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A Village in Finland Has Been Calling Itself the Home of Santa Claus for Years. Now It’s Facing the Consequences of Overtourism

Rovaniemi in Finland is experiencing both the advantages and disadvantages of being a popular tourist destination, similar to the challenges faced by other European cities like Florence and Barcelona.

Roveniemi
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In recent years, many countries have worked to address areas that have become uninhabitable for their local residents. For instance, Japanese authorities decided to build a fence to purposefully ruin one of its best Mount Fuji views and stop the influx of tourists. Similarly, Italy has introduced several new taxes to manage tourism. Meanwhile, Finland’s winter landscape seemed to be a refuge from overcrowding. Things have changed.

Santa Claus Village. Located in Rovaniemi in Finland, Santa Claus Village has recently become a tourist hotspot. It attracts more than 600,000 visitors annually, particularly during the Christmas season. Tourists flock to the village for activities such as reindeer sleigh rides, cocktails at ice bars, and meet-and-greets with Santa Claus, generating significant revenue for local hotels, restaurants, and businesses.

This surge in tourism, driven by new air routes and the increasing popularity of the Arctic as a winter destination, led Rovaniemi residents to report 1.2 million overnight stays in 2023, a 30% increase from the previous year. However, not everyone is pleased with these developments.

The downside of mass tourism. Despite the economic boom, tourism has created notable challenges for the community. Local residents, including photographer Antti Pakkanen, have voiced concerns about the impact of overtourism, which has turned the city center into an overcrowded area dominated by tourists. During peak seasons, the number of visitors exceeds the city’s population by ten times, overwhelming local infrastructure.

The effect on housing prices. Additionally, landlords are increasing short-term rentals during the holiday season. This concerning trend has displaced permanent residents, raised housing prices, and reduced the availability of homes. Despite Finnish laws prohibiting professional accommodation services in residential buildings, locals criticize the lack of enforcement and oversight. Unfortunately, this pattern is similar to what’s happening in many other cities around the world.

A difference of opinions. The situation in Rovaniemi has sparked a debate within the community. Some residents advocate for stricter regulations to protect locals and enhance community well-being. Others, including Mayor Ulla-Kirsikka Vainio, highlight the economic advantages of tourism. The rise of short-term rentals has become a significant source of income for many landlords, making it challenging to implement restrictive measures without facing considerable resistance.

As demand continues to exceed the available accommodation supply, Tiina Määttä, general manager at Original Sokos Hotel, expects that 2024 will mark another record-breaking year for tourism in the city. This suggests that, in the short term, necessary regulations to balance mass tourism with the needs of residents are unlikely to be established, leaving the local community to navigate ongoing tensions in the seasons ahead.

The duality of tourism. Despite local criticism, Santa Claus Village remains a dream destination for many visitors. The enchantment of Christmas, the chance to witness the Northern Lights and the unique surroundings of the Arctic prove irresistible to travelers. Joy, a tourist from Bangkok, describes Rovaniemi as the perfect location for an unforgettable Christmas experience. The rise in tourism also reflects growing global interest in Nordic cultures and authentic winter experiences.

In the end, Finns (and their unique climate) may never have expected to experience the same challenges faced by cities like Barcelona and Florence. However, being the home of Santa Claus Village has undeniably contributed to a burgeoning global tourism industry. Rovaniemi serves as a notable example of how tourism can rejuvenate a relatively isolated local economy while also intensifying social and environmental tensions.

Image | Roman Protsyshyn

Related | Japan’s Biggest Tourism Challenge Isn’t Overcrowding on Mt. Fuji, But Rather Electric Suitcases. It’s Already Putting the Brakes on Them

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