Situated in Northern Europe, Finland is one of the least densely populated countries in Europe and the developed world (15.8 inhabitants per square kilometre). With two thirds of its 5.4 million population living in cities, Finland is home to vast undisturbed natural areas. With competitive manufacturing (timber and metal), telecommunications and electronics sectors, Finland’s economy is one of the best performing in Europe and the world. It fared fairly well through the economic downturn. In the Global Competitiveness Index 2013-2014, Finland ranked third in the world (after Switzerland and Singapore) receiving high scores on its efficient public sector, competitive businesses and excellent social services such as health care and education. Finland is one of the top performers in per-capita income.

As a tourism destination, Finland has never been a leading choice to visit. Perceived as a very cold place with few attractions it is more often seen as an important source destination rather than an attractive country to go to. With an increasing global demand for nature-based activities and non-traditional experiences (including dog-sled safaris and arctic winter escapes), Finland has an opportunity to change that. In recent years, the country has invested significant efforts and resources in its visibility as an important player in the European and global community. Among the objectives behind strengthening Finland’s nation brand has been the aim to raise its profile as an exciting place for a holiday. Finland’s tourism promotion targets European and international travellers who are interested in outdoor experiences and other attractions such as the origins of Santa Claus.

Tourism has been receiving more attention by the Finnish government as a sector with important economic potential. Traditionally, the country’s economy has been dependent on the timber and metal industries. The high rate of outsourcing industry and commerce has prompted the country to start looking at ways to diversify and modernise the economy. Tourism was identified by the Finnish government as one sector with great potential for growth and value added. This led to the adoption of a National Tourism Strategy 2020, which aims to sustain an average of 3% annual growth in demand and 5% annual growth in receipts by 2020. According to government estimates stated in the document itself, as a result of the strategy, by 2020 the Finnish tourism sector is expected to employ a total of 171,000 people (compared to 130,500 in 2007), generate €7.5 billion in tax revenue (compared to €4 billion in 2007) and contribute 5.1% of the gross domestic product (GDP) (compared to 3.8 in 2007). The acknowledged strengths of the country as a tourism destination are proximity to Russia (a main source market), attractive travel areas and diversity of available tourism services. Among the weaknesses that need to be tackled are accessibility, unfamiliarity and high prices.

This report looks at the following areas:

• What are the current developments for tourism in Finland?

• Who travels to and within Finland, why and for how long?

• How do they travel and where do they stay?

• How much has inbound tourism to Finland been affected by external events?

• What does the future of tourism look like in Finland?