Rankin Inlet (Feb 01/06) - Hold the hotel and put the egg rolls and deli burger on the new table before heading out for more recreational activities.

That's, basically, the end result of a restaurant, hotel and retail market study conducted this past year in Rankin Inlet.

The Atuqtuarvik Corp. contracted RT Associates to conduct the study.

Restaurant Expenditures

Atuqtuarvik is a lending agency dedicated to strengthening the Nunavut economy by financing viable Inuit businesses across the territory.

It is funded through Nunavut Tunngavik Inc.

Atuqtuarvik finance officer Rod Hick said the purpose of the study was to ascertain the extent to which the Rankin marketplace can sustain new and expanding businesses in the restaurant, hotel and retail sectors.

He said the study is important because of the recent boom of activity in those areas.

"Basically, we wanted to have a better idea of what the market can sustain in Rankin," said Hick.

"The study contains valuable information for Inuit businesses, the entire business community in general and government and Inuit agencies.

"Even though the study is Rankin-specific, it also plays into our Inuit Firm Registry study.

"That was a Nunavut-wide effort in which we looked at projected capital and financing requirements for Inuit businesses during the next five years in an attempt to gain a business profile in terms of activities in the various sectors."

The consultants in the Rankin study used statistics, estimates and opinions to produce indicators of economic activity up to the year 2020.

Hick said Atuqtuarvik wanted to look at the current situation, as well as identify any trends which may surface during the next 15 years.

He said the study did not present any real surprises to the corporation.

"One part of the study was actually triggered by coverage in the Kivalliq News about competition in the retail marketplace.

"That raised a question for us, as a lending institute, to have the background to determine the feasibility and viability of getting into the marketplace in certain sectors for the benefit of new clients coming to us."

The study concluded Rankin will most likely see continued growth during the next 20 years in the mineral exploration and mining, government services, tourism and retail sectors.

It also concluded Rankin does not have the economy to support any additional hotels or bed and breakfasts at this time.

Additional restaurants, however, could be supported, especially if they focused on new products such as Chinese food or healthy fast-food products.

The study also states the Rankin economy can support additional retail services, especially in the areas of convenience stores, household furnishings, clothing, personal-and-health care, recreation and printed materials.

Atuqtuarvik is a financial backer in the recently opened Nanuq Lodge in Rankin.

Hick said every marketplace has a threshold and, with six or more businesses now involved in the hotel and restaurant sectors, Atuqtuarvik felt that threshold had been met in Rankin.

He said it was no surprise to the corporation, therefore, when the study concluded there's not enough capacity in Rankin to support another hotel at this point in time.

"The study also supports our contention that there is room for competition within the Rankin marketplace in a number of retail sectors.

"In fact, competition could be a driver for economic growth.

"There are numerous variables involved with taking a peek into the economic future, but, overall, the study's conclusions are positive.

"We're convinced there is going to be steady economic growth in Rankin in the sectors of fishing, mining, arts and crafts and tourism."