Indigenous Tourism Falling Short of Potential

It’s no surprise to anyone in the industry that the pandemic was a very bad thing for tourism. For the most part, things have rebounded, in some cases even exceeding pre-pandemic numbers. For Indigenous tourism offerings, returning to the record successes of 2019 has not happened. A new report conducted by the Conference Board of Canada (CBOC) and the Indigenous Tourism Association of Canada (ITAC) asserts that even though demand for Indigenous tourism experiences is rising, the sector is hobbled by the dual forces of inflationary pressure and a shortage of workers. 

“The tourism sector is facing greater inflationary pressures than other sectors,” said Alan Chaffe, Associate Director of Economic Research at The Conference Board of Canada. “Prices for tourism-related goods and services in 2023 were an estimated 18.8 per cent higher than in 2019—exceeding the economy-wide inflation rate of 15.5 per cent over the same period.” 

The report states Indigenous tourism in Canada generated an estimated $3.7 billion in revenues in 2023. Indigenous tourism’s total direct economic impact supported more than 34,700 jobs and contributed close to $730 million in direct government revenue (federal, provincial, and municipal). 

Those are impressive numbers, but compared to 2019, the revenues reflect a downturn. In 2023, Indigenous tourism directly contributed $1.6 billion to Canada’s GDP – a decrease of 10 per cent compared to 2019, and an even greater decrease of nearly 24 per cent when adjusted for inflation. 

“Looking ahead to 2025 and beyond, it will be more important than ever for our federal, territorial, and provincial partners to come together and collectively support the ongoing recovery of Indigenous tourism,” says Keith Henry, CEO and president at ITAC. “This report highlights the sector's positive impact on Canada’s economy – and for Indigenous businesses across the country to thrive and reach pre-pandemic levels, ongoing and long-term investment is vitally important to the sector’s success.” 

The report goes on to note that although there are more Indigenous tourism businesses operating, which explains the rise in the number of people employed in the sector, each business is operating with fewer employees. It points to significant risks to the sector including the impact on service, decline in bookings or opportunities, potential employee burnout and reduced interest in working in the sector that may result.

To reach its full potential and be able to keep up with the demand for Indigenous tour offerings, the report states it is becoming increasingly essential to implement strategies and support programs to retain labour in tourism and showcase the career opportunities in the sector. 

To ensure ITAC’s vision, they have stated “there needs to be an organized, strategic approach for investments in the sector for ITAC to coordinate an Indigenous-led strategy to create the most effective results from all levels of government and the private sector.”

Topics From This Article to Explore