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Highway 4 closure causes $61 million in lost revenue: study

Chambers pushing alternate land route, better air service

The 2023 closure of Highway 4 at Cameron Bluffs due to a wildfire caused a combined $61 million in lost revenue for Port Alberni, Ucluelet and Tofino, an impact study has found. 

The findings underscore the significant economic strain caused by the Highway 4 closures, particularly for the tourism, hospitality and supply chain sectors.

A wildfire in Cameron Bluffs opposite from Cameron Lake in June 2023 burned right down to Highway 4, forcing the Ministry of Transportation and Infrastructure to close the highway between Whiskey Creek and Port Alberni for two weeks, cutting off Alberni and the west coast. Supply trucks were re-routed through back roads from Lake Cowichan to Port Alberni, a rough, four-hour or more one-way trip.

Many commuters were stuck on either side of the fire, and regional airlines and charter air companies stepped up to offer flights from Alberni Valley Regional Airport to Qualicum Beach and other locations.

"Highway 4 is a critical lifeline for our region," said Alberni Valley Chamber of Commerce CEO Jolleen Dick. "The disruptions we've faced highlight the urgent need for long-term solutions that protect businesses, residents and visitors," she said. 

"There was chaos with communications when the closure was happening. There were lots of social media reports, or we would be caught off-guard by sudden road closures."

Tofino was by far the hardest hit, with a $31.2-million loss of revenue during the closure and subsequent highway disruptions, according to the study. Ucluelet lost $14.5 million in revenue.

"For the Alberni Valley, we estimate it was a $14.9-million loss in revenues," Dick said.

Room revenue combined for Tofino and Ucluelet in June 2023 was $9.2 million, or 49 percent lower than in June 2022, the study found. 

"Our businesses and communities cannot afford to face continued uncertainty each time there is a disruption on Highway 4," said Josh Jenkins, executive director of the Ucluelet Chamber of Commerce. "This report provides a roadmap for improving regional connectivity, and we are committed to working with all stakeholders to implement practical, long-term solutions."

The report captured stories of how people were impacted by the closure through surveys, workshops and focus groups. 

Samantha Hackett, executive director of the Tofino-Long Beach Chamber of Commerce, said collaboration is key to addressing the unique challenges of remote West Coast communities. "A regional approach to these conversations has been so beneficial," Hackett said.

There were no surprises in the impact study—the lost revenue totals were expected—but seeing the business community support the chambers in their goals is encouraging, she added, and "really realizing we need to build some resiliency in planning for our economy."

The study also helps bring attention to the bigger regional effect of the road closure, Hackett said.

Some of the actionable solutions are already happening, said Dick, such as better communication between communities, organizations and getting clear information out to the public. One of the challenges encountered immediately after the first closure was a lack of room inventory in Port Alberni, Parksville and Nanaimo for people to stay during road closures. 

The impact study outlines seven recommendations that range from improving critical infrastructure to finding ways to improve communication when an emergency occurs. Planning and preparedness at multiple scales, such as contingency planning, is another, as well as identifying short- and long-term recovery funding, business continuity planning and even alternative business models.

Dick will bring the report to the Alberni-Clayoquot Regional District's transportation committee for feedback. "This report is a call to action for all levels of government to prioritize infrastructure resilience and economic sustainability in our region," she said.

The chambers received funding for the impact study from Island ̨ÍåMMÂãÁÄÊÒ Economic Trust (ICET). The full report can be found online at .



Susie Quinn

About the Author: Susie Quinn

A journalist since 1987, I have been the Alberni Valley News editor since August 2006.
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