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The tourism sector offers opportunities for business formation and growth. Tourism is considered to be the activities of persons traveling outside their usual environment for leisure, business or other purposes.
Eligibility Criteria
To be eligible for ABC support you must:
- be of Aboriginal heritage (Status or Non-status Indian – located on or off-reserve – Métis or Inuit);
- have a minimum of 15 percent cash equity to invest in the total eligible project costs. (This may increase depending on your financial capacity to bear more of the costs. At least one half of your equity must come from personal resources.); and
- be able to demonstrate that you expect to make 60 percent of your revenue from tourists.
Additional Considerations
- When an existing business proposes to add a product or service intended to attract tourists, ABC will look at the incremental revenues when determining the portion of revenues derived from tourists. When the tourist activity is seasonal, ABC looks at the incremental revenues for that season.
- ABC will assess the probable impact of any proposed project on other commercial operations. This is of particular importance for larger tourism projects in small markets, since the negative effect on existing businesses will be a serious consideration.
- You may be required to take additional training in management, financing or other areas that address the needs of the business.
- You must demonstrate operational and management expertise appropriate to your ownership and control position in the proposed business.
- You must demonstrate that your business has the capacity to be profitable.
- You must be involved in a full-time management capacity whether the proposed business operates seasonally or year round.
Overview of Supported Activities
The following are examples of eligible tourism businesses that ABC typically supports.
- Destinations and Attractions: wildlife viewing, canoeing and heli-skiing (Short-term events such as festivals and powwows are not eligible for ABC support, since they are not ongoing commercial ventures.)
- Accommodations: hunting and fishing lodges, campgrounds, motels, hotels and resorts.
- Transportation: tour buses, water taxis servicing tourism destinations, ferries and ground taxis, provided the applicant can demonstrate that a significant portion of annual revenues would come from tourists.
- Food and Beverage: restaurants providing food services ancillary to a specific tourism destination.
- Retail: gift shops or other retail operations related to a specific tourist destination.
- Tourism: tour operators, outfitters, guides, interpreters and travel agencies.
If you are seeking support from ABC to acquire a business, refer to our acquisitions policy for important information.
Eligible Project Costs
For projects involving start-up or purchase of a business, Aboriginal Business Canada (ABC) can support:
Applying to ABC for Support
Now that you have reviewed our eligibility criteria and other important information, you are ready to proceed to the next section. This section will explain the application process for ABC support.
Questions? Please review our Frequently Asked Questions or contact a development officer at an office location near you.
Before You Apply | Applying to ABC | Once a Project is Approved | Once a Project is Completed
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