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Norway: Norway Tourism Profile 2012

2012/03/22

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Norway Tourism Profile 2012

Analyse of the sector 30/11/2010
Impact of global financial crisis
The global financial crisis impacted the Norwegian economy less than the majority of other countries’ and, as such, inbound tourism declined dramatically in 2009. Initially, the global financial crisis caused an increase in outbound travel from Norway during 2008, as other currencies decreased and the Norwegian Kroner increased in value. However, during 2009, financial uncertainty impacted and Norwegian outbound travel decreased significantly while domestic travel increased. Although the increase in domestic travel protected Norway’s travel and tourism from more severe effects, category participants that focused on foreign arrivals, such as hotels in remote areas and tourism attractions were severely impacted by the downturn in a number of cases.
 
Health & Wellness and activity-based tourism
 
There was an increased concern regarding unhealthy lifestyles in Norwegian society in 2009. This led to increased demand for holidays, products and services that promoted health & wellness. It also added to growth in spa holidays as well as an increase in activity holidays. The most popular of these holidays were golf, dive and ski trips, but there was also an increase in adventure holidays such as canoeing and safaris in Africa.
 
Short city breaks
 
Short breaks increased dramatically. They were mainly directed towards large cities and, as such, generated value for those companies operating in the large cities. In 2009, overall holiday trips decreased, but city breaks remained on the same level as in the previous year.
 
Environmental tourism
 
Environmental tourism expanded at a fast rate in 2009. However, this was not due to consumer demand, as consumers increasingly shopped for value for money. Environmental tourism grew because companies were increasingly held responsible for the products and services they offered and for what they contributed to society.
 
Internet and mobile content
 
Internet sales increased strongly over the review period. As previously predicted, internet growth slowed down the global financial crisis as it spurred a greater number of people to purchase online in order to save money. Other internet growth factors included increased investment in online services, greater integrated online content, more secure online transactions and strong discounting for online purchases.
 
Low cost airlines
 
Low cost airlines played an increasingly larger role, and was the only carrier type to exhibit positive growth in 2009. Meanwhile, both scheduled and charter carriers decreased in value as a result of the global financial crisis.
 
Hotel chain competition
 
Chained hotels performed much better than independent hotels that decreased significantly in 2009. Chained hotels were situated in prime locations near city centres, airports and major tourist attractions.
 
Outlook
 
Overall growth is expected in 2010 and beyond with outbound tourism increasing considerably faster than arrivals and domestic tourism. This growth will mainly be driven by a strong Norwegian kroner supported by a healthy economy. A large percentage of outbound tourism will continue to be towards Sweden and other neighbouring countries where Norwegians will take advantage of the strong Norwegian kroner.