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\nKelowna\u2019s lower dependence on U.S. trade is helping the city outperform larger B.C. centres, according to the Canadian Chamber. |\u00a0mysticenergy\/iStock\/Getty Images Plus <\/p>\n
Kelowna drawing attention for export growth, new business activity and low dependence on U.S. trade<\/p>\n
A city in B.C.\u2019s Interior is emerging as one of Canada\u2019s most resilient cities in the face of U.S. tariffs.<\/p>\n
The Canadian Chamber of Commerce recently released a report measuring trade-related economic stress and progress in diversifying exports beyond the U.S. market in 2025.<\/p>\n
Kelowna was the only B.C. city to rank among the top five performers, outperforming other major B.C. centres in export diversification, new business openings and employment growth.<\/p>\n
The city\u2019s non-U.S. exports rose 28 per cent year over year, compared with a 3.2 per cent increase in Vancouver and a decline of more than 10 per cent in Victoria. Total exports grew 6.38 per cent, while Vancouver and Victoria both recorded declines.<\/p>\n
\u201cWhile I can’t point to a single factor, a few things likely help explain why Kelowna appears to be performing relatively well in both diversification and broader economic indicators,\u201d said Patrick Gill, vice-president of Business Data Lab at the Canadian Chamber of Commerce.<\/p>\n
Compared with many manufacturing-heavy Canadian cities, Kelowna has lower direct exposure to the U.S. market and a relatively diversified economy spreading across health care, retail, tourism, agriculture, education and transportation, Gill said.<\/p>\n
\u201cThat mix may make the region somewhat less vulnerable to tariff-related disruptions than cities that rely more heavily on a small number of export-oriented industries,\u201d he said.<\/p>\n
The report also found Kelowna recorded a 1,057 per cent increase in net business registrations last year compared with 2024, the largest gain among Canada’s major metropolitan areas. Vancouver posted a 221.38 per cent decline, compared with a national average decline of 103.7 per cent, while Victoria recorded a 28.57 per cent increase.<\/p>\n
In addition, Kelowna was one of the only two metropolitan areas to post employment growth in 2025. Its consumer spending increased 103.5 per cent in 2025, the second-highest growth rate nationally after Vancouver, which recorded a 218.6 per cent increase.<\/p>\n
\u201cRegions that are less reliant on U.S. trade and more diversified from a non-U.S. trade perspective are generally doing better on [local economy],\u201d said Gill.<\/p>\n
\u201cEnergy, critical minerals, agriculture, there’s really high demand for those commodity inputs globally.\u201d<\/p>\n
Quick pivot and lean on Asian exports<\/p>\n
The city\u2019s strong performance reflects a business community that has taken initiatives to adapt quickly as trade tensions reshape global markets, according to business leaders in the region. When U.S. tariffs hit her company last year, Jill White, president and owner of Kelowna-based playground equipment manufacturer Makr Group, began looking beyond its traditional U.S. customer base.<\/p>\n
\u201cWe’re expanding our presence in Europe, and we’re certainly putting more efforts on our sales into the Asia-Pacific region and into South America,\u201d said White, adding that her business in Australia and Europe have grown since U.S. tariffs.<\/p>\n
\nKelowna\u2019s lower dependence on U.S. trade is helping the city outperform larger B.C. centres, according to the Canadian Chamber. |\u00a0mysticenergy\/iStock\/Getty Images Plus
<\/p>\n
White said many entrepreneurs like her are drawn to Kelowna from the rest of Canada by its warmer winter, nice scenery and lifestyle.<\/p>\n
\u201cBut the market here is small, so if you are going to have a business of any size, you have to be thinking beyond your local surroundings,\u201d said White. \u201cWe’ve always kind of punched above our weight class here.\u201d<\/p>\n
Kelowna has a higher concentration of entrepreneurs than the province and country overall. Nearly one in five (19.2 per cent) workers in the Kelowna metropolitan area is self-employed, compared with 17.3 per cent in B.C. and 14.1 per cent nationally, according to 2022 Statistics Canada stats.<\/p>\n
\u201cKelowna is a specific kind of economy \u2026 it’s not a head office city. It’s not a manufacturing centre,\u201d said George Greenwood, CEO of the Kelowna Chamber of Commerce.<\/p>\n
“We’re primarily a tourism and agriculture destination, but also with major educational institutions such as UBC Okanagan, a large student population, and rapidly growing aerospace, software and technology sectors,\u201d he said.<\/p>\n
Kelowna is home to KF Aerospace, one of Canada’s leading aircraft maintenance, repair and overhaul (MRO) providers, serving primarily domestic clients.<\/p>\n
However, small businesses and technology startups continue to make up a significant share of the local economy, Greenwood said.<\/p>\n
\u201cI think the resilience they’ve learned over the years is that they have to be very nimble and quick to pivot. And I think they’re demonstrating that in some of these statistics,\u201d he said.<\/p>\n
The city\u2019s trade profile may also be helping, said Greenwood. Exports to the U.S. account for just 2.74 per cent of Kelowna\u2019s GDP, well below the national average of 19.17 per cent.<\/p>\n
The region has long been oriented toward international markets, particularly in Asia. Every year, a large volume of cherries, fish and Christmas trees are being exported to markets including China, Vietnam and Taiwan, according to Greenwood.<\/p>\n
\u201cThose are markets that have grown a little bit for us just because the economy has grown,\u201d he said, adding that the region exports products such as metal derivatives, fabrication, steel, aluminum and chemicals to Southeast Asia.<\/p>\n
A potential business destination?<\/p>\n
Some believe Kelowna, with its growing business community and natural amenities, has the potential to become a more significant business hub outside Metro Vancouver.<\/p>\n
In March, the World Trade Centre launched its Okanagan branch\u2014the second in B.C. and the eighth in Canada\u2014with a goal of promoting international trade and investment in the region, according to the organizer of the local branch.<\/p>\n
\u201cIt’s one of the most desirable, fastest-growing areas in B.C. with a combination of lifestyle, natural amenities and favourable weather,\u201d said Richard Tam, president and CEO of WTC Okanagan, a private entity.<\/p>\n
\u201cThe culture here [is entrepreneurial.] People have a mindset of business and they’re interested in reaching national and international markets \u2026 Longer term, there’s huge potential.\u201d<\/p>\n
The centre is exploring the development of a convention centre to host networking events, trade missions and international delegations. It also hopes to build a five-star hotel\u2014the first in the region\u2014capable of hosting major international business events.<\/p>\n
\u201cPeople enjoy the sunshine, the lakes, the golfing, the skiing and stuff like that, so naturally it already has a draw,\u201d said Tam.<\/p>\n
\u201cWe want to turn Kelowna into a gem of B.C., with enough modern facilities to host global world-class events to really enjoy the natural amenities that are offered but also as a place where innovation happens.\u201d<\/p>\n
Greenwood said Kelowna has the infrastructure needed to support further growth as a business hub.<\/p>\n
\u201cWe do check a lot of the boxes now. We have major highway routes that you can get in and out of four hours to Vancouver, seven hours to Calgary. We have an international airport,\u201d he said.<\/p>\n
\u201cI think as more of the world learns about Kelowna, it won’t take very long for people to perk up their ears and say, hey, there might be some opportunity there in this place called Kelowna or in the Okanagan in British Columbia.\u201d<\/p>\n
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