Hospitality NL Responds to Termination of South Coast NMCA Feasibility Process
By Craig Foley
MEDIA STATEMENT
For Immediate Release
February 5, 2026
St. John’s NL – Hospitality Newfoundland and Labrador (Hospitality NL) is deeply disappointed by the Provincial Government’s decision to terminate the Memorandum of Understanding related to the feasibility assessment of a proposed South Coast National Marine Conservation Area (NMCA) and the redesignation of Sandbanks Provincial Park.
Tourism in Newfoundland and Labrador is a major economic driver and a foundational part of the province’s social and economic fabric. The sector welcomes more than 500,000 visitors annually and generates nearly $1.4 billion in visitor spending, more than $3.8 million every day, supporting over 20,000 jobs across the province. Importantly, 66 per cent of this activity occurs rural and coastal communities that rely on a diversified, year-round economy.
Tourism contributes approximately $595 million in direct GDP, on par with the fishing, hunting, and trapping sector, and delivers an additional $440 million in indirect and induced economic impact. It is one of the province’s most resilient, sustainable industries and a critical source of employment, entrepreneurship, and community vitality.
Hospitality NL recognizes and respects the importance of fisheries, aquaculture, mining, and other marine-dependent industries. These sectors, alongside tourism, are deeply rooted in the identity, livelihoods, and future of the south coast. However, the feasibility assessment process was not about choosing winners and losers, it was about understanding whether conservation, economic development, and working waterfronts could coexist through thoughtful planning, zoning, and collaborative governance.
Ending the feasibility process at this stage represents a missed opportunity to fully examine how marine stewardship could support long-term sustainability, economic diversification, and job creation in the region. Jurisdictions across Canada and internationally have demonstrated that well-designed marine conservation areas can strengthen local economies, support existing industries, and enhance global destination competitiveness when developed collaboratively.
Hospitality NL is concerned by narratives that diminish or misunderstand the value of tourism or suggest it is somehow incompatible with other sectors. Tourism is not a fringe activity, it is the fourth-largest industry in Newfoundland and Labrador and an essential contributor to the province’s prosperity, identity, and quality of life. Tourism operators live in these communities, employ residents, and depend on the same healthy marine environment as all other sectors.
As Todd Perrin, Vice Chair of Hospitality NL, stated:
“Tourism is not separate from the fabric of our coastal communities, it is part of it. Our industry supports families, creates jobs, and helps keep communities viable year-round. We respect the role of fisheries and aquaculture, and we believe strongly that our future depends on collaboration, not exclusion. When tourism is left out of the conversation, we lose opportunities for sustainable growth, regional employment, and long-term resilience. We should all be at the table.”
Hospitality NL remains committed to pragmatic, inclusive approaches to conservation that reflect Newfoundland and Labrador’s regional realities and respect Indigenous partnerships, community voices, and existing industries. We continue to believe there is value in dialogue, shared problem-solving, and evidence-based decision-making that allows industries to coexist while protecting the natural assets that define this province. Tourism is not in opposition to other sectors, it is a partner in building a sustainable, diversified, and resilient future for Newfoundland and Labrador. We stand ready to contribute constructively to future discussions and to work alongside government, Indigenous partners, communities, and industry to ensure no opportunity for responsible growth and shared prosperity is left unexplored.