Summit boosts Alberta economy

A brief meeting with long-lasting effects for the region

By David Schepp BBC News Online North America business reporter in Calgary

Though the recent Group of Eight (G8) Summit lasted just two days, the lasting economic impact is likely to drive tourism in the western Canadian province of Alberta for years to come.

Curiosity seekers who never heard of Kananaskis, the Rocky Mountain village that played host to the summit, may venture to the secluded resort just to stand where world leaders once did.

White cowboy hats are a Calgary tradition

The city of Calgary, which served as a gateway for the G8 on their way to Kananaskis, as well as the gathering place for most of the media and protesters, expects an economic windfall of 193m Canadian dollars ($128m; £83.5) from the summit.

While a gathering of world leaders is not quite comparable to the Winter Olympics, held here in 1988, nonetheless, local tourism officials expect a greater economic impact from the G8 than the winter games, according to a report by consultancy PricewaterhouseCoopers.

Of course, security costs have yet to be fully computed.

But thanks to subdued protests by activists over the past week, Calgary at least will not have the substantial clean-up costs associated with last year's G8 meeting in Genoa, Italy.

Economic impact

The effort to protect the summit site as well as the air space above it are expected to push the costs to their highest level ever for a G8 summit, according to GlobeRisk Holdings, a Toronto-based security consultancy.

Some activists opted for a mud-filled time

The security measures, which included 16 check points along the roadways leading to Kananaskis, reduced the numbers of tourists in the neighbouring mountain resorts of Banff and Canmore.

"We were impacted very negatively in terms of tourism with hotel occupancy being well off from what would normally be well into our high season," said Greg McKnight, president of the Banff/Lake Louise Tourism Bureau.

"There was a perception amongst travellers - almost an expectation - of trouble in the area, which would be created by the protest groups," he said.

In addition, a US travel advisory, warning of possible problems, reinforced the idea the last two weeks of June were not the best time to go to the Banff/Lake Louis area.

Dramatic scenery

Tourism in the region had already been impacted by the terror attacks of 11 September in the US.

Fear of air travel cost Alberta an estimated C$75m as vacationers delayed or cancelled travel plans, according to Don Boynton at Travel Alberta.

Confidence among air travellers has slowly rebounded.

So despite trepidation among some tourists over the G8 summit, local officials expect this year's annual Calgary Stampede, a 10-day long festival of western culture, to draw about as many visitors as it did last year - about 1.2 million.

Like many major cities, Calgary has aggressively promoted itself in recent years to drive tourism dollars into the area.

It has worked. Tourism is now the third-largest and fastest-growing sector of the Calgary economy, according to Tourism Calgary, employing more than 100,000 people in a city with a population of 1 million.

Dynamic economy

While tourism plays a significant role in western Canada, the city of Calgary's economy is far more renowned - like its US look-a-like, Denver - as a hub for energy firms.

Alberta produces 55% of Canada's crude oil, more than two-thirds of its natural gas and half of its coal.

But energy no longer has the presence it once did in the local economy.

With the expansion of other industries, energy concerns generate just 27% of gross domestic product in the local economy, compared with nearly 40% 10 years ago.

Hi-tech firms continue to make Calgary their home, drawn by a youthful, well-educated population, and a high standard of living.

Ongoing diversification has helped the area weather economic downturns in individual industries, while making Calgary and Alberta a desirable destination for world leaders and cowboys alike.