Indigenous tourism in crisis: CATO sounds alarm as ITAC faces collapse

The Canadian Association of Tour Operators (CATO) is urging the travel industry and stakeholders to unite in support of the Indigenous Tourism Association of Canada (ITAC), which is facing possible collapse due to a deepening financial crisis.

“Over the years, ITAC has played a critical role in advancing Indigenous tourism across Canada, fostering meaningful economic opportunities for Indigenous communities while enriching the Canadian tourism experience through authentic cultural engagement and reconciliation in action,” wrote CATO in a press release issued Tuesday night (May 26).

“Many of our CATO member tour operators have worked closely with ITAC for several years to help develop and promote tourism experiences and tour packages in partnership with Indigenous communities across the country and abroad.”

“These collaborations have not only created unique, high-quality travel products for domestic and international visitors but also contributed directly to local employment, entrepreneurship, cultural preservation, and regional economic development.”

Paused until further notice

Earlier this month, Keith Henry, president and CEO of ITAC, shared a “difficult update” on the organization’s website, writing that ITAC’s remaining team members have been laid off.

“I am now the only active employee at ITAC, working without pay to keep the most basic functions of the organization in place. All of our programs and services are paused until further notice,” Henry wrote in a blog post on May 8.

Henry stressed that the root cause of the emergency facing Indigenous tourism today is a lack of federal investment.

READ MORE: Indigenous tourism in Canada has yet to return to pre-COVID levels: report

“For many years, federal funding was the backbone of ITAC’s national work and of the Indigenous tourism infrastructure that has grown alongside it. That investment has now all but disappeared,” he wrote.

While Canada’s most recent federal tourism strategy names Indigenous tourism as a partnership priority, “the actual investment has moved in the opposite direction.”

For the fiscal 2026-27 year, ITAC’s federal funding stands at $0 from both Indigenous Services Canada (ISC) and Innovation, Science and Economic Development Canada (ISED), Henry revealed, calling it a “100 per cent reduction.”

He noted that ITAC has also faced “persistent misinformation from those who do not wish to see this organization succeed and have actively sought to sabotage our work.”

“The strongest answer is the clear, direct voices of those who know what ITAC has done for this sector,” he wrote. “This is the moment for the Indigenous tourism industry and our partners in the larger tourism industry to stand up for what has been built.”

The Original Original

Before the COVID-19 pandemic, Indigenous tourism had emerged as one of Canada’s most rapidly-expanding tourism sectors.

Growing interest in authentic cultural storytelling and immersive Indigenous experiences fuelled significant growth across regions such as Alberta.

This momentum was reinforced by “The Original Original,” a national accreditation program conceived in 2019 and officially launched in 2021 to recognize fully-authentic, Indigenous-owned and operated tourism experiences.

Last year, however, it was revealed that Indigenous tourism has yet to return to pre-pandemic (2019) levels, with inflationary pressures and workforce shortages serving as the key contributors.

According to a 2025 report from the Conference Board of Canada (CBOC) and ITAC, Indigenous tourism, in 2023, directly contributed $1.6 billion to Canada’s GDP – a decrease of 10 per cent compared to 2019.

It’s an even greater drop of nearly 24 per cent when adjusted for inflation.

Despite the downturn, Indigenous tourism in Canada generated an estimated $3.7 billion in revenues in 2023, says ITAC.

Moreover, 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). 

Strategic investments and targeted support remain essential to addressing systemic barriers and realizing the sector’s long-term potential. Yet growing signs suggest this support is no longer being prioritized.

“Strong growth potential”

In its release, CATO said the progress achieved in Indigenous tourism over the past decade has required “significant trust-building, partnership development, training, product development, and international market positioning.”

“Interruptions or uncertainty in funding risk undermining these important gains at a time when Indigenous tourism continues to demonstrate strong growth potential and growing demand from travellers seeking authentic and responsible travel experiences,” the association wrote.

Continued federal support for ITAC is not only an investment in tourism, “but also in economic reconciliation, cultural preservation, and community development,” noted CATO.

How to help

CATO is calling on the Government of Canada, the RT Hon. Prime Minister, Minister Rechie Valdez and several other Ministers to work toward a sustainable solution that will allow ITAC to “continue its important mandate” and maintain momentum for Indigenous tourism across the country.

“ITAC has had a positive impact on the Canadian tour operating sector and on tourism partnerships with Indigenous communities,” CATO wrote. “We invite others to support this important organization.”

Letters of support can be sent by mail to:

The Honourable Rechie Valdez, Secretary of State (Small Business and Tourism)

House of Commons, Ottawa, Ontario K1A 0A6

And by email: rechie.valdez@parl.gc.ca

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