Clayoquot Green Economic Opportunities Project

The Clayoquot Sound core region (see figure below) is home to six communities, including one District municipality (Tofino) and five Nuu-chah-nulth villages of the Hesquiaht, Ahousaht and Tla-o-qui-aht, the original peoples of the region. Immediately to

the south of the area formally designated as the Biosphere Reserve are the three communities of: Ucluelet (District municipality), Ittatasoo (Ucluelet First Nation[1]) and Macoah (Toquaht Nation). While these three are not "officially" within the Biosphere Reserve boundary they are considered part of the Biosphere region. All are linked in their social, economic and ecological circumstances. At the present time, Hesquiaht and Tla-o-qui-aht are not signatories to the Biosphere agreement.

Source: Ecotrust US

Residents of these nine communities live within an incredibly rich and diverse ecosystem. The terrestrial area includes some of the last remaining intact coastal temperate rainforest left in North America[2], encompassing nine pristine forested valleys, large and small lakes, rivers, streams and alpine peaks. The region's marine ecosystems include habitats as diverse as the open Pacific Ocean, shallow tide flat channels, rocky shorelines, and spectacular sandy beaches, together home to an abundance of fish and marine species. The protected area network includes Pacific Rim National Park and sixteen provincial parks and ecological reserves.

Fishing and fish processing were the lifeblood of the Clayoquot Sound economy for the first half of the 20th century. The first cannery opened in 1895 at Kennedy River and processing facilities followed shortly thereafter in both Ucluelet and Tofino, along with buying stations in most Nuu-chah-nulth communities. Small-scale logging was also an important part of the early 1900s economy.

In 1955, the British Columbia government granted MacMillan Bloedel Limited (MB) a renewable Tree Farm License with exclusive rights to log in more than half of Clayoquot Sound. In 1956, logging rights in almost all the rest of Clayoquot were granted to British Columbia Forest Products (later to International Forest Products). By the 1960s and 70s in response to market demand and technology development logging became an industrial activity, displacing the "gyppo logger" entrepreneur. During the 1970s, clear cutting in the region more than tripled over the initial rate of cut established when the licenses were granted[3]. In 1959 a road was built into the region, introducing what was to become the third pillar of the economy - tourism. The creation of Pacific Rim National Park in 1971 further stimulated tourism growth.

By the 1980s problems with the industrial economy began to surface. In 1982, concerned about impacts on shellfish beds Ahousaht First Nations took MB to court to stop log booming in Steamer Cove on Flores Island. MacMillan Bloedel also announced its intention to log parts of Meares Island, Clayoquot's best-known landmark. First Nations, municipal leaders, local entrepreneurs and environmental organizations protested the plan and "the conflict over land use became the focal point of life in the region for more than a decade[4]".

The battle to protect the forests without destroying local economies has had a profound effect on the culture and perspectives of the region. The control of over 90 per cent of the public land in Clayoquot Sound by two international forest companies made people of the regions all too aware of the limited control they were able to exercise over their own communities and economies.

In an attempt to alleviate the problems, processes were put into place to enable the communities to participate more effectively in decisions about land use in the region. As a result forest decisions are now made under the recommendations of the 1995 Scientific Panel for Sustainable Forest Practices in Clayoquot Sound, overseen by the Clayoquot Sound Central Region Board. This and other subsequent initiatives have provided increased local control over decisions that will help shape the future of Clayoquot Sound and its communities, which are in the midst of ecological, political, social, cultural and economic transition.

5.2 - The Clayoquot Biosphere Reserve

Biosphere reserves began in the mid-1970s as part of the United Nations Educational, Scientific and Cultural Organization (UNESCO)'s international programme on Man and the Biosphere. The Reserves are areas for promoting and demonstrating a balanced relationship between people and nature. As of mid-2001 393 Biosphere reserves had been established in 94 countries, ten of which are in Canada (two on Vancouver Island - Clayoquot and Mount Arrowsmith)[5].

With the support of First Nations, local communities, organizations, and both the federal and provincial governments, UNESCO Biosphere designation was sought for Clayoquot Sound in recognition of the mid 1990s innovations that had been put in place to pursue sustainable development. All parties agreed that the designation, which was announced on May 5th 2000, would be based upon recognition, respect, and acknowledgement of:

• The rights, interests and stewardship responsibilities of First Nations and other local communities;
• The need for diversified local economies, including renewed and vibrant fisheries and forestry sectors, as well as tourism, aquaculture and new opportunities;
• The need to better understand natural and economic processes through the application of traditional and local knowledge and scientific research, inventory and monitoring efforts;
• The training and education requirements of local people, and researchers and students from around the world;
• The role of youth and elders in designing a sustainable future[6].

The Clayoquot Biosphere Trust, a locally based foundation, was established to oversee implementation of the designation and its intent, including the management of a $12 million endowment fund provided by the Government of Canada. This report is funded through that endowment. In identifying strategies for pursuing a sustainable economy in Clayoquot Sound the report is intended to help the Trust and the region as whole to achieve its commitment to becoming a global model of sustainable development.

The population of the Clayoquot region is made up of approximately 50% members of the Nuu-chah-nulth Nations and 50% non-First Nations residents. The five Nuu-chah-nulth Nations of the Biosphere region (Ahousaht, Hesquiaht, Tla-o-qui-aht, Toquaht and Ucluelet) form the Central Region component of the Nuu-chah-nulth Tribal Council. The young and growing population in these Nuu-chah-nulth communities totaled more than 3,700 individuals in 2001. In addition to the five Nuu-chah-nulth villages within the core of the Biosphere region there are approximately 40 areas designated as "Indian Reserves" under the federal Indian Act. The economies of Nuu-chah-nulth communities have historically been focused on traditional activities as well as fishing and to a lesser extent tourism, logging, aquaculture and other activities, along with cash influx from government transfers. Recent changes have led to significant employment loss in the fishery. In the early 1990s fishing represented 73% of Nuu-chah-nulth employment. Recent statistics indicate a new reliance on the sales and service sector.

The most northerly of the Clayoquot Nations are the Hesquiaht. Two of eight Hesquiaht Reserves are occupied by Hesquiaht members, one at Hot Springs Cove and the other at Hesquiaht Harbour. Hot Springs Cove is named after the natural hot springs located at the south end of a narrow peninsula on the East Side of the Cove. The springs' waters average about 105 degrees Fahrenheit, and are perched overlooking the open ocean, within the boundaries of Maquinna Provincial Marine Park. The area is a popular attraction. The Reserve Community of Hot Springs (Refuge Cove) village is located on the Cove's west side, home to approximately 80 individuals and 25 families (39 dwellings). The community had to rebuild after a devastating tidal wave in 1963. Hesquiaht Nation operates fishing licenses (e.g halibut) under Hesquiaht Fisheries along with a six unit lodge, an arrangement with Interfor for Small Business Logging and Shake and Shingle Salvage as well as a geoduck culture project. A museum has also been built at Hesquiaht Harbour, nearby to Cougar Annie's Garden, another popular tourism destination.

The Ahousaht[11], whose territory encompasses the majority of the Sound, are comprised of three former groups: the Ahousaht, Manhousaht and Keltsmaht. The community of Ahousaht is located on Flores Island (also known as Marktosis). Ahousaht means people of (aht) Ahous, a small bay on the west side of Vargas Island. The Marktosis IR is the only one of 25 Ahousaht reserves that is occupied year-round.

Source: Government of BC

Others are traditional fishing stations and areas of seasonal resource extraction, considered uninhabitable for year-round settlement. All Ahousaht reserves are accessible only by boat or floatplane.

The population of Ahousaht has been growing at an average rate of 2.6%, with a strong interest among members living "away from home" in returning. Currently 36% of the Ahousaht membership lives at home (vs. a BC average of 49%). The population is predominantly (77%) under 40 years of age (41%, 0-19).

Shortage of housing is a significant issue in the community. A recent study indicates there are 136 dwelling in moderate to poor condition.

The Ahousaht population is projected to increase to 3,125 by 2024, 1,272 living within Ahousaht. There are also problems with community infrastructure sufficient to handle solid and sewage waste. Power supply via underwater lines is projected as adequate for five to ten years.

Source: Government of BC

Weyerhauser has recently transferred two parcels of land adjacent to the existing reserve to the Ahousaht for a community expansion. Plans are underway for a five-year development on district Lot 363 and 363A. The new development will include approximately 200 new homes, an artist's village, cultural centre, new high school and economic development facilities. Ahousaht policies on local hiring are expected to ensure local employment is associated with this activity.

The main economic activities in the Ahousaht community are tourism, forestry and fishing (including shellfish), although the latter two have declined in recent years. Members are employed seasonally in silviculture, water taxi transport, construction, tourism and aquaculture. There are 16 fish farms operating within Ahousaht territory. An agreement was signed between the Ahousaht and Pacific National Aquaculture (PNA) in 2002 to allow PNA access to traditional territory in exchange for employment opportunities, tenure fees and environmental monitoring and management improvements. Opportunities for farming indigenous species (e.g. Chinook) are being examined.

The Ahousaht First Nation employs approximately 35 people. Its departments include: administration, education, human services, medical clinic, social services, home care, Ahousaht grocery store, transportation, maintenance, fisheries and forestry. Government transfers make up 24% of total income for persons 15 years and over (contrasted against 13% in Ucluelet and 8% in Tofino).

There are five enterprises operated by Ahousaht Administration, including natural resources, tourism, grocery and transport ventures, as well as a minimum of 13-15 Ahousaht member-owned businesses in the region. These include restaurants, a gallery, tour companies, water taxis, contractors and professional services.

Despite census figures of 16-19% locals report unemployment rates as much higher. Chronically high unemployment and the young population about to or recently entered into the workforce create significant pressure for job creation, education and training. Of residents 15 years and over 19% have less than a grade 9 education, 56% grade 9-13, 19% trade or other non-university and 6% university.

The Tla-o-qui-aht First Nation resides on two separate reserves, one on Meares Island (Opitsaht) and the other at Esowista, surrounded by Pacific Rim National Park. A reserve expansion is planned for the Esowista site. The Tla-o-qui-aht (TFN) have been very active in economic development. They own and operate TinWis resort, are about to launch a tourism booking center and shellfish aquaculture operation, facilitated by their Economic Development Corporation. Like several other Nations, members (6-8) are also involved in the spawn-on-kelp industry. One member still holds a commercial salmon license, others work at TinWis, pick mushrooms, cut firewood, produce art and hold a number of other occupations.

The Ucluelet First Nation holds ten reserve areas. Its primary settlement is located across the bay from Ucluelet (Ittatsoo). Another reserve is located just south of Wickanninish Centre, within the core Biosphere region. Finally, the Toquaht First Nation occupies seven reserves, their main settlement being Macoah on the North Shore of Barkley Sound. The Toquaht operate a logging and sawmill operation, an art gallery, and various other individual and tribal businesses. The District of Tofino and Ucluelet are also home to both Aboriginal and non-Aboriginal residents (estimated 11% of Ucluelet population is of Aboriginal decent).

The Nuu-chah-nulth communities are diverse, yet they share a number of commonalities. These include a young population and high unemployment rates, resulting in an urgent need for job creation. Most have not only a growing local population but also members who live away and would like to return home. They are faced with housing shortages and little room for expansion due to Indian Reserve boundaries. Despite these barriers Ahousaht and Tla-o-qui-aht Nations have been successful in negotiating alternative arrangements (e.g. with Parks Canada, the forest companies and Indian Affairs for expansions of Marktosis and Esowista).

Yet another characteristic of the Nuu-chah-nulth communities is a lower level of high school and post-secondary education than their non-Native neighbours. In part this is a function of distance. Students from villages such as Hesquiaht must travel to Ahousaht and Optisaht to Ucluelet.

Walk the Wildside - Ahousaht Photo: K. Vodden

Many other factors beyond the scope of this report come into play. Across BC 14.6% of the population ages 20-34 have their high school diploma. In Tofino this percentage is 17.2% and in Ucluelet 25%. In Hesquiaht 67% of this age group have less than a high school diploma, 75% in Ittatsoo, 67% in Opitsaht. Ahousaht has its own secondary school, the benefits of which are demonstrated by a higher completion rate (42%). Ahousaht is also home to a higher percentage of university graduates than other Central region Nuu-chah-nulth communities.

Another commonality is participation in the treaty negotiation process. The treaty process is expected to lead to greater control over traditional territories, access to land and natural and financial resources. The hope is that these treaty outcomes will address a range of political, ecological, social and economic issues faced by Nuu-chah-nulth communities. In particular treaties promise to address the obvious economic inequity within the region demonstrated in the table above. In the meantime, however, treaty negotiations are taking a toll on the Nations' human and financial resources as leaders balance the need to offer immediate solutions to community problems with negotiating for a better future.

Tofino's economy was historically based on commercial fishing and processing and to a lesser extent logging. Throughout the 1990s these activities declined while tourism virtually exploded and aquaculture (finfish and shellfish) has also grown in importance. Today four fish processing companies operate in the region, three wild-fish plants in Ucluelet and a salmon aquaculture processing facility in Tofino. Fishing-related employment, however, has declined significantly with the loss of herring, salmon and other fisheries. In 1997 350 Ucluelet residents were employed in either fishing or logging. By 2001 only 155[12] individuals reported occupations unique to the primary sector, 25 others in secondary processing. Ucluelet's logging labour force remained consistent at 110 people from 1996 to 2001 (11% of total) while fishing continued to fall from 115 to 45. Tofino's fishing labour force fell from 110 to 50 in the same period while logging increased from 15 to 25 (3% of the total labour force).

Sales and services, primarily food and accommodation, now dominate both economies. Tofino is the main departure point and supply base for the residents that live in the rural areas and Nuu-chah-nulth villages in the core of the Clayoquot Biosphere region.

Experienced Labour[13] Force by Occupation, 2001

Tourism and residential development is experiencing rapid growth in Ucluelet. Growth is also occurring in Tofino but is limited by already stressed infrastructure capacity and limited land availability. Between 1996 and 2001 Tofino was the third fastest growing municipality in BC. Annual residential and non-residential building permit values averaged $4 million in Tofino and $1 million in Ucluelet over the last Census period. As a result of growth housing prices have risen and affordability of accommodation for the workforce is now a major concern, particularly in Tofino. The average dwelling in Ucluelet was valued at $158,240 in 2001, $288,870 in Tofino. Taxes have also risen to help finance infrastructure requirements[14]. Many workers are now living in Ucluelet and commuting to Tofino, while others are left "on the street" in the summer months.

Both Ucluelet and Tofino have approximately 45% of their populations between 20 and 44 years of age (vs. 38% in Ahousaht). Growth in the tourism sector has led to competition among employers for labour force in Tofino and resulting complaints about labour force reliability and commitment, a stark constrast to the unemployment rates of outlying villages. Economically the region is linked in terms of supply (materials, expertise etc.) and market access to the

largest community in the Alberni-Clayoquot Regional District (Port Alberni, population of 17,743 in 2001), and to the cities of Victoria and Vancouver to the south. Average incomes in Tofino are lower than Ucluelet, which are in turn lower than Port Alberni, which is still primarily forestry dependent.

"The Junction" Photo: K. Vodden

Finally, the region's vibrant volunteer sector deserves noting. The many volunteers and community organizations in the region provide important "social capital" that benefits community economies by improving quality of life and supporting sectors that cannot be successfully driven entirely by economic motivation. Our research shows, however, that these volunteer resources are stretched by increasing demands, years of effort and slow progress in building bridges within the region. Conflict has not disappeared. It continues to serve as a barrier to collaborative regional development: "While Tofino fights to preserve the old growth forests, Ucluelet fights to maintain logging as a viable industry[15]..." While this polarized picture does not fully reflect the diversity of each community, longstanding attitude differences and resentment remain clearly visible.

5.3 - Entrepreneurship in Clayoquot Sound

"People of the region have a real entrepreneurial spirit. They make a choice to live there and find a living rather than coming for the job."

The Clayoquot region is very entrepreneurial relative to other locations in BC. In Tofino, for example, self-employment as a percentage of total employment tends to range from 14-16%, more than twice the provincial average of 7%[16]1. In the early 1990s rates of self-employment in Ucluelet were in the 5-8% range, but this is increasing - largely a function of tourism-related business development.

"Ucluelet is the hot spot right now for business start-up. And it's all tourism," explained one small business lender, using a young Ucluelet man who is manufacturing wax for snowboards and surfboards as an example. BC Stats reports an average of ten new business incorporations annually in Ucluelet through the late 1990s, compared with only three in Tofino[17]2. Barriers to entrepreneurship are discussed further in the analysis in section 2.2 above. _________________________
[1] Ucluelet First Nation also has some traditional territory within the reserve itself
[2] Designation nomination papers 1999
[3] Environment News Service, 2000
[4] Ecotrust, 1997
[5] UNESCO Biosphere Reserves, 2002
[6] Environment Canada Fact Sheet on the Clayoquot Biosphere Trust.
[7] UNESCO Biosphere Reserves, 2002
[8] Unemployment rates determined from the Census of Canada are lower than yearly averages. Census surveys are taken in the months May-July. Summer is the peak employment season for both the tourism and fishing industries. Further, unemployment statistics do not account for people who are no longer in the labour force.
[9] These Statistic Canada numbers are underestimated. An Ahousaht report lists the 1998 on-reserve population as 637 people* , including 567 Ahousaht members. Total membership is reported as 1,565 (Carrothers 1999). A CBT report cites 1996 population at 742. Ahousaht information should be taken as the most accurate. However, it can not be compared directly to other Census data source.
[10] Local estimates suggest much higher rates, particularly in the off-season (e.g. 60-70% in the spring of 1995 according to the Scientific Panel Report).
[11] Reference Carrothers 1999 for the following section on Ahousaht demographics.
[12] This statistic varies between 140 (labour force by occupation) and 155 (by industry).
[13] Experienced labour force is defined by Statistics Canada as those individuals 15 years of age or older who were employed or unemployed in the week prior to Census enumeration and who worked at some time during 1995 or 1996 (in the case of the 1996 Census).
[14] Batt, G. 2000.
[15] Demyen, M. 2001.
[16] Statistics Canada Small Area and Administrative Data Centre 1997.
[17] BC Stats. 2002. Community Facts.

• Batt, G. 2000. Ministry of Community Development, Cooperative and Volunteers Regional Workshop Report
• BC Stats. Community Facts. 2001.
• Carrothers Engineering. 1999. Lot 363 Feasibility Study. Ahousaht First Nation.
• Demyen, M. 2001. Economic and Social Profile of Tofino-Ucluelet. Coasts Under Stress Working Document.
• Environment News Service, 2000
• Ecotrust. 1997. Seeing the Ocean Through the Trees.
• Statistics Canada. 2001. Community Profiles.
• UNESCO Biosphere Reserves. 2002. Biospheres Reserves: Special Places for People and Nature.

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