Key Issue
The coronavirus pandemic of 2019 has affected people’s lives globally on a multitude of levels, its effects having tricked into every possible area of business and personal life. Among the economic sectors that have suffered the impact of the pandemic to the greatest extent, real estate deserves to be mentioned first, particularly, in the Canadian setting (Virla et al., 2021). As organizations shifted to the context of remote workplace environments, a substantial portion of rented apartments became no longer needed, which has led to a rise in the number of vacant building spaces across Canada, particularly, in Downtown Edmonton, Alberta (Virla et al., 2021). Therefore, solutions must be found to ensure that the specified real estate remains profitable so that the quality of Downtown Edmonton, Alberta citizens’ lives could be maintained at a proper level.
Stakeholder group
The specified argument targets a very specific stakeholder group. Namely, local policymakers, construction companies, and local entrepreneurs must be engaged actively in the dialogue to ensure that appropriate changes are made. Specifically, it is believed that the observed situation can be amended by redesigning the current routes so that opportunities for building a more robust small and medium entrepreneurship infrastructure could eb created (Hale, 2019). By revisiting the current approach to making currently vacant spaces occupied with the elements that will attract a greater number of customers, Downtown Edmonton, Alberta will continue to thrive.
Analysis
SWOT
Strengths
The main strength of the observed situation is defined primarily by the presence of a broad range of opportunities and a substantial amount of resources to be used to pursue them. Specifically, the vacant place in Downtown Edmonton, Alberta presently offers quite a broad extent of possibilities for creating a robust infrastructure that will entice and attract the attention of entrepreneurs, particularly, from the tourism industry. Indeed, studies prove that the economic potential of Downtown Edmonton, Alberta is exceptionally high, which implies that SMEs are bound to thrive in the specified area (Sisneros-Kidd et al., 2019). Therefore, Downtown Edmonton, Alberta has an obvious advantage that needs to be explored further.
Additionally, one should include the options linked to Downtown Edmonton, Alberta’s energy potential into the list of its strengths. Specifically, the province has been demonstrating alignment with the principles of green energy, which serves as a profound basis for creating environmentally safe entrepreneurship. The focus on alignment with core environmental standards makes Downtown Edmonton, Alberta a perfect setting for the tourism industry since the latter needs to remain sustainable in order to maintain its competitive advantage (Khalid et al., 2020). Therefore, the active promotion and enforcement of environmentally safe standards within Downtown Edmonton, Alberta should be recognized as a major advantage.
Weaknesses
At the same time, it is important to keep in mind that the target area is characterized by several noticeable weaknesses. The core disadvantages within the target environment originate primarily from its economic aspects. Specifically, the exchange rates are currently quite upsetting for the Downtown Edmonton, Alberta economy, with the Canadian dollar fluctuating quite noticeably (Livingston, 2021). Thus, grater attention must be paid to the choice of strategies for securing core financial risks.
Another source of concern is linked to Downtown Edmonton, Alberta’s current inability to detach itself form the U.S. economy and focus on independent economic development. Specifically, studies indicate that the U.S. supply system constitutes a massive part o the business infrastructure within the Downtown Edmonton, Alberta economy (Virla et al., 2021). Therefore, encouraging independent economic growth is likely to imply facing several difficulties, particularly, those linked to the need to manufacture the domestic product at a much greater intensity.
Opportunities
Despite the likelihood of the weaknesses above producing an adverse impact on the Downtown Edmonton, Alberta economy, there are reasons to believe that multiple opportunities can be pursued in the target setting, particularly, in relation to the tourism industry. The specified opportunity must be regarded as critical in building the tourism industry in the target region since it will allow creating a robust and comparatively cheap supply chain that will remain sustainable.
Another core opportunity to consider in the current Downtown Edmonton, Alberta setting is linked to the recent rise in the real domestic product in the specified area. Recent analytical data indicates that there has been a notable drop (from 97.2% to 91.7% in 2020) in the GDP in Downtown Edmonton, Alberta, which proves that the province is in desperate need to support its entrepreneurship and, thus, boost its economic growth (Joannou, 2020). Thus, there is an urgency to introduce effective resource management strategies and create a platform for active development of SME in the city. Finally, the infrastructure issue should be addressed as one of the core opportunities to pursue.
Threats
At the same time, one must take notice of several vital threats to the implementation of the proposed change within the context of Downtown Edmonton, Alberta economy. First, the problem of the infrastructure should be mentioned (Stillger, 2022). Since the urgent flaws are quite notable, addressing them within the time period required to establish the basis for the active development of the tourism industry may turn out to be an impossible task.
Another threat to consider is the failure to develop a promotional strategy that will make Downtown Edmonton, Alberta’s tourism sector visible in the global environment. Given the current economic issues observed on a global scale, the likelihood of multiple customers seeking to explore Downtown Edmonton, Alberta’s attractions immediately is quite low (Hale, 2019). Therefore, the development of a large promotional campaign will be required to ensure that Downtown Edmonton, Alberta’s tourism sector becomes visible in the global economic environment.
Alternatives: Overview
It should also eb noted that tourism is not the only option that Downtown Edmonton, Alberta can pursue to make a more efficient use of its current vacant building space. Specifically, the focus on the development of other industries that may assist Downtown Edmonton, Alberta in improving its current economic score should be mentioned. For this purpose, several criteria for success should be mentioned.
Criteria
The issue at hand has several relevant criteria attached to it. Specifically, the first criterion to be considered is linked to the active use of the available physical space within the real estate industry. Namely, it is vital to ensure that the space where physical locations of businesses used to be should be filled with a substitute for the specified organizations so that the proposed change could help generate revenue. Another crucial criterion to be included into the assessment concerns the economic potential of the proposed change. Namely, the suggested solution for filling thee currently empty area should contribute to the improvement of the observed economic situation and lead to a rise in the levels of Downtown Edmonton, Alberta’s GDP. Finally, the offered change in the management of the available space should represent a long-term solution that will remain applicable at all times.
Alternatives
Currently, the tourism option represents the most lucrative opportunity for Downtown Edmonton, Alberta and its residents. However, the province and its capital, Edmonton, may also benefit significantly from the transformation of the currently empty spaces into the areas that will attract a greater range of customers. Specifically, the transformation of the specified area into coworking spaces should be considered an opportunity. Since the current COVID-19 restrictions are no longer as rigid as they used to be a couple of years ago, the idea of creating coworking spaces is likely to attract a range of customers and, therefore, help increase the economic value of the real estate. Furthermore, the process of knowledge sharing and exchange of experiences that will occur in the new coworking context will lead o an impressive rise in the quality of employees’ performance within the city and Downtown Edmonton, Alberta, in general (Karani & Mshenga, 2021). Therefore, the creation of coworking spaces in the venues that are currently empty should eb considered a possible solution for the observed problem within the real estate industry.
Another option that Downtown Edmonton, Alberta authorities should explore concerns the development of housing opportunities for a specific customer type. Namely, investing in the creation of luxury areas that high-value customers are likely to choose and, therefore, supply the Downtown Edmonton, Alberta province with the necessary amount of financial resources for sustaining its citizens’ well-being should be mentioned. The proposed solution will involve the integration of a substantial amount of valuable resources, particularly, the use of innovative tools for creating experience of the finest quality (Shahoid et al., 2021). The described approach to managing the existing vacant space in Edmonton, as well as in the Downtown Edmonton, Alberta province, in general, could eb seen as rational at first glance. However, on further examination of the subject matter, one will recognize problems in the proposed change. Frist, the described transformation of the area will require a massive amount of resources and tremendous expenses for which Albert and Edmonton, in particular, may not be fully prepared (Shahoid et al., 2021). Furthermore, it is unlikely that the specified proposition will generate significant enthusiasm in the target population. Specifically, given the ongoing financial challenges and the recent crisis, the number of customers willing to invest into the specified experience is going to be quite small (Shahoid et al., 2021). Therefore, the option regarding the reconstruction of the existing infrastructure and the creation of tourism opportunities appears to be the best solution for albert currently.
Recommendation
Once the existing strategy for construction and maintaining the infrastructure within the presently vacant areas is revisited in the way that will encourage active development of SME, arrangement and promotion of events, and introduction of other activities that will attract a broader range of customers, Downtown Edmonton, Alberta’s officials will be involved to address the current problem of vacant real estate areas in the province. The suggested change will allow creating a plethora of opportunities or improving the economic performance of the province and avert the likely crisis in the real estate industry. Specifically, the presently vacant space will be used in a manner that will benefit the community since it will increase the number of customers and, therefore, the extent of financial resources. Similarly, the promotion of SME development will lead to the emergence of new employment opportunities, which will help address current unemployment issues. As a result, a positive change within the community is to be expected within the next five years as a result of the described alterations within the environment of Downtown Edmonton, Alberta’s real estate industry.
Furthermore, the proposed measure will allow increasing the extent of tourism within the specified area. Namely, a steep rise in the economic development of the area and the flourishing of local business will prompt the emergence of a major tourism potential due to the creation of attractions and entertainment opportunities (Hale, 2019). Specifically, it is expected that tourists will visit Downtown Edmonton, Alberta to enjoy some of the unique entertainment opportunities and services that the community will be able to deliver once the premises for active economic development are created.
Likewise, the available vacant areas can be utilized to arrange and hold a variety of events that will also serve as major tourist attractions. These may include a variety of sporting events, such as ski competitions and equestrian kinds of sport, historical tours allowing visitors to explore key venues where events essential to Canadian history took place, and a variety of other options. Moreover, apart from tourist attractions, the relevant services including shops offering a broad range of the necessary products and equipment, the services of tour guides, as well as boarding and lodging services, can be offered to tourists to generate the necessary income and ensure that visitors will have the best exp-evidence that Downtown Edmonton, Alberta can offer them (Toneguzzi, 2022). As a result, robust outcomes are to be expected as a result of the described alterations. For instance, changes caused by changes in the current infrastructure will lead to improved traffic and, therefore, greater accessibility to the vacant areas in Downtown Edmonton, Alberta.
Several risks to be expected when integrating the proposed challenge. Specifically, the issues associated with the development of an improved infrastructure may occur due to the necessity to introduce as many options for SME s as possible. Furthermore, challenges in managing the expenses to be taken as a result of the proposed change may create quite a range of obstacles and risks. Finally, the failure to build a proper promotional campaign that will attract tourists’ attention to Downtown Edmonton, Alberta represents a notable risk. It is believed that the costs to be taken to expand Downtown Edmonton, Alberta’s tourism industry may reach CAD 2 billion. The specified amount of money is believed to help cover the core expenses and provide the foundation for the active e development of tourism within the state.
Overall, the specified setting will become potentially lucrative to entrepreneurs, who will create employment opportunities for contractors and their future staff members by building office spaces in the target area. In turn, increased economic success and the arrangement of events in currently vacant real estate areas in Downtown Edmonton, Alberta will attract tourists, who will contribute actively to the economic development p-process. Consequently, the specified endeavor must be actively supported and encouraged by local officials, as well as the government of Canada. With a joined effort to create additional opportunities out of the currently vacant areas in Downtown Edmonton, Alberta, citizens and officials will elevate it in terms of its economic progress and subsequently improve the quality of lives for people within it. Therefore, the idea of using vacant real estate areas in Downtown Edmonton, Alberta as a place for infrastructural redesign and the development of opportunities for SME must be regarded as a sensible and quite lucrative proposition.
References
Stillger, N. (2022) Community members concerned about state of downtown Edmonton. Global News. Web.
Karani, C., & Mshenga, P. (2021). Steering the sustainability of entrepreneurial start-ups. Journal of Global Entrepreneurship Research, 1-17. Web.
Khalid, U., Okafor, L. E., & Shafiullah, M. (2020). The effects of economic and financial crises on international tourist flows: A cross-country analysis. Journal of Travel Research, 59(2), 315-334. Web.
Hale, G. (2019). Borders Near and Far: The Economic, Geographic and Regulatory Contexts for Trade and Border-Related Issues in Landlocked Alberta. Journal of Borderlands Studies, 34(2), 157-180. Web.
Joannou, A. (2020). Edmonton and Calgary expected to top list of worst hit GDPs in Canada this year amid COVID-19 pandemic, low oil prices. Edmonton Journal. Web.
Livingston, J. D. (2021). Supervised consumption sites and crime: Scrutinizing the methodological weaknesses and aberrant results of a government report in Alberta, Canada. Harm Reduction Journal, 18(1), 1-5. Web.
Sisneros-Kidd, A. M., Monz, C., Hausner, V., Schmidt, J., & Clark, D. (2019). Nature-based tourism, resource dependence, and resilience of Arctic communities: Framing complex issues in a changing environment. Journal of Sustainable Tourism, 27(8), 1259-1276. Web.
Toneguzzi, M. (2022). Downtown Edmonton Retail Struggling Amid New Developments and Shifting Dynamics [Feature Story/Interviews]. Retail Insider. Web.
Virla, L. D., van de Ven, D. J., Sampedro, J., van Vliet, O., Smith, A., Pollitt, H., & Lieu, J. (2021). Risk blindness in local perspectives about the Alberta oil sands hinders Canada’s decarbonization. Environmental Innovation and Societal Transitions, 40, 569-585. Web.