Sustainable tourism in Lapland requires a social licence to operate

Tourism is growing rapidly in Finnish Lapland. Many see the tourism industry of the Lapland region as a gold mine, but Sweco’s area development experts Markku Nissi and Kimmo Vähäjylkkä are also familiar with the challenges associated with tourism development. We turned our sights north.

Tourism is one of the fastest-growing industries in Finland, already accounting for 2.6 per cent of Finland’s GDP with an annual worth of EUR 15 billion. In fact, there are several municipalities in Finland where the tourism industry is by far the largest employer. Currently the country’s most attractive tourist destinations are the Helsinki region and Lapland.

“For some people, the darkness, cold and quiet of Lapland is a completely new experience,” says Sweco’s Development Manger Kimmo Vähäjylkkä.

Vähäjylkkä’s area of expertise is area and tourism development. He has prepared dozens of tourism master plans and related land use development plans – in the north, his clients have included the municipalities of Ylläs, Rovaniemi, Inarijärvi and, most recently, Utsjoki. However, over the years Vähäjylkkä has noted that occasionally the objectives of tourism development plans and the investments they entail remain unrealised.

“Usually the problem is lack of commitment or excessively grand plans lacking in concrete goals,” summarises Markku Nissi from Pudasjärvi, who joined Sweco’s strategic planning team in Rovaniemi at the turn of the year. Markku’s job is to pick up where the master plans leave off.

“We create planned content for carrying out tourism investments, for example. Important factors include identifying and evaluating a concept suitable for the area in question that creates meaning and value to the customer. This provides the investor or company with information on what does and does not have business potential. Each area needs its own growth path.”

Being an experienced tourism industry professional, Nissi knows what he is talking about. Before his career in planning, he worked for years in the hotel and programme service sector as a sales manager. In addition to this, he has contributed to the development of tourism and well-being services.

“It is considerably easier to plan services and concepts when you have actually sold them yourself to both consumers and travel agents. Because of this, I am able to see what could work in practice and what it takes to turn a concept into reality. I’ve learnt to think from the perspective of business operations.”

Nissi seeks out the strengths of each area that have the potential to stand out in the market. His practical tools include investment and profitability calculations, feasibility studies and impact assessments, which can facilitate the decision-making of entrepreneurs, policy-makers and investors in regard to identifying viable investment and development sites.

Building trust

Without tourism, there would be many more dark windows in Lapland. This is why investors are so welcome in many areas. However, Nissi and Vähäjylkkä are also familiar with the challenges associated with the development of tourism in Lapland.

“It is very important to think about how to coordinate tourism with other local industries, such as reindeer husbandry, wind power, mining operations and forestry. You also have to take into account the fact that a large part of Lapland consists of nature reserves. The further north you go, the more important it is to consider the special characteristics of the area, such as Sami culture and the sensitive habitats of the north,” says Vähäjylkkä.

A new tourism concept must be a good fit for the area, and not just in terms of figures. Building trust, listening to local actors and engaging in open discussion are extremely important. Nissi and Vähäjylkkä agree that in Lapland it is especially important to obtain a social licence and approval for any investments and development projects. As an example, Vähäjylkkä cites Utsjoki, where it is important that tourism also benefits locals by way of recreational opportunities, new services or housing construction, for example.

Growth targets and social responsibility go hand in hand

Nissi’s aim is to make sure that future tourist destinations are built in a more controlled and sustainable manner and that social responsibility is more clearly reflected in companies’ operations as well. His passion is to see these values made reality.

“There is currently a lot of discussion about how to avoid mass tourism so that Lapland does not end up like Venice or Iceland. Construction efforts must be controlled. In my opinion, it is always worthwhile thinking about what a new investment in a given area aims to achieve and what kind of impacts it will have. We should be looking at the bigger picture. What kinds of things benefit each other? High growth targets and socially responsible operations should go hand in hand.”

And what would Nissi like to see more of in Lapland? At present, things that make the area stand out include snow, ice, the Northern Lights, darkness and of course Santa Claus.

“Unique and authentic tourism concepts based on local culture! Instead of copying others, we should play to our own strengths and utilise our own culture, while respecting the environment. Now that the basics are in order, I’d like to see more innovation – things that stand out. I’d also like to see improvements in energy efficiency and more sustainable solutions in construction – making good on all the promises.”

Image: Lapin materiaalipankki Markus Kiili