By Sarah Pugh

All neighbourhoods have their own character, but what about their own economies? With all the bad press the worldwide economy has been getting lately, now is a good time to examine our own local economy.

James Bay is unique among Victoria neighbourhoods in that it is extremely well-defined geographically. Bounded on three sides by the ocean and on the fourth by Beacon Hill Park, there is no doubt about what is part of James Bay and what isn’t. The neighbourhood is also well-defined in its economic sectors, with the primary employers in the area being government and tourism. The flip side of being well-defined, of course, is that there is no complete, self-contained economy. There are restaurants and groceries but no food production; second-hand and consignment clothing stores but no new textile retail; no hardware retail; and the light industry that clings onto the western edge of the neighbourhood, like the marine and printing services, caters primarily to non-residents. Also, while people often try to live close to their workplaces, it’s not always feasible, and most people employed in the major sectors – tourism and government - don’t actually live here. At the Harbour Towers hotel, for example, out of a staff of 125, only around 15 live in James Bay.

Every morning, thousands of people leave James Bay for jobs elsewhere in the city, and hundreds migrate in, mostly to work at government offices surrounding the legislature, or in hotels and restaurants. The good news is, both groups spend money here. The government workers do a good job keeping many James Bay cafés afloat in the tourist off-season, and many, if not most, residents of James Bay use the services at the Five Corners shopping centres on their way to and from work elsewhere. Thrifty Foods alone regularly serves over 20,000 customers a week – approximately twice the actual population of James Bay (the store manager assumes a number of repeat visitors.)

Thrifty Foods is a good example of a thriving business in James Bay, and it also has a higher-than-average number of employees drawn from the immediate area. Although exact numbers aren’t available, store manager Stan Waterman (with the assistance of his floral department) estimates that 30% of his staff live in James Bay, contrasting with the less than 10% that seems typical among the hotels. Data from government offices is unavailable, but is probably similar to the hotels.

The City of Victoria’s neighbourhood profile offers further insight into the economics of the region. While real estate prices remain high in the area, it’s worth noting that 80% of James Bay’s residents rent rather than own, with many of them living in high-rise apartments. Rental income in the area is significant, but by and large rents themselves appear to be on par with the rest of the city, although there is considerable variation. Most of those rents, though, go to large corporate landowners, and don’t stay in the neighbourhood.

The forecast for James Bay’s economic future is reasonable, given the current financial climate. The bad news is that tourism revenues are expected to fall sharply this summer. Yvonne Batchelor, the human resources manager at the Harbour Towers Hotel, says that they have no current plans to even hire any extra staff for the season. “We’re afraid the tourists aren’t going to be here. We’re really cautious.” This is unfortunate for the hotels and restaurants along the inner harbour, but since the dollars that come in to the hotels, particularly the larger ones, are not typically spent in the immediate vicinity, James Bay as a neighbourhood is not likely to suffer any more than the rest of Victoria with their loss. Most hotels use large food suppliers like Sysco, large laundry services, national supply chains for sundries and employees drawn from all over. James Bay residents may find, though, that if the tourist season really doesn’t happen, some of their restaurant choices may sadly disappear..

Other sectors, like government, may experience shrinkage but likely not to the same extent. Stan Waterman at Thrifty Foods isn’t complacent about the situation, but maintains, “There are always concerns, [but] our sales are holding their own.” Businesses like Trotac Marine are also not particularly concerned, with a good portion of their sales being to the essential workings of the Canada Coast Guard and the pilotage.

Residents here seem no more worried than anywhere else; indeed, some are optimistic about the ability of James Bay’s small businesses to hold on, due to the condensed and functional nature of the neighbourhood. Justine Austin-Olsen, a mother of two and longtime James Bay resident, finds that her family spends much of its time and money right here in the neighbourhood because the services are exactly what she needs. They shop primarily at Thrifty Foods and Ambrosio Market, Finest at Sea and Pharmasave. Austin-Olsen also regularly scours Superchance for household bargains. When the family eats out, they go to the Heron Rock Bistro or Barb’s or Fresh Beginnings – or on sunny days, the Beacon Drive-in. They even get services like massages here, and the children enjoy several mornings a week at the James Bay Community Project playgroup. It’s not perfect, says Austin-Olsen, but it’s pretty darned good. “I’m always hoping for more stores to open up here.” She’s not concerned that the recession will prove fatal to most of the places she frequents because “...everything here is stuff people use.”

In the end, with the lack of real economic diversity in the neighbourhood, money flows into and out of James Bay like a tide. No doubt the recession will have a dampening effect on that tide, but not to any greater or lesser extent than to the rest of Victoria, and the businesses that serve the residents of James Bay seem to have satisfied customers who are content to stay within the convenient confines of the neighbourhood for many of their purchases.