Canada’s Path to Becoming a World Leader in Indigenous Tourism

Canada is on a trajectory to become a world leader in Indigenous tourism. It is a journey that necessitates a collaborative effort involving Indigenous entrepreneurs, communities, tourism associations, the broader Canadian tourism sector, and government stakeholders.

Economic Impact and Growth Trajectory of Indigenous Tourism

No other sector of Canada’s economy touches the farthest regions of the country quite like tourism. Its impact reverberates from coast to coast to coast, providing important economic diversification and growth from the busiest of cities to some of Canada’s most remote destinations. Tourism has the potential to—and most often does—provide multiple economic benefits, including new trade, investment in assets and infrastructure, conservation and preservation of land and culture, entrepreneurship, partnership and employment opportunities, and stronger, more resilient communities. 

Tourism significantly impacts Canada’s economy. In 2022, the sector contributed approximately $38 billion to Canada’s GDP, accounted for almost 13% of service exports, and supported 600,000 direct jobs and 1.9 million jobs in total. 

Indigenous tourism, a growing segment within this industry, has shown remarkable resilience and growth. In 2019, it contributed $1.9 billion to the GDP. Despite the challenges posed by COVID-19, Indigenous tourism had its best domestic year in 2022, with $1.2 billion in direct GDP contributions and an estimated $2.4 billion in revenues. This growth is fueled by an increasing domestic and global demand for authentic experiences offered by Indigenous communities and businesses.

Vision for 2030

The Indigenous Tourism Association of Canada (ITAC), the largest advocacy and Indigenous tourism marketing organization in the country, forecasts that Canada has the potential to become a global leader in Indigenous tourism by 2030. This growth vision would encompass an increase of Canada’s GDP to the effect of $6 billion, boosting Indigenous-owned and operated tourism businesses to 2,700 and a rise in Indigenous tourism jobs to 60,000, with potential spill-over benefits to the broader communities where these destinations are situated.

A Multi-Faceted Path

The path to achieving these goals is multi-faceted. It involves a balance of education, support, and mentorship for new entrepreneurs and existing operators, ensuring the competitive sustainability of Indigenous tourism businesses, growing employment skills to build a strong tourism and hospitality workforce, providing strong marketing and distribution for Indigenous businesses, and fostering partnerships within the tourism industry and amongst local, regional, provincial and territorial governments and other stakeholders.

1. Entrepreneurship and Workforce Development

Entrepreneurship is deeply rooted in Indigenous communities, who have been sharing their culture with visitors for generations. 

In recent years, coinciding with the 94 Calls to Action of the 2015 Truth and Reconciliation Commission of Canada and greater awareness of Indigenous economic and socio-cultural challenges, there has been a corresponding interest in self-determination, higher education, and economic diversification amongst Indigenous Peoples of all ages. As confidence, education, support, and opportunities have grown in Indigenous Canada, so has interest in entrepreneurship and self-employment in industries such as tourism and hospitality. 

While barriers to entry into tourism business ownership are low, many Indigenous tourism entrepreneurs, particularly those in rural and remote areas, don’t have access to the knowledge, mentorship and resources needed to develop a solid business plan, attract capital, and gain financial literacy and business acumen. To compete globally, these entrepreneurs need improved access to business support, education, and training.

2. Attracting and Retaining a Sustainable Indigenous Tourism Workforce

Concurrently, there is a need to grow the number of Indigenous Peoples employed by others in the tourism industry. In 2020, Canada’s Indigenous tourism sector experienced a 65.9% decline in direct GDP and a 59.4% decline in employment (down to 14,624 jobs) due to COVID-19 and the global tourism industry grinding to a halt.

Provincial and territorial partners, Indigenous and non-Indigenous tourism operators, and tourism training institutions will need to work together to develop and implement training programs to grow the Indigenous workforce and employers’ understanding of Indigenous values and how to work with Indigenous employees.

Investing in Indigenous tourism will employ more Indigenous workers than an investment in any other sector and provide employment opportunities in rural or remote parts of Canada. Research shows that 57% of the workers in the Indigenous tourism industry are Indigenous— that rate is four times higher than in any other sector. Moreover, this will enhance the visitor experience and will support economic reconciliation. Therefore, ITAC has called for a federal investment toward an Indigenous labour market strategy to help overcome barriers for Indigenous Peoples working in Indigenous and non-Indigenous tourism businesses.

3. Developing Indigenous Tourism Assets

A combination of private and public enterprises is commonly what builds strong tourism destinations. Public tourism assets, such as national parks, cultural centres and museums often inspire private tourism infrastructure investment in close proximity. Conversely, successful private tourism assets that demonstrate demand can sometimes inspire public investment in roads, ferries, airports, and other transportation or technology infrastructure. It benefits a destination when private enterprise and government collaborate on solutions to address tourism assets and infrastructure in destinations that demonstrate the viability of tourism products, human resources, seasonality, and natural, cultural, and political assets.

The development of Indigenous tourism assets often requires a combination of private and public investment. Many Indigenous tourism businesses, which constitute 61% of the sector, are located in rural and remote communities where access can be challenging due to distance and cost. While many of these businesses have built their business models around the transportation available to their region, those options are limited and usually expensive, resulting in uncompetitive tourism pricing compared with other destinations in the world. Innovative public/private logistics and cost solutions are required to improve competitiveness and expand transport services for visitors to these communities, including potential co-investment—and even full investment—by the government in the necessary tourism infrastructure.

4. Marketing Indigenous Tourism

National, provincial, territorial, regional, and local tourism marketing and distribution efforts are critical to a thriving, vibrant, compelling industry—not only to the outside world but to Canada’s own citizens, to inspire them both as entrepreneurs and as visitors. And given the growth opportunity for Indigenous tourism, comprehensive marketing for this sector is essential to ensure both new entrants into the industry, and to provide vital new infrastructure and concurrently grow visitation.

It has been said that Indigenous tourism must be by Indigenous Peoples, not about Indigenous Peoples, and the same is true for the marketing of Indigenous destinations. Multi-year funding for destination marketing and provincial and territorial Indigenous tourism partners will allow Canada to match demand with supply and market Indigenous tourism domestically and internationally as a four-season driver of travel while allowing Indigenous Peoples to tell their own stories in their own way. Currently, most Indigenous operators are left out of the destination marketing models, which disadvantages the sector and limits their ability to market effectively.

In terms of the Indigenous tourism industry proactively seeking sustainability of funding for destination development and marketing, ITAC has recently established the Indigenous Tourism Destination Fund (ITDF), providing Indigenous businesses and non-Indigenous organizations with a unique opportunity to participate in and support Indigenous tourism development and reconciliation actively. ITDF partners collect a small fee from each visitor, which forms their contribution to the fund. Contributions are invested into several programs targeting infrastructure, workforce, business and destination development in every province and territory.

Collaborative marketing partnerships with Canada’s transportation sector—such as international airports—will further help educate those who travel to Indigenous communities, grow their understanding and experience of Indigenous cultures, and bolster reconciliation efforts within Canada.    

As part of the federal tourism growth strategy, it is vital for Canada to increase its efforts to attract and secure major events—including conferences and conventions, sporting events, festivals, and cultural events—that drive both seasonal and regional dispersion. This will bring visitors to less-frequented parts of the country, creating growth opportunities for communities big and small. It is paramount that these investments see Indigenous culture showcased at high-profile events such as FIFA 2026 and the North American Indigenous Games.

The Role of the Federal Government: Canada 365

This year’s newly introduced Federal Tourism Growth Strategy—Canada 365—signals a significant commitment to providing ongoing support and strengthening partnerships for Indigenous tourism.

To boost the recovery of Indigenous tourism, the federal budget for 2022 invested a total of almost $25 million in support of the Indigenous Tourism Fund, and other provincial and territorial governments are actively investing in their regional tourism operators through education, infrastructure development funds, and marketing. It remains to be seen if the federal government will create new, tangible investments in 2024 and beyond for Indigenous tourism. The new Federal Tourism Growth Strategy announced in Budget 2023 has no new tangible investments in Indigenous tourism, despite the global interest and potential of the industry. 

Indigenous Tourism as a Path to Reconciliation

Investing in Indigenous tourism aligns with the Truth and Reconciliation Commission’s Call to Action #92. It fosters respectful relationships and ensures that Indigenous communities benefit economically from tourism activities. Indigenous tourism not only provides economic stability and job creation but also serves as a medium for sharing Indigenous history, culture, and language. It is a critical driver for economic prosperity, self-determination, and reconciliation with First Nations, Métis, and Inuit Peoples.

In conclusion, Canada’s path to becoming a global leader in Indigenous tourism is marked by a need for entrepreneurship support, strategic investments, collaborative efforts, and a commitment to both economic growth and cultural vitality. This journey will not only benefit the Canadian economy but will also play a crucial role in advancing reconciliation and cultural revitalization for future generations.