Tourism, Tariffs and Supporting Local
British Columbia (BC) is a world-renowned travel destination, attracting millions of visitors each year to our stunning landscapes, vibrant cities, and rich Indigenous cultures. However, tariffs—taxes or duties on imported and exported goods—can impact the tourism industry in ways that affect Indigenous businesses, artisans, and communities. Understanding how tariffs work and how they influence tourism can help Indigenous entrepreneurs navigate these economic changes and create sustainable opportunities.
What Are Tariffs?
Tariffs are taxes that governments place on goods that are imported or exported between countries. They can serve multiple purposes, such as protecting local industries, generating government revenue, or influencing trade policies. In the context of BC’s tourism industry, tariffs can affect everything from the cost of goods sold in Indigenous-owned businesses to the affordability of travel experiences for international tourists.
How Tariffs Affect Indigenous Tourism in BC
Higher Costs for Indigenous Artisans Many Indigenous artists and craftspeople rely on materials that may be subject to tariffs, such as beads, hides, textiles, or specialty woods. If tariffs increase the cost of these materials, it can lead to higher prices for Indigenous-made goods, potentially reducing their competitiveness in the market.
Impact on Indigenous-Owned Tourism Businesses Indigenous-run tour companies, lodges, and cultural centers may rely on imported goods, such as building materials, vehicles, or specialty foods. Tariffs on these imports can raise operational costs, making it more expensive to provide services to tourists.
Influence on Visitor Spending Higher tariffs on imported goods could mean increased costs for tourists, especially those visiting from the U.S. and other countries. If prices rise on accommodations, souvenirs, or dining experiences, some travelers may adjust their budgets or choose alternative destinations, potentially reducing revenue for Indigenous tourism ventures.
Trade Agreements and Indigenous Trade Opportunities Some trade agreements, such as the Canada-United States-Mexico Agreement (CUSMA), include provisions that impact tariffs on Indigenous-made goods. Understanding these agreements can help Indigenous businesses navigate export opportunities while advocating for fair policies that support Indigenous economies.
Impacts of Tariffs on Talaysay Tours
Tariffs and trade tensions can greatly influence Indigenous tourism and the success of Talaysay Tours.
American Visitors Are a Key Market: Talaysay Tours sees significant engagement from American tourists, with 26% of our website traffic originating from the U.S. and a striking 64% of our loyal subscribers and monthly newsletter readers also being American. Due to BC’s proximity to the U.S. border, American visitors play a crucial role in the success of Indigenous tourism businesses.
Concerns About the Effects of Tariffs: The looming trade war and tourism boycotts could have a devastating effect on Indigenous tourism. Some American guests have even expressed concerns about whether they would be welcomed in Canada, illustrating how political and economic tensions can create uncertainty for international travelers.
Tourism as a “Non-Essential” Industry: Tourism, though valuable for cultural education, can be seen as a non-essential industry. If tariffs lead to economic hardship, families may cut back on leisure travel, impacting Indigenous tourism businesses and the livelihoods of our staff and contractors.
The Need for Local Support: With Canadian travel to the U.S. declining by 40% in recent months, we hope that more Canadians will choose to explore local Indigenous tourism experiences. The recent “shop and vacation local” movement presents an opportunity for Indigenous businesses to engage more domestic travelers while maintaining a welcoming atmosphere for international visitors.
Strategies for Indigenous Businesses to Adapt
Sourcing Locally: Whenever possible, using locally sourced materials can help mitigate the effects of tariffs. This also supports other Indigenous businesses and promotes sustainability.
Marketing Authenticity: Emphasizing the unique, cultural, and handmade aspects of Indigenous products can help maintain demand, even if prices increase.
Exploring Export Markets: Indigenous businesses may benefit from trade programs that support the export of Indigenous-made goods without high tariffs.
Advocacy and Partnerships: Working with Indigenous organizations, governments, and trade groups can help push for tariff policies that consider Indigenous economic interests.
Looking Ahead
While tariffs can pose challenges, Indigenous tourism in BC remains a thriving and resilient industry. By staying informed, adapting business strategies, and advocating for fair trade policies, Indigenous entrepreneurs can continue to showcase our culture and heritage while building economic sustainability for future generations. As Indigenous tourism grows, it is vital to ensure that policies and trade agreements recognize and support Indigenous rights, businesses, and communities.
For Indigenous tourism operators and artisans, the key is to remain adaptable and engaged. By understanding how tariffs shape the industry and taking proactive steps to mitigate their impacts, Indigenous businesses can continue to thrive and share our stories with the world. We are resilient! We are still here! Huy chexw!
