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Arts and fine crafts, along with the fishing and hunting economies, are very important to the traditional economy – especially in the smaller communities. The majority of sales in the NWT come from carvings, graphic arts, metal work, tapestries, birch bark baskets, stained glass, tufting, paintings, prints and jewellery. Tourism will continue to be an important factor in this sector’s success.
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The construction industry employs an average of 2200 people – almost 9% of the total territorial workforce and nearly 11% of private sector employment. There are opportunities in the industry for investment in new residential construction.
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The energy resources of the NWT are largely untapped and provide the NWT with a strategic resource to support future economic development. Millions of dollars have been committed for the coming years to minimize our reliance on imported fossil fuels and decrease the cost of living in NWT communities. Currently, electricity in the NWT is generated in one of three ways – hydro, natural gas or diesel fuel. Displacing imported diesel is a key long-term objective in the Northwest Territories. Looking to the future, with over 11,000 megawatts of hydroelectric potential, our northern rivers could be a source of clean sustainable energy. In addition, there is also potential for the development of other renewable energy alternatives including wind, biomass and geothermal energy.
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Fish stocks in the NWT are harvested for subsistence, commercial and recreational use. Fisheries are particularly important to residents of smaller communities in the NWT where the subsistence catch makes a crucial contribution to a healthy diet, and commercial harvests offer an opportunity to diversify incomes. Fresh fish is widely available in grocery stores and in the hospitality industry.
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About 40% of NWT residents over the age of 15 spend time participating in the traditional harvesting of trapping, fishing or hunting. Some people still make their living trapping – contributing an estimated $1.6 million to the economy (2008/09). Genuine Mackenzie Valley fur from the NWT is considered among the very best in the world.
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Manufacturing offers opportunity for significant growth. Manufacturing is currently dominated by diamond processing, metal fabrication, printing and building products. Manufacturing goods in the NWT keeps money in the NWT and creates new jobs and skills.
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Mining is the major economic sector in the NWT and it employs over 2,000 people. Mining industry wages and salaries are the highest in Canada. Mining has helped the NWT achieve the highest average incomes in Canada, and the highest GDP in Canada. The NWT is one of the world’s major diamond producers and new mining projects in rare metals, uranium and zinc continue to enter the economic stream. The miningindustry also generates economic activity and significant employment in the transportation, services, trade and construction sectors.
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Oil and gas has long been a commercial force within the NWT economy. Norman Wells, in particular, is one of Canada’s largest oil fields. First developed during World War II, the field still exports over $500 million in oil every year. Aside from the Mackenzie Natural Gas Project, there is renewed interest in Beaufort Oil. Over the past few years, two major oil companies have invested billions in securing exploration opportunities to find Arctic oil.
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Service businesses are a major employer and contributor to the NWT’s economic growth. Although many service businesses are small, they can be found in most communities, and together they represent 16% of the total economy. Professional services in the NWT have significantly higher revenues per business than other Canadian jurisdictions. In fact, the average architectural business in the NWT has revenues 68% higher than other Canadian jurisdictions, while engineering revenues are 86% higher.
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The retail trade includes a wide and diverse group of businesses – everything from corner stores, department stores, video sales, and arcades to automotive repair, car dealers, service stations, and fuel oil suppliers. The vast majority of retail businesses are small businesses, owned by local residents. However, this group also includes some of the stores in the NWT, including Walmart and Northern Stores.
Retail sales have shown relatively strong growth compared to other jurisdictions, even though the NWT population has remained static. This likely reflects growing incomes in the NWT, and a displacement of imports from southern Canada. The NWT had the highest retail sales per capita in Canada in 2009.
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Tourism is the largest renewable resource based industry in the NWT. Within the economy it is considered an export, as it brings new dollars into the NWT and generates employment for many residents. The NWT has a vast array of unique natural and cultural attractions, which draws people from around the world. The NWT is home to four national parks, including Wood Buffalo National Park, the largest in Canada, and another
acclaimed as Canada’s premier wilderness river national park – Nahanni National Park, a UNESCO World Heritage Site.</P> Winter tourism is growing in the Northwest Territories.
Yellowknife is situated directly under the aurora oval and is considered to be the best place in the world to view the northern lights. Thousands of Japanese tourists come every year to witness the phenomenon. Tourism also provides an excellent market for local arts and fine crafts.
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The transportation system of the Northwest Territories meets the needs of communities and residents by a mix of roads, airports, marine networks, and a railway link to the south. The territory maintains 2,200 kilometres of public all-weather road and 1,425 kilometres of publicly constructed winter roads. In addition, there are a number of privately constructed winter roads for energy and mineral exploration and development and mine resupply, including the 570 kilometre Tibbett to Contwoyto winter road made famous by the first season of Ice Road Truckers.
Many of the NWT’s largest companies today are in the transportation sector. The transportation industry employs some 2600 people and its largest employers are scheduled air service, followed by trucking. Yellowknife is a major gateway to the Arctic which in 2009 boasted one of the busiest airports in Canada, with more traffic than international airports in St. John’s, Gander, and Whitehorse.
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Wholesale businesses are a major employer and contributor to the NWT’s economic growth. Over the past decade, growth in industry sales has been rapid, and has kept pace with resource development. The industry is diverse, and includes businesses like fuel suppliers, hardware suppliers, office equipment, industrial supply, food wholesalers, and vehicle sales.