Conference Board of Canada Research Shows Drastic Losses in Direct Employment and GDP

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Conference Board of Canada Research Shows Drastic Losses in Direct Employment and GDP

9/15/2021
COAST SALISH TERRITORY (Vancouver, BC) – The Conference Board of Canada (CBOC) and the Indigenous Tourism Association of Canada (ITAC) recently conducted research on the state of Indigenous tourism in Canada. The results showed that while 2021 saw modest gains as a sign of early recovery, the industry still projects a 54 per cent decline in direct GDP compared to pre-pandemic levels. Another study done using Destination Canada’s recovery model, projects that it will take until 2028 for Indigenous tourism to return to peak 2019 levels of employment and GDP.

Changes since 2019:

Prior to the 2019 pandemic, Indigenous tourism employed 38.9K employees, and brought in an estimated $1.86 billion in direct GDP
During the peak of the pandemic in 2020, Indigenous tourism dropped to 10.6K employees and contributed only $580 million in direct GDP
In 2021, Indigenous tourism employed 19.7K and provided an estimated $858 million in direct GDP

The report applies new information gathered from Indigenous tourism operators and ITAC’s members in spring/summer 2021 and reflects the deep and serious impact the pandemic has had on most businesses in the sector. Based on the CBOC research it is estimated that at least a third of Indigenous tourism businesses could still be at serious risk of closure in 2021-2022.

“Based on engaging with operators and last year's research, when COVID-19 first hit, we knew that the negative impacts of the pandemic were devastating to our Indigenous businesses, as it has been for all tourism operators across the country,” said Keith Henry, President and CEO of ITAC. “We have continued to work and advocate with the federal government, as well as provincial governments through our provincial/territorial Indigenous partners, on Indigenous-led solutions. Research like this is important to gauge the health of our industry with concrete data, even if it shows our greatest fears playing out, including over one billion dollars worth of sales lost. This is devastating for Indigenous entrepreneurs, nations and communities from coast to coast to coast who rely heavily on tourism for cultural revitalization and economic diversification.”

More than 650 Indigenous tourism operators participated in the 2020 and 2021 surveys. The biggest concerns amongst operators were the disruption of business into 2022 and beyond, with more than 60 per cent of operators saying they felt COVID-19 would affect their business into 2022 or longer.

ITAC’s own research using the Destination Canada recovery model paints a more sombre picture. According to a recent pulse check and in the very best travel conditions, Indigenous tourism would only be able to return to 2019 numbers by 2028. An even bigger decline is expected if more waves of COVID-19 force further provincial and territorial lockdowns and issues around human resources and lack of support continue to strike across the country.

“Our future may look uncertain but it’s clear that the sector’s path to recovery and renewal will require a series of tailored policy responses to best address the vastly different realities of our industries' diverse businesses. This is why we’ve been advocating for Indigenous-led solutions for the past 18 months. We now need our partners and government to step up if we want to see Indigenous tourism continue. Let’s all hope that tourism recovery and more specifically Indigenous tourism becomes a key topic through all parties during this federal election.”

The Conference Board of Canada’s research can be viewed here.

About the Conference Board of Canada
The Conference Board of Canada is a not-for-profit Canadian think tank dedicated to researching and analyzing economic trends, as well as organizational performance and public policy issues. The Conference Board of Canada is exclusively funded through the fees they charge for services to the private and public sectors.

About the Indigenous Tourism Association of Canada
The Indigenous Tourism Association of Canada (ITAC) is a national non-profit Indigenous tourism industry organization established in 2015. ITAC is the lead organization tasked with growing and promoting the Indigenous tourism 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.

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