Urban rivalry is alive and kicking in the West. Calgary, the economic shooting star of the decade, has long tired of comparisons between it and Edmonton. These days, it has a much more glamorous competitor in its sights: Vancouver.
If Vancouver is the beauty queen, Calgary is Miss Congeniality. It's tough to compete with Vancouver's yacht-filled marinas, emerald forests and yoga pants. Calgary, on the other hand, gushes with friendliness and that “roll up your sleeves, git 'er done” attitude. Everyone likes her, but only one can wear the crown.
As a runner-up, Calgary took consolation in the fact she's filthy rich. A soaring energy sector provided some serious cash, and Calgarians were the country's wealthiest citizens.
That all ended this summer. New research from Environics Analytics showed that net worth in Calgary fell as the value of household investments plunged and debt climbed. Vancouver consumers saved more and, while its real estate has taken a hit, the blow has been softer than that felt in Calgary. Between December of 2007 and December of 2008, Calgarians' wealth plunged 12.3 per cent, while it tumbled only 3.1 per cent in Vancouver - vaulting that city ahead of Calgary into the No.1 spot.
So, she's gorgeous and now she's loaded. Has Vancouver taken the prize? Will Calgary be cursedly described as “having a nice personality”? Maybe Calgary should enter another beauty contest, competing with Winnipeg or Regina.
But Calgary's not eliminated from the pageant yet. Wealth comes and goes, and Calgarians have certainly seen some of it evaporate. Yet, Calgary's overall economy remains well poised to wiggle its way out from under this recession.
Vancouver, on the other hand, long ago lost any claim to being a resource-based city; most of its mining and forestry giants have disappeared. Other than tourism, transportation and designing video games for kids, it's hard to identify any major sector in the city at all.
Calgary's greatest advantage isn't oil. It's not even lower taxes. What gives Calgary the edge on other beauty contestants is her ability to make impossible things happen. The entrepreneurial spirit is no joke in Cowtown, and it's been largely responsible for getting Calgary to where it is today.
Money isn't made in Vancouver so much as it migrates there. Quite simply, it's a stunning city and the wealthy want to live there, and that has plumped up real-estate prices. Sure, there are lots of entrepreneurs sipping their lattes overlooking False Creek, but it's a city where millionaires become billionaires. The thousandaires live in Surrey.
In Calgary, it is still possible to build a successful business with little more than a great idea, a lot of really hard work, and a community of encouragement around you.
But if Calgary wants to maintain both her congeniality and a great economy, she has a few beauty tips to steal from Vancouver's makeup and wardrobe room. Vancouver gets it when it comes to sustainable architecture, environmentally shrewd urban design and great urban spaces. She's got her warts, too, but she knows how to work her best assets and, as a result, businesses and investors from all over the world want to be there.
Too many Calgarians are still demanding more surface parking and freeway expansions - things that kill urban life. A major summer street festival was nearly kiboshed this year when it required a street to be closed for a Sunday afternoon.
No one should kid themselves into thinking that a vibrant, livable city has nothing to do with the economy. Energy prices will rise and fall, but a truly world-class city doesn't require $100 oil and wider freeways. Study the competition, Calgary! Vancouver is walking away with the crown.
Todd Hirsch is a Calgary-based senior economist at ATB Financial. The opinions are his own.
