Navajo Economy’s Future Depends on Upcoming Transformations

By Donovan Quintero
Navajo Times

WINDOW ROCK – Ah, the Navajo Nation stands at a rather intriguing crossroads in its economic journey. Much like its brethren Indigenous communities, it engages in a delicate dance of expanding the workforce, stirring up business development, and ensuring financial stability. However, the ever-persistent bureaucratic and infrastructural challenges certainly add a bit of spice to the affair.

Business Site Leases and Entrepreneurial Woes

Navajo business site leases, despite their intended purpose, have become quite the thorn in the side of eager entrepreneurs. Council Delegate Brenda Jesus, chair of the Resources and Development Committee, has tirelessly highlighted the obstacles. She mentioned, “The Navajo Nation is the lessor in these business site leases, which means they are the ones issuing the lease.” Unfortunately, these leases come with certain conditions where the lessee shoulders all maintenance and operation responsibilities, making for an unappealing venture.

This echoes the broader concerns of Jackson Brossy, who once spearheaded the Native American Affairs Office at the Small Business Administration. Brossy has been a staunch advocate for ensuring that Native-owned enterprises continue to partake in the lucrative realm of federal contracts, valued at a staggering $25 billion these days. His belief is firm that tribal engagement with political leaders and the SBA’s Tribal Consultation Policy can foster greater economic inclusivity.

Infrastructure and Financial Access

The Comprehensive Economic Development Strategy (CEDS) for the 2024-2029 period places emphasis on solidifying business infrastructure by easing access to financing. However, the efficiency of the Navajo Community Development Financial Institution is suspect, a matter not lost on Jesus, who has advocated for greater transparency. “We need to get a report from the Navajo CDFI,” she asserts.

Cory Blankenship, Executive Director of the Native American Finance Officers Association, warns of the peril should federal loan guarantee programs be discontinued. “Severely limited access to capital”, he cautions, would usher higher interest rates sighting conventional lenders perceiving tribal projects as risky. Consequently, this could trigger widespread economic hurdles and energy project setbacks in Indian Country.

Renewable Energy and Coal Decline

The Navajo Nation, amidst an environmental transformation, is steering away from the waning coal industry. CEDS renders large-scale solar and wind projects as avenues for job creation and tribal revenue. Although, as always, the regulatory process encumbers progress with the notorious 164 process obstructing swift advancement. Dual taxation on commerce within the reservation also retards economic development considerably.

Budget Cut Concerns Loom

On the national stage, tribal leaders are apprehensive about budget cuts threatening economic development schemes. Jay Spaan of the Self Governance Communication and Education Tribal Consortium voiced concerns: “If these rifts take and wipe out key staff, then tribes no longer have the option to negotiate for that FTE whenever they take over that program.” Such budgetary rifts, if extended to 2026 appropriations, might precipitate funding reductions crucial for tribal self-governance.

Tourism and the Underutilized Jewel

Turning the spotlight on tourism, the Navajo Nation, replete with world-renowned landmarks, has yet to harness its full potential. Sadly, a dearth of infrastructure, accommodations, and visitor services stunts growth. Sherry L. Rupert, CEO of the American Indian Alaska Native Tourism Association, present at the Reservation Economic Summit 2025, exuded optimism about the $15.7 billion Indigenous tourism industry. Appointed to the U.S. Travel and Tourism Advisory Board, Rupert champions sustainable growth for travel, urging continued investment in the NATIVE Act, a legislation pivotal for Indigenous tourism empowerment.

Inspirations at Upper Antelope Canyon

Lionel Bigthumb, CEO of Adventurous Antelope Canyon, narrates a heartfelt story of mentorship that emboldened him to establish a multi-million dollar tourism business. Bigthumb views Upper Antelope Canyon, not as a mere business venture but as home. His story underscores the importance of integrating Navajo culture into the tourist experience.

Experience Matters

As travel numbers surged post-pandemic, Bigthumb and his family acknowledged the significance of crafting a meaningful tourism experience. His family’s deep connection to the land inspires their business philosophy. Enterprising yet respectful, they offer tours and have ventured into air tourism, balancing economic expansion with cultural reverence.

Workforce Readiness Gaps

To sustain economic expansion, the question of workforce readiness arises. Current education statistics reveal only 5% of the Navajo population possess a bachelor’s degree, which paints a stark contrast to neighbouring states boasting 15-20%. The CEDS report calls for vocational program expansions in promising sectors like healthcare and solar installation to counter this disparity.

External economic factors compound the issue, as inflation in the Western U.S., measured by the Consumer Price Index, hikes costs of essentials like food and rent. Transport expenses, burdensome for families in rural Navajo regions, surged by 5.1% due to rising gasoline prices.

Strategic Investments

Some tribal leaders are exploring substantial investment models. Jesus references the Seminole Tribe’s acquisition of the Mirage Hotel as a benchmark for financial success, marking it as a potential compass for Navajo financial prosperity. However, she stresses the importance of rigorous financial analyses of such ventures.

Cultural Teachings in Business

Vincent Bigthumb embodies Navajo teachings, particularly “T’áá hó’ájít’éegoó,” crediting his paternal lineage for instilling resilience. “My grandparents and parents taught [me] the value of perseverance,” he recounts, illustrating his work ethos rooted in generational wisdom.

Shaping Values and Character

Bigthumb’s success evokes admiration, with his mother’s influence playing a prominent role in his trajectory. Her determination and resilience laid the groundwork for his business ethos, an ethos fuelled by a desire to create opportunities locally.

By harnessing family teachings and cultural wisdom, businesses like Bigthumb’s illuminate the path for Navajo Nation’s economic journey, blending tradition with modern strategy.

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Related Resources:

• Small Business Administration
• Native American Finance Officers Association
• American Indian Alaska Native Tourism Association
• Consumer Price Index
• NATIVE Act