Santa Claus Village Booms, but Finland’s Rovaniemi Grapples with Over-Tourism
The enchanting Santa Claus Village, nestled on the Arctic Circle, is experiencing a tourism boom, attracting record numbers of visitors and injecting significant revenue into the Finnish Lapland capital, The Associated Press reports.
However, this surge in popularity is causing growing concerns among residents struggling with the consequences of over-tourism.
The winter wonderland theme park welcomed over 600,000 visitors in 2023 alone, a nearly 30% increase from the previous year following a pandemic slump. This influx, which surpasses Rovaniemi’s population tenfold during peak season, is driving economic growth, benefiting hotels, restaurants, and city coffers.
“Nordic is a trend,” says Visit Rovaniemi CEO Sanna Karkkainen, attributing the boom to a global desire to experience snow, the Northern Lights, and, of course, Santa Claus.
The opening of thirteen new flight routes this year has further fueled the growth, bringing visitors from across Europe and beyond. Hotels are booked solid, and projections point to even higher numbers in 2024.
But the rosy picture is clouded by local anxieties. Antti Pakkanen, a photographer and member of a housing network, highlights concerns about the unchecked growth of tourism.
“We are worried about the overgrowth of tourism. Tourism has grown so rapidly, it’s not anymore in control,” he said.
This sentiment echoes similar anxieties in other popular European destinations grappling with the negative effects of over-tourism.
Critics argue that the proliferation of short-term rental apartments in the city center, often exceeding legal limits, has driven up housing costs, displaced long-term residents, and transformed the city core into a transient space primarily serving tourists. They are urging authorities to enforce existing regulations prohibiting professional accommodation services in residential buildings.
While Mayor Ulla-Kirsikka Vainio acknowledges that some residents profit from short-term rentals, the debate over stricter regulations continues.
