But association cautions disruption has already hurt Indigenous tourism
The Indigenous Tourism Association of Canada has welcomed the tentative agreement between Air Canada and its flight attendants while also reporting that the relatively brief labor dispute was harmful to Indigenous tourism, a sector of the tourism trade already suffering because of trade disputes between Ottawa and the United States.
ITAC president Keith Henry noted that the outstanding issues between the flight attendants and their employer that led to a short-lived strike flared during August, a peak time for Indigenous tourism.
Henry said his association is thankful that the strike wasn’t long-lasting.
“We are very relieved,” he said after the settlement between Air Canada and the union. “Indigenous tourism businesses work tirelessly to provide unforgettable cultural experiences, and a reliable transportation system is essential to that work. This tentative agreement helps restore confidence for travellers and some stability for SMEs (small- and medium-sized businesses).”
But Henry said the disruption, even though short-lived, was damaging.
“The uncertainty around potential flight disruptions has created grave concerns for Indigenous tourism operators,” he told Travel Courier. “Many Indigenous businesses rely on visitors who book their travel months in advance, and even the threat of cancellations or delays can lead to last-minute changes, reduced bookings, or trip cancellations. For many small and medium-sized businesses — particularly those in rural or remote locations — Air Canada is a critical form of transportation for visitors. Flight cancellations lead to a devastating blow to these businesses.”
International visits were more likely to be affected as they depend on Air Canada for direct connections into and across Canada. “Domestic travellers have more options to reroute, but uncertainty and travel delays still have an impact on their confidence in booking trips that include Indigenous tourism experiences,” Henry stated.
The impact of the disruption was felt most acutely in regions where Air Canada provides the primary or sole access point for travellers, such as Northern, Atlantic, and remote destinations, Henry said, adding 703 of member businesses are near airports served by Air Canada, while 246 businesses are near airports not served by it. However, the latter would likely have guests connect in major hubs via Air Canada, Henry noted.
“In some markets, yes, there are alternative carriers,” Henry said. “But in many cases, particularly for Northern and remote communities, Air Canada is the only viable option. Even where alternatives exist, the capacity is limited, making Air Canada’s stability critical for Indigenous tourism.
“Urban-based Indigenous experiences may feel the effects less directly, though they are still impacted by traveller uncertainty and shifting travel patterns,” Henry continued.
While the labor disruption has been tentatively resolved, Henry said the ripple effects could be felt for weeks or even months. “Travellers who cancelled or hesitated to book during the uncertainty may not rebook immediately, and international visitors in particular often require long lead times. Indigenous tourism is still rebuilding, and recovery from interruptions like this is never immediate.”
Indigenous tourism businesses were already having to cope with the impact of U.S. tariffs. ITAC’s May 2025 U.S. Tariffs Survey Report detailed significant challenges Indigenous tourism businesses are facing due to the tariffs and ensuing trade dispute. The report underscored a steep decline in U.S. visitations to Canada, with projections indicating apotential 68% drop in U.S. bookings for 2025.
“This downturn has led to immediate concerns about revenue losses and staffing reductions, with 19% of businesses planning to decrease hiring and over 2,000 jobs at risk in the sector,” Henry said. “Indigenous tourism businesses boost the economies of where remote tourism experiences are located, providing employment opportunities where they are desperately needed.”
As of 2023, Indigenous tourism has seen 2,757 Indigenous-owned and operated tourism businesses; 34,711 jobs in Indigenous tourism; $1.3 billion in GDP contributions. Indigenous tourism in Canada contributed $1.7 billion to the GDP in 2018. However, by 2023 that number had dropped 24 per cent to $1.3 billion.
Despite this year’s setbacks, Henry expressed confidence in Indigenous tourism’s long-term prospects.
“The damage is real, particularly for businesses that lost out on bookings during peak travel season,” he said of the Air Canada strike. “While some losses cannot be recovered, the resiliency of Indigenous operators means that with targeted and sustained investments, the long-term growth of Indigenous tourism will continue.
“Indigenous tourism is one of the most important contributors to Canada’s visitor economy, creating jobs, cultural revitalization, and economic opportunities in locations across the country. Reliable and accessible air travel is essential to that success. In 2018, Indigenous tourism in Canada contributed $1.7B to the GDP. By 2023, that number had dropped 24% to $1.3B – a stark reminder of the pandemic’s lasting impact. After adjusting for inflation, real GDP contributions in 2023 were even lower than in 2014.
“By 2030, ITAC aims for the Indigenous tourism sector in Canada to reach 2,700 businesses and 60,000 jobs and contribute $6 billion annually to the national GDP. Achieving this goal requires significant growth in both the number of businesses and the workforce. As of 2023, the sector has seen 2,757 Indigenous-owned and operated tourism businesses, 34,711 jobs in Indigenous tourism in 2023, and $1.3 billion in GDP contributions.”
