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Hamilton Spectator
3 days ago
- Business
- Hamilton Spectator
Indigenous tourism feels the pinch from decline in US visitors and funding cuts
Dean Werk was supposed to be gearing up for a busy summer on the Fraser River in British Columbia. Instead, the Métis owner of Great River Fishing Adventures is watching his calendar empty out as American clients, once the lifeblood of his business, cancel trips one after another. Earlier this year, Werk's company — known for helping clients catch and release some of the biggest sturgeon on the river — lost a US group worth $85,000. 'We worked for two years to put this package together for them. And that booking got cancelled,' Werk said. Soon after, a $65,000 booking was also lost. Werk is concerned this is just the beginning and the sector could face a situation similar to the pandemic, when Indigenous tourism saw international travel collapse and struggled for years to partially recover. Across Canada, Indigenous businesses are reporting a significant drop in tourism from the United States. The Indigenous Tourism Association of Canada (ITAC) projected US bookings will fall nearly 70 per cent compared to last year, with advanced bookings for flights between Canada and the US expected to remain down by more than 70 per cent each month through September. Operators point to tariffs, geopolitical tensions and shifting travel advisories as key factors. Robert French, who manages Big Land Fishing Lodge in Newfoundland and Labrador, has seen similar declines and described the trend as reciprocal. 'Canadians going to the US have decided to stay at home. And I think this is vice versa. A lot of US people are trying to start to stay home and travel within their own country,' French said. For many Indigenous operators, the loss of American visitors is devastating. US travelers have historically accounted for the bulk of bookings, with international guests spending more and staying longer than domestic tourists. Werk said Indigenous tour operators often depend on the US market for as much as 60 to 80 per cent of their clientele. According to government documents, Indigenous tourism in Canada has still not recovered after the pandemic. The businesses generated $4 billion in 2019, but by 2023, that number had dropped to $3.7 billion — and the real value is even lower when adjusted for inflation. Now, as the industry hoped for a full rebound, operators are facing a new wave of challenges with even fewer safety nets. A central concern for the sector is the steep drop in federal funding . In Budget 2024, Ottawa invested $2.5 million for ITAC (which is not part of the government). That's less than 10 per cent of the $33 million the organization requested for operations, marketing and development as part of a 2030 strategy to make Canada a world leader in Indigenous tourism. The funding cuts forced ITAC to lay off about half its staff and halt support for smaller provincial organizations, putting their futures in jeopardy. Keith Henry, CEO and president of ITAC, said the reductions risk setting the industry back a decade and damaging its reputation among major tourism buyers and sellers. This year, federal support has fallen even further. For 2025-2026, Indigenous Services Canada funding is down to $1.25 million, Innovation, Science, and Economic Development Canada has dropped to zero and Destination Canada's contribution is now $1.9 million. The total reduction amounts to $4.55 million, representing about a 68 per cent cut to ITAC in a single year. Henry said the sector is being told by the federal government that tourism is 'poised to do great in 2025,' but that message does not reflect the reality for Indigenous operators on the ground. The operators are also seeing a decline in tourists from other international origins beyond the US as a result of tensions between Canada and the US, and conflicts elsewhere. Henry said the situation is a serious setback for Indigenous-led tourism across the country. 'We've seen a continued decline of federal government support for Indigenous tourism. It feels like Canada has lost any true vision or interest to invest and believe in Indigenous-led tourism, despite public words,' Henry said. Indigenous Services Canada has yet to respond to Canada's National Observer's request for comment and further information. Meanwhile, international arrivals are dropping sharply . In March 2025, trips to Canada by US residents fell 6.6 per cent year over year, while arrivals from overseas residents plunged 17.4 per cent. The numbers are continuing to decline as trade tensions persist. In response to the decline in international tourists, ITAC has ramped up domestic marketing efforts, launching the 'Original Original' campaign to encourage Canadians to explore Indigenous tourism in their own backyard. The association has increased its presence through advertising, television commercials and bus wraps in major cities, such as Edmonton, Toronto, Winnipeg, Halifax and Vancouver as well as the North. Henry said the efforts are crucial for raising awareness among Canadian travelers, but domestic tourism cannot make up for the loss of international visitors, especially Americans. 'Domestic travellers spend less and don't stay as long. International customers spend six to eight hundred dollars per person, versus a Canadian who spends maybe one to two hundred. The math doesn't make sense if we lose those international guests,' Henry said. While operators struggle with lost bookings and shrinking federal support, many are now contending with a new set of pressures making recovery even harder. In Churchill, Manitoba, David Daley is facing a 'triple hit.' Daley, a Métis long-distance dogsled racer who runs Wapusk Adventures, said wildfires have forced evacuations across Manitoba and Saskatchewan, creating confusion for tourists and immediate ripple effects for local businesses, as the province urges people to avoid 'unnecessary travel' to the region. 'We're open for business, but then the province is saying we're closed for business. It's a mixed message that the tourists are getting,' Daley said. 'That's not very good news for the tourism industry.' He said there is no emergency fund to support operators through disasters like wildfires, leaving many exposed to sudden losses. On top of this, costs are spiraling. Daley said since the pandemic, insurance premiums for his hotel have soared, adding yet another burden to an already fragile sector. He has also diversified his offerings beyond dog sledding to e-bike rentals, a storefront, a hotel and Aurora viewing, but can't fully offset the uncertainty and financial strain facing the business. 'How many rooms do you have to rent to just pay your insurance? Never mind your loans to own up a piece of property like that?' he said. Indigenous tourism business operators have also reported rising costs for fuel, food, and equipment. Werk said uncertainty is weighing heavily on everyone in the industry and the federal government needs to recognize the scale of the crisis and act decisively. 'It's not just one year. It's cumulative over potentially the next three or four years until we get this all straightened out,' he said. 'If things don't change, I'm not sure how much longer we can keep going.' Sonal Gupta / Local Journalism Initiative / Canada's National Observer Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
National Observer
4 days ago
- Business
- National Observer
Indigenous businesses feel the pinch from decline in US tourists and federal funding cuts
Dean Werk was supposed to be gearing up for a busy summer on the Fraser River in British Columbia. Instead, the Métis owner of Great River Fishing Adventures is watching his calendar empty out as American clients, once the lifeblood of his business, cancel trips one after another. Earlier this year, Werk's company — known for helping clients catch and release some of the biggest sturgeon on the river — lost a US group worth $85,000. 'We worked for two years to put this package together for them. And that booking got cancelled,' Werk said. Soon after, a $65,000 booking was also lost. Werk is concerned this is just the beginning and the sector could face a situation similar to the pandemic, when Indigenous tourism saw international travel collapse and struggled for years to partially recover. Across Canada, Indigenous businesses are reporting a significant drop in tourism from the United States. The Indigenous Tourism Association of Canada (ITAC) projected US bookings will fall nearly 70 per cent compared to last year, with advanced bookings for flights between Canada and the US expected to remain down by more than 70 per cent each month through September. Operators point to tariffs, geopolitical tensions and shifting travel advisories as key factors. "It feels like Canada has lost any true vision or interest to invest and believe in Indigenous-led tourism, despite public words,' Keith Henry, CEO and president of ITAC. Robert French, who manages Big Land Fishing Lodge in Newfoundland and Labrador, has seen similar declines and described the trend as reciprocal. 'Canadians going to the US have decided to stay at home. And I think this is vice versa. A lot of US people are trying to start to stay home and travel within their own country,' French said. For many Indigenous operators, the loss of American visitors is devastating. US travelers have historically accounted for the bulk of bookings, with international guests spending more and staying longer than domestic tourists. Werk said Indigenous tour operators often depend on the US market for as much as 60 to 80 per cent of their clientele. According to government documents, Indigenous tourism in Canada has still not recovered after the pandemic. The businesses generated $4 billion in 2019, but by 2023, that number had dropped to $3.7 billion — and the real value is even lower when adjusted for inflation. Now, as the industry hoped for a full rebound, operators are facing a new wave of challenges with even fewer safety nets. Federal support plummets A central concern for the sector is the steep drop in federal funding. In Budget 2024, Ottawa invested $2.5 million for ITAC (which is not part of the government). That's less than 10 per cent of the $33 million the organization requested for operations, marketing and development as part of a 2030 strategy to make Canada a world leader in Indigenous tourism. The funding cuts forced ITAC to lay off about half its staff and halt support for smaller provincial organizations, putting their futures in jeopardy. Keith Henry, CEO and president of ITAC, said the reductions risk setting the industry back a decade and damaging its reputation among major tourism buyers and sellers. This year, federal support has fallen even further. For 2025-2026, Indigenous Services Canada funding is down to $1.25 million, Innovation, Science, and Economic Development Canada has dropped to zero and Destination Canada's contribution is now $1.9 million. The total reduction amounts to $4.55 million, representing about a 68 per cent cut to ITAC in a single year. Henry said the sector is being told by the federal government that tourism is 'poised to do great in 2025,' but that message does not reflect the reality for Indigenous operators on the ground. The operators are also seeing a decline in tourists from other international origins beyond the US as a result of tensions between Canada and the US, and conflicts elsewhere. Henry said the situation is a serious setback for Indigenous-led tourism across the country. 'We've seen a continued decline of federal government support for Indigenous tourism. It feels like Canada has lost any true vision or interest to invest and believe in Indigenous-led tourism, despite public words,' Henry said. Indigenous Services Canada has yet to respond to Canada's National Observer's request for comment and further information. Domestic marketing Meanwhile, international arrivals are dropping sharply. In March 2025, trips to Canada by US residents fell 6.6 per cent year over year, while arrivals from overseas residents plunged 17.4 per cent. The numbers are continuing to decline as trade tensions persist. In response to the decline in international tourists, ITAC has ramped up domestic marketing efforts, launching the 'Original Original' campaign to encourage Canadians to explore Indigenous tourism in their own backyard. The association has increased its presence through advertising, television commercials and bus wraps in major cities, such as Edmonton, Toronto, Winnipeg, Halifax and Vancouver as well as the North. Henry said the efforts are crucial for raising awareness among Canadian travelers, but domestic tourism cannot make up for the loss of international visitors, especially Americans. 'Domestic travellers spend less and don't stay as long. International customers spend six to eight hundred dollars per person, versus a Canadian who spends maybe one to two hundred. The math doesn't make sense if we lose those international guests,' Henry said. Additional pressures mount While operators struggle with lost bookings and shrinking federal support, many are now contending with a new set of pressures making recovery even harder. In Churchill, Manitoba, David Daley is facing a 'triple hit.' Daley, a Métis long-distance dogsled racer who runs Wapusk Adventures, said wildfires have forced evacuations across Manitoba and Saskatchewan, creating confusion for tourists and immediate ripple effects for local businesses, as the province urges people to avoid 'unnecessary travel' to the region. 'We're open for business, but then the province is saying we're closed for business. It's a mixed message that the tourists are getting,' Daley said. 'That's not very good news for the tourism industry.' He said there is no emergency fund to support operators through disasters like wildfires, leaving many exposed to sudden losses. On top of this, costs are spiraling. Daley said since the pandemic, insurance premiums for his hotel have soared, adding yet another burden to an already fragile sector. He has also diversified his offerings beyond dog sledding to e-bike rentals, a storefront, a hotel and Aurora viewing, but can't fully offset the uncertainty and financial strain facing the business. 'How many rooms do you have to rent to just pay your insurance? Never mind your loans to own up a piece of property like that?' he said. Indigenous tourism business operators have also reported rising costs for fuel, food, and equipment. Werk said uncertainty is weighing heavily on everyone in the industry and the federal government needs to recognize the scale of the crisis and act decisively. 'It's not just one year. It's cumulative over potentially the next three or four years until we get this all straightened out,' he said. 'If things don't change, I'm not sure how much longer we can keep going.'
Bloomberg
12-06-2025
- Automotive
- Bloomberg
South Africa Seeks 15% Tax on EV-Battery Imports, BD Reports
South Africa's trade-control agency proposed a 15% import tax on new energy vehicle batteries to boost local capacity and encourage original equipment manufacturers to build units in the country, Business Day reported. The International Trade Administration Commission also proposed that the trade minister raises the number of materials that qualify as standard under the government's Automotive Production Development Programme to support local battery manufacturing, the Johannesburg newspaper, citing ITAC Chief Commissioner Ayabonga Cawe.
IOL News
06-06-2025
- Business
- IOL News
Strengthening trade ties: South Africa must evolve beyond a market for Chinese products
South Africa and China have taken a firm step toward strengthening trade ties, with both nations agreeing to speed up efforts to make trade smoother and more efficient. Image: Sars South Africa and China have taken a firm step towards strengthening trade relations, with both countries agreeing to accelerate efforts to make trade smoother and more efficient. This follows a meeting between Chinese Ambassador to South Africa Wu Peng, SARS Commissioner Edward Kieswetter, and International Trade Administration Commission (ITAC) Commissioner Ayabonga Cawe in Pretoria on Wednesday. China is currently South Africa's largest trading partner, having overtaken the European Union in 2023. Bilateral trade between the two countries reached US$34.18 billion last year, significantly outpacing the EU's US$1.34 billion in trade with South Africa. However, despite the growth in trade, experts and economists have raised concerns about an imbalance in the structure of the relationship. In his weekly letter last year, President Cyril Ramaphosa also noted the need to boost South Africa's manufacturing capacity and increase exports of value-added goods. "There is an imbalance in the structure of our trade. South Africa exports mainly minerals and agricultural products to China and imports largely manufactured products from China." Kieswetter also expressed a vision for a partnership that goes beyond South Africa serving merely as a market for Chinese goods, advocating for increased Chinese investment in manufacturing and assembly operations within the country. 'China, as the largest trading partner to South Africa, is ideally suited to strengthen this long-standing relationship. I would like to see the relationship grow not only with South Africa as a marketplace for Chinese products, but as a destination for assembly and manufacturing by Chinese investors. South Africa is also ideally suited as a strategic partner into the rest of Africa.' Meanwhile, Peng described the relationship as an 'All-Round strategic cooperative partnership for a new era. 'China attaches great importance to developing economic and trade relations between China and South Africa, which in recent years have made great progress. Trade, investment, and personnel exchanges between the two countries have been increasingly strengthened.' ITAC Commissioner Cawe highlighted concerns about the unstable global trade environment and its impact on supply chains and key markets. He pointed to the risks of rising inventories leading to trade diversion, particularly for a small, open economy like South Africa. 'We remain open to engagement with our Chinese counterparts in securing the participation and co-operation of their exporters and other interested parties in such investigations, as a key trade-related element in our bilateral relationship.'he said. [email protected] IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
05-06-2025
- Automotive
- IOL News
Precious minerals shipped away: Why SA wants to incentivise local production of EV batteries
Government wants to see EV batteries produced in South Africa. Image: Newspress South Africa is considering expanding its vehicle production incentive programme to encourage the production of electric vehicle (EV) batteries in the country. This would see the ITAC trade commission adding certain locally mined minerals to the list of items that qualify as local content under the Automotive Production Development Programme (APDP), reported. This list could be expanded to include materials such as lithium, copper, graphite, cobalt sulfate, manganese sulfate and other rare earth minerals. South Africa is a significant producer of minerals such as manganese, nickel, cobalt, lithium and platinum. Building batteries in the country would help to maximise the value extracted from these precious minerals. The government is also said to be considering increasing the customs duties on EV batteries, in order to further encourage local production, Xagta added. However, this move could backfire if a manufacturer is interested in producing EVs in South Africa, but does not wish to use locally produced batteries. It could mean losing the entire vehicle production contract rather than just foregoing production of the battery components. The APDP operates through a system of rebates and refunds on specific customs duties, and is aimed at incentivising local production of vehicles. Following the publication of the Electric Vehicle White Paper in late 2023, South Africa has already taken concrete steps to incentivise the local production of electric vehicles. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ From March 2026, car companies will be able to claim a 150% tax deduction on investments related to EV production in South Africa. This includes new production equipment and factory upgrades made with the intention of producing EVs. The new incentive programme will run until March 2036. The South African automotive sector produces over 500,000 vehicles per year. While plug-in hybrid vehicles are produced for export by both BMW and Ford, no fully electric vehicles are currently produced locally. A move to full EV production could be critical to the survival of the local industry, given that the European Union, which is South Africa's main export destination, plans to ban the sale of new internal combustion engined vehicles from 2025. Some manufacturers, such as Volkswagen, are reluctant to invest in the local production of EVs unless there is a significant local demand for such vehicles. Although President Cyril Ramaphosa announced in late 2024 that EV purchase incentives will be introduced, no timelines or details have been released as yet. Currently, EVs attract a higher import duty than internal combustion vehicles, with rates of 25% compared to 18%. IOL
