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Indigenous tourism struggles despite rebounding international demand

Post-pandemic recovery slow, operators say support from government lacking
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A carved totem fades into the vegetation at Yuquot on the western edge of B.C.害羞草研究所檚 Nootka Sound. (John McKinley file)

By Matteo Cimellaro, Local Journalism Initiative Reporter CANADA害羞草研究所橲 NATIONAL OBSERVER

In 2018, Joe Bailey was running a successful tourism business showing guests the colourful Aurora Borealis. Then, the COVID-19 pandemic locked down the Northwest Territories.

The territory was shut off from the rest of the world for two years, which meant no revenue for Bailey害羞草研究所檚 business, NorthStar Adventures, except government funding.

His business received some federal grants, but the territorial government waited more than a year before dispensing funds to struggling operations.

Now, four years later, Bailey has had to sell almost all his assets, including five vans and 12 snowmobiles, hobbling his business for the foreseeable future. Coming out of the pandemic, the once-thriving adventure company was left with only one van. But now, more domestic visitors are arriving to see the northern lights again.

害羞草研究所淲e害羞草研究所檙e in rebuilding mode, with a very slow tour season,害羞草研究所 said Bailey. 害羞草研究所淪o we害羞草研究所檙e definitely nowhere near the numbers before COVID害羞草研究所 but it really forced us to be much more savvy with our business decisions and our business practices.害羞草研究所

Indigenous tourism businesses faced barriers accessing government support over the pandemic, despite suffering from 害羞草研究所渄isproportionately negative impacts害羞草研究所 of the travel restrictions and economic chaos of that time, according to internal documents obtained by Canada害羞草研究所檚 National Observer through access-to-information legislation.

Internal documents from Innovation, Science and Economic Development Canada reveal that Indigenous tourism faced difficulties even though Ottawa has celebrated its pandemic-era business support as a 害羞草研究所減owerful tool害羞草研究所 in Canada害羞草研究所檚 reconciliation efforts.

Statistics from the pandemic show that Indigenous tourism was harder hit than the rest of the sector. The Indigenous tourism industry saw an estimated 65.9 per cent decline in direct GDP and a 59.4 per cent drop in employment in 2020 due to the pandemic, according to numbers from ITAC that were quoted in the internal documents. By comparison, tourism GDP as a whole declined 50.1 per cent and total employment declined by 21.1 per cent that same year.

Indigenous tourism had difficulties meeting the federal program害羞草研究所檚 financial requirements, and faced challenges with program applications and eligibility requirements that may disproportionately exclude Indigenous businesses, such as unincorporated, community-owned and non-taxable businesses, the internal documents show.

Bailey also points to a discrepancy between Indigenous and non-Indigenous businesses.

For example, Indigenous businesses need more professional support getting into the industry, Bailey explained.

害羞草研究所淚ndigenous entrepreneurs are at a disadvantage,害羞草研究所 Bailey said. 害羞草研究所淪o funding and programs for the first timers would go a long way to help grow and succeed Indigenous tourism in Canada.害羞草研究所

During the pandemic, tourism businesses across Canada were devastated, said Keith Henry, president and CEO of the Indigenous Tourism Association of Canada (ITAC), but Indigenous businesses were the 害羞草研究所渉ardest of the hardest hit.害羞草研究所

Their smaller scale in rural and remote locations, which became more difficult to access, made Indigenous operations particularly vulnerable.

Darcie Guarderas, director and client strategist for Tansi Tourism Solutions, often works with Indigenous tour operators on a one-on-one basis. She had a call with another Indigenous business owner in the Northwest Territories whose operation didn害羞草研究所檛 survive the pandemic, even though it was at its peak.

害羞草研究所淗e wants to get back to what he害羞草研究所檚 doing because he has the passion for it, but they need more support,害羞草研究所 Guarderas said, noting that many operators leave the industry for more steady work.

害羞草研究所淲hen you害羞草研究所檙e a small business with not a lot of funding, you know, the pandemic just crushed them,害羞草研究所 she told Canada害羞草研究所檚 National Observer.

One in three international visitors expressed interest in Indigenous tourism, according to a 2021 survey by Destination Canada. Travel magazines also identified Indigenous tourism as a trend for 2023, according to the internal documents.

害羞草研究所淎t present, projections point to a strong decade of growth globally for the sector, as the World Travel and Tourism Council projects that travel and tourism GDP will outpace the growth of the overall economy by more than two times,害羞草研究所 the documents found.

Bailey害羞草研究所檚 business operated almost exclusively for international guests seeing the Aurora Borealis. Now, more domestic tourism is arriving in Yellowknife, while the international audience continues to rebuild.

However, it wasn害羞草研究所檛 just a pandemic problem. The document revealed there is 害羞草研究所渆vidence of a gap in international travelers害羞草研究所 awareness of Indigenous tourism offerings in Canada.害羞草研究所

Henry is not surprised and argues that Ottawa is failing to meaningfully invest in his industry.

害羞草研究所淭he bottom line is we don害羞草研究所檛 have the investment structures yet to really continue to tap into the potential of what could be there,害羞草研究所 he said. 害羞草研究所淭hat takes marketing and development and we don害羞草研究所檛 have that reality in our sector yet.害羞草研究所

Guardaras, for example, points to airports as the 害羞草研究所済round zero害羞草研究所 for creating awareness of Indigenous tourism. And yet, only Vancouver, Winnipeg and Edmonton do a good job of telling visitors that they are landing in Indigenous territory. That害羞草研究所檚 not the case for other provinces.

Henry argues development and marketing will require 害羞草研究所渞eal investments害羞草研究所 into Indigenous tourism from the federal and provincial governments, as well as from the larger tourism sector.

害羞草研究所淚害羞草研究所檓 beyond listening to lip service,害羞草研究所 he said.

In a statement to Canada害羞草研究所檚 National Observer, Alexander Cohen, director of communications for Tourism Minister Soraya Martinez Ferrada, , acknowledged that Indigenous tourism has the power to advance reconciliation and self-determination.

害羞草研究所淭hat害羞草研究所檚 why supporting the growth of Indigenous tourism is one of our top priorities, in close partnership with Indigenous leaders,害羞草研究所 the statement added. 害羞草研究所淚t害羞草研究所檚 important to emphasize that communities make their own decisions and do tourism at their own pace. We must respect that.害羞草研究所

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