St. John’s. Then and now.

This once stagnant city can’t stop growing, changing–and getting richer. Hilary Davidson takes us on a tour of a brand-new St. John’s, Newfoundland, altered by technology and big business, but alive and well with traditional small-town charm.

Walk along any street in downtown St. John’s, and you may wonder whether you should have packed a hardhat. There is so much construction underway in the capital city of the Canadian province of Newfoundland, the question wouldn’t be out of place. And it’s not just visitors who might be asking. No one is more taken aback by St. John’s reversal of fortune than the people who live here. The city has suddenly emerged as a business travel destination, and it’s flush with cash from its booming oil industry.

Until recently, the local economy was tied to the cod-fishing industry. When that collapsed in the early 1990s, so did Newfoundland’s already shaky financial picture. The unemployment rate in St. John’s hit 20 percent, and the city’s population started to dwindle as Newfoundlanders sought better prospects away from the island known as The Rock. Empty storefronts marked Water Street, making it not only the oldest but also the emptiest main street in North America.

That was then. Today, St. John’s is brimming with energy and newfound wealth. The city’s population soared to an all-time high of 180,000 in 2005. More than anything else, this turnaround is tied to the oil industry. Oil was discovered off the eastern coast of Newfoundland in 1979, but it wasn’t until 1997 that the first offshore drilling project got up and running. Named Hibernia, it is jointly owned by a group that includes Exxon Mobil Canada, Chevron Canada and Petro-Canada, and it opened the way for more drilling projects, with the most recent one, White Rose, having begun production in November 2005.

Offshore drilling produced an estimated 113.5 million barrels in 2005, and White Rose is expected to increase output by another 34 million annually when it reaches peak production. This year and next, there are exploration drilling projects in the works by Chevron and ConocoPhillips. Along with oil, the province has substantial natural gas resources—9.6 trillion cubic feet of it has been discovered so far—but this potential goldmine has not yet been developed.

Important as it is, oil isn’t the only industry drawing business to St. John’s. The city has an impressive pedigree in marine technology that is being used internationally: For example, the Canadian Centre for Marine Communications has worked with the Geological Survey of Ireland to map that country’s seabed. Another company, Oceanic Consulting, specializes in testing marine vessel design, and has worked with clients as diverse as America’s Cup yachts and the Royal Australian Navy.

Tourism has also become big business in St. John’s. Some of the people who lost their livelihoods when the fishing industry collapsed have reinvented themselves as tour guides, taking visitors out on the water to view whales, puffins and icebergs. The number of visitors arriving by cruise ship rose 95 percent between 2003 and 2005, as companies from both North America and Europe make St. John’s a port of call.

In case business in St. John’s needed another boost, it got one last September, when Canadian Business magazine named it the best city in Canada for doing business. This was no random award—it’s a respected ranking of Canada’s major cities based on an assessment of operating costs, cost of living, nonresidential business permits, unemployment and crime rate. Others have recognized St. John’s increasing viability as a business destination, though in quieter ways (for instance, Continental Airlines launched nonstop service between New York City and St. John’s in 2004). Another boost came from the opening of the city’s conference center and Mile One Stadium in 2001. An influx of business and leisure travelers coming to town has spurred growth in the hospitality sector. And that is part of the reason there’s so much building going on—in case you’re still thinking about bringing that hardhat.

The city’s character

The biggest surprise about St. John’s is that its recent prosperity hasn’t changed its basic disposition as a sunny small town. Locals promise that you can step out onto Water Street, the busiest commercial thoroughfare, at rush hour and traffic will halt for you. It’s hard to believe until you try it for yourself and discover that not only do drivers stop, they’re happy to do so. The small-town friendliness is apparent in other ways, too; visitors will notice it most in the consistently high quality of customer service.

One way that the city’s character is changing is that increasingly, new immigrants are arriving in St. John’s. The city’s renowned Memorial University has drawn professors from the U.S. over the years, but now the cultural fabric is becoming more diverse. In 2005, St. John’s first Lebanese and Afghan restaurants opened up.

_____________________________

hilary davidson is a freelance writer based in New York. Email Hilary at editor@executivetravelmag.com.

Inside the St. John's Guide

Explore and share travel advice on:

• What to see and do in St. John's
  
• Getting there, getting around
  
• Recommended hotels in St. John's
• Restaurants in St. John's

Required reading:

• Canada Resource Guide
• Newfound opportunities in Newfoundland by Dean Foster
• Canadian business etiquette by Nancy Branka
• Doing business in Canada by Amanda Joyce
• Riding the Canadian rails by Hilary Davidson