“The study highlights the vital role that the Indigenous tourism sector plays in Canada’s economy,” said Alan Chaffe, Associate Director of Economic Research at The Conference Board of Canada. 

Indigenous Tourism Association of Canada identified 2,757 Canadian entrepreneurs and organizations as participating in the Indigenous tourism sector in 2023, up from 1,889 in 2021.

In 2023, the Indigenous tourism sector generated $3.7 billion in revenue and supported 54,700 full-year jobs. The sector’s contribution to GDP was similarly impressive at $3.7 billion. The sector also bolstered public finances, contributing nearly $1.3 billion in government tax revenues.

The report provides a detailed breakdown of the Indigenous tourism sector’s economic contributions to the Canadian economy in 2023:

  • The $3.7 billion generated in revenues by the sector was concentrated in transportation (40 per cent), attractions (19 per cent), and accommodations (14 percent). 
  • Of the sector’s $3.7 billion contribution to Canada’s GDP, over two-fifths (43 per cent, or $1.6 billion) stemmed from direct activities in the sector, with an additional $1.3 billion coming from supply chain activities (indirect impacts) and $803.2 million from re-spending activities (induced impacts).
  • The 54,693 full-year jobs supported by the sector is roughly equal to the total number of Canadians directly employed in the oil and gas extraction industry. Over 34,700 of the full-year jobs were directly tied to Indigenous tourism. Another 12,708 jobs were linked to the supply chain (indirect impact), while an additional 7,275 jobs resulted from re-spending activities (induced impact).
  • Federal taxes accounted for $548.8 million of the total fiscal impact, while $649.4 million in provincial taxes and $70.8 million in municipal taxes were collected across Canada. For every dollar of revenue generated by Indigenous tourism businesses, $0.35 was added to government revenues. 

“While the Indigenous tourism sector has made strides in recovering from the pandemic’s impact, it has yet to return to pre-pandemic levels,” said Chaffe. “Although the number of businesses in the sector has risen since 2019, the Indigenous tourism sector has contracted across key economic indicators.”

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 2029 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 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. 

“The tourism sector is also facing greater inflationary pressures than other sectors,” said Chaffe. “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.