Beyond the Backlash: Why Smart Tourism Operators Are Doubling Down on Inclusion
In today's polarized climate, the term "DEI" has become a flashpoint. For tourism and hospitality leaders, the growing backlash against Diversity, Equity, and Inclusion initiatives presents a complex challenge: pressure to retreat on one side, and a wealth of evidence showing that retreat is a significant business risk on the other. This article provides a risk management framework for tourism operators. It moves beyond the heated debate to offer a clear-eyed look at the data, demonstrating how a strategic commitment to inclusion is a powerful driver of resilience and growth, particularly for Canadian businesses.
The Unignorable Business Case for Inclusion
While critics frame DEI as a purely social issue, the numbers tell a different story. The 2SLGBTQI+ travel market alone is a global economic powerhouse, valued at over $357 billion USD annually [1]. In Canada, this market contributes over $12 billion to the economy each year, with 2SLGBTQI+ travelers spending nearly seven times more per trip than the average Canadian tourist [2] [3].
The connection between DEI and business health is well-documented. A 2025 study by Catalyst and NYU's Meltzer Center found that 77% of C-suite leaders see a positive correlation between DEI programs and financial performance, while 81% link it to stronger customer loyalty [4]. In an industry as competitive as tourism, these are advantages no business can dismiss.
The Real Risks of Retreat
In the face of backlash, the knee-jerk reaction has been to scale back. Research shows this is a strategic error with far-reaching consequences across three critical areas.
"Opting out of DEI is not a neutral act — it is a choice with consequences." — Christine Joseph, Meltzer Center for Diversity, Inclusion, and Belonging [5]
Talent Drain. The modern workforce demands inclusive employers. A staggering 86% of Gen Z employees are more likely to stay with a company that supports DEI, and 61% would never even apply to one that doesn't [5]. With hospitality already facing severe labour shortages and each frontline replacement costing nearly $6,000, a DEI-driven exodus would be financially devastating [7].
Legal Peril. While anti-DEI advocates focus on the legal risks of inclusion programs, 68% of C-suite leaders believe that retreating from DEI creates a greater legal risk [4]. Abandoning these programs increases exposure to traditional discrimination lawsuits. In Canada, where the legal framework explicitly supports programs aimed at ameliorating disadvantage, a retreat could create significant human rights law exposure [10].
Consumer Backlash. Today's consumers vote with their wallets. The same 2025 study found 69% of consumers are more likely to buy from a company that supports DEI, and more than a third would actively boycott a brand that abandons its commitments [4]. The fallout experienced by Target, which was perceived as performative after quickly withdrawing its DEI commitments is a powerful cautionary tale [5].
From Risk to Resilience: 5 Action Steps
Navigating DEI backlash is not about picking a side in a culture war; it is about smart, proactive risk management.
1. Conduct a DEI Risk Assessment. Before making any changes, weigh the legal, reputational, and financial risks of your current programs against the significant risks of retreating. This data-driven approach moves the conversation from emotion to strategy [5].
2. Reframe, Don't Retreat. If the term "DEI" attracts negative attention, reframe your efforts around tangible outcomes: "workplace culture," "employee engagement," or "service excellence." A remarkable 78% of C-suite leaders are already making this pivot, maintaining substance while shifting language [4].
3. Embed Inclusion in Operations. Authentic DEI is not a standalone HR initiative. Integrate it into inclusive marketing that speaks to diverse traveler segments, supplier diversity programs that support local and minority-owned businesses, and accessible facility design [7].
4. Train for Inclusive Service. Equip frontline staff with skills for culturally competent service. Focus on unconscious bias and respectful communication, an investment in service excellence, not just a compliance checkbox.
5. Communicate with Authenticity. Be transparent about your goals and progress. Ensure internal actions align with public statements. This closes the perception gap between leadership intent and employee experience, building long-term credibility [4].
"Successful leaders understand that even in times of pressure and polarization, it is important to resist knee-jerk reactions and instead lead on decades of research-based solutions." — Jennifer McCollum, CEO of Catalyst [5]
The Future of Tourism is Inclusive
The backlash against DEI is a test of leadership. For tourism operators, the evidence is clear: the most resilient, profitable brands will be those built on a foundation of genuine inclusion. For Canadian businesses, this is more than strategy, it is a reflection of our national identity and a powerful advantage on the world stage.
Continue Learning,
Canada's 2SLGBTQI+ Chamber of Commerce: A resource for businesses looking to become more inclusive.
Destination Canada: For insights into Canada's national tourism strategy.
References
[1]: Coherent Market Insights. (2025). LGBT Tourism Market Size, Share & Opportunities, 2025-2032.
[2]: Canada's 2SLGBTQI+ Chamber of Commerce. (n.d.). Tourism.
[3]: Tourism HR Canada. (2020). LGBTQ2 Travellers to Explore Canada in 2020-21 Creating $12B Hospitality Opportunity.
[4]: Catalyst & NYU Meltzer Center. (2025). Risks of Retreat: The Enduring Inclusion Imperative.
[5]: Risk Management Magazine. (2025). Assessing the Risks of Retreating from DEI.
[7]: Central Counties Tourism & Culture Catalyst Inc. (2025). The Business Case for Diversity, Equity, and Inclusion in Hospitality.
[10]: Torys LLP. (2025). The backlash against DEI in the U.S. and what it means for Canadian and cross-border companies.
