BCBusiness

JUNE 2019 BCBUSINESS 15 G O F I G U R E 19,243 Tourism businesses operating in B.C., 2017 302,700 Tourism industry jobs 106,000 Job openings expected by 2028 I t's been more than a year since the B.C. government introduced a spate of policies aimed at cooling the provincial housing market, among them an increase to the foreign buyer's tax and a speculation and vacancy tax. These changes, combined with a nationwide mortgage stress test and strict Chinese capital controls, have poured a bucket of cold water on a once-sizzling property market. As of March, home sales in B.C. had fallen 23 percent year- over-year, according to the Canadian Real Estate Associa- tion, making for the slowest March since 2013 and putting sales 54 percent o– their peak in 2016. If Metro Vancouver— which posted the weakest April home sales since 2000—is a bellwether for the rest of the province, the mar- ket will continue to slow. As a result, the drop in sales activity and the rise in list- ings across B.C. keep putting downward pressure on prices. In March, the average provin- cial sale price dipped 5 percent compared to the previous year, marking the 11th straight nega- tive month, the longest losing streak since 2013. The provincial govern- ment's e–orts to curb runaway housing prices are certainly warranted, but the recent slowdown will come with repercussions. New develop- ment projects are already struggling to attract buyers, so housing starts are about to hit the skids. This will mean more pink slips for those who work in construction, which employs about 9 percent of the pro- vincial workforce, Statistics Canada reports. Government co–ers, long addicted to real estate–related revenue, will also feel the brunt of the housing slump. Property transfer tax makes up more than 4 percent of Victoria's total annual take, having doubled its share over the past decade. Last year alone, property transfer tax reached a record high of more than $2 billion. In other words, real estate runs this province, so no wonder nearly 5 million British Columbians are watching in awe as the property market tumbles into troubling territory. Whether you like it or not, whether you rent or own, we're all in this together now. Volume Discount Government attempts to curb runaway B.C. housing prices are having the desired eect—and bringing unintended consequences for the province by Steve Saretsky P R OP E R T Y WAT C H $324 Average summer rate for a room in a Vancouver hotel with three or more stars 2ND HIGHEST in Canada, after Banff Average summer rate in Toronto: $156 C A N A D I A N S P O R T T O U R I S M A L L I A N C E , B U D A N D B R E A K FA S T.C O M , C A N N AT O U R S; I L L U S T R AT I O N: K A G A N M C L E O D 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Cash Cow Annual property transfer tax paid to the provincial government has more than doubled over the past decade, to some $2 billion 0 500 1,000 1,500 2,000 $2,500 PAY TO PLAY Finance Minister Carole James has taxed speculators and foreign buyers 401 Indigenous tourism businesses in B.C. +33% since 2014 7,400 direct full-time jobs $705 million direct gross domestic output 84,961,000 VISITOR NIGHTS IN B.C., 2017 $1.35 billion Value of sports tourism in B.C., 2017 2,310,000 people participated in sports tourism in the province that year Pot-friendly B&Bs listed in B.C. on Airbnb competitor Budandbreakfast.com 15 $ M I L L I O N S S O U R C E : B C S TAT S

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