Walk along any street in downtown St. John's, and you may wonder whether you should have packed a hardhat. There is so much construction underway in the capital city of the Canadian province of Newfoundland, the question wouldn't be out of place. And it's not just visitors who might be asking. No one is more taken aback by St. John's reversal of fortune than the people who live here. The city has suddenly emerged as a business travel destination, and it's flush with cash from its booming oil industry.

Until recently, the local economy was tied to the cod-fishing industry. When that collapsed in the early 1990s, so did Newfoundland's already shaky financial picture. The unemployment rate in St. John's hit 20 percent, and the city's population started to dwindle as Newfoundlanders sought better prospects away from the island known as The Rock. Empty storefronts marked Water Street, making it not only the oldest but also the emptiest main street in North America.

That was then. Today, St. John's is brimming with energy and newfound wealth. The city's population soared to an all-time high of 180,000 in 2005. More than anything else, this turnaround is tied to the oil industry. Oil was discovered off the eastern coast of Newfoundland in 1979, but it wasn't until 1997 that the first offshore drilling project got up and running. Named Hibernia, it is jointly owned by a group that includes Exxon Mobil Canada, Chevron Canada and Petro-Canada, and it opened the way for more drilling projects, with the most recent one, White Rose, having begun production in November 2005.

Offshore drilling produced an estimated 113.5 million barrels in 2005, and White Rose is expected to increase output by another 34 million annually when it reaches peak production. This year and next, there are exploration drilling projects in the works by Chevron and ConocoPhillips. Along with oil, the province has substantial natural gas resources—9.6 trillion cubic feet of it has been discovered so far—but this potential goldmine has not yet been developed.

Important as it is, oil isn't the only industry drawing business to St. John's. The city has an impressive pedigree in marine technology that is being used internationally: For example, the Canadian Centre for Marine Communications has worked with the Geological Survey of Ireland to map that country's seabed. Another company, Oceanic Consulting, specializes in testing marine vessel design, and has worked with clients as diverse as America's Cup yachts and the Royal Australian Navy.

Tourism has also become big business in St. John's. Some of the people who lost their livelihoods when the fishing industry collapsed have reinvented themselves as tour guides, taking visitors out on the water to view whales, puffins and icebergs. The number of visitors arriving by cruise ship rose 95 percent between 2003 and 2005, as companies from both North America and Europe make St. John's a port of call.

In case business in St. John's needed another boost, it got one last September, when Canadian Business magazine named it the best city in Canada for doing business. This was no random award—it's a respected ranking of Canada's major cities based on an assessment of operating costs, cost of living, nonresidential business permits, unemployment and crime rate. Others have recognized St. John's increasing viability as a business destination, though in quieter ways (for instance, Continental Airlines launched nonstop service between New York City and St. John's in 2004). Another boost came from the opening of the city's conference center and Mile One Stadium in 2001. An influx of business and leisure travelers coming to town has spurred growth in the hospitality sector. And that is part of the reason there's so much building going on—in case you're still thinking about bringing that hardhat.

The city's character
The biggest surprise about St. John's is that its recent prosperity hasn't changed its basic disposition as a sunny small town. Locals promise that you can step out onto Water Street, the busiest commercial thoroughfare, at rush hour and traffic will halt for you. It's hard to believe until you try it for yourself and discover that not only do drivers stop, they're happy to do so. The small-town friendliness is apparent in other ways, too; visitors will notice it most in the consistently high quality of customer service.

One way that the city's character is changing is that increasingly, new immigrants are arriving in St. John's. The city's renowned Memorial University has drawn professors from the U.S. over the years, but now the cultural fabric is becoming more diverse. In 2005, St. John's first Lebanese and Afghan restaurants opened up.

What to see and do
St. John's mega-museum, The Rooms, opened last year, housing the provincial museum, art gallery and archives under one very big roof. Newfoundland's history and art is the primary focus, but not the only one—partnerships with galleries such as the Irish Museum of Modern Art bring in temporary exhibits, too.

Another excellent museum is the Johnson GEO Centre, a science museum that focuses on Newfoundland and the surrounding sea. It's adjacent to the Signal Hill National Historical Site, a military lookout point that dates back to 1704 (its beautiful stone tower isn't quite that old). The Memorial University Botanical Garden at Oxen Pond highlights the natural wonders of the province.

St. John's is a vibrant city at night. Locals will tell you that George Street has more pubs per square foot than anywhere else. Whether or not that's true, it's a lively scene, with live music (much of it Celtic-sounding) spilling out onto the street. Be sure to sample the locally produced Iceberg Vodka (named for the pure glacier water used in making it), and decide for yourself whether it deserves all of the international awards it has won.

If you have a spare hour...
Stroll along St. John's Duckworth Street, taking in the ever increasing number of small private galleries featuring works by local artists. Or you could go "twacking" (local slang for window-shopping) at the boutiques on Water Street.

If you have a spare day...
Start out at Cape Spear, the easternmost point of North America—from here, it's said that you can see Ireland on a clear day. But even if there's fog, this is a great whale-watching spot. In the afternoon, take a boat trip that will bring you to view the minke and humpback whales up close. Newfoundland boasts the largest puffin colony on the continent, and tour boats will also take you past one of the islands the birds call home.

If you have a spare weekend...
Tour the Avalon Peninsula that lies south of St. John's. Follow its Irish Loop (so named for its original settlers, although you can still hear the lilting accent in its present-day residents). Visit the Ferryland archaeological site and museum: The dig by Memorial University has unearthed two million artifacts, including jewelry and Portuguese pottery. Be sure to stop at Lighthouse Picnics for your lunch—the chef here trained at Ireland's famous Ballymaloe Cooking School.

Getting there
Given its recent popularity, it's no surprise that St. John's International Airport has just finished a top-to-toe renovation. Its decor is nautical in theme, and its walls and passageways serve as an impromptu gallery for works by local painters, photographers and sculptors. Here's what you need to know about traveling through:

• From the U.S., you can fly here with Continental, Air Canada or WestJet; keep in mind that most flights are routed through Toronto, Montreal or Halifax. European carriers include British Midland, Lufthansa and SAS.

• Newfoundland has its own unique time zone—it's one-and-a-half hours ahead of Eastern Standard Time—so reset your watch when you land or leave.

• Non-Canadian visitors go through Canadian Customs at the airport, but there's no U.S. Customs and Immigration office in St. John's. Since you don't need to budget extra time at the airport for this process, travelers are generally advised to arrive 90 minutes before a flight to the U.S. (but check with your airline).

• From the airport, taxis to downtown have a flat rate of $20 (no toll charges). There are several car rental agencies at the airport, including Hertz and Avis. There are no public transportation options from the airport.

• Airport dining options are limited. They include a pub that serves local beers from the Quidi Vidi Brewery and light snacks, and a casual restaurant that serves salads, burgers and fish and chips. The private Maple Leaf Lounge is for Air Canada's executive–class passengers only.

• Wireless Internet service is available in the passenger lounge after you've cleared security.

• Most people don't realize that there's a viewing area on the top floor, but any passenger can go up to watch the planes or see the sun rise or set.

Restaurants
Bianca's
171 Water Street
709-726-9016
www.biancas.net

Blue on Water Restaurant
319 Water Street
877-431-2583
www.blueonwater.com

Cabot Club
115 Cavendish Square
709-726-4980
www.fairmont.com

Cellar Restaurant
152 Water Street
709-579-8900

Celtic Hearth
298-300 Water Street
709-576-2880

Hotels
Blue on Water
319 Water Street
877-431-2583
www.blueonwater.com
This elegant and modern boutique hotel is centrally located, has one of the best kitchens in the city, and houses adult guests only

Delta St. John's Hotel & Conference Centre
120 New Gower Street
888-793-3582
www.deltahotels.com
This downtown hotel is popular with business travelers, particularly those with families in tow – the Delta offers several programs for kids

Fairmont Newfoundland
115 Cavendish Square
800-257-7544
www.fairmont.com
A luxurious downtown hotel with all the amenities: indoor pool, health club, spa, and a 24-hour business center

Hometel on Signal Hill
866-739-7799
www.hometels.ca
For longer stays, these newly built brownstones combine the coziness of home with the convenience of a hotel (including catered meals and daily housekeeping service)

Park House Inn
112 Military Road
866-303-0565
www.newfoundlandbedandbreakfast.nl.ca
Located in a Victorian mansion that's a five-minute walk from downtown, the Park House is an old-fashioned charmer; every guestroom has a fireplace (the executive suite has two, plus a Jacuzzi)

HILARY DAVIDSON is a freelance writer based in New York.

Newfound opportunities in Newfoundland
by Dean Foster

It's been said that there really are no differences between Canadians and U.S. Americans, and that the only way to tell the two apart is to make this statement to a Canadian. Lurking not too far below the sometimes similar surface, subtle but critical differences between the two cultures can derail an otherwise sound business venture. Here are some of the more common mistakes to avoid:

• U.S. American business style can appear too aggressive in the well-tempered Canadian work environment. Remember, while the U.S. had a noisy, sudden revolution against Mother England, Canada cautiously and carefully evolved into independence, without all the hoopla and bravado. This same careful, detailed and considered approach to business is more the Canadian style.

• Take a geography lesson: That lone cowboy, so admired in mythic America for his ability to make his own decisions and design his own independent course, wouldn't do so well in the frozen north. "Up there," you need to rely on others, if only to survive. It's the same in business. Canadians typically prefer to consult with and seek the counsel of those affected by their business decisions—workers, customers or both—before making those decisions. This takes more time.

• Relying on others for survival in Canada created a society with a social conscience: A major goal of government is to provide a common well-being for all. Therefore, there is always a concern for how a business venture affects all corners of society, along with a government requirement or two to satisfy. Be prepared for what U.S. Americans might see as too much bureaucratic interference.

• You'll never sign that deal if you use "evidence" of your idea's success from the other side of the border. Do not presume similarity: Canadians will want to see proof of your proposal's success with Canadians, in Canada.

• When the deal is finally signed, schedule a celebratory meal in a fine restaurant—but don't forget to wear business attire (a tie and jacket for men). It's just more civilized that way in Canada!

DEAN FOSTER ASSOCIATES advises corporations on international protocol and etiquette.