Jason Picard-Benet of Bastien Industries at the workshop in Wendake, Que. Bastien is the last Indigenous-owned and operated moccasin factory in North America.Renaud Philippe/The Globe and Mail
A tourist outfit operator offering polar bear tours and luxury ecolodge accommodations in Churchill, Man., says the single cancellation it has received so far from a U.S. guest over border relations isn’t going to sway how he does business this coming season.
Adam Pauls, the CEO of Churchill Wild, said he doesn’t believe Americans will forgo their non-refundable deposits required for existing reservations over the worsening political relationship between Canada and the United States.
“While these tariffs are happening between governments, as people, we’re all still the same people as we were two months ago,” said Mr. Pauls, who is not Indigenous but is a partner with the Indigenous Tourism Association of Canada.
“We’re very happy to entertain our American guests and happy to have them at our lodges.”
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A recent report by the Conference Board of Canada says U.S. tariffs will have widespread consequences for the tourism industry, including increasing costs that will dampen demand. It noted: “Indigenous tourism businesses could face additional challenges due to their reliance on rural infrastructure, higher transportation costs, and limited financial resources.”
Other Indigenous businesses want to share Mr. Pauls’s optimism, hoping for the best and planning for the worst. But Keith Henry, CEO of the Indigenous Tourism Association, said if Canada’s tourism industry is affected by the tariff war, Indigenous businesses will especially suffer.
Mr. Henry said in an interview U.S. cancellations are just one of several challenges his members are facing as they continue to recover from pandemic shutdowns.
He noted the Indigenous tourism industry employs 36,000 mostly Indigenous people and includes Indigenous businesses with unique challenges that need federal support to survive but aren’t always eligible because they are based on-reserve and not set up as corporations, for example.
A healthy U.S. tourism market is crucial for these businesses, but in the face of increasing costs of flights for visitors and other tariff-induced inflation, it’s near impossible to adjust summer pricing that’s already been set.
Mr. Henry said even with a weak Canadian dollar, he worries U.S. visitors won’t be motivated to travel.
For example, he said, fishing and hunting operators are especially vulnerable to U.S. cancellations, and a patriotic boost from Canadians looking to travel more at home won’t be enough to replace the Americans.
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“When one American visitor comes, they spend, on average, with Indigenous tourism, about $600 to $800 per visit. One Canadian spends $100 to $200.”
Some Indigenous businesses have doubled down on the things they can control.
The Hiellen Village Longhouses run by the Old Massett Village Council in British Columbia is ramping up a new marketing strategy for its mostly Canadian customers, despite not having yet seen any direct impacts from the tariffs.
ITAC says Indigenous businesses play a crucial role in supporting and promoting Indigenous tourism in Canada by providing first-hand experiences of Indigenous traditions, languages, storytelling, art and cuisine.
“They also support by preserving and sharing traditional knowledge, helping to correct any stereotypes and build cross-cultural understanding,” Mr. Henry said.
Beyond the tourism sector, Indigenous businesses are also important sources of economic development and job creation, “supporting local economies and keep profits within Indigenous communities,” Mr. Henry said.
The Canadian Council of Indigenous Businesses has launched a “Buy Indigenous” campaign to encourage Canadians to look for Indigenous businesses as an alternative to U.S. products and services.
Bastien Industries in Wendake, Que., is the last Indigenous-owned and operated moccasin factory in North America, says owner Jason Picard-Binet. He manufactures 45,000 pairs of hide leather moccasins a year, employing mostly Wendat staff.
But he’s worried he’ll be forced to lay them off if his U.S. customers cancel future orders that could be tariffed.
He said that while he was recently able to get four months of stock sent to the U.S. retailers that make up around 30 per cent of his business, he says his customers will have to review any orders beyond that should tariffs hike up the costs.
“At what point are they going to cancel all their purchase orders with us? Or are they going to cancel 50 per cent at this point? I can’t say, but it has a huge negative impact on our business,” Mr. Picard-Binet said.
He said U.S. retailers support Bastien Industries “because they don’t have any Indigenous owned moccasin factory in their country.”
With a report from Claire Donnan
Editor’s note: An earlier version of this article incorrectly identified an Indigenous Tourism Association spokesperson as Bojana Duric. This version has been updated to idenitfy Keith Henry as the spokesperson.