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

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).  

“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 tourism sector is also facing greater inflationary pressures than other sectors,” added 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.” 

Long-term potential

The long-term potential of the sector is "evident," the groups say. But achieving ITAC’s goal of $6 billion in GDP and creating 60,000 direct jobs by 2030 will require strategic investments and targeted support to address systemic barriers. 

Meanwhile, more than 2,750 entrepreneurs and organizations were part of the Indigenous tourism sector in Canada in 2023, an increase from nearly 1,900 from 2021. 

The top four sectors that make up over 70 per cent of the Indigenous tourism industry include events, performances, and conferences (24 per cent); accommodations (21 per cent); outdoors and adventure (15 per cent); and retail (12 per cent). 

More than half (55 per cent) of Indigenous tourism businesses anticipated more visitors in 2024 than in 2023, estimating 6 per cent growth. 

However, both the domestic and international demand continues to outpace the Indigenous tourism industry supply which remains a major obstacle for Indigenous tourism in the future. Indigenous tourism in Canada was the first hit in 2020, the hardest hit during the pandemic, and it will be the last to recover compared to 2019, which was the most successful year for Indigenous tourism.  

While the inventory of Indigenous tourism businesses has grown, these businesses, on average, now operate with fewer employees. For instance, the sector’s direct labour force in 2023 totaled 34,711, which is nearly five per cent lower than in 2019, and a decrease of roughly 13 per cent from the estimated target of 40,000. These findings highlight 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.  

Direct employee compensation in tourism is also still six per cent below 2019 levels due to the rise of operational costs and the lack of pricing adjustment for Indigenous tourism experiences. 

"It is becoming increasingly essential to implement strategies and support programs to retain labour in tourism and showcase the career opportunities in the sector," the associations say. "For recovery to happen, effective human resources practices must be established to reach ITAC’s 2030 growth target vision which projects an Indigenous tourism need of 60,000 jobs." 

ITAC remains "deeply concerned" with the lack of financial support and investments for Indigenous tourism throughout Canada that will result in a lost opportunity for Indigenous communities and the country. 

"To ensure ITAC’s vision, 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," the association says. 

For more information and to view the CBOC report, visit www.indigenoustourism.ca and the following link: Indigenous Tourism Urgently Requires Strategic Investments.