Tourism as the beacon for business in Lapland in 2023 – downturn in industrial sectors

In 2023, the overall turnover of the entire business sector decreased by 6.3 per cent in Lapland and by 3.7 per cent in the entire country compared to the previous year. According to a preliminary estimate, Lapland’s turnover was almost EUR 17.7 billion in 2023, and the industrial export turnover was close to EUR 3.9 billion.  

“Among all the sectors examined last year, the annual change in turnover was positive only in tourism services, accommodation and catering sector, and business services. The drop in turnover was most significant in the mining and industrial sectors. This indicates that Lapland is dependent on the world market. For example, the decline in metal prices probably contributed to the results. On the other hand, the report highlights the positive effects that major investments such as the Metsä Group plant have on business life,” says Liisa Ansala, CEO of the Lapland Chamber of Commerce. 

In 2023, personnel numbers in all sectors in Lapland (including the public sector) developed more positively than the turnover, showing a growth of 2.0 per cent compared to the previous year. According to the preliminary estimate for last year, the number of personnel was equivalent to 62,000 person-years. 

“The sectors with the strongest performance included tourism services, accommodation and catering, and business services. In contrast, personnel numbers decreased in the construction and industrial sectors,” says Heino Vasara, Strategy Manager at the ELY Centre for Lapland.  

Strong growth in tourism 

Due to substantial growth in the tourism sector, Lapland is already well ahead of the pre-pandemic levels in terms of performance. In 2023, the turnover of tourism services increased by 18.1 per cent, and the number of personnel is also back on the rise. Moreover, the positive trend is visible in the turnover of accommodation and catering services in Lapland, as more than half of the companies in the sector managed to ramp up their turnover in 2023.  

The tourism centres in Lapland increased both their turnover and personnel numbers. According to Satu Luiro, Development Manager of the Regional Council of Lapland, the strongest growth was seen in the tourism centres of Rovaniemi and Saariselkä.

In the industrial sector, turnover dropped by 14.1 per cent and personnel numbers decreased by 3.3 per cent in 2023. Yet, in terms of turnover and personnel numbers, Lapland has seen more favourable development in the industrial sector compared to the nationwide trends, with the exception of major enterprises. In fact, the number of employees in mining and quarrying activities increased in 2023, despite the decline in turnover. 

In Lapland, the development of other sectors is reflected also in business services. In this sector, companies of all sizes and ages had a positive impact on turnover development. In 2023, the turnover of all business support services in the region of Lapland increased by 11.4 per cent and the number of personnel grew by 5.5 per cent compared to the previous year. 

See the Lapland economic trend report on the Lapin Luotsi website (available in Finnish).

 

What is the Lapland economic trend report? 

Each year, the Lapland economic trend report compiles information on the economic trends in turnover, industrial export and personnel numbers from the defined sectors, as well as from business groups in the tourism centres, the sub-regions of Kemi-Tornio and Rovaniemi Region, and from the cooperation body Fell Lapland Development. 

The Lapland economic trend report is implemented in cooperation between the Regional Council of Lapland, ELY Centre for Lapland, Lapland Chamber of Commerce, Entrepreneurs in Lapland, Finnvera, the City of Rovaniemi, Sea Lapland Development Centre, and Fell Lapland Development.  

The economic trend report is based on the data of Statistics Finland, and the contents are formed in smooth collaboration with the specialists at Statistics Finland.