Question Period Note: INDIGENOUS TOURISM

How is the Government of Canada supporting Indigenous tourism?

• Indigenous tourism is an opportunity for Indigenous Peoples to share their cultures and histories with Canadians and international tourists, while supporting economic reconciliation. It is a core part of Canada’s tourism brand and helps to distinguish the country globally as a premier tourism destination.

• The new Federal Tourism Growth Strategy has five priorities, including partnering with Indigenous tourism organizations and businesses to grow this important industry.

• Budget 2022 announced $20 million to help the Indigenous tourism industry recover from the pandemic through an Indigenous Tourism Fund.

• A minimum of 15% of the Tourism Growth Program, announced in Budget 2023, will also be invested in Indigenous tourism attractions.

• Indigenous tourism provides an opportunity for Indigenous Peoples to uphold their inherent rights while sharing their cultures, histories and stories in an authentic, respectful manner with Canadians and international visitors. Indigenous tourism helps to distinguish Canada globally as a premier tourism destination and is a core part of Canada’s tourism brand. Research by the Indigenous Tourism Association of Canada (ITAC) and Destination Canada demonstrates that one in three Canadians is interested in Indigenous tourism experiences. Historically, international visitors have had an even higher level of interest (37 percent).

• Prior to the COVID-19 pandemic, Indigenous tourism in Canada was growing faster than the tourism sector as a whole, generating $1.86 billion in direct GDP and accounting for 39,000 jobs. The pandemic had a disproportionately negative impact on the Indigenous tourism industry, which experienced a 70 percent reduction in its contribution to GDP and lost approximately 21,000 jobs in 2020. While Canada’s visitor economy is showing strong signs of recovery, regaining 61 percent of its 2019 international visitation from May-September 2022, Indigenous tourism’s recovery has been weaker than that of other segments.

• Budget 2022 announced $20 million over two years in support of an Indigenous Tourism Fund (ITF) to help the Indigenous tourism industry recover from the pandemic and position itself for long-term, sustainable growth. The ITF will be delivered through two $10-million streams:

o The Micro and Small Business Stream (MSBS) will be delivered by ITAC and will build the capacity of Indigenous tourism micro and small businesses and organizations to help them recover from the impact of COVID-19 and grow.

o The Signature Indigenous Tourism Experiences Stream (SITES) will support the scaling-up of significant, export-ready, market sustainable, and community-supported Indigenous core attractions, tourism clusters, and/or experiences that target high-value visitor overnight stays. Design work on this stream is ongoing.

• The ITF contributes to the broader Indigenous tourism priority in the 2023 Federal Tourism Growth Strategy, which aims to unleash the full potential of Canadian tourism and cement Canada as a top global destination.
Indigenous Tourism Association of Canada (ITAC)
• ITAC is a non-profit industry association established in 2015 that receives operational funding through Indigenous Services Canada. It focuses on creating private and public partnerships across Canada to support the growth of Indigenous tourism. Its more than 1,000 members are Indigenous-owned-and-controlled businesses from every province and territory in Canada.

• ITAC recently launched the Indigenous Tourism Destination Fund (ITDF), similar to the destination marketing fees that hotels use to support their local visitor Destination Marketing Organizations. The fund is expected to facilitate investments in infrastructure, human resources and transportation, as well as the continued growth of the industry and act as a model for the development of Indigenous tourism, in support of economic reconciliation.

• The new Indigenous Tourism Fund (ITF) will support signature Indigenous-led tourism experiences, as well as help Indigenous-owned and -led micro/small tourism businesses become market- and export-ready.

• Additionally, through the Tourism Relief Fund – National Priorities Stream, $3.6 million was invested in the Indigenous Tourism Association of Canada to help position the industry for recovery and long-term growth.