Victoria's downtown -- a dynamic tangle of tourism attractions, hotels, restaurants, retail outlets and office space -- is also home to the majority of the province's 152 ministry offices. Those offices are distributed between 82 different buildings and house the vast majority of the 13,488 government employees living in the capital region, not to mention the hundreds of businesses and services and the thousands of employees that support them.

"One of the factors that really carries a lot of weight with what happens to our downtown is what's happening with the provincial government," said Bruce Carter, the chief executive of the Greater Victoria Chamber of Commerce.

He contends the sheer weight and breadth of that workforce is a factor that could shape any region.

"A big percentage of people in the downtown area either work for or service the provincial government," said Carter.

And that's a lot of people.

The 2006 census revealed there were 5,135 people working in public administration in the city centre, though the total provincial government payroll in the downtown core is estimated to be closer to 10,000.

And Carter says that makes an impact on everything from the coffee vendor to the haberdasher and everyone in between.

"I'd argue the provincial government employees as a group are one of the largest movers and shakers in the area, and that's separate from the provincial government as an entity," Carter said. "They really act as individuals."

That is likely one of the reasons Victoria boasts nearly 600 pubs and restaurants downtown.

"The City of Victoria's estimated population is about 78,000, but during the day it has a population of 145,000 and the same at night -- we're punching twice above our weight," said Victoria Mayor Dean Fortin.

He said the vast majority of that number spend their work and play time in the city centre.

"Downtown plays the role of the living room of the region and we ignore that at our peril," said Fortin.

The 2006 census noted 40,300 people from other Greater Victoria municipalities commute into Victoria for work.

But the provincial government's impact goes beyond simply filling the streets, restaurants and services in the city centre. Its infrastructure needs have a massive impact on the core.

According to Andrew Turner, managing director of the Victoria office of Colliers International, the government's need for space can spur mini building booms or, conversely, flood the market with space when it decides to downsize.

"Right now the market really depends on what government does with this set of downsizing measures," he said.

"They are sitting on their hands right now and after the budget that's understandable. Belt-tightening will have to happen and that might affect some decisions with regard to office space."

The province has proposed a five per cent reduction -- or 1,630 full-time equivalent positions -- to its 30,000-member civil service province-wide over the next three years as part of austerity measures to address budget shortfalls.

Although that may only amount to about 600 people in Victoria, the effects of spending constraints ripple to the overall business community, directly affecting downtown and other areas of the city.

The expected cutbacks have already led to the Gateway Green Class A office project at the corner of Fisgard and Blanshard streets being put on hold and it makes coming up with a new configuration for the $160-million mixed-use Radius development a block further north on Blanshard more difficult.

"I don't see a lot of office development going forward until we see government come back to the market. They really drive that market here," said Turner.

"Not two years ago they were coming out with an expression of interest for 300,000 square feet. Well, that has been shelved."

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MOVERS & SHAKERS:

Downtown

The legacy of Michael Williams: Williams, a businessman and philanthropist who died in 2000, owned Swans Hotel and a series of buildings in the city centre. Williams, who left his entire estate to the University of Victoria, was a passionate preserver of Victoria's history and worked tirelessly to maintain and upgrade Victoria's "Old Town," leaving the city with bright, eclectic buildings full of character.

The Downtown Victoria Business Association: Since it rose from the ashes five years ago, the DVBA has worked hard to promote downtown, draw more people into the city centre and help in the effort to clean up the streets. Businesses and politicians have credited Ken Kelly and the DVBA with making a big difference in improving the vibrancy of the area.

Matt McNeill: McNeill is owner of both the Irish Times and Bard & Banker pubs on Government Street; he has spent millions renovating and updating two striking downtown landmarks that have helped revitalize the street itself and the city centre. He has also devoted time and effort as part of the DVBA to tackle issues of homelessness, panhandling and parking downtown.

The aesthetic appeal of downtown Victoria: Seen as clean, green and safe, Victoria has long been a haven for tourists who drank in its picturesque vistas and old-world charm and gave life to a $1.2-billion tourism industry. But those in the know say the aesthetic appeal of the city is not limited to the tourism industry, as businesses and business leaders who are now more concerned with lifestyle choices are looking at the provincial capital as a viable place in which to locate