High Tech And Tourism Key To Future Economic Success In BC

Given the chance to choose the one sector they believe will contribute the most economic activity and jobs to the BC economy in the future, the high-tech sector is chosen by 43% of British Columbians according to a jointly released poll from the Angus Reid Group and the BC TIA (BC Technology Industries Association) conducted in mid-May, 2000. Tourism is a close second at 36%. Resource sectors such as forestry and mining are lower down the list of future contributors to BC economy. Forestry comes in a distant third place at 14%, with only 1% of people identifying mining as contributing the most in the future. Manufacturing is picked by 6% of the population

BC resident's views on which sectors contribute the most to the present economy of British Columbia do not reflect actual GDP (Gross Domestic Product) levels. Currently, tourism is seen as the number one driver of the provincial economy, as 74% say it is a major contributor to the overall well being of the BC economy, and a further 24% believe it is a moderate contributor. This is despite the fact that it is only the fifth largest employer in the province and accounts for only 5% of the provincial GDP or $4.1 billion . Forestry is currently identified by 56% of people as a major contributor, yet its actual contribution of $5.1 billion exceeds tourism.

The high tech industry is the real surprise, coming in third, with 42% believing it is a major contributor and a similar proportion (43%) believing it is a moderate contributor. Manufacturing (16%), and mining (10%) are viewed as having less of a role in the provincial economy.

"Clearly, the high-tech sector has been very successful in establishing a dominant economic position in the minds of British Columbians", says Steve Mossop, Senior Vice President and Managing Director of the company's Western Business Unit. "This suggests that the continued good news communicated through increased share prices, earnings, and sales growth of various BC based high-tech companies has each played a role in increasing the awareness and the profile of this sector".

While British Columbians believe that the high tech sector will play a key part in the future BC economy, few believe that the BC government is doing enough to help the high tech sector. In fact, more than two thirds (69%) feel that they are not doing enough - only 25% feel the BC government is doing enough while 3% feel that the government is doing too much.

A significant number of barriers and challenges exist if the province wants to encourage growth in the high-tech sector. According to British Columbians, a large barrier to the continued success in the high tech sector is the "brain drain" phenomenon. Eighty percent of those surveyed say that losing qualified employees to the US and other countries is a barrier to doing business in the high tech sector. Related to this, 70% feel that personal taxation levels are also a significant barrier. These are followed by capital gains taxation levels (63%) and corporate taxation levels (62%). Other barriers include the level of government funding for R&D (57%), recruiting qualified employees (54%), and government funding for training (53%).

"British Columbians clearly understand that the provincial economy is in transition and that high technology sector will be a central component of that change" says George Hunter, Executive Director of the BC Technology industry Association. "More importantly they understand the barriers that must be removed to help the high tech sector move forward."

The BC government is not seen to be a credible source when it comes to BC's high tech sector. Only 31% of British Columbians feel that the provincial government is very believable or somewhat believable when they make statements about BC's high tech sector and how best to encourage its growth in ways that benefit the province. On the other hand, technology associations and business leaders are seen as very or somewhat believable by 88% and 86% of British Columbians respectively. This is only slightly behind the ratings for university academics (90%).

This jointly issued BC TIA/Angus Reid Group study is based on 600 telephone interviews from the BC Angus Reid Poll . Interview were conducted between May 9 and May 15, 2000. Respondents are chosen randomly from throughout British Columbia. The BC Angus Reid Poll is a monthly omnibus survey of British Columbians. The BC Angus Reid Poll is designed to provide quick and efficient answers to questions relevant to British Columbians. For additional information on the BC Angus Reid Poll, please contact Maggie Estok, Senior Research Manager, Angus Reid Group at (604) 893-0661.

These data are statistically weighted to reflect the actual age and gender of the British Columbia population and are balanced by region.

With a provincial sample of 600, one can say with 95% certainty that the overall results are within +/- 4.0 percentage points of what they would have been had the entire BC population been surveyed. The margin of error will be larger for sub-groupings of the survey population.

For more information on this media release, please contact:

Steve Mossop
Senior Vice President
Angus Reid Group Inc.
(604) 257-3200

George Hunter
President
BC TIA
(604) 683-6159