result in increased migration to some 

of the surrounding municipalities where the cost of living has not increased at the same pace. 

Kelowna Construction | Credit: City of Kelowna, Michael Hintringer 

11 

BC Stats. BC Population Estimates. 

12 OKANAGAN

Percentage of 

employment in 

the economic 

base 

Employment 

The economic base of the Okanagan region comprises agriculture, food and beverage 

manufacturing, post-secondary, forestry, tech and tourism. Between 2016 and 2019 

employment in food and beverage manufacturing, tech and tourism related services 

increased modestly, while employment in forestry and agriculture was relatively stable. 

Population growth led to growth in the service sector and increases in 

construction activity. As a result, the percentage of employment attributable 

2016 

23% 

2019 

18% 

2021 

17% 

to the economic base fell from 23% to 18%. 

The impact of the pandemic on employment varied by sector and recovery 

in those sectors most impacted has been slow. At the start of the pandemic 

there were significant declines in employment in the hospitality sector and 

employment remains well below pre-pandemic levels despite strong visitor 

Credit: City of Kelowna numbers. Employment in health care has also declined as health care workers 

have left the sector and this has resulted in reduced services and extended wait 

times. There have also been declines in retail employment. 

After initially falling, construction employment has increased and is above pre-pandemic 

levels due to strong demand for housing. There are also indications that employment in 

tech and education increased during the pandemic and is above pre-pandemic levels. 

Business Environment 

Business Counts – 2016, 2019, 2021 

Source: Statistics Canada, Business Register 

Category 

2016 

Total with 

Employees 

2019 

Total with 

Employees 

2021 

Total with 

Employees 

Trend 

Goods-Producing Sector 3,920 4,180 4,199 Growing 

Agriculture, Forestry, Fishing & Hunting 903 932 923 Stable 

Construction 2,264 2,468 2,460 Growing 

Manufacturing (31-33) 645 682 728 Growing 

Mining & Oil & Gas Extraction 81 71 63 Declining 

Utilities 27 27 25 Stable 

Service-Producing Sector 10,952 11,516 11,496 Growing 

Accommodation & Food Services 1,017 1,033 967 Declining 

Admin. & Support, Waste Mgmt. & Remediation 691 752 753 Growing 

Arts, Entertainment & Recreation 272 303 298 Growing 

Educational Services 174 174 160 Declining 

Finance & Insurance 565 577 554 Stable 

Health Care & Social Assistance 1,524 1,678 1,747 Growing 

Information & Cultural Industries 159 195 202 Growing 

Management of Companies & Enterprises 67 76 85 Growing 

Other Services (excl. Public Administration) 1,257 1,326 1,303 Stable 

Professional, Scientific & Technical Services 1,443 1,516 1,611 Growing 

Public Administration 53 53 54 Stable 

Real Estate & Rental & Leasing 766 902 840 Growing 

Retail Trade (44-45) 1,851 1,872 1,883 Stable 

Transportation & Warehousing (48-49) 510 480 459 Declining 

Wholesale Trade 603 579 580 Stable 

Total 14,872 15,696 15,695 Growing 

OKANAGAN 

13

14 OKANAGAN 

Photo Credit: CHBACO

Business Business Formations, Formation 2014 Trends to 2021 

Source: BC Stats, Incorporations by Region 

5,000 

4,000 

3,000 

2,000 

1,000 

342 

418 

1,571 

380 

470 

1,884 

510 

716 

2,636 

0 

Avg. 14-16 Avg. 17-19 2021 

Central Okanagan North Okanagan Okanagan-Similkameen 


Bankruptcies, Bankruptcy 2016, Trends 2019, 2021 

Source: Office of the Superintendent of Bankruptcy Canada 

Geography Average 2014-16 Average 2017-19 2021 

Average Average 

Geography 

Consumer Bankruptcies 

2021 

2014-16 2017-19 

British Columbia CONSUMER BANKRUPTCIES 

5,582 4,117 2,172 

Thompson British Columbia – Okanagan DR 5,582 770 4,117 621 2,172 

312 

Kelowna Thompson – Okanagan DR 770269 621 218 312 

121 

Kelowna 

Business Bankruptcies 

269 218 121 

British Columbia 

BUSINESS BANKRUPTCIES 

168 94 49 

British Columbia 168 94 49 

Thompson – Okanagan DR 23 10 

Thompson – Okanagan DR 23 10 35 

35 

Kelowna 

Kelowna 

10 

10 3 

3 

4 

4 


The overall population growth of the Okanagan is reflected in the steady increase in the number of 

businesses The overall in the population region between growth 2016 of the and Okanagan 2021. The is sectors reflected that in experienced the steady the increase largest increases 

included the number construction, of businesses professional in the services, region real between estate and 2016 healthcare, and 2021. which The sectors is consistent with the 

growth that experienced in the working the age largest population increases of the included region. construction, professional services, 

The real accommodation estate and healthcare, and food services which is sector consistent experienced with the strong growth growth in the in the working number age of businesses 

between population 2016 of and the 2019, region. before COVID-19-related restrictions caused a decline from 2019 to 2021. The 

information 

The accommodation 

and culture sector 

and food 

experienced 

services 

positive 

sector 

increases 

experienced 


strong 

number 

growth 

of businesses 


through 

number 

2019, 

before stabilizing through 2021. 

of businesses between 2016 and 2019, before COVID-19-related restrictions caused 

Business a decline formations from 2019 in the to Okanagan 2021. The region information trended and upwards culture from sector 2014 to experienced 2019, before positive increasing more 

rapidly increases through in the 2021. number of businesses through 2019, before stabilizing through 2021. 

Consumer Business bankruptcies formations declined the Okanagan from 2014 region to 2019 trended as economic upwards conditions from in 2014 the region to 2019, improved, and 

then further declined through 2021. This is consistent with the government support measures that were 

before increasing more rapidly through 2021. 

available including the CERB, CEWS and mortgage deferral options. Business bankruptcies edged up in 

Consumer bankruptcies declined from 2014 to 2019 as economic conditions in the region 

improved, and then further declined through 2021. This is consistent with the government 18 

support measures that were available including the CERB, CEWS and mortgage deferral 

options. Business bankruptcies edged up in the region in 2021 compared to previous 

periods, though this is driven by a small number of businesses and preliminary data from 

2022 indicates bankruptcies falling back into their long-term trend. Moving forward, there 

is not expected to be a significant increase in personal bankruptcies due to high rates 

of employment and tight labour market conditions putting upward pressure on wages. 

While there is an increased risk of default on mortgages as interest rates rise, stress tests 

introduced in 2018 are likely to mitigate the risk. 

OKANAGAN 

15

Tourism 

Tourism in the Okanagan region is a mix of sightseeing, outdoor 

recreation and culinary experiences. The majority of visitors to the 

region are from the Lower Mainland and Alberta. US visitors and 

visitors from other parts of Canada are the next largest groups, and 

there are relatively few international visitors to the region. Prior to 

the pandemic there was steady growth in visitation. 

The introduction of pandemic-related travel restrictions led to 

Penticton 51.9% 55.4% 47% 45.9% 

significant increases in visitors to communities such as Kelowna and 

Osoyoos NOT AVAILABLE 49.1% 

Penticton beginning in the summer of 2020 as BC residents travelled 

Source: Destination BC 

within the province. Visitor numbers remained elevated into 2021. 

While visitor numbers were generally up, spending patterns were 

affected. Restrictions on dining led to an increase in purchases of 

food at grocery stores or visitors bringing food with them. Supply 

chain issues also impacted the availability of ingredients which resulted in the need for 

restaurants to update menus frequently and increased costs. 

As restrictions have lifted there are indications that leisure travel is 

returning to pre-pandemic patterns. Tourism operators reported 

positive visitor numbers; however, there were fewer overall visitors 

than expected. At present, recovery of the meeting and convention 

market and major events is uncertain. Air services remain below 

pre-pandemic levels but are expected to be restored by the end 

of 2023. Another consideration is the cost of travel. Air travel and 

accommodation prices increased significantly as operators dealt with 

labour shortages, surging demand and increased costs of operation. 

This has the potential to affect the region’s value for money 

proposition and has created some uncertainty with respect to the 

longer-term outlook. 

Hotel Occupancy Rates 

ANNUAL 

JAN - JUN 

2016 2019 2019 2022 

Kelowna 65.7% 64.2% 63% 56.8% 

The introduction of pandemic-related 

travel restrictions led to significant 

increases in visitors to attractions 

throughout the Southern Interior 

region. As restrictions have lifted there 

are indications that leisure travel is 

returning to pre-pandemic patterns. 

Going forward there is concern in the 

Okanagan that increases in prices are 

eroding the region’s value proposition. 

16 OKANAGAN

Agriculture 

Farm Count – Crop Production, 2016 and 2021 

2,000 

1,500 

1,473 

1,388 

1,000 

747 

761 

Apple picking at an 

orchard in Kelowna 

Credit: Destination 

BC/Kari Medig 

500 

0 

Agriculture 

Fruit and tree nut farming 

Agriculture 



2016 2021 

Source: 2,000 Statistics Canada. Table: 32-10-0231-01 and Table: 32-10-0403-01. 

1,473 

1,500 

1,388 

Other crop farming 

Source: Statistics Canada. 

Table: 32-10-0231-01 

and Table: 32-10-0403-01. 

1,000 

747 

761 

500 

0 

Insert Asset 25120 

Use Credit in file 

Fruit and tree nut farming 

Photo file #3 for both photo & credit 

2016 2021 

Other crop farming 

Source: Statistics Canada. Table: 32-10-0231-01 and Table: 32-10-0403-01. 

Farm Count – Animal Production, 2016 and 2021 



Table: 32-10-0231-01 

and Table: 32-10-0403-01. 

600 

500 

400 

300 

Insert Asset 25120 

Use Credit in file 

322 

Photo file #3301 

for both photo & credit 

553 

408 

200 

100 

115 

152 

0 

Farm Count Cattle – Animal ranching Production, and farming2016 and Poultry 2021 and egg production Other animal production 

600 

2016 2021 

553 

500 


400 

322 

301 

300 

200 

115 

152 

100 

408 

OKANAGAN 

17 

20

The Okanagan region is the province’s primary wine growing 

region as well an important area for apple orchards and stone 

fruit farms. The number of farms in the Okanagan region 

involved in crop production remained stable from 2016 to 

2021. The popularity of the region for wineries and fruit 

farming, and resulting tourism, has prevented a decline in the 

number of farms that has occurred in most other regions in BC. 

However, the number of farms engaged in animal production 

in the Okanagan region declined by 13% from 2016 to 2021. 

The majority of these declines were farms engaged in horse and equine production, which 

require significant acreage. This is consistent with trends at the provincial level. 

Winery Counts and Acres Planted, 2022 

Region Wineries Acres Planted 

Okanagan Valley 186 9,617 

Similkameen Valley 15 633 

Source: Wine BC. Available here: 

https://winebc.com/discover-bc-wine-country/ 

Wineries in the Okanagan 

The Okanagan’s wineries play a significant role 

in both the regional and provincial economy. 

Growth in the wine industry has led to the 

development of a local supply chain for fruit 

and other materials. It is also a key contributor 

to tourism and has influenced the emergence 

of a craft alcohol industry in the region. As of 

2022 there are more than 50 wineries and 30 

craft alcohol producers in the Okanagan. 

Forestry 

The Okanagan forest industry includes both 

primary and secondary production. It accounts 

for approximately one-third of the Southern 

Interior’s lumber capacity and 8.5 % of total 

provincial lumber capacity. The majority of 

production of poles, utlility poles and posts 

in BC takes place in the Southern Interior and 

approximately a quarter of that production 

takes place in the Okanagan. 

Since 2016, a number of small independent 

Source: BC Ministry of Forests, Major Timber Processing Facilities 

mills have closed in the region; however, 

overall capacity has remained relatively stable. 

Harvesting activity trended down between 

2016 and 2021 due to a combination of fibre supply constraints and market conditions. This 

has led to declines in employment both in logging operations and production. As of 2022, 

between 4,000 and 5,000 people were estimated to be directly employed in harvesting and 

manufacturing in the Okanagan. 

Count 

While demand for wood products is expected to remain strong, there is not expected to be 

significant changes in production in the Okanagan in the near term. 

Share of 

Regional 

Capacity 


Provincial 

Capacity 

Lumber Mills 9 33% 8.5% 

OSB, Plywood, Veneer and Panel 3 33% 12% 

Pellet 3 100% 19% 

Chip 2 19% 5% 

Pole, Utility Pole and Post 2 27% 23% 

18 OKANAGAN

emained relatively stable. Harvesting activity trended down between 2016 and 2021 due to a combination 

of fibre supply constraints and market conditions. This has led to declines in employment both in logging 

operations and production. As of 2022, between 4,000 and 5,000 people were estimated to be directly 

employed in harvesting and manufacturing in the Okanagan. 

While demand for wood products is expected to remain strong, there is not expected to be significant 

changes Housing production and Affordability 

in the Okanagan in the near term. 

Housing and Affordability 

Median Median Single-Family Single-Family Home Prices, Home 2016 Prices, to 2022 2016 to 2022 

Source: BCREA 

Median Single-Family Home Price 

$1,200,000 

$1,000,000 

$800,000 

$600,000 

$400,000 

$200,000 

$0 

Central Okanagan North Okanagan South Okanagan 

Jul-16 Jul-19 Jul-21 Jul-22 

Source: BCREA 

Average Real estate Rental Price, prices October in the Okanagan 2021 maintained a stable upward trajectory from 2016 to 

Area 2019, while certain markets Two in Bedroom the Lower Apartment Mainland and Vancouver Island experienced 

strong growth. However, beginning in the summer of 2020, housing prices began to 

Kelowna $1,442 

accelerate across the Okanagan region. A combination of record-low interest rates, 

Vernon $1,253 

increased savings levels and the shift to remote work led to strong demand for housing 

Penticton $1,230 

in the region through 2021. 

Source: CMHC Housing Market Information Portal While the housing stock has largely grown in-line 

Average Real Rental estate Price, prices October in the Okanagan 2021 maintained with a stable population upward levels trajectory in the from Okanagan 2016 to 2019, region, while certain 

markets in the Lower Mainland and Vancouver there Island are experienced indications strong from growth. the tourism However, sector beginning that in 

Area the summer Two Bedroom of 2020, Apartment housing prices began to the accelerate growth of across short-term the Okanagan rental region. properties A combination the of 

Kelowna $1,442 

Okanagan has limited the supply of homes for sale 

Vernon 2 Credit CHBA Central $1,253 Okanagan 

and for rent. 

Penticton $1,230 

Beginning in Q2 2022 after the Bank of Canada’s 

increase in the Policy Interest Rate, housing 22 

Source: CMHC Housing Market Information Portal sales and prices have shown signs of softening. 

However, there is not expected to be a significant 

price correction in the near term due to continued 

population growth. Central 1 forecasts a 3.5% decline in median prices in the Interior in 

2023 and a slight increase in 2024. 12 

On the rental side, limited supply due to short-term rentals and increased demand from 

families shifting away from purchasing homes is expected to push up prices. Central 1 

expects an approximate 7% increase in rental rates in 2023 across BC, followed by a 5% 

increase in 2024. 13 

12 

Central 1. B.C. Housing Market Outlook: 2022 – 2024. June 2022. 

13 


OKANAGAN 

19

KOOTENAY 

The Kootenay region is the second largest geographic region in the Southern Interior. It 

is bordered by the US to the south, Alberta to the east, the Okanagan region to the west 

and the Thompson-Columbia region to the north. It comprises the Kootenay Boundary, 

East Kootenay and Central Kootenay regional districts. Cranbrook is the largest community, 

though much of the region’s population is spread out across smaller communities. 

Population 

Population Growth Rate, Kootenay, 2017 to 2021 


3.0% 

3.0% 

2.5% 

2.5% 

2.0% 

2.0% 

1.5% 

1.5% 

1.0% 

1.0% 

0.5% 

0.0% 

0.5% 

0.0% 

0.8% 

0.8% 

1.2% 1.1% 

1.2% 1.1% 

Source: BC Stats Population 2017 Estimates 2018 2019 2020 2021 

0.7% 

Total Population, Kootenay, 2016, 2019, 2021 

Total 

Source: 

Population, 

BC Stats Population 

Kootenay, 

Estimates 

2016, 2019, 2021 

200,000 Source: Total Population, BC Stats Population Kootenay, Estimates 2016, 2019, 2021 

157,119 162,085 164,808 

150,000 200,000 

157,119 162,085 164,808 

100,000 150,000 

0.7% 

1.0% 

2017 2018 2019 2020 2021 

1.0% 

50,000 100,000 

0 

50,000 

2016 2019 2021 

Source: BC Stats 0 Population Estimates 

The Kootenay region 2016 experienced moderate 2019population growth 2021 between 2016 and 2021, with an overall 

growth rate (4.9%) below the province (7.3%), and the lowest in the Southern Interior. Nelson and 


Rossland were the fastest growing major population centres in the region, while the populations of 

Cranbrook The Kootenay and Trail region remained experienced largely stable. moderate population growth between 2016 and 2021, with an overall 

The Kootenay region experienced moderate population growth between 2016 and 

Population growth rate growth (4.9%) in the below Kootenay the region province is largely (7.3%), driven and by the interprovincial lowest in migration, the Southern though Interior. prior to Nelson and 

2021, with an overall growth rate (4.9%) below the province (7.3%), and the lowest in the 

the Rossland COVID-19 were pandemic, the fastest international growing immigration major population was also centres an important in the component. region, while Due the to populations the of 

Southern Interior. Nelson and Rossland were the fastest growing major population centres 

pandemic, Cranbrook international and Trail immigration remained largely sharply stable. 

in the region, while the populations of Cranbrook 

declined while 

and 

interprovincial 

Trail remained 

migration 

largely 

increased 

stable. 

to both 

Nelson and Cranbrook. Migration has largely been in the working age population, which is consistent 

Population growth in the Kootenay region is largely driven by interprovincial migration, though prior to 

with Population the overall growth shift to in remote the Kootenay work that region has led is to largely families driven from larger by interprovincial population centres, migration, moving to 

the COVID-19 pandemic, international immigration was also an important component. Due to the 

the though region. prior Looking to the forward, COVID-19 population pandemic, growth international may rise modestly immigration as international was also immigration an important returns; 

however, component. pandemic, a major international Due increase to the is pandemic, not immigration expected. international sharply declined immigration while interprovincial sharply declined migration while increased to both 

interprovincial Nelson and Cranbrook. migration Migration increased has to both largely Nelson been and in the Cranbrook. working Migration age population, has largely which is consistent 

Employment 

been with the in the overall working shift age to remote population, work which that has is consistent led to families with the from overall larger shift population to remote centres, moving to 

the region. Looking forward, population growth may rise modestly 2016 as international 2019 immigration 2021 

work that has led to families from larger population centres, moving to the region. 

returns; 

Percentage Looking however, forward, a of major employment population increase in is the not growth economic expected. may base rise modestly as international 22% immigration 21% 21% 

returns; however, a major increase is not expected. 

Employment 

2016 2019 2021 

20 KOOTENAY 

Percentage of employment in the economic base 22% 21% 21% 

Photo Credit: CHBACO 

Vacation Construction

Employment 

Percentage 

of employment in 

the economic base 

2016 2019 2021 

22% 21% 21% 

The economic base of the Kootenay region 

comprises forestry, mining, resource related 

manufacturing and tourism. Between 2016 

and 2019 overall employment grew modestly 

due to increases in employment in public 

services such as health care and education. 

Overall employment declined during the 

pandemic, but these declines were less pronounced than in other regions. 

As of August 2022, overall employment is close to pre-pandemic levels. Employment in 

Transportation and Accommodation Services sits well below pre-pandemic levels, while 

employment in other tourism related sectors is comparable to pre-pandemic levels. 

Northside Industries 

Photo Credit: City of 

Kelowna, Michael Hintringer 

KOOTENAY 

21




Category 

2016 

Total with 

Employees 

2019 

Total with 

Employees 

2021 

Total with 

Employees 

Trend 

Goods-Producing Sector 1,505 1,532 1,572 Stable 

Agriculture, Forestry, Fishing & Hunting 326 307 316 Stable 

Construction 884 925 948 Growing 

Manufacturing (31-33) 223 237 239 Growing 

Mining & Oil & Gas Extraction 51 41 44 Declining 


Service-Producing Sector 4,433 4,663 4,627 Stable 

Accommodation & Food Services 527 555 525 Stable 

Admin. & Support, Waste Mgmt. & Remediation 209 240 245 Growing 

Arts, Entertainment & Recreation 172 179 168 Stable 

Educational Services 56 65 72 Growing 


Health Care & Social Assistance 577 631 659 Growing 

Information & Cultural Industries 82 92 87 Stable 

Management of Companies & Enterprises 10 14 12 Stable 

Other Services (excl. Public Administration) 534 562 539 Stable 

Professional, Scientific & Technical Services 483 489 512 Growing 

Public Administration 63 59 61 Stable 

Real Estate & Rental & Leasing 275 290 265 Stable 

Retail Trade (44-45) 851 885 885 Stable 

Transportation & Warehousing (48-49) 256 271 260 Stable 


Total 5,938 6,195 6,199 Stable 

22 KOOTENAY



Transportation & Warehousing (48-49) 256 271 260 Stable 


Total 5,938 6,195 6,199 Stable 


Business Formation Trends 


Business Formations, 2014 to 2021 

1,000 

800 

133 

600 

400 

200 

0 

76 

87 

458 

250 

278 

183 212 

281 

Avg. 14-16 Avg. 17-19 2021 

Central Kootenay East Kootenay Kootenay-Boundary 


Bankruptcies – 2016, 2019, 2021 

Geography 2016 2019 2021 

Bankruptcy Trends 



British Columbia 5,582 Average Average 4,117 2,172 

Geography 

2021 

2014-16 2017-19 

Kootenay 215 152 83 

CONSUMER BANKRUPTCIES 


British Columbia 5,582 4,117 2,172 

British Columbia 

Kootenay 

168 

215 

94 

152 83 

49 

Kootenay BUSINESS BANKRUPTCIES 

2 1 7 

Source: British Office Columbia of the Superintendent of Bankruptcy Canada 168 94 49 

Kootenay 2 1 7 

26 

The number of businesses in the Kootenay region remained relatively stable from 

2016 to 2021. Growth in migration among the working age population is reflected in 

increasing numbers of businesses in the professional services, education, construction 

and manufacturing sector. 

Business formations in the Kootenay region trended upwards from 2014 to 2019, before 

increasing more rapidly through 2021 largely driven by the East Kootenay region. 

Consumer bankruptcies declined from 2014 to 2019, and then further declined through 

2021. This is consistent with the government support measures that were available 

including the CERB, CEWS and mortgage deferral options. Business bankruptcies 

remain relatively minimal in the region, though a lapsing of pandemic-related 

government support measures may have contributed to the slight increase in 2021. 

Moving forward, there is not expected to be a significant increase in personal 

bankruptcies due to high rates of employment and tight labour market conditions putting 

upward pressure on wages. While there is an increased risk of default on mortgages as 

interest rates rise, stress tests introduced in 2018 are likely to mitigate the risk. 

KOOTENAY 

23

Mining 

Operating mines = 4 metallurgic coal mines 

Smelting facilities = 1 zinc smelting facility 

Proposed mines = 2 metal, 3 coal and 1 industrial mine 

There are four metallurgical coal mines operating in the Elk Valley, which produce coal 

used in steel-making. These mines account for the majority of Canada’s coal production 

and exports. 14 There are also two proposed coal mines in the region which are in the preapplication 

stage of the environmental assessment process. 

Mining activity in the region has been relatively stable due to sustained demand for 

metallurgic coal. In 2022, Russia’s invasion of Ukraine resulted in sanctions on Russian 

commodities which increased coal prices and has led to an expectation of increased demand 

for North American production in the near term. This will support ongoing operations in the 

region, but there is not expected to be a significant increase in mining activity in the region. 

Tourism 

Tourism in the Kootenay region is primarily driven by outdoor recreation. In the winter 

visitors from the US, Alberta and the Lower Mainland come for skiing, snowmobiling and 

backcountry pursuits. In the summer camping, hiking and mountain biking draw visitors 

from other parts of BC and Alberta. Prior to the pandemic communities in the region were 

making investments in developing year-round recreation opportunities to attract visitors. 

As with other parts of the Southern Interior, visitation during the pandemic did not decline 

significantly. However, those businesses targeted primarily at international visitors such as 

heli-skiing struggled. 

Group of heli-skiers riding down a slope near Mica Heli Skiing Lodge. 

Credit: Destination BC/Blake Jorgenson 

14 

Hancock, Kirk. Exploration and Mining in the Southeast Region, British Columbia. Information Circular 2022-01. 

24 KOOTENAY

the pandemic communities in the region were making investments in developing year-round recreation 

the pandemic communities in the region were making investments in developing year-round recreation 

opportunities to attract visitors. As with other parts of the Southern Interior, visitation during the 

opportunities to attract visitors. As with other parts of the Southern Interior, visitation during the 

pandemic did not decline significantly. However, those businesses targeted primarily at international 

pandemic did not decline significantly. However, those businesses targeted primarily at international 

visitors such as heli-skiing struggled. 

visitors such as heli-skiing struggled. 

Agriculture Agriculture 

Agriculture 

Farm Farm Count Count – Crop – Crop Production, Production, 2016 and 2016 2021 and 2021 

Farm Count Crop Production, 2016 and 2021 

500 

500 

400 

400 

300 

300 

200 

200 

100 

100 

0 

0 

107 117 

107 90 117 101 

90 101 

406 

406 

340 

340 

Vegetable and melon farming Fruit and tree nut farming Other crop farming 


2016 2021 

2016 2021 


Table: 32-10-0231-01 

and Table: 32-10-0403-01. 

Radium, BC Farmer’s Market 

Credit: Alison Bell 





Farm Count Animal Production, 2016 and 2021 

500 

500 

400 

400 

300 

300 

200 

200 

100 

100 

0 

0 

207 

207 

210 

210 

Cattle ranching and farming 


2016 2021 

2016 2021 



320 

320 


Table: 32-10-0231-01 

and Table: 32-10-0403-01. 

276 

276 

Other animal production 


The Kootenay region’s mountainous terrain is 

generally not conducive to large scale agriculture, 

and as a result there are relatively fewer farms in the 

region than in other parts of the Southern Interior. 

Central Kootenay has the largest number of farms 

in the Kootenay region. These farms are primarily 

engaged in fruit and tree nut farming, hay farming, 

cattle production, and horse and equine production. 

Much like in the rest of the province, the total 

number of farms in the Kootenay region declined 

between 2016 and 2021. The number of farms 

engaged in crop production fell by 16%, led by 

declines in hay farming and horse and equine 

production. 

28 

28 

KOOTENAY 

25

Forestry 

The forest sector in the Kootenay region is 

primarily focused on primary production. It 

accounts for approximately 37% of the lumber 

capacity and two-thirds of pulp capacity in 

the Southern Interior. Other products include 

chips, engineered panel products, poles, utility 

poles and posts. Production and capacity in 

the region was relatively stable between 2016 

and 2021. 

Approximately 3,500 people are employed in 

harvesting and production in the region. There 

is one old-growth deferral area in the region. 

Count 


In the near term there is some indication that 

production will decline in 2022 and the outlook for 2023 is uncertain. Canfor, which operates 

three lumber mills accounting for almost 60% of lumber capacity in the region announced 

reductions in operating schedules at across its BC operations from the end of September 

through the remainder of 2022 due to reductions in market demand. 15 



Capacity 


Provincial 

Capacity 

Lumber Mills 15 37% 10% 


Pulp and Paper 2 66% 12% 

Chip 1 13% 3% 


15 

Canfor. Canfor Reducing Production Capacity in British Columbia Through End of 2022. September 19, 2022. Available here: 

https://www.canfor.com/docs/default-source/news-2022/nr2022-09-19_canfor-reducing-production-capacity-in-britishcolumbia-through-end-of-2022.pdf?sfvrsn=b69ce191_2 

26 KOOTENAY


Median Single-Family Home Prices, 2016 to 2022 

Source: BCREA 


$1,000,000 

$800,000 

$600,000 

$400,000 

$200,000 

$0 

Cranbrook Nelson Rossland 


Source: BCREA 

Average 

Housing 

Rental 

price 

Price, 

growth 

October 

in 

2021 

the Kootenay region varied significantly by community 

between 2016 and 2019, as well as during the pandemic and into 2022. It is important 

Area 

Two Bedroom Apartment 

to note that median sales prices in many Kootenay region communities represent a 

Cranbrook relatively small number of transactions, compared $944 to larger urban centres like Kelowna 

Nelson and Kamloops. Consequently, they can change $1,103 significantly from period to period as a 

result of the composition of inventory and should be interpreted with caution. 

Source: CMHC Housing Market Information Portal 

Housing price growth in the Kootenay Communities region varied like Cranbrook, Nelson and Castlegar 

Housing Supply 

Average significantly Rental Price, by community October 2021 between 2016 and experienced 2019, as well slow, positive growth rates between 

as during the pandemic and into 2022. It is 2016 important and 2019, to while The rate Kimberley of population and Rossland growth in the 

Area note that Two median Bedroom sales Apartment prices in many Kootenay experienced region annual Kootenay growth region rates outpaced between that 14% of its 

communities represent a relatively small number of housing stock by 2.8 percentage 

Cranbrook $944 

and 18%. 16 During the pandemic, housing prices in 

transactions, compared to larger urban Castlegar centres and like Trail 

points 

both 

from 

accelerated, 

2016 to 2021. 

and growth 

Nelson $1,103 

Kelowna and Kamloops. Consequently, they rates can were change among Source: the highest Statistics Canada, in the Census Southern 2016 and 

significantly from period to period as a result of the 2021 

Source: CMHC Housing Market Information Portal Interior. In 2022, many Kootenay communities 

composition of inventory and should be interpreted with 

experienced continued strong growth in housing 

caution. 

prices, despite higher interest rates and subdued 

Communities like Cranbrook, Nelson and Castlegar demand experienced in other parts slow, of positive the province. growth rates The between relative 2016 

and 2019, while Kimberley and Rossland experienced affordability annual of growth most communities rates between in 14% the and region 18%. 16 During 

the pandemic, housing prices in Castlegar and 

may 

Trail 

be 

both 

linked 

accelerated, 

to the continued 

and growth 

demand. 

rates were 

Looking 

among the 

Housing highest Supplyin the Southern Interior. In 2022, many Kootenay communities experienced continued strong 

forward, housing prices are expected to stabilize as 

growth in housing prices, despite higher interest rates and subdued demand in other parts of the 

The rate 

province. 

of population 

The relative 

growth 

affordability 

in the higher interest rates continue to limit demand and 

of most communities in the region may be linked to the continued 

Kootenay population levels grow moderately. 

demand. region Looking outpaced forward, that of housing its prices are expected to stabilize as higher interest rates continue to 

housing limit stock demand by 2.8 and percentage population points levels grow moderately. On the rental side, limited supply due to shortterm 

rentals and increased demand from 

from 2016 to 2021. 

Source: Statistics Canada, Census 2016 and 2021 families shifting away from purchasing homes is 

expected to push up prices. Central 1 expects an 

16 

BCREA. 

approximate 7% increase in rental rates in 2023 

across BC, followed by a 5% increase in 2024. 17 

30 

17 


KOOTENAY 

27

On the rental side, limited supply due to short-term rentals and increased demand from families shifting 

away 

THOMPSON-COLUMBIA 

On the from rental purchasing side, limited homes supply is expected due to short-term to push up rentals prices. Central and increased 1 expects demand approximate from families 7% increase shifting 

in away The rental from Thompson-Columbia rates purchasing 2023 across homes region BC, is expected followed is the to largest by push a 5% up geographic increase prices. Central in 2024. region 1 17 

expects in the an Southern approximate Interior, 7% increase 

Thompson-Columbia 

in stretching rental rates from in 2023 Merritt across to the BC, Alberta followed border by a 5% and increase north to in 2024. the Wells 17 Gray provincial park. It 

comprises the Columbia-Shuswap and Thompson Nicola regional districts. Kamloops is the 

The Thompson-Columbia 

largest urban centre in the region region is the with largest approximately geographic half region of the in the region’s Southern population. Interior, stretching from 

Merritt The Thompson-Columbia to the Alberta border region and is the north largest to the geographic Wells Gray region provincial the park. Southern It comprises Interior, stretching the Columbia- from 

Merritt Shuswap to and the Thompson Alberta border Nicola and regional north districts. to the Wells Kamloops Gray is provincial the largest park. urban It comprises centre in the region Columbia- with 

Population 

Shuswap approximately and Thompson half of the Nicola region’s regional population. districts. Kamloops is the largest urban centre in the region with 

approximately half of the region’s population. 

Population Growth Rate, Thompson-Columbia, 2017 to 2021 

Population 


Growth Rate, Thompson-Columbia, 2017 to 2021 

Population 3.0% Growth Rate, Thompson-Columbia, 2017 to 2021 

3.0% 2.5% 

2.5% 2.0% 

2.0% 1.5% 

1.5% 1.0% 

0.5% 1.0% 

0.5% 0.0% 

0.0% 

1.8% 

2.3% 

Source: BC Stats 2017 Population Estimates 2018 2019 2020 2021 

1.4% 


Total Population, Thompson-Columbia, 2016, 2016, 2019, 2019, 2021 2021 


Total 300,000 Population, Thompson-Columbia, 2016, 2019, 2021 

300,000 

250,000 

250,000 

200,000 

200,000 

150,000 

150,000 

100,000 

100,000 

50,000 

50,000 

0 

0 

1.8% 

Source: BC Stats Population 2016 Estimates 2019 2021 

0.9% 0.9% 

2017 2018 2019 2020 2021 

191,562 

191,562 

2.3% 

1.4% 

202,265 205,856 

202,265 205,856 

2016 2019 2021 

0.9% 0.9% 


The Thompson-Columbia region was among the fastest growing areas in BC from 2016 to 2019, before 

The growth The Thompson-Columbia moderated during region the region COVID-19 was was among among pandemic. the the fastest fastest Between growing growing 2016 areas areas and in 2019, in BC BC from growth from 2016 2016 in to the 2019, Kamloops before 

growth region to 2019, was moderated before largely growth during driven moderated the by COVID-19 intraprovincial during pandemic. the migration COVID-19 Between pandemic. 2016 to a and lesser Between 2019, extent growth 2016 interprovincial and 

the Kamloops and 

international region 2019, growth was largely immigration. in the driven Kamloops During by intraprovincial region the pandemic, was largely migration international driven and by immigration intraprovincial to a lesser was extent migration largely interprovincial non-existent and while and 

international intraprovincial to a lesser extent immigration. migration interprovincial also During fell. the Interprovincial and pandemic, international international migration immigration. to immigration the During Kamloops the was area pandemic, largely increased non-existent during while the 

intraprovincial international migration immigration also was fell. largely Interprovincial non-existent migration while intraprovincial to the Kamloops migration area increased also fell. during the 

17 Interprovincial Central 1. B.C. Housing migration Market Outlook: to the 2022 Kamloops – 2024. June area 2022. increased during the pandemic, largely 

17 among the working age population, which contributed to an overall stabilization of 


31 

population growth in the region. 

31 

Looking forward, as international immigration returns to pre-pandemic levels, the 

Thompson-Columbia’s population growth rate is expected to increase. Additionally, the 

relative affordability of Kamloops, compared to other major urban centres in BC, may also 

result in further migration to the region. 

28 THOMPSON-COLUMBIA

Employment 

Percentage 

of employment in 

the economic base 

2016 2019 2021 

22% 20% 21% 

The economic base of the Thompson- 

Columbia region comprises forestry, mining, 

agriculture and tourism. The share of 

employment accounted for by sectors in 

the economic base has declined marginally 

due to growth in employment in services to 

support the growing population. Within the 

economic base employment in forestry harvesting has declined in line with harvesting 

activity, while there has been growth in food and beverage manufacturing. 

As of 2022 overall employment is consistent with pre-pandemic levels. However the 

hospitality and construction sectors have been slow to recover. This may be due in part 

to flooding in November 2021 that damaged infrastructure and housing in affected 

communities. 




Category 

2016 

Total with 

Employees 

2019 

Total with 

Employees 

2021 

Total with 

Employees 

Trend 

Goods-Producing Sector 1,814 1,835 1,808 Stable 

Agriculture, Forestry, Fishing & Hunting 465 408 392 Declining 

Construction 1,022 1,095 1,083 Growing 

Manufacturing (31-33) 274 274 274 Stable 

Mining & Oil & Gas Extraction 38 44 45 Growing 


Service-Producing Sector 5,502 5,619 5,586 Stable 

Accommodation & Food Services 678 681 667 Stable 

Admin. & Support, Waste Mgmt. & Remediation 311 325 321 Stable 

Arts, Entertainment & Recreation 149 170 161 Growing 

Educational Services 77 77 64 Declining 


Health Care & Social Assistance 702 755 832 Growing 

Information & Cultural Industries 74 94 93 Growing 

Management of Companies & Enterprises 14 21 18 Stable 

Other Services (excl. Public Administration) 637 665 647 Stable 

Professional, Scientific & Technical Services 619 616 643 Stable 

Public Administration 63 53 53 Declining 





Total 7,316 7,454 7,394 Stable 


29



Total 7,316 7,454 7,394 Stable 


Business Formations, 2014 Trends to 2021 


1,500 

1,000 

500 

237 

290 

598 630 

429 

859 

0 

Avg. 14-16 Avg. 17-19 2021 

Thompson-Nicola 

Columbia-Shuswap 

Source: BC Stats. Business Incorporations by Region. 

Bankruptcies – 2016, 2019, 2021 

Geography 2016 2019 2021 

Bankruptcy Trends 



British Columbia 4,719 Average 4,134 Average 

2,172 

Geography 

2021 

Thompson - Okanagan 770 2014-16 2017-19 621 312 

CONSUMER BANKRUPTCIES 


British Columbia 5,582 4,117 2,172 

British 

Thompson-Okanagan 

Columbia 149 

770 621 

90 

312 

49 

Thompson - Okanagan BUSINESS 23 BANKRUPTCIES 10 35 

Source: Office British of Columbia the Superintendent of Bankruptcy Canada 168 94 49 

The number Thompson-Okanagan of businesses in the Thompson-Columbia 23region trended 10upwards from 352016 to 2019, as 

population levels increased. Between 2019 and 2021, the number of businesses stabilized as population 

growth moderated. The tourism, recreation, construction and healthcare sectors experienced overall 

growth from 2016 to 2021. However, difficult economic conditions for natural resources sectors, 

The number of businesses in the Thompson-Columbia region trended upwards from 2016 

to 2019, as population levels increased. Between 2019 and 2021, the number of businesses 

stabilized as population growth moderated. The tourism, recreation, construction and 

healthcare sectors experienced overall growth from 2016 to 2021. However, difficult 

economic conditions for natural resources sectors, particularly forestry, is reflected in 

declining number of businesses in the agriculture/forestry and transportation sectors. 

Business formations trended upwards in the Thompson-Nicola region between 2014 and 

2021. In the Columbia-Shuswap region, business incorporations were largely stable from 

2014 to 2019, before growing rapidly through 2021. 

Consumer bankruptcies declined from 2014 to 2019, and then further declined through 

2021. This is consistent with the government support measures that were available 

including the CERB, CEWS and mortgage deferral options. Business bankruptcies remain 

relatively minimal in the region, though a lapsing of pandemic-related government support 

measures may have contributed to the slight increase in 2021. 

Moving forward, there is not expected to be a significant increase in personal bankruptcies 

due to high rates of employment and tight labour market conditions putting upward 

pressure on wages. While there is an increased risk of default on mortgages as interest rates 

rise, stress tests introduced in 2018 are likely to mitigate the risk. 

33 

30 THOMPSON-COLUMBIA

Forestry 

Count 



Capacity 



Provincial 

Capacity 

Lumber Mills 13 30% 8% 


Pulp and Paper 1 34% 6% 

Chip 2 68% 18% 


Shake and Shingle 1 100% 1% 

The Thompson-Columbia region has the most 

diversified forest industry in the Southern 

Interior. Products produced in the region include 

lumber, pulp, engineered wood products, chips, 

poles and posts. In 2016 the Tolko lumber mill 

in Merritt closed and since then a number of 

smaller lumber mills have also closed, resulting 

in a reduction in overall lumber capacity in the 

region. 

As of 2022, just over 5,000 people are employed 

in harvesting and production. Three of the 

four old-growth deferral areas in the Southern 

Interior are in the Thompson-Columbia. This has 

led to slowdowns in harvesting and production 

in affected areas and has created uncertainty 

about the outlook longer-term. 

Fibre supply constraints have led to 

reductions in forestry production and 

employment. Old-growth deferrals 

announced in November 2021 have led 

to further slowdowns in the Thompson- 

Columbia and have created uncertainty 

about the outlook longer-term. 

Mining 

Operating mines = 2 copper mines and 1 mine producing copper and gold. 

The Thompson-Columbia region is the most productive copper mining region in Canada. 

In addition, Kamloops is a service hub for BC’s mining industry. 

Post-pandemic there is expected to be an increase in industrial production as economies 

recover and this has led to increases in commodity prices. In addition, copper, cobalt, 

nickel, and rare earth metals are key inputs into batteries for electric cars and demand 

for them has increased. This has led to increased exploration activity in BC. In the 

Thompson-Columbia most exploration activity has been focused on copper and gold. 


31

exploration activity in BC. In the Thompson-Columbia most exploration activity has been focused on 

copper and gold. 

Tourism Tourism 

Hotel Tourism Occupancy in the Thompson-Columbia region is primarily related to 

outdoor recreation Annual and draws visitors Jan from - Jun other parts of BC and 

Alberta. There 2016 are also some 2019 US and 2019 international 2022 visitors that 

Kamloops come for attractions 56.7% such 64.5% as Yoho 62% National Park 72.3% and backcountry 

Revelstoke experiences in the Rocky not available Mountains. In the summer 60.0% fishing, camping, 

Golden mountain biking and not hiking available are the main activities, 55.0% while in the winter 

it is snowmobiling and skiing. 


Tourism Travel restrictions in the Thompson-Columbia during the pandemic region led is to primarily an increase related in to domestic outdoor recreation and draws visitors 

from visitation other to parts the of region. BC and This Alberta. extended There into are the also winter some season US and international through visitors that come for 

attractions the summer such of as 2021. Yoho As National a result, communities Park and backcountry such as Revelstoke experiences and in Golden the Rocky did Mountains. not see In the 

summer significant fishing, declines camping, visits mountain to seasonal biking attractions and hiking such are as the ski main hills or activities, snowmobiling while in sites. the winter it is 

snowmobiling There was also and an skiing. increase in the use of outdoor recreation sites by local residents. While 

Travel visitation restrictions to attractions during was the strong, pandemic spending led to patterns an increase were in affected domestic by visitation restrictions to on the the region. This 

extended operation into of restaurants. the winter season Visitors and were through more likely the summer to purchase of 2021. food As at a grocery result, communities stores or bring such as 

Revelstoke groceries and with Golden them which did not negatively see significant affected declines restaurants in visits in to the seasonal region. attractions such as ski hills or 

snowmobiling sites. There was also an increase in the use of outdoor recreation sites by local residents. 

In the first six months of 2022, hotel occupancy rates were above 2019 levels 

While visitation to attractions was strong, spending patterns were affected by restrictions on the operation 

which suggest visitation has remained elevated. 

of restaurants. Visitor were more likely to purchase food at grocery stores or bring groceries with them 

which negatively affected restaurants in the region. 

In the first six months of 2022, hotel occupancy rates were above 2019 levels which suggest visitation has 

remained Agriculture elevated. 

Agriculture 

Farm Count – Crop – Crop Production, 2016 2016 and 2021 and 2021 

Hotel Occupancy Rates 


Table: 32-10-0231-01 

and Table: 32-10-0403-01. 

ANNUAL 

JAN - JUN 

2016 2019 2019 2022 

Kamloops 56.7% 64.5% 62% 72.3% 

Revelstoke NOT AVAILABLE 60.0% 

Golden NOT AVAILABLE 55.0% 


500 

400 

300 

377 

383 

200 

100 

81 87 

69 

60 

0 


2016 2021 





Table: 32-10-0231-01 

and Table: 32-10-0403-01. 

800 

600 

400 

474 

393 

548 

482 

35 

200 

0 



2016 2021 

Source: 32 THOMPSON-COLUMBIA 

Statistics Canada. Table: 32-10-0231-01 and Table: 32-10-0403-01. 

Agriculture in the Thompson-Columbia region is characterized by cattle ranching/farming, horse and

600 

400 

474 

393 

548 

482 

200 

Agriculture in the Thompson-Columbia region is characterized by cattle ranching/ 

0 

farming, horse Cattle and ranching equine and production, farming and hay farming. Other The animal total production number of farms 

in the region declined by 9% from 2016 to 2021, led by a 17% decline in the number 

2016 2021 

of cattle ranches/farms. The number of farms engaged in crop production remained 

largely stable between 2016 and 2021 in the Thompson-Columbia region. 


Agriculture in the Thompson-Columbia region is characterized by cattle ranching/farming, horse and 

equine production, and hay farming. The total number of farms in the region declined by 9% from 2016 

to 2021, led by a 17% decline in the number of cattle ranches/farms. The number of farms engaged in 


crop production remained largely stable between 2016 and 2021 in the Thompson-Columbia region. 




Source: BCREA 


$1,000,000 

$800,000 

$600,000 

$400,000 

$200,000 

$0 

Kamloops 


Shuswap/Revelstoke 

Source: BCREA 

Average Rental Price, October 2021 Real estate prices in the Thompson-Columbia 

Average Rental Price, October 2021 region experienced growth from 2016 to 2019, as 

Area 

Two Bedroom Apartment 

population growth in the region outpaced growth 

Area Kamloops Two Bedroom Apartment 

$1,235 

in the housing stock. Much like in the rest of the 

Salmon Arm $1,041 

Kamloops $1,235 

Southern Interior, housing prices accelerated in 

Source: CMHC Housing Market Information Portal 

2020 and into 2021 due to strong demand. 

Salmon Arm $1,041 

In 2022, housing prices declined in the Shuswap/ 

Source: CMHC Housing Market Information Portal Revelstoke region and fell back to long-term 

growth rates in Kamloops. This likely reflects 

rising inflation and the corresponding increase in 

interest rates, as well as the return to in-person 

work, limiting vacation property purchases in the 

Shuswap/Revelstoke region. 


Housing supply in the Thompson- 

Columbia region grew by 4.7 percent 

between 2016 and 2021. 

Source: Statistics Canada, Census 2016 and 2021 

On the rental side, limited supply due to shortterm 

rentals and increased demand from 

families shifting away from purchasing homes is 

expected to push up prices. Central 1 expects an 

approximate 7% increase in rental rates in 2023 

across BC, followed by a 5% increase in 2024. 18 

36 

18 



33

egion and fell back to long-term growth rates in Kamloops. 2021 

This likely reflects rising inflation and the corresponding 

increase in interest rates, as well as the return to in-person 

work, limiting vacation property purchases in the Shuswap/Revelstoke region. 

On HOPE-FRASER the rental side, limited VALLEY supply due to short-term rentals and increased demand from families shifting 

away The from Hope-Fraser purchasing Valley homes region is is expected the smallest to push region up in prices. the Southern Central 1 expects an approximate 7% increase 

in Interior rental rates both in geographically 2023 across and BC, followed by population. by a 5% It comprises increase the in 2024. District 18 


well as the two most eastern electoral districts in the Fraser Valley 

Hope-Fraser Valley 

(Fraser Valley A and Fraser Valley B). It is bordered by the Lower Mainland 

in the west, the Okanagan The Hope-Fraser and Thompson-Columbia Valley region regions is the smallest in the east region in the Southern Interior both 

and the US to the south. geographically Hope is the and largest by and population. only major It population comprises the District of Hope as well as the 

centre in the region. two most eastern electoral districts in the Fraser Valley (Fraser Valley A and Fraser 

Hope is a service centre Valley for B). those It travelling is bordered between by the the Lower Mainland in the west, the Okanagan and 

and the rest of Canada. Thompson-Columbia It is also the base of regions operations in the for east highway and the US to the south. Hope is the largest 

maintenance operations and for only the major Highway population 3, Highway centre 5 and in sections the region. of 

Highway 1 through the Fraser Canyon. 

Hope is a service centre for those travelling between the Lower Mainland and the 

rest of Canada. It is also the base of operations for highway maintenance operations 

Population for the Highway 3, Highway 5 and sections of Highway 1 through the Fraser Canyon. 

6 Credit BC Route 7 

Population 

Source: BC Stats 

Population Growth Rate, Hope-Fraser Valley, 2017 to 2021 

Population Estimates 

Population Growth Rate, Hope-Fraser Valley, 2017 to 2021 

3.0% 

2.5% 

2.0% 

1.5% 

1.0% 

0.5% 

0.0% 

-0.5% 

-1.0% 

2.6% 

2.8% 

0.4% 

-0.5% 

1.3% 

2017 2018 2019 2020 2021 


Total 

Total 

Population, 

Population, 

Hope-Fraser 

Hope-Fraser 

Valley, 

Valley, 

2016, 

2016, 2019, 2021 

2021 

20,000 

Source: BC Stats 

Population Estimates 

15,000 

18 


10,000 

7,708 8,161 8,223 

37 

5,000 

0 

2016 2019 2021 


The population of of the the Hope-Fraser Valley Valley region grew grew modestly between 2016 2016 and and 2021, 2021, with a growth 

rate with (6%) a growth slightly rate below (6%) that slightly of the below province that as of a whole the province (7.3%). The as a region whole experienced (7.3%). The growth region in line with 

the experienced province as growth a whole in line from with 2016 the to province 2019, before as a whole the region’s from 2016 population to 2019, stabilized before the throughout the 

COVID-19 region’s population pandemic. stabilized throughout the COVID-19 pandemic. 

34 HOPE-FRASER VALLEY 

Business Environment


Business Counts – 2019 


Category 2019 

Total with Employees 

Goods-Producing Sector 50 

Agriculture, Forestry, Fishing & Hunting 16 

Construction 26 

Manufacturing (31-33) 8 

Mining & Oil & Gas Extraction 0 

Utilities 0 

Service-Producing Sector 207 

Accommodation & Food Services 46 

Administration & Support, Waste Management & Remediation 8 

Arts, Entertainment & Recreation 4 

Educational Services 5 

Finance & Insurance 6 

Health Care & Social Assistance 15 

Information & Cultural Industries 7 

Management of Companies & Enterprises 

Other Services (excl. Public Administration) 

1 

31 

Other Services (excl. Public Administration) 31 

Professional, Scientific Scientific & Technical & Technical Services Services 15 

15 

Public Public Administration 9 

9 

Real Estate & Rental & Leasing 

Real Estate & Rental & Leasing 

13 

13 

Retail Trade (44-45) 34 

Retail Trade (44-45) 

Transportation & Warehousing (48-49) 11 

34 

Transportation Wholesale Trade & Warehousing (48-49) 2 

11 

Wholesale Total Trade 257 

2 

Total 257 


Business Formations, 2016, 2019, Trends 2021 

Source: BC Stats. Business 

Incorporations by Region. 

50 

40 

30 

20 

10 

0 

17 17 18 

Avg. 14-16 Avg. 17-19 2021 

Source: 

Data 

BC 

were 

Stats. 

not 

Business 

available 

Incorporations 

for multiple 

by Region. 

years of business counts in the Hope-Fraser Valley 

region. The business counts reflect the key industries in the region, and the District of 

Data were not available for multiple years of business counts in the Hope-Fraser Valley region. The 

Hope’s function as a transportation hub connecting the Lower Mainland to Interior BC. 

business counts reflect the key industries in the region, and the District of Hope’s function as a 

Accommodation and food services and retail trade businesses are the largest sectors 

transportation hub connecting the Lower Mainland to Interior BC. Accommodation and food services and 

retail in the trade region, businesses in terms are of the business largest counts. sectors Business the region, formations in terms in the of business region remained counts. Business 

formations largely stable in the from region 2014 remained through largely 2021, stable as from the region’s 2014 through population 2021, as grew the region’s only moderately. 

population grew 

only moderately. 

Agriculture 

Hope 

Farm Count – Crop and Animal Production, 2016 and 2021 

HOPE-FRASER VALLEY 

35

Agriculture 

Farm Count – Crop and Animal Production, 2016 and 2021 


Table: 32-10-0231-01 

and Table: 32-10-0403-01. 

20 

18 

16 

14 

12 

10 

8 

6 

4 

2 

0 

18 

17 

15 

15 

9 

10 

Crop Production Cattle ranching and farming Other animal production 

2016 2021 


The area around Hope is largely characterized by mountainous terrain, though there are a 

The limited area around number Hope of cattle is largely ranches/farms characterized and by some mountainous vegetable/melon terrain, though farming there as are well. a limited Much number 

of like cattle in other ranches/farms regions in and BC, some the number vegetable/melon of farms farming the Hope-Fraser well. Much Valley like in region other regions declined in BC, the 

number 

between 


2016 

farms 

and 


2021. 

Hope-Fraser 

This may 

Valley 

be related 

region 

to 

declined 

rising real 

between 

estate 

2016 

prices 

and 

in 

2021. 

the Fraser 

This may be related 

rising real estate prices in the Fraser Valley that have led to farmers to sell their land and the aging 

Valley that have led to farmers to sell their land and the aging agricultural workforce. 

agricultural workforce. 

Housing 



$1,000,000 

$800,000 

$600,000 

$400,000 

$200,000 

$0 

Hope & Area 


Source: BCREA 

40 

36 HOPE-FRASER VALLEY

of cattle ranches/farms and some vegetable/melon farming as well. Much like in other regions in B 

number of farms in the Hope-Fraser Valley region declined between 2016 and 2021. This may be r 

rising real estate prices in the Fraser Valley that have led to farmers to sell their land and the 

agricultural workforce. 

Housing 

Housing 

Median Median Single-Family Single-Family Home Home Prices, Prices, 2016 2016 to 2022 to 2022 

Source: BCREA 


$1,000,000 

$800,000 

$600,000 

$400,000 

$200,000 

$0 

Hope & Area 


Source: BCREA 


Housing supply in the Hope-Fraser 

Valley declined by 0.9 percent 

between 2016 and 2021. 

Source: Statistics Canada, Census 2016 and 2021 

Housing prices in the Hope area followed a similar 

path to much of the rest of the Southern Interior. 

The region experienced modest growth between 

2016 and 2019 before accelerating in the second 

half of 2020 and into 2021. However, the Hope 

area did experience a price correction in 2022 as 

demand faded across the province, 

HOPE-FRASER VALLEY 

37

State of the Southern Interior Region

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