Economy

With a plentiful and inexpensive source of hydroelectric power via the waterfalls, many electro-chemical and electro-metallurgical industries located here in the early to mid-20th century.

Industry began moving out of the city in the 1970s and 80s because of recession and increasing global competition in the manufacturing sector. Tourism tightened its grip as the city's most important economic engine. It is a more popular destination than Niagara Falls, New York, in part due to the better view of the falls from the Canadian side. Also, Ontario's drinking age of 19 (compared to the 21 drinking age in the United States) attracts many 19 and 20-year-olds from the United States to the bars on the Canadian side.

In the mid-1990s the Ontario government introduced legal wagering to the local economy with Casino Niagara. The late-1990s witnessed an economic boom as numerous luxury hotels and tourist attractions were built. The first casino was followed in 2004 by the larger Niagara Fallsview Casino Resort. Upon launching, the casino business was successful in attracting American tourists due to the then lower Canadian dollar. However, with the United States Dollar now lower than parity, the Seneca Niagara Casino open on the American side, and a casino facility coming to Buffalo, New York, as well as impending passport requirements on the American side, the local tourist economy is not without potential problems.

Some of the many vacant buildings in the Queen Street downtown area

The recent development has been almost completely centred on the Clifton Hill and Fallsview areas. The Niagara Falls downtown strip continues to suffer considerable decay, with much of the Queen Street retail area now vacant. The downtown area was a major centre for local commerce and night life up until the 1970s, when the development of the Niagara Square shopping mall began to draw away crowds and retailers. In 2006, New York City based developer Aaron Lichtman proposed a major investment in the area to encourage new retail development; the proposal, titled Historic Niagara, remains dependent on government funding of complementary services. As of February 2007, the project appeared stalled .

Government

Niagara Falls City Council is comprised of 8 councilors and 1 Mayor. City elections take place every 4 years with the next election in November 2010. Council is responsible for policy and decision making, monitoring the operation and performance of the city, analyzing and approving budgets and determining spending priorities.