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IQALUIT - The global economic downturn and its impact on the North will be the talk of the town in Iqaluit as the community hosts the 18th annual Nunavut Trade Show tomorrow and Wednesday at the Arctic Winter Games Arena.

Qiatsuq Qiatsuq of Cape Dorset displays a snowmobile accessory at the 2006 Nunavut Trade Show. This year, the annual gathering of the Nunavut's business community is expected to draw 350 delegates. - NNSL file photo

If you ask Hal Timar, executive director of the Baffin Regional Chamber of Commerce, which is administering the event, Nunavut's economy has fared better than those of southern provinces.

According to Statistics Canada, Nunavut was the only jurisdiction in Canada to experience growth in its retail market last year. Retail sales in 2008 were up 3.2 per cent from the previous year.

Alberta, British Columbia and the Northwest Territories saw the biggest decreases, at around 10 per cent apiece.

"For the most part, our economy is a bit sheltered because the principal economic driver in Nunavut is the (territorial) government. Their money is fairly consistent," said Timar.

But some industries, particularly mining, have taken a hit.

Exploration spending in the territory is expected to total $168.2 million this year, well below the $273.6 million spent last year.

Peter Keenainak, president of Qikiqtaaluk Corporation, the Baffin region's flagship development corporation, said mining, particularly Baffinland Iron Mines' Mary River Iron ore project located 160 km south of Pond Inlet, will be a hot topic at the trade show.

Mary River, where the corporation's subsidiary, Qikiqtaaluk Logistics, has created jobs over the last two years, will only be host to a skeleton crew this year as Baffinland conserves cash during its search for a funding partner for the $4-billion mine.

"Obviously it is a concern. If projects like Baffinland don't go ahead, what other opportunities are there? We don't have a lot of other opportunities in the North," said Keenainak.

Timar is more optimistic. He said there's more to the territory's economy than simply mining.

That's why the Government of Nunavut (GN) has focused on developing its other industries such as arts and crafts, he said, which the GN estimates pumps about $30 million into the territory's economy annually.

Early this year, the GN created the Arts and Crafts Development Fund, aimed at small businesses involved in the arts who need financial assistance for costs associated with marketing their product.

Timar said the GN's capital expenditures are also a positive sign for the economy.

The GN originally budgeted $98 million in capital spending for 2008-2009, but ultimately spent $205 million.

"I don't know enough about their budgeting process and what exactly went into that, but the more money they spend on capital, the better for business," said Timar. "We have a lot of (infrastructure) needs. We're desperately trying to catch up."

The GN has budgeted $121 million in capital spending this fiscal year, including $10 million for the Nunavut Trades Training Centre, set to open in September, 2010.

Attendance at the show this year is expected to remain steady compared to last year, said Timar, with 107 exhibitor booths and 350 attendees signed up as of Thursday.

However, in order to save money, some companies have opted to send locally-based people to the show instead of flying up southern representatives, added Timar.

"I think we've got a bit more local participation," he said.

Keenainak said his corporation normally sends two people to man a booth, but this year all of his Iqaluit-based staff will pop by the area at some point.

Timar estimated the trade show pumps more than half a million dollars into Iqaluit each year.