Indigenous tourism operators in Canada are expressing concerns about their future due to a significant decline in American visitors amidst ongoing political tensions between Canada and the U.S. The Indigenous tourism sector has experienced a surge in popularity in recent years, driven by a growing interest in unique travel experiences and a desire to learn more about Indigenous culture.
According to a recent report by the Conference Board of Canada, the Indigenous tourism industry generated approximately $3.7 billion in revenues in 2023, contributing $1.6 billion directly to Canada’s gross domestic product. However, the industry is now facing the risk of losing hundreds of jobs and millions of dollars in revenue.
Dean Werk, the owner of Great River Fishing Adventures in British Columbia, revealed that his business has suffered a loss of around $250,000 this season since the onset of the trade war initiated by U.S. President Donald Trump. This setback has had a devastating impact on Indigenous tourism businesses across Canada.
Indigenous Tourism Association of Canada conducted a survey in April, revealing that nearly 70% of Indigenous tourism operators catering to American clients experienced a drop in bookings. Keith Henry, the association’s president and CEO, highlighted that American tourists contribute up to 35% of the total revenue for Indigenous tourism operators, emphasizing the critical importance of the U.S. market.
Talaysay Campo, co-owner of Talaysay Tours in B.C., disclosed that U.S. corporate groups totaling 1,000 guests have canceled bookings for the summer season, significantly impacting their business. The decline in American bookings has led to a substantial reduction in total sales and revenue from American visitors, from 33% to 12% compared to the previous year.
The federal government acknowledged the challenges faced by the tourism sector, including Indigenous tourism operators, due to the evolving Canada-U.S. relationship. Ottawa mentioned that while there has been an increase in visitors from other countries like France, the U.K., and Mexico, it remains committed to supporting Indigenous tourism businesses through initiatives like the Indigenous Tourism Fund.
Despite the struggles faced by many Indigenous tourism businesses, Klahoose Wilderness Resort, owned by the Klahoose First Nation in B.C., has seen growth in its Canadian market by approximately 40% over the past year. The resort’s tourism manager, Chris Tait, attributed this success to the current global situation prompting people to explore domestic travel options.
While efforts are being made to pivot towards other international markets, the Indigenous tourism industry recognizes the significant role that the U.S. market plays in its overall success. Industry leaders remain hopeful for a rebound in American bookings while exploring alternative strategies to mitigate the impact of the current challenges.