The unintended consequences of regulatory complexity: The case of cruise tourism in Arctic Canada

Abstract

The cruise tourism industry in the Canadian Arctic has the potential be an important contributor to the northern economy, but undue complexity in the permitting and regulatory process represents a major barrier to cruise operators and as a result seems to be limiting development potential and other cultural and educational benefits related to tourism in the region. Based on a set of interviews and follow-up interviews with Arctic cruise operators and government permit issuers (n=48), investigative phone calls (n=22), and follow-up verification calls (n=20+), analysis of the management system that currently governs cruise tourism in Arctic Canada is provided including recommendations for improvement. There are currently over 30 permits, approvals, and notification processes for cruise companies operating in the Canadian Arctic (collective called ‘permits and permissions'). Permits and permissions are required for vessel safety, environmental protection, gaining access to national parks, and visiting heritage and archaeological sites among others. They are issued by numerous agencies under multiple jurisdictions and statutes with no integration or organizing system. The result is a process that is overly complex, repetitious, and costly for operators. In comparison, the permitting systems in Greenland and Svalbard are more streamlined, causing some cruise companies to consider abandoning Canadian waters in favour of these less bureaucratic regions. Federal and territorial attention is required to create efficiencies in the cruise permitting process in Arctic Canada if the economic, socio-cultural, and educational benefits of the industry are to be fully realized.