Interested in starting a tourism business? In British Columbia, over 90 percent of tourism businesses are small businesses, and the industry is linked to over 150,000 jobs across the province. The good news is that business is booming. Tens of millions of visitors come to BC each year, looking to explore our beautiful landscapes and vibrant communities. In this article, learn more about the tourism industry and what starting a tourism business would look like in BC.
Tourism Industry
Impact on the Local Economy
The importance of tourism to the BC economy can’t be overstated. In 2022, tourism contributed $7.2 billion to the provincial economy. This is higher than agriculture & fishing ($3.4 billion), oil & gas ($4.5 billion), and mining ($5.4 billion).
While the tourism industry was significantly impacted by the COVID-19 pandemic, its recovery rate was the strongest, and it remains resilient.
Industry Breakdown
BC’s tourism industry is made up of nearly 17,000 businesses that have been classified into five service areas, including:
- Accommodation and food services
- Transportation and related
- Recreation and related
- Retail
- Other
A large portion of these businesses are nature-based and seasonal. For example, many businesses offer experiences such as surfing, skiing or snowboarding, kayaking, mountain biking, and more.
For more information on the tourism industry, check out Destination British Columbia’s Tourism Industry Dashboard and Value of Tourism Snapshot.
How to Start a Tourism Business
No matter what sector of the industry you’re trying to break into, here are some tips on how to start a tourism business in BC:
1. Do Your Homework
Take time to find the most current and accurate information about the industry sector you’re interested in. This involves looking carefully at your competition, how they price their product, and how they market themselves. Try to think of ways you can do it better or more efficiently.
Also, look into any permits, licenses, or insurance you might need to obtain. Is your business seasonal? If so, how do you plan to get through the off-season without any income?
2. Prepare a Business Plan
To ensure your business idea is viable, you should prepare a business plan. Your business plan is the roadmap for your business and is essential to make informed decisions. It should cover all aspects of your business including management structure, operations, staffing, risk analysis, marketing, and sales. It’s also a document that you can use to convince financial institutions to lend you money.
Remember to be open to changes along the way. The plan provides a roadmap, but you can always decide to take another route. Read our article, How to Write a Business Plan for more help with this step.
3. Insure Your Business
What would happen if you suffered an expensive loss and didn’t have a policy in place? Could you bear the brunt of the cost and keep the lights on?
It’s never been easier or cheaper to take out a business insurance policy. Plus, insurance brokers are there to help guide you through the types of insurance you need to safeguard your business. The following are the most commonly required types of insurance for the tourism industry:
- Commercial General Liability (CGL) – This protects you and your business from claims made against you by third parties arising out of your activities or operation.
- Property Insurance – This covers losses from damage to, or destruction of, business property.
- Accounts Receivable Insurance – This is especially important for the travel industry. It insures up to 90 percent of your receivables if a debtor can’t make payment due to insolvency or default.
4. Consider Sustainability
British Columbia is one of the most spectacular places on earth. For tourism to continue to flourish, businesses need to adopt sustainable practices. This enhances the local communities and regions in which they are based. According to the United Nations Environment Program, this type of tourism should do the following:
- Make optimal use of environmental resources
- Respect the socio-cultural authenticity of host communities
- Ensure viable, long-term economic operations
Explore our Sustainability page for resources to help your small businesses reduce its environmental impact.
Small Business BC is Here to Help
SBBC is a non-profit resource centre for BC-based small businesses. Whatever your idea of success is, we’re here to provide holistic support and resources at every step of the journey. Check out our range of business webinars, on-demand E-Learning Education, our Talk to an Expert Advisories, or browse our business articles.
