New Conference Board of Canada research shows Indigenous tourism’s potential falling short of post-Covid recovery goals despite growing demand

Xʷməθkʷəy̓əm (Musqueam), Sḵwx̱wú7mesh (Squamish) and səlilwətaɬ (Tsleil-Waututh), (Vancouver, BC) – January 23, 2025 – Indigenous tourism has yet to return to pre-pandemic levels (in 2019), with inflationary pressures and workforce shortages serving as the key contributors, according to an economic report conducted by the Conference Board of Canada (CBOC) and the Indigenous Tourism Association of Canada (ITAC).

The report underscores the critical role Indigenous tourism plays in Canada’s economy. 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.

Despite the downturn, Indigenous tourism in Canada generated an estimated $3.7 billion in revenues in 2023. 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,” 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 long-term potential of the sector is evident, 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 5 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 6 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. 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.

For more information and to view the CBOC report, visit www.indigenoustourism.ca.

Associated link

Indigenous Tourism Urgently Requires Strategic Investments

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About the Indigenous Tourism Association of Canada (ITAC)

Established in 2015, ITAC is a national non-profit Indigenous tourism industry organization, tasked with growing and promoting the industry across the country. Inspired by a vision for a thriving Indigenous tourism economy sharing authentic, memorable and enriching experiences, ITAC develops relationships with groups and regions with similar mandates to enable collective support, product development, promotion and marketing of authentic Indigenous tourism businesses in a respectful protocol. For more information, visit www.indigenoustourism.ca.

About the Conference Board of Canada

The Conference Board of Canada is the country’s leading independent research organization. Since 1954, The Conference Board of Canada has been providing research that supports evidence-based decision-making to solve Canada’s toughest problems. Read more about our impact at the link here. Follow The Conference Board of Canada on X @ConfBoardofCda and LinkedIn here.

The report sheds light on the key economic shifts and trends shaping the Indigenous tourism sector since the pandemic:

• The Indigenous tourism sector’s revenues fell from $3.8 billion in 2019 to $3.0 billion in 2023 when accounting for inflation—a decrease of roughly 22 per cent.
• When adjusted for inflation, the sector’s contribution to direct GDP was nearly 24 per cent below its pre-pandemic level, falling from $1.7 billion in 2019 to $1.3 billion in 2023.
• Employment in the Indigenous tourism sector has nearly doubled since 2021, yet its workforce remains about 5 per cent smaller than in 2019.

For English Media Requests:

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