Thunder Bay's economy poised for 2022 bounce-back, economic development official says

Thunder Bay, Ont.'s economic development experts say the local economy is poised to rebound in 2022, and tourism could lead the way.

When Community Economic Development Corporation president Eric Zakrewski announced his retirement to his board on March 23, he said the city-funded group tasked with diversifying the economy has already completed its strategic plan, nearly a year ahead of schedule.

"I'm proud to say that, you know, before my tenure will be up later this summer, we will have exceeded all of the directions provided by our board," he said. "And we will be, as I said, looking at plotting a really new, and bold and aggressive vision for the next three years for the City of Thunder Bay."

As Zakrewski begins to consult on the 2023-2026 plan, he sees tourism development plans with long runways finally coming to fruition.

Tourism potential

The CEDC oversaw the distribution of $1.4 million in new hotel taxes collected through the Municipal Accommodation Tax to promote the tourism sector last year, the highest per-capita rate of any city in Ontario. Over eight million Canadians sought out online resources to see what it's like to visit, work and live in Thunder Bay last year, a 250 per cent increase over 2020. 

From the Scotties Tournament of Hearts at the Fort William Gardens in February to the expanding the disc golf and mountain biking sectors, opportunities for growth in sports tourism will be featured in a report CEDC will issue by year's end.

But Zakrewski believes locals will truly realize the rising tide this spring when the first 600-foot-long cruise ship appears in the bay.

"I can assure people that when at the end of May or shortly thereafter, when Viking's first ship enters our harbour, I think the minds of most people in Thunder Bay will be changed forever about the potential that we have being on the Great Lakes," he said.

While Zakrewski sees local companies better poised to benefit from almost $5 billion in new, nearby mining investment over the coming years, he pointed out the CEDC also matched 250 new immigrants to difficult-to-fill jobs last year. He said that attraction rate is "class-leading" among the 11 cities involved in Canada's Rural and Northern Immigration Pilot project.

Growing optimism

Thunder Bay Ventures general manager Maria Vidotto also sees optimism among local entrepreneurs, particularly retail companies that fared well during the pandemic.

"There have been some businesses that have suffered but for the most part, we've seen some growth," Vidotto said. "I think everyone's really excited for the future and they do see an end to this pandemic. I think people are optimistic, however they're moving cautiously."

Vidotto pointed to her group's 2021 Small Business Survey, which showed 95 per cent of local companies "expect to experience improved or stable economic well-being" in 2022. That figure is even higher than the 92 per cent of company owners who felt that way in 2019. While only 45 per cent of respondents felt the local economy was stable during the pandemic, 89 per cent said they believed the business climate will surge in 2022, a rate three per cent more optimistic than pre-pandemic perceptions. 

But following four decades of slow economic growth, Lakehead University economics Prof. Livio Di Matteo believes the secure future of Thunder Bay and northwestern Ontario still lies in its traditional strengths of resource extraction and public services, including a burgeoning Indigenous services sector. He sees growth potential in retaining international students, but says the city needs to improve social conditions to attract new residents on the scale it needs.

"Constant national media attention on the assorted social issues that have affected Thunder Bay don't always portray us in the best light," Di Matteo says. "One way [to address that] is to simply say, 'Well, this is simply the media' or that, 'These are problems that are not as severe as one might think.'

"On the other hand, the other way to deal with it is to actually note that there are problems and perhaps address them so that the people that keep bringing them up perhaps have their needs addressed."