Tourism in Government Economy | Finland

blogfinland

By: Kristina Svels

History & Background

  • Finland has been: (1)  a part of the Swedish Kingdom from the middle ages until 1809, and (2) an autonomous part of Russia between 1809 – 1917
  • Finland independence 6.12. 1917 – 100 yrs 2017!
  • Belongs to the Nordic Countries (similar social democratic societal structure) but not strictly geographically part of Scandinavia.
  • Bordered by Sweden, Norway, Russia and neighbouring Estonia
  • Finland’s tourism comparative strengths lie in the contrast between its modern culture and its nature-based cultural heritage, the meeting of east and west, technology, the Finnish way of life and creativity (OECD, 2016)

General Profile

  • Four distinctly different seasons
  • Land of the Midnight sun
  • Land of the Nordic light – Aurora Borealis
  • Bilingual country (Finnish and Swedish)
  • Finnish speaking 88,9 %
  • Swedish speaking 5,3 %
  • ‘Northern Hub’ to Asia via Helsinki
  • Joined the EU 1.1. 1995
  • Finland part of the Euro zone €
  • High taxes and high labor costs > standard of prices of Finnish tourism services general high.

How tourism is incorporated in Finland

— Ministry of Employment and the Economy

  • The Ministry of Employment and the Economy responsible for tourism policy, development and support measures.
  • ○Limited financing to tourism by government
  • Development of tourism closely connected with regional policy, which is also the responsibility of the Ministry of Employment and the Economy

— Finpro

  • Finpro is a largely state funded organisation responsible for supporting Finnish SMEs in international markets and encouraging foreign direct investment (follow Finnish Tourism Board FTB).

— Visit Finland

  • Visit Finland Receives its funding from the state budget, € 10.1 million in 2015.
  • Promote Finnish tourism by means of marketing communications, and by promoting Finland as a tourist destination
  • Joint product campaigns with industry and arrange fact finding visits for foreign travel operators and the media that support the promotion of Finland as a an attractive destination

Tourism Authorities Across Government Levels

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Tourism & Finland’s Economy

  • Finland received 7.4 million foreign visitors in 2015
  • In total they accumulated € 2.4 billion to the country
  • € 14.2 billion was spent on tourism in Finland ( 2014 including the consumption expenditure of Finnish and foreign tourists)
  • The value added by tourism € 4.4. Billion, i.e. 2.5 % of Finland’s GDP
  • Total employment in the tourism sector was 140,000 people
  • Tourism has significant multiplier effects on other sectors, such as construction, transport, and commerce.
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