Business Fact Sheet for Rovaniemi TOURISM The Heart of Lapland, Finland Promoted by Santa Claus INVEST IN THE ARCTIC Rovaniemi Regional Agency Ltd •Ainonkatu 1, FIN-96200 Rovaniemi FINLAND WWW.INVESTINARCTIC.COM The Tourism Sector in Rovaniemi ______________________________________________________________ 4 Facts in Brief ___________________________________________________________________________________ 4 General Overview _______________________________________________________________________________ 5 Rovaniemi Tourism in Figures ______________________________________________________________________ 7 Climate and Nature ______________________________________________________________________________ 9 Accommodation _______________________________________________________________________________ 10 Travel Agencies and Tour Operators ________________________________________________________________ 10 Activities _____________________________________________________________________________________ 11 Supporting Services ____________________________________________________________________________ 12 Qualified Personnel _____________________________________________________________________________ 13 Northern Logistics Node _________________________________________________________________________ 14 Sector Outlook ___________________________________________________________________________ 16 Development Trends ____________________________________________________________________________ 16 Targets and Development Plans ___________________________________________________________________ 16 Business Opportunities __________________________________________________________________________ 17 Picture: Reindeer of the Santa Claus Statue (Rovaniemi airport). Artist: Upi Kärri Doing Business in Rovaniemi _ 17 Doing Business in Rovaniemi ________________________________________________________________ 18 Contacts _____________________________________________________________________________________ 18 Business Inquiries_____________________________________________________________________________________ 18 How to Set up a Company in Finland ________________________________________________________________ 19 Company Case Study: Ice Park Finland ________________________________________________________ 20 Further Information________________________________________________________________________ 21 Tourism in Rovaniemi ___________________________________________________________________________ 21 Tourism in Lapland _____________________________________________________________________________ 21 Tourism in Finland______________________________________________________________________________ 22 Web Sites ____________________________________________________________________________________ 22 Statistical Annex__________________________________________________________________________ 23 Statistics Links ________________________________________________________________________________ 23 Tourism Statistics for Rovaniemi and Lapland_________________________________________________________ 23 Rovaniemi Tourism Summary for 2008 _____________________________________________________________________ 23 Overnights by Month ___________________________________________________________________________________ 26 Visitors in 2008 by Nationality ____________________________________________________________________________ 27 Hospitality and Retail Turnover in Rovaniemi Region___________________________________________________________ 28 Hotel Turnover in Rovaniemi Region _______________________________________________________________________ 29 Programme Services and Recreation Turnover in Rovaniemi Region_______________________________________________ 30 Lapland Tourism Graphs ________________________________________________________________________________ 31 Tourism Statistics for Finland _____________________________________________________________________ 33 Profitability __________________________________________________________________________________________ 33 Investments__________________________________________________________________________________________ 33 Overnights in Finland in 2008 ____________________________________________________________________________ 34 2 Tourism Consumption in Finland__________________________________________________________________________ 34 Overnights by Foreign Visitors ___________________________________________________________________________ 35 Turnover in Finnish Hotels_______________________________________________________________________________ 36 Hotel Capacity in Finland________________________________________________________________________________ 37 Largest Hotel Chains in Finland___________________________________________________________________________ 37 Wage Costs for Hotels and Restaurants_____________________________________________________________________ 38 Cost Structure for Restaurants and Hotels___________________________________________________________________ 38 General Statistics for Rovaniemi Region _____________________________________________________________ 39 Rovaniemi Region in Figures_____________________________________________________________________________ 39 Employment in Rovaniemi by sector _______________________________________________________________________ 39 Companies - All Sectors in Rovaniemi Region ________________________________________________________________ 40 Turnover – All Sectors Separately and Combined in Rovaniemi Region _____________________________________________ 41 National Statistics ______________________________________________________________________________ 43 Labour Costs_________________________________________________________________________________________ 43 Energy Prices by Type of Consumer _______________________________________________________________________ 43 Rent of Dwellings in Finland _____________________________________________________________________________ 44 3 The Tourism Sector in Rovaniemi Facts in Brief 1. Rovaniemi region forms a unique combination of a lively modern city surrounded by exotic Lappish nature. Rovaniemi lies on the Arctic Circle at the confluence of two of Finland’s major rivers and is surrounded by hills. Summertime visitors experience midnight sun when the sun never sets; wintertime it is sometimes possible to see flashes of northern lights (aurora borealis) in the sky. 2. World Capital of Christmas. The Christmas theme is at all times present and the visitor can meet Santa Claus around the year. The Sámi ethnic culture and reindeer husbandry complement this image. 3. Finland’s most popular tourist destination for international visitors after Helsinki. Thanks to many sights, different seasons and congress traditions, Rovaniemi is a year-round destination. 4. The main attractions in or close to Rovaniemi are: a. The Arctic Circle b. Santa Claus, Santa Claus Village and SantaPark c. Ounasvaara Sports and Skiing Centre with its beautiful golf course d. Many sights in nearby areas (e.g. Ranua Wildlife Park; Kemi Snow Castle and ice-breaker ”Sampo”; Pyhä-Luosto fell resort) 5. Rovaniemi is easily reachable from around the world. The” Official Airport of Santa Claus” is an international airport at a 10-minute drive from the city centre. No traffic jams! 6. City services, modern infrastructure and qualified personnel. Rovaniemi is with its almost 60,000 inhabitants the capital of Lapland Province. Thanks to a growing population it offers a steady stream of new employees graduating from several educational establishments, including two universities. 7. Significant growth potential in tourism. Tourism investments offer even more potential: tourism income is predicted to triple by 2020 in Lapland. Even climate change increases the competitive advantage of Lapland as fewer places in the world can guarantee snow. As the “gateway to Lapland” and as a fascinating destination by itself Rovaniemi is set to benefit from the growth boom. For more info see: www.investinarctic.com and www.visitrovaniemi.fi 4 General Overview 1. Rovaniemi is a unique tourist destination and an international centre of tourism. Rovaniemi is the capital of Lapland, and its surface area (8,016 km²) makes it Finland’s, if not Europe’s, largest city. Rovaniemi has a population of around 60,000, and there are about 14,000 reindeer in the region. It is 800 km north from the national capital Helsinki. 2. The Arctic Circle passes through Rovaniemi (latitude 66 degrees 33’07’’ minutes north). It’s a magnetic attraction and a memorable experience for tourists arriving from all round the world. In summer, the sun doesn’t set on the Arctic Circle – rather the midnight sun lights up the Northern nights; in winter, visitors and locals can admire the beautiful shimmering Northern Lights. Rovaniemi is the only city in the world where you can cross the Arctic Circle safely and in comfort because the city is able to offer its tourists diverse services on a grand scale, both in summer and in winter. 3. Home town of Santa Claus. Visitors can experience the excitement of meeting him in person at his Office on the Arctic Circle every day of the year. Santa’s own official Post Office is located near to his Office. Each year he receives around 500,000 letters from children and grown ups all round the world. All the letters are opened, and answers are sent to those that include a return address. 4. Winter activities. Special programmes are arranged for tourists so that they can enjoy Christmas and winter: they get to meet Santa, drive reindeer and huskies, go on snowmobile safaris, ski on Ounasvaara hill and play in the snow. Some make a flying visit to Rovaniemi for just a day to experience the Christmas tale – this is easy to do because Rovaniemi has a busy international airport and excellent traffic connections. 5 5. Summer activities. Summer brings visitors who come to gaze at the midnight sun and summery Lappish nature. There are many nature activities to try out in summer: riverboat cruises, angling, quad bike safaris, whitewater rafting and hiking trips… and the Arktikum Museum and Ranua Wildlife Park are unique places to visit. With boutiques that cater to all tastes, Rovaniemi is also a good place to go shopping. 6. Congresses. Rovaniemi has a unique setting for conferences and congresses; people attending a meeting can enjoy the pulsating city and peaceful nature at one and the same time. This University City and administrative and business centre of Lapland has organized international events for decades. More info: www.rovaniemicongresses.com. 7. Concentration of tourist businesses. The experienced operators are networked regionally so as to seamlessly offer services also to other areas of Lapland. Just behind Helsinki as the top destination in Finland for foreign tourists, Rovaniemi offers ample business opportunities in the sector. 8. Finland markets itself with 4Cs: Credible, Creative, Contrasts and Cool. These are appropriate in the case of Rovaniemi too: a. Credible. Lappish people are honest, straight-talking and hard-working people, who do their best to make the guest feel welcome. b. Creative. Rovaniemi is a vibrant cluster for the creative industries with several recognized companies and supporting organisations such as Finnish Lapland Film Commission and Lapland Centre of Expertise for the Experience Industry, LEO. This “creative madness” positively radiates into the tourism sector helping to create unique experiences to the visitors. c. Contrasts. Nature in Rovaniemi is so different around the year that the city boasts of having eight seasons. Around-the-clock light summertime, almost no sun in mid-winter but occasional northern lights (aurora borealis) are exotic contrasts. d. Cool. Well, winters can be cool, but summers are summers even in Lapland. Being “cool” can also be interpreted so that local people are ready to defy the elements to make their success stories. W W ee ll cc oo m m ee tt oo RR oo vv aa nn ii ee m m ii !! 6 Rovaniemi Tourism in Figures 1. North of Helsinki, Rovaniemi is the most popular destination for foreign visitors 2. Rovaniemi records almost half a million overnights per year. However, this figure does not include the significant amount of unregistered overnight stays (in cottages etc.). 3. The value of accommodation turnover amounted to EUR 19.66 million in 2008. 4. Rovaniemi’s registered accommodation capacity was 3,138 in December 2008 5. The mean price per night in Rovaniemi was EUR 40.48 in 2008 6. The room occupancy rate for all Rovaniemi’s accommodation establishments was 50.7 percent in 2008 7. Together the direct and indirect employment effects that tourism creates in the Rovaniemi region are approximately 1,500 person-work years. 8. During the Christmas season of 2008, there were more than 190 charter flights. In 2008 there were more than 194 media representatives from 34 countries visiting the city. 9. Overnights represented by Finns totalled 219 653 in 2008, representing 46 % of all overnights. 10. The following were the biggest foreign nationalities in 2008: a. Russia (32,400) b. Germany (28,300) c. France (24,000) d. Great Britain (23,200) Total number of overnights in Rovaniemi 600 000 500 000 400 000 300 000 200 000 100 000 0 2001 2002 2003 2004 2005 2006 2007 2008 7 Overnights by purpose of visit January-December 2008 1% 33 % Business Leisure Other purpose 66 % Year Price per night € Occupancy rate 2001 2002 2003 2004 2005 2006 2007 2008 39,07 40,13 39,58 39,01 40,06 38,07 40,2 40,48 41,30 % 40,10 % 41,60 % 46,00 % 44,40 % 45,30 % 51,30 % 50,70 % For more figures, please refer to the statistical annex of this document. 8 Climate and Nature Cold and warmth, light and darkness In Lapland, there are huge swings between the seasons – dramatic changes in temperature, the amount of light and vegetation. Winter in Rovaniemi lasts from November to April, so there’s snow on the ground for about six months – most of it in February and March when the snow cover can be as much as 50-70 cm thick. The lakes and rivers freeze over, forming such a strong ice sheet that you can drive a truck over it. The record cold temperature was - 45.3°C but generally, winter temperatures remain in the region of - 10 to - 20°C. On clear winter evenings and nights, the sky can come alive with the red or green shimmering colours of the Northern Lights. These dazzling colours are generated by solar particles as they collide with the earth’s atmosphere. The phenomenon is fairly regular. In winter, it is light for only a short time and by the time Christmas arrives, daylight is merely a moment of blue-grey as the sun peeps above the horizon for just a couple of hours. The days get longer with the approach of spring. The summer nights are bright because the sun never sets. You can see the midnight sun in Rovaniemi from 6 June-7 July. In July, the temperature can reach as high as +30ºC. Picture: The eight seasons of Rovaniemi A modern way of life close to nature Just like all Finns, the people of Rovaniemi love nature. The variation in the seasons is a great joy, and the city residents value the fact that nature is right at their front door. In this city, you can go berry and mushroom picking, skiing, hiking and fishing, and drive a snowmobile close to the city centre. Despite the relaxed rhythm of life and closeness to nature, the living environment and business life are very modern. The key industries in the city include ICT, cold and winter technology, wood, foodstuffs and tourism. Traditional reindeer husbandry is practised in the region and it, too, makes good use of modern technology. The people of Rovaniemi have harnessed technology to enhance nature experiences. Many a tourist wants to see the phenomenon of the northern sky – the Northern Lights. The people of Rovaniemi were the first in the world to develop a service where visitors can arrange for an alarm to be sent to their mobile phone when the Northern Lights are visible. 9 Accommodation 1. There are more than 1000 officially registered rooms in hotels or other accommodation establishments. Seven hotels are situated in or close to the centre: a. Clarion Hotel Santa Claus (www.hotelsantaclaus.fi) b. Sokos Hotel Vaakuna (www.vaakunarovaniemi.fi) c. Hotel Rantasipi Pohjanhovi (www.rantasipi.fi) d. City Hotel (www.cityhotel.fi) e. Hotel Cumulus Rovaniemi (www.cumulus.fi) f. Lapland Hotel Sky Ounasvaara (www.laplandhotels.com) g. Hotel Aakenus (www.hotelliaakenus.net) 2. Outside the city you find in addition e.g. a. Lapland Hotel Bear’s Lodge (www.laplandhotels.com) some 25 minutes from the centre b. Hotel Ilveslinna (www.hotelliilveslinna.fi) in Ranua 3. A new Spa Hotel on the shore of Kemijoki river (on the so-called Valionranta beach) has been awarded to the winner in 2008. The winning proposal is called “Snow”. The hotel is expected to be completed in 2011 and has the following characteristics: a. 250-300 rooms b. Total area: 30,400 square metres on a ground of 4.2 hectares c. Contractor: Arina d. Builder: Skanska e. Projected cost euro 90-100 million f. Direct employment effect: 170-250 people Travel Agencies and Tour Operators There is a large number of very professional operators, which arrange safaris and many other types of activities. 1. Arctic Safaris (www.arcticsafaris.fi) 2. Eräsetti (www.erasetti.fi) 3. Lapland Leisure Tours Ltd/ DMC (www.laplandleisuretours.com) 4. Lapland Safaris (www.lapinsafarit.fi) 5. Lapland Vip Tour DMC (www.laplandviptour.fi) 6. Safartica (www.safartica.com) 7. Wild North (www.villipohjola.fi) 10 Activities Rovaniemi offers such an abundant choice of places to visit that it is not advisable to list everything here. More information can be found on the website www.visitrovaniemi.fi. However, here is a sample of activities so as to give a picture. 1. Christmas and the Arctic Circle. Santa Claus, Santa Claus Village, Ice Park Finland - Ice World and SantaPark. 2. Safaris. According to the time of the year, e.g. the following safaris are possible: snowmobile, husky, reindeer safaris, fishing, rafting, hiking, horseback riding and squad trips. 3. Sports. Not least thanks to the Ounasvaara Sports and Skiing Centre a wide selection of activities are available in Rovaniemi. Sports include: golf (under the midnight sun summertime or even on the ice wintertime), alpine and cross-country skiing, ski jumping (for professionals!), snowboarding (super half pipe), swimming indoor and outdoor, Nordic walking and snowshoeing, mountain biking on purpose-made trails. 4. Wellbeing and pampering. Ounasvaara Sports and Skiing Centre with its beautiful golf course and spa. 5. Restaurants and nightlife. Lappish food is known for its pure taste from the wild nature. There are also several big restaurants with special themes, see for instance Snowland (www.snowland.fi) with its igloo restaurant and Santamus (www.santamus.fi) which offers a nature experience while being inside. 6. Culture. a. Arktikum arctic museum and exhibition on northern nature and its Sámi indigenous people. b. The Korundi Art House hosts as of January 2010 The Chamber Orchestra of Lapland as well as Rovaniemi Art Museum c. Rovaniemi also has several buildings designed by Finland’s foremost architect Alvar Aalto. 7. Shopping. In addition to having a bustling town centre with a wide variety of services, there are also five shopping centres holding a total of over 150 shops. The Santa Claus Village is also a popular place for shopping. 8. Nearby destinations a. Ranua Wildlife Park (www.ranuazoo.com) b. Kemi Snow Castle and ice-breaker ”Sampo” (www.kemi.fi) c. Pyhä-Luosto fell resort (www.pyha.fi) 11 Supporting Services 1. Because of the sector’s importance to Rovaniemi, there is an ample supply of tourism-related service providers. Here follow some examples: a. Accommodation: Rovaniemi has hotels of different categories. The long-term growth trend means new investments will be needed. At the moment Rovaniemi lacks a hotel in the luxury category. b. Congress facilities: Rovaniemi is very popular as a congress destination and offers high-class facilities. c. Service providers: Reindeer/husky/snowmobile safaris, river boat trips and many other types of excursions are provided by a large number of service providers. d. Sport facilities: Ounasvaara Sports and Skiing Centre with its beautiful golf course is well-known in Finland and increasingly also internationally. Picture: Ounasvaara Skiing Center 12 Qualified Personnel 1. Rovaniemi has a good supply of managers and business experts and qualified staff with international experience. This is especially true in the strongest fields of Rovaniemi where the city has reached the position of a competitive cluster. 2. Rovaniemi is the melting pot for science, the arts and technology where companies and all educational establishments interact closely. 3. In all, Rovaniemi has around 11,000 students, and most of them remain in Northern Finland after graduation. 4. Faculties at the University of Lapland a. Business and Tourism Picture: University of Lapland b. Education c. Law d. Social Sciences e. Art and Design f. Fields of specialization: Business and tourism, arctic nature, cultural tourism 5. Fields of specialization at the Rovaniemi University of Applied Sciences a. Cold climate technologies b. Tourism and the experience economy c. Wellness services and technologies d. ICT production and security solutions 6. Lapland Vocational College churns out professionals in fields including car mechanics, the food industry, welfare services, aviation, business, natural resources, logistics, tourism, construction, computer technology, nutrition, home economics, technological industries and environmental sectors. There are 36 basic degrees, 50 vocational qualifications and 15 specialised vocational qualifications. 7. Education links a. University of Lapland: www.ulapland.fi b. Rovaniemi University of Applied Sciences: www.ramk.fi c. Lapland Vocational College: www.lao.fi 13 Northern Logistics Node 1. Rovaniemi is situated in the middle of Lapland, offering excellent logistic connections to the Barents region and Central Europe. The city has: a. An international airport that has a number of daily scheduled flights travelling via Helsinki around the world. A large airspace capacity and a location along international flight paths make Rovaniemi airport a popular hub for freight transportation. Rovaniemi Airport is one of the busiest in Finland. The airport has a three-kilometre runway, which along with Helsinki-Vantaa Airport, is Finland’s longest runway. b. An electrified railway leading to Helsinki c. Rovaniemi is situated at the junction of three regional highways and the European Highway 75 that runs through the city. 2. Rovaniemi offers ample space for setting up warehouses and terminal operations. 14 Distances Drive times Ranua Oulu Swedish Border, Tornio Swedish Border, Pello Russian Border, Salla 55 mins 2 hrs 20 mins 1 hr 25 mins 1 hr 10 mins 2 hrs Rail journey times Rovaniemi - Oulu Rovaniemi - Tampere Rovaniemi - Helsinki 2 hrs 30 mins 7 hrs 30 mins 9 hrs 40 mins Flight journey times Rovaniemi - Helsinki Rovaniemi - Murmansk Helsinki - Berlin Helsinki – Vienna Helsinki - Paris Helsinki - London Helsinki - Rome 1 hr 10 mins 1 hr 1 hr 50 mins 2 hrs 30 mins 3 hrs 3 hrs 10 mins 3 hrs 30 mins Logistics links a) www.finavia.fi/airport_rovaniemi b) www.vr.fi c) www.finnair.fi d) www.blue1.fi e) www.matkahuolto.fi 15 Sector Outlook Development Trends 1. The overnights increased in 2007 by 8.8% in comparison to the year before. In 2006 the growth was comparable (9.0 %). However, the economic crisis affected also the tourism sector, resulting in – 0.6 % in 2008. 2. In spite of the current slight setback, Rovaniemi is part of a growth trend which dates from the 1990s. 3. Rovaniemi and the rest of Lapland are set to increase in importance since it can guarantee snow wintertime in spite of rising global temperatures. 4. Rovaniemi is thus part of a very strong tourism boom. As Lapland is unique due to its geography and atmosphere, there can really be no substitute unless one travels all the way to Canada or Alaska. Therefore the growth is expected to continue for the foreseeable future. Targets and Development Plans 1. Rovaniemi Tourism Strategy was adopted in 2006. The strategy states the following as strategic tourism goals for the years 2007 - 2011 - 2016: a. Doubling of tourist volumes within a period of ten years, which relates to an annual growth target of 7 %. b. The stay of tourists will be extended to an average of six days and the occupancy rate will be raised to 60 %. c. New support units will be developed, in order to reduce the dependency on the Christmas season and to make tourism year-round. d. Improvement of feasibility to achieve a 15 % level of return on invested capital by 2011. 2. Rovaniemi is going to continue work hard so as to remain the place of choice for Christmas tourism but also to fully exploit its year-round potential which includes among other things the following: a. Rovaniemi is a congress city with excellent meeting facilities and interesting free-time possibilities for the participants. b. Rovaniemi is dreamland for children: meet Santa Claus around the year, experience reindeer or husky safaris, visit the arctic zoo. c. Rovaniemi is a synonym for “ activity” : summer and winter sports, hiking and nature experiences d. Rovaniemi means pampering: Spas, body treatments, clean air, pure beautiful nature and exotic highclass northern dishes 3. Due to the large land area of Rovaniemi, the city offers plenty of opportunities for tourism projects. For instance, the Arctic Circle area next to the Santa Claus Village is a very good area for new accommodation and other activities. 16 Business Opportunities 1. Tourism grows briskly in Rovaniemi and to fill the gaps, new investments are continuously needed. 2. Possible tourism-related investments in Rovaniemi include: a. Accommodation: hotels and cottage villages b. Attractions and activities such as theme parks in Rovaniemi. These can be built around: i. Children (adventure parks, fairy-tales… ) ii. Ice and snow iii. Nature iv. Sports v. Pampering and wellbeing c. Specific investment areas include: i. Ounasvaara Winter Sports Centre. Build a winter sport centre including shopping and accommodation as part of the very popular Arctic Wellbeing Park. The Arctic Wellbeing Park is located on a very attractive area next to the city centre. ii. Santa Claus Village on the Arctic Circle. This famous tourism area located on the Arctic Circle is home to Santa Claus, who receives visitors around the year. Santa Claus Village offers an opportunity to build new theme park activities as well as a hotel. The area is close to the airport but also just a 5-minute drive from the city centre. 3. Possible investments in Ranua include: a. Hotel next to the very popular arctic zoo in Ranua Municipality. This has already been analysed carefully so as to prepare the ground for an investment. b. Cottage villages. 4. The Rovaniemi Regional Development Agency Ltd is there to help you explore all possibilities and to help realise your investment in a successful way. You will also be helped in your marketing efforts by our tourism marketing department. Foreign direct investments are seen as a positive phenomenon and the city is happy to cooperate with the investor at all stages of the investment. Picture: Reindeer of the Santa Claus Statue (Rovaniemi airport). Artist: Upi Kärri 17 Doing Business in Rovaniemi Contacts Business Inquiries Rovaniemi Regional Development Agency Ltd We provide comprehensive advice e.g. assessing business ideas, finding partners and business premises as well as liaising with city authorities – all easily from one place. Mr. Heikki Kontiosalo, Liaison Manager Rovaniemi Regional Development Agency Ltd, Ainonkatu 1, 96200 Rovaniemi, Finland E-mail: heikki.kontiosalo@rovaniemi.fi Mobile phone: +358 (0)40 545 4377 Web site: www.investinarctic.com Rovaniemi Tourism & Marketing Ltd Ms. Katja Eteläinen, Marketing Communications Manager Rovaniemi Tourism & Marketing Ltd Lordin aukio, Lordi's Square Maakuntakatu 29-31, 96200 Rovaniemi, Finland E-mail katja.etelainen@rovaniemi.fi Mobile phone: +358 (0)40 532 5822 Web site: www.visitrovaniemi.fi Rovaniemi Tourism & Marketing Ltd is an affiliate company Rovaniemi Regional Development Agency Ltd in charge of tourism development and marketing 18 Finland as a Business Location 1. Five Facts Favouring Finland a. One of the most competitive economies in the world, WEF Global Competitiveness Report b. Very little corruption, Transparency International c. Top in the OECD’s PISA study of learning skills among 15-year-olds d. High-tech and number three globally in R&D spending per capita e. Pragmatic and pro-enterprise politicians 2. Finland has several mechanisms helping companies in different fields: a. Employee training (TE Centres www.te-keskus.fi) b. R&D support (eg. Tekes www.tekes.fi) c. Export facilitation (Finnvera www.finnvera.fi) How to Set up a Company in Finland 1. It is relatively fast and easy to set up a business in Finland. 2. Business can be conducted as a private entrepreneur, as a partnership or limited liability company formed of one or more individuals or legal entities, or a cooperative. A foreign entrepreneur may also establish a branch in Finland. In certain circumstances, those not resident/domiciled in the EEA need a permit from the National Board of Patents and Registration. 3. For more information a. General and very useful info in English: www.enterprisefinand.fi b. Invest in Finland: www.investinfinland.fi c. Information about Rovaniemi: www.investinarctic.com 19 Company Case Study: Ice Park Finland Pictures: Ice Café (left) and Ice Mountain (right) in the Ice Park A novelty on the Rovaniemi tourism scene in November 2008 was the only artificially built Iceberg in the world, a part of the Ice Park Finland - Ice World, located in the in the Santa Claus Village on the Arctic Circle. The area is totally built of ice: a big stage made of ice, ice restaurant, an ice hut, an ice labyrinth, ice mini golf, ice sculptures, an ice slide and skating rink, alp curling as well as a wishing well made of ice. A great variety of events are arranged, such as the Night of Arts and Fireshow, concerts, competitions, wedding ceremonies, birthday parties etc. An unforgettable experience is the Ice Sauna! There is also a sleigh and the possibility to feed the reindeers with lichen. Your host will be no other than the Iceberg Man himself. Ice Park Finland -Ice World is a fascinating attraction and a holiday resort for families as well as companies and corporations. It is a functional free time resort where you can experience arctic atmosphere. The theme park has a very interesting background. It was designed by a blind innovator Mr Teijo Romppainen and financed by investor Mr Toivo Sukari after having won a contest on TV, the so-called “Lion’s nest” competition where best business ideas get finance. The first season has been a success and it is being considered whether to make it a year-round destination. More information: www.iceparkfinland.fi Picture: CEO Teuvo Romppainen and his neighbour on the Arctic Circle 20 Further Information Many of the documents mentioned below can be downloaded at: www.investinarctic.com Tourism in Rovaniemi Suggested Reading 1. Rovaniemi Tourism Statistics January-December 2008 2. The Development of Tourism in Rovaniemi and Impact on the Regional Economy, 2008 3. Rovaniemi Tourism Brochure. Available in: English, Finnish, French, Italian, Japanese, Russian, Spanish, Swedish (to be found on www.visitrovaniemi.fi) Tourism in Lapland Wild rolling fells, covered with dazzling plains of snow in winter that feed the tumbling rivers in spring, a trekker’s dream in the night-less summer and the spectacularly colourful autumn, a winter sky that comes alive with the magical, flickering Northern Lights: Lapland, in the far north of the country, is for many Finland’s most exciting region. Lapland is perceived as an exotic and unique place with a lot of growth potential. Due to several ongoing projects, it is estimated that the tourism investments in 2007-2010 will total € 1 billion. As Lapland is extremely sparsely populated with 2.1 persons per square kilometre, there is potential for almost limitless investments for decades to come. Lapland is 98,984 km², this large area represents 30% of Finland’s total land area, of this area 92,665 km² is land and 6318 km² is water. In Lapland there are 184,390 inhabitants (2007) with an average population density of about 2 people per km² (national average 16.8). The indigenous people of Lapland are Sámi with a population of about 7000. Since Lapland is borders to three countries (Sweden, Norway and Russia), international trade plays an important role. There is wood processing-, steel-, energy and construction companies which export worldwide. On the other hand there are companies whose preconditions are clean nature, like large holiday resorts and producers of agricultural products. Keeping nature in its natural state has guaranteed sustainable sources of traditional livelihood. Development from a period of extractive industry to an industrial society has come about quickly. In 1950 the largest part of Lapland’s inhabitants lived in rural areas and more than half the workforce worked in forestry and agriculture. Today 65 % of the workforce are in the service industry, 22 % in processing and 10 % in primary production. Lapland is well-integrated into Finland's efficient road, rail and air networks, through which it has excellent domestic and international connections. Rail services - including overnight sleepers and car trains - run between Rovaniemi and Helsinki. International air traffic is operated directly, as well as via Helsinki and other Finnish towns, to Rovaniemi, Kittilä (near Levi), Enontekiö, Kemi and Ivalo. Airports are modern and equipped to facilitate extensive international traffic whatever the weather conditions. 21 Suggested Reading 1. Lapland in Figures 2008 2. Lapland Tourism Strategy 2007-2010 - abstract Tourism in Finland Suggested Reading 1. Travel and Tourism in Finland - IIF December 2006 2. Visit Finland publications (see www.visitfinland.com) Web Sites Rovaniemi and Lapland 1. Investor services in Rovaniemi: www.investinarctic.com 2. City of Rovaniemi: www.rovaniemi.fi 3. Rovaniemi tourism: www.visitrovaniemi.fi 4. Ranua municipality: www.ranua.fi 5. Ranua Arctic Zoo: www.ranuawildlife.fi 6. Lapland tourism information: www.laplandfinland.com Finland 1. Invest in Finland: www.investinfinland.fi 2. Enterprise Finland (on setting up a business in Finland): www.enterprisefinland.fi 3. Confederation of Finnish Industries EK: www.ek.fi 4. Finnfacts: www.finnfacts.fi 5. Virtual Finland: http://virtual.finland.fi/ 6. Statistics Finland: www.stat.fi 7. Bank of Finland: www.bof.fi/en 8. Visit Finland: www.visitfinland.fi 22 Statistical Annex Statistics Links For general or further sector-specific statistics in English see also 1. Confederation of Finnish Industries EK: http://www.ek.fi/www/en/statistics/index.php 2. Statistics Finland: www.stat.fi 3. Finnfacts: www.finnfacts.fi 4. Bank of Finland: www.bof.fi/en Tourism Statistics for Rovaniemi and Lapland Rovaniemi Tourism Summary for 2008 Total number of overnights in Rovaniemi 600 000 500 000 400 000 300 000 200 000 100 000 0 2001 2002 2003 2004 2005 2006 2007 2008 23 4 percent increase in domestic overnights in 2008 Rovaniemi saw a slight fall (-0.6 percent) in the number of registered overnight stays (477,300) in accommodation establishments in 2008. The number of foreign overnights (219,700) decreased by 4.3 percent; however, a rise of 4.1 percent was recorded for domestic overnight stays. In terms of guests from abroad, the largest number of visitors came from Russia (32,400), with an increase of 9.2 percent, followed by Germany (28,300; +11.4 percent), France (24,000; 18.5%) and Great Britain (23,200; -26.2%).Overall, the country saw an increase of 2.2 percent in overnight stays in 2008, with domestic overnights rising by 1.9 percent and foreign overnights by 3.1 percent. In 2007, overnights in Rovaniemi (480,400) were up by 8.8 percent on the preceding year, the increase being spread between domestic overnights, at +11.8 percent, and international, at +6.5 percent. The largest numbers of foreign visitors were accounted for by the British (31,400; +16.3 percent), the Russians (29,600; +22.7 percent), the French (29,100; -11.2 percent), the Germans (25,300; +6.2 percent) and the Spanish (21,000; +25.0 percent). Growth also reflected in summer season domestic travel During the 2008 summer season (May– October), the number of overnight stays in Rovaniemi increased by 2.6 percent to 199,700. Domestic overnights rose by 4.1 percent, while the number of foreign visitors remained more or less stable (+0.5 percent). In terms of the figures for visitor frequency by nationality, a sharp increase of 29 percent was recorded for Germans, followed by the Norwegians and the Dutch respectively. In the 2007– 2008 winter season (November– April), overnight stays in Rovaniemi increased by 4.9 percent compared to the preceding winter. Quantitatively, most of the growth is accounted for by visitors from abroad, with an increase of 4.4 percent; domestic overnights for the same period rose by 6.0 percent. Measured in the number of overnight stays, the British, Russians, and French headed the list. Growth in business travel The number of business overnights increased by 16,800 in 2008. Leisure overnights, on the other hand, decreased by 17,600. The growth in business travel is almost wholly attributable to foreign guests, as is the entire drop in leisure travel; however, domestic travel for leisure reflected an increase of 4,600 overnight stays. In terms of visit purpose, the distribution of overnights in 2008 was: leisure 63.3 percent; business 35.2 percent; other purposes 1.4 percent. Rovaniemi in sixth place for number of overnights In terms of the overall number of overnight stays, Rovaniemi ranked as the sixth highest of Finland’s cities, preceded only by Helsinki, Tampere, Turku, Vantaa and Oulu. When the figures are broken down into foreign and domestic visitors, Rovaniemi ranked second, bettered only by Helsinki and outstripping Vantaa, Turku and Tampere. However, the city’s position is significantly weaker when it comes to the number of overnights spent by Finnish visitors. In 10th place, Rovaniemi came in after Vaasa, but before Pori. Mean price rising, room occupancy falling The room occupancy rate for all Rovaniemi’s accommodation establishments* was 50.7 percent in 2008, which is slightly lower than the previous year’s 51.3 percent. At 78.4 percent, the rate was high in December, though it was still lower than in the previous year, when it hit an all-time record high of 83.7 percent. Nationally, the room occupancy rate for all accommodation establishments in 2008 was 50.4 percent, with a 40.9 percent rate for December. The mean price per night in Rovaniemi was EUR 40.48 in 2008, reflecting an increase of almost EUR 1.5 on the previous year (EUR 39.00). The mean price for December (EUR 41.08) maintained the December 2007 level of EUR 41.13. Countrywide, the mean price per night for 2008 was EUR 49.27 and EUR 49.17 for December. 24 Value of accommodation turnover on the increase The value of accommodation turnover amounted to EUR 19.66 million in 2008, which is EUR 400,000 greater than the previous year’s EUR 19.26 million. The corresponding value in 2007 reflected a rise of over EUR 2.5 million on 2006, when it reached EUR 16.75 million. Rovaniemi’s registered accommodation capacity was 3,138 in December, which is 160 beds more than in the previous year. The average capacity in 2008 was 3,102 beds, giving approximately a total of 50 beds more than in 2007. Overnights by purpose of visit January-December 2008 1% 33 % Business Leisure Other purpose 66 % Year Price per night € Occupancy rate 2001 2002 2003 2004 2005 2006 2007 2008 39,07 40,13 39,58 39,01 40,06 38,07 40,2 40,48 41,30 % 40,10 % 41,60 % 46,00 % 44,40 % 45,30 % 51,30 % 50,70 % Source City of Rovaniemi Director of Tourism Tuula Rintala-Gardin Tel. +358 (0)16-322 6033, +358 (0)40 756 9035 Email: tuula.rintala-gardin@rovaniemi.fi 25 Overnights by Month Jan. 2005 2006 2007 2008 Feb. Marc Apr. May June July Aug. Sep. Oct. Nov. Dec. 49 210 38 339 40 459 20 916 12 738 32 266 48 328 34 513 21 732 16 393 19 785 70 240 53 646 37 781 40 729 20 649 16 055 37 283 57 712 36 350 23 733 18 005 22 667 77 025 55 659 43 866 48 896 23 960 15 660 42 330 53 984 39 186 23 738 20 610 29 066 83 487 53 795 48 989 47 408 21 979 18 119 44 226 51 018 37 308 22 613 26 380 28 500 77 005 Source: Statistics Finland Provided by: City of Rovaniemi Director of Tourism Tuula Rintala-Gardin Tel. +358 (0)16-322 6033, +358 (0)40 756 9035 Email: tuula.rintala-gardin@rovaniemi.fi 26 Visitors in 2008 by Nationality OVERNIGHTS IN ROVANIEMI BY COUNTRY OF RESIDENCE (YEAR 2008) Total Total Finns Foreigners Germany Russia France Great Britain Spain Italy Netherlands Norway Japan Sweden Switzerland Australia Greece Poland Estonia Belgium USA Denmark China Ireland Austria Hungary Portugal Canada Lithuania Czech New Zeeland Latvia Ukraina Taiwan Turkey Iceland Other Jan. Feb. Marc Apr. May June July Aug. Sep. Oct. Nov. Dec. 477 340 53 795 48 989 47 408 21 979 18 119 44 226 51 018 37 308 22 613 26 380 28 500 77 005 219 653 13 457 15 235 17 563 15 204 12 796 20 938 25 731 20 258 17 402 20 256 19 219 21 594 257 687 40 338 33 754 29 845 6 775 5 323 23 288 25 287 17 050 5 211 6 124 9 281 55 411 28 250 2 585 6 450 2 772 726 651 5 868 4 421 2 069 660 256 550 1 242 32 436 17 705 915 613 525 595 613 511 763 467 1 159 1 576 6 994 24 020 5 655 6 498 5 521 236 89 709 966 458 73 175 687 2 953 23 190 559 1 521 538 287 116 1 025 616 559 226 165 434 17 144 18 727 1 328 3 431 5 098 1 013 147 674 989 1 409 246 94 369 3 929 16 255 2 785 936 796 156 56 756 978 2 657 214 149 588 6 184 14 828 1 637 2 596 1 850 359 403 2 878 2 986 1 360 94 83 75 507 12 915 268 345 350 530 697 1 299 3 823 1 865 512 1 398 1 498 330 8 530 865 1 579 1 078 121 78 332 342 393 327 591 714 2 110 7 203 189 353 980 394 532 1 103 1 444 474 317 552 517 348 5 354 632 373 224 82 57 988 1 571 757 99 59 89 423 4 659 413 80 173 94 388 787 794 423 134 134 126 1 113 4 016 324 33 89 62 13 202 178 209 22 76 33 2 775 3 850 277 347 575 229 58 610 898 390 84 12 145 225 3 662 381 58 169 36 19 103 175 343 299 368 336 1 375 3 276 118 1 132 450 93 15 160 491 183 55 40 83 456 2 482 141 228 393 81 88 347 388 386 182 47 60 141 2 281 57 122 201 68 17 795 735 111 15 23 23 114 2 074 120 330 127 96 63 206 243 91 61 74 238 425 1 916 21 97 51 5 2 25 19 29 15 24 49 1 579 1 889 189 153 349 87 8 138 369 142 80 36 160 178 1 496 323 258 97 34 19 165 177 80 54 30 161 98 1 423 150 236 305 37 10 75 13 109 24 50 39 375 929 29 56 98 57 85 122 108 92 111 74 26 71 871 184 57 23 9 2 28 91 24 12 11 59 371 766 79 22 148 59 32 54 122 143 9 23 21 54 549 2 0 2 8 139 182 129 20 10 7 15 35 504 32 24 35 9 15 35 34 32 12 18 23 235 416 160 0 184 4 0 1 18 18 0 0 0 31 329 9 42 26 9 4 27 91 28 16 14 16 47 318 84 52 39 1 2 19 18 2 13 4 12 72 104 26 5 9 8 6 6 10 20 6 4 4 0 28 169 3 011 5 425 6 482 1 260 917 2 956 1 539 1 411 762 374 555 3 477 Source: Statistics Finland Provided by: City of Rovaniemi Director of Tourism Tuula Rintala-Gardin Tel. +358 (0)16-322 6033, +358 (0)40 756 9035 Email: tuula.rintala-gardin@rovaniemi.fi 27 Hospitality and Retail Turnover in Rovaniemi Region Please note that the figures in the next few sections relate to Rovaniemi REGION (thus including also Ranua cmmunality) and are thus somewhat bigger than just for Rovaniemi. HOSPITALITY AND RESTAURANT SECTOR in 2007 Places of business Turnover Employees 168 73 million euro 701 person years Liikevaihto majoitus- ja ravitsemistoiminta (tol H) Rovaniemen seutu 220 200 Indeksi 2000=100 180 160 140 120 100 80 60 01/1995 01/1996 01/1997 01/1998 01/1999 01/2000 01/2001 01/2002 01/2003 01/2004 01/2005 01/2006 01/2007 01/2008 Alkuperäinen Kausitasoitettu Trendi Lähde: Tilastok esk us, Asiak ask ohtainen suhdannepalvelu Turnover development in the retail sector (sector H) 1995-2008 (year 2000 = 100) Black line = actual; blue line = seasonally adjusted; red line = trend Source: Lapland Periodic Review 1/2009 (Lapin suhdanteet 1/2009) 28 Hotel Turnover in Rovaniemi Region HOTEL SECTOR in 2007 Places of business Turnover Employees 16 33 million euro 225 person years Liikevaihto hotellit (tol 551) Rovaniemen seutu 310 Indeksi 2000=100 260 210 160 110 60 01/1995 01/1996 01/1997 01/1998 01/1999 01/2000 01/2001 01/2002 01/2003 01/2004 01/2005 01/2006 01/2007 01/2008 Alkuperäinen Kausitasoitettu Trendi Lähde: Tilastok esk us, Asiak ask ohtainen suhdannepalvelu Development in the hotel sector (sector 551) 1995-2008 (year 2000 = 100) Black line = actual; blue line = seasonally adjusted; red line = trend Source: Lapland Periodic Review 1/2009 (Lapin suhdanteet 1/2009) 29 Programme Services and Recreation Turnover in Rovaniemi Region PROGRAMME SERVICES & RECREATION SECTOR in 2007 Places of business Turnover Employees 59 25 million euro 227 person years Liikevaihto ohjelmapalvelutoiminta ja virkistys (tol 63302+9272) Rovaniemen seutu 900 800 Indeksi 2000=100 700 600 500 400 300 200 100 0 01/1995 01/1996 01/1997 01/1998 01/1999 01/2000 01/2001 01/2002 01/2003 01/2004 01/2005 01/2006 01/2007 01/2008 Alkuperäinen Kausitasoitettu Trendi Lähde: Tilastok eskus, Asiak askohtainen suhdannepalvelu Development in the programme services and recreation sector (sectors 63302 and 9272) 1995-2008 (year 2000 = 100) Black line = actual; blue line = seasonally adjusted; red line = trend Source: Lapland Periodic Review 1/2009 (Lapin suhdanteet 1/2009) 30 Lapland Tourism Graphs Source: TE-Centre Overnights in Lapland 1994 - 2007 2 500 000 2 246 781 Overnights 2 000 000 1 356 494 1 500 000 890 287 1 000 000 500 000 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: Statistics Finland Dome stic Fore ign Total Change in overnights in Lapland1995 - 2007 14,7 14,2 15,0 11,9 12,2 10,6 Overnights, change % 10,0 7,5 4,8 4,2 5,0 0,0 -0,1 -0,3 3,2 3,2 1,5 7,3 6,4 5,2 4,7 -0,4 -2,3 -5,0 7,3 6,0 -2,0 -4,8 -5,6 -7,2 -10,0 -13,4 -15,0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: Statistics Domestic Foreign Number of charter flight visitors and change in per cent from the previous year 300 000 10 % 250 000 21 17 Travellers 200 000 -9 24 27 150 000 25 26 100 000 35 50 000 5 - 34 18 90 91 92 93 72 33 5 94 95 96 16 10 97 98 31 0 Source: Finavia 99 00 01 02 03 04 05 06 07 Lapland's market share of overnights in Finland 1997 - 2007 20,0 16,7 18,0 Market share (%) 16,0 14,0 12,0 9,9 10,0 8,0 6,0 4,0 2,0 0,0 1997 1998 1999 Source: Statistics Finland 2000 2001 2002 2003 Domestic market sha re (%) 2004 2005 2006 2007 Foreign market share (%) Registered overnights in tourism centres in 2007 (domestic and foreign visitors) Sotkamo (Vuokatti) Rovaniemi + mlk Kuusamo (Ruka) Kittilä (Levi) Kolari (Ylläs) Saariselkä Himos Pyhä-Luosto Tahko Enontekiö Muonio Ukkohalla-Paljakka Meri-Lappi Salla Tornionlaakso Pudasjärvi (Isosyöte) 0 100 000 200 000 300 000 400 000 500 000 600 000 Source: Statistics Finland Foreign overnights in Lapland 2000 - 2007 250 000 206 835 Overnights 200 000 150 000 102 218 104 605 100 000 77 485 54 711 50 222 39 113 50 000 31 008 Source: Statistic Finland 2000 2001 ly I ta w it z er Ru s la n d si a ay or N rl a w nd s ce et he S N G er Fr m an an U y K 0 2002 2003 2004 2005 2006 2007 32 Tourism Statistics for Finland Profitability All Median Number of companies Turnover 1000 € Turnover / company 1000 € Operating Net margin Solvency profit % % ratio % Gearing % Hotels (551) 525 1 205 485 437 7,5 0,5 21,5 48,0 Hiking huts (5521) 20 1 422 33 -1,0 -15,1 41,5 49,6 TYPE OF ACTIVITY Camping areas (5522) 135 Bed and breakfast + full pension facilities (55231) 188 17 430 60 11,6 -2,5 41,7 51,7 38 733 56 7,4 -3,7 40,7 65,1 Tourist villages (55232) 176 32 334 54 16,4 -0,3 46,2 89,5 Other type of accommodation (55239) 660 46 129 28 9,2 -9,9 34,1 123,7 Profitability in Hotel and other Accommodation in Finland (2007) Source Lapland TE Centre 2 DEC 2008, Anneli Harju-Autti Investments 1 000 € 250 000 226 815 204 466 203 311 200 000 172 329 178 731 170 626 151 278 150 000 137 472 100 000 50 000 0 2000 2001 2002 2003 2004 2005 2006 2007* Tangible investments in the tourism sector 2000-2007 Source Lapland TE Centre 2 DEC 2008, Anneli Harju-Autti 33 1 000 € 80 000 71 342 60 000 40 000 50 405 37 752 36 922 2000 2001 67 518 64 083 48 406 37 927 20 000 0 2002 2003 2004 2005 2006 2007* Intangible investments in the tourism sector 2000-2007 Source Lapland TE Centre 2 DEC 2008, Anneli Harju-Autti Overnights in Finland in 2008 Visitors Change from the previous year Finns 13 967 933 1.9 % Foreign visitors 5 493 295 3.1 % Total 19 461 228 2.2 % Source: www.visitfinland.com Tourism Consumption in Finland Tourism consumption EUR 10.2 billion in Finland in 2006 Published: 3 April 2008 According to Statistics Finland, a total of EUR 10.2 billion was consumed on tourism in Finland in 2006. Foreign travellers' proportion of total tourism consumption was 27 per cent. The biggest tourist demand item consists of passenger transport services, which amounted to nearly EUR 3.1 billion. Use of restaurant services accounted for EUR 1.6 billion and that of accommodation services for EUR 1.5 billion. Fuels and purchases from shops were also among travellers' most significant consumption expenditure items. 34 The proportion of Finnish leisure travellers of total tourism consumption in Finland was 52 per cent, that of travel expenses paid by the employer 18 per cent and the use of own free-time residences 3 per cent. Foreign travellers' 27 per cent proportion of total tourism consumption equalled EUR 2.8 billion. Total tourism consumption in Finland by product in 2006, total EUR 10,233 million The tourism account 1995-2006 is based on national accounts. Source: Tourism account 1995-2006, April 2008. Statistics Finland Inquiries: Mr Olli Pirinen +358 9 1734 3365, skt.95@stat.fi Overnights by Foreign Visitors Published: 12 March 2009 Nights spent by foreign tourists in Finland decreased by 4 per cent in January The number of recorded nights spent by foreign tourists at Finnish accommodation establishments in January 2009 was 540,000, which is 4 per cent less than in January 2008. The total number of recorded overnight stays decreased by one per cent year-on-year and was just short of 1.3 million. By contrast, overnight stays by domestic travellers increased by one per cent from January 2008. These figures are preliminary data from Statistics Finland's statistics on accommodation establishments and they have been collected from accommodation establishments with at least 10 rooms, cottages, or caravan pitches with electricity connection, and youth hostels. In January, as also in the past few years, Russians were by far the largest group of foreign tourists with their 254,000 overnight stays. Their nights spent increased by 5 per cent, which largely explains why the total number of nights spent by foreign tourists only fell by 4 per cent. Russians accounted for as much as 47 per cent of the total number of nights spent by foreign tourists in Finland. Britons were next with nearly 55,000 overnight stays. The number of nights they spent at Finnish accommodation establishments decreased by 12 per cent year-on-year. German visitors were the third largest 35 group with 32,000 recorded overnight stays, which was 6.5 per cent down on the year before. Nights spent by visitors from almost all the most important countries of inbound tourism to Finland decreased in January. Year-on-year change in nights spent in January 2009/2008, % Twelve main countries of residence of non-residents having spent nights, share in 2008 in brackets The standard industrial classification TOL 2008 was introduced in these Tourism Statistics starting from data concerning January 2009. The introduction has caused minor changes to data on the number of establishments in hotel statistics. Further information about the TOL 2008 classification is available in the TOL 2008 section on Statistics Finland's website. Source: Tourism Statistics. Statistics Finland Inquiries: Ms Marjut Tuominen +358 9 1734 3556 and Ms Ritva Marin +358 9 1734 2552,liikenne.matkailu@stat.fi Turnover in Finnish Hotels 2007 Change in % Hotels and other accommodation sales in million euros 870 8,9 % Units - Hotels 775 0,6 % Units – Other accommodation 460 -1,1 % Source: MaRa (Association of Finnish Hotels and Restaurants) 36 Hotel Capacity in Finland 2000 2001 2002 2003 2004 2005 2006 2007 Rooms (yearly average) 44 778 45 707 45 550 46 148 46 382 47 039 47 472 48 185 Beds (yearly average) 94 155 96 442 96 027 97 490 99 157 101 006 101 501 103 486 Occupancy rate (%) 48,8 48,9 47,7 47,1 47,6 48,9 51,4 53,1 (incl. tax) 71,14 74,66 76,62 78,00 77,38 79,51 81,77 84,87 Change in room price (%) 3,75 4,71 2,56 1,77 -0,80 2,68 2,76 3,79 Price per room in euro Source: MaRa (Association of Finnish Hotels and Restaurants) Largest Hotel Chains in Finland Hotel Group Units Rooms S Group 51 9 069 Restel 43 6 836 Scandic Hotels 23 4 515 Lomaliitto 28 1 752 Finlandia Hotels 30 1 615 Best Western 13 835 Hotel chains in 2007 Source: MaRa (Association of Finnish Hotels and Restaurants) 37 Wage Costs for Hotels and Restaurants 2000 2001 2002 2003 2004 2005 2006 Operational staff 1 459 1 521 1 554 1 597 1 640 1 684 1 732 Change in % 2,9 4,3 2,2 2,8 2,7 2,7 2,9 Management 1 906 1 993 2 034 2 085 2 153 2 210 2 291 Change in % 2,8 4,5 2,1 2,5 3,3 2,6 3,7 Compensation for Regular Employment in Hotels and Restaurants (euro) Source: MaRa (Association of Finnish Hotels and Restaurants) Cost Structure for Restaurants and Hotels Hotels Restaurants Turnover (set as 100) 100 100 Materials 16,0 31,0 Personnel cost 30,0 32,1 Other cost 44,4 28,2 Profit before depreciation 9,6 8,7 Depreciation 5,0 4,1 Operating profit after depreciation 4,6 4,6 Cost structure in 2006 Source: MaRa (Association of Finnish Hotels and Restaurants) 38 General Statistics for Rovaniemi Region Rovaniemi Region in Figures Population (2008) 63 782 Change in population 2000-2007 1477 (2.4 %) Unemployment (2008) 12.4 % Employment rate (2006) 59.8 % GDP per person (2006) 25,543 Change in GDP (1-11/2008) +10,5 % Number of companies (2007) 3,166 Personnel employed by companies (2007) 11,839 Rovaniemi region = city of Rovaniemi and Ranua municipality Source: Lapland Periodic Review 1/2009 (Lapin suhdanteet 1/2009) Employment in Rovaniemi by sector Employment by sector in Rovaniemi region (2008) 7% 1% 4% 8% Public services 42 % Private services Manufacturing Primary sector Construction Other 38 % Source: Lapland Periodic Review 1/2009 (Lapin suhdanteet 1/2009) 39 Companies - All Sectors in Rovaniemi Region Companies - ALL SECTORS in 2007 Places of business Turnover Employees 2 981 1 981 million euro 12 128 person years Liikevaihto kaikki toimialat (tol A-X) Rovaniemen kaupunki 200 Indeksi 2000=100 180 160 140 120 100 80 60 01/1995 01/1996 01/1997 01/1998 01/1999 01/2000 01/2001 01/2002 01/2003 01/2004 01/2005 01/2006 01/2007 01/2008 Alkuperäinen Kausitasoitettu Trendi Lähde: Tilastok esk us, Asiak ask ohtainen suhdannepalvelu Turnover - all sectors (sectors A to X) 1995-2008 (year 2000 = 100) Henkilöstömäärä kaikki toimialat (tol A-X) Rovaniemen kaupunki 130 Indeksi 2000=100 120 110 100 90 80 70 60 01/1997 01/1998 01/1999 01/2000 01/2001 01/2002 01/2003 01/2004 01/2005 01/2006 01/2007 01/2008 Alkuperäinen Kausitasoitettu Trendi Lähde: Tilastok esk us, Asiak ask ohtainen suhdannepalvelu Employees - all sectors (sectors A to X) 1995-2008 (year 2000 = 100) Source: Lapland Periodic Review 1/2009 (Lapin suhdanteet 1/2009) 40 Turnover – All Sectors Separately and Combined in Rovaniemi Region Change year-on-year Change in turnover ALL SECTORS (sectors A-X) Rovaniemi region Year Change year-on-year Change in turnover BUILDING (sector F) Rovaniemi region Change year-on-year Change in turnover RETAIL (sector G) Rovaniemi region 1996 8,5 % 6,7 % 8,0 % 1997 8,8 % 16,0 % 10,1 % 1998 8,9 % 4,0 % 2,9 % 1999 2,9 % 9,3 % 0,8 % 2000 6,5 % 18,1 % 3,3 % 2001 6,0 % -0,3 % 3,9 % 2002 4,3 % 1,6 % 8,4 % 2003 3,6 % -0,6 % 5,7 % 2004 5,7 % 13,2 % 4,3 % 2005 4,2 % 2,5 % -0,7 % 2006 6,4 % 14,9 % 1,2 % 2007 7,1 % 19,5 % 4,4 % 1-11/2008 10,5 % 11,3 % 11,3 % Change year-on-year Change in turnover GROWTH COMPANIES Rovaniemi region Year Change year-on-year Change in turnover COLD & WINTER TECHNOLOGY Rovaniemi region Change year-on-year Change in turnover HOSPITALITY & RESTAURATION (Sector H) Rovaniemi region 1996 23,5 % 55,0 % -0,4 % 1997 13,0 % 16,6 % 7,5 % 1998 5,3 % -0,9 % 8,3 % 1999 2,1 % -9,1 % 3,5 % 2000 18,7 % 19,2 % 0,1 % 2001 13,9 % 15,9 % 0,0 % 2002 27,1 % 47,9 % 6,6 % 2003 6,3 % -2,6 % 6,6 % 2004 1,3 % -6,0 % 3,1 % 2005 19,6 % 22,9 % 3,8 % 2006 0,6 % -0,7 % 6,5 % 2007 7,7 % 5,8 % 9,1 % 1-11/2008 7,5 % -3,8 % 6,3 % 41 Change year-on-year Change in turnover HOTELS (sector 551) Rovaniemi region Year Change year-on-year Change in turnover PPROGRAMME SERVICES & RECREATION (sectors 63302+9272) Rovaniemi region Change year-on-year Change in turnover INDUSTRY (sector D) Rovaniemi region 1996 -4,9 % 9,3 % 0,5 % 1997 -0,3 % 18,0 % 7,8 % 1998 3,0 % 21,5 % 0,6 % 1999 4,5 % 48,4 % 4,2 % 2000 -2,8 % -0,7 % 10,2 % 2001 -0,1 % 9,4 % 6,1 % 2002 8,8 % 27,1 % 7,0 % 2003 11,5 % -1,6 % 3,3 % 2004 5,9 % 14,1 % 1,4 % 2005 2,3 % 3,1 % 14,3 % 2006 9,0 % 10,3 % 3,9 % 2007 9,7 % 12,0 % 7,7 % 1-11/2008 9,7 % 20,4 % 2,9 % Change year-on-year Change in turnover CREATIVE INDUSTRIES Rovaniemi region Year Change year-on-year Change in turnover ALL SECTORS (sectors A to X) City of Rovaniemi Change year-on-year Change in turnover ALL SECTORS (sectors A to X) Ranua municpality 1996 43,4 % 8,4 % 1997 12,9 % 9,0 % -4,8 % 3,3 % 1998 2,0 % 8,7 % -2,2 % 1999 58,6 % 3,6 % 3,6 % 2000 30,8 % 8,3 % 1,5 % 2001 18,1 % 8,0 % 3,7 % 2002 12,2 % 4,4 % -0,3 % 2003 -0,1 % 3,2 % 1,3 % 2004 12,0 % 4,2 % -2,3 % 2005 9,3 % 5,0 % 5,3 % 2006 13,8 % 6,5 % 4,5 % 2007 13,5 % 6,4 % 5,2 % 1-11/2008 -8,8 % 10,5 % 15,8 % Source: Lapland Periodic Review 1/2009 (Lapin suhdanteet 1/2009) 42 National Statistics Labour Costs Number Professional Category Total Total 619 500 1. Managers 39 600 2. Special experts 122 246 3. Experts 211 130 4. Office and customer service persons 79 381 5. Service, sales and care of people 85 124 6. Agriculture, loggers etc. 603 7. Construction, repair and manufacturing 18 248 8. Process and transportation 15 223 9. Other professions 34 023 Unknown 13 921 Monthly Salary in Euros Women Men 1st decile Median 9th decile 1st decile Median 9th decile 1 688 2 281 3 655 1 902 2 994 5 078 2 173 3 750 6 546 2 967 5 114 8 077 2 215 3 223 4 720 2 622 3 746 5 394 1 862 2 437 3 525 2 184 3 000 4 398 1 800 2 257 2 862 1 869 2 542 3 836 1 563 1 827 2 337 1 622 2 070 3 016 1 200 1 543 2 088 1 363 1 868 2 331 1 677 2 050 2 743 1 801 2 364 3 170 1 530 1 997 2 580 1 807 2 483 3 282 1 426 1 737 2 110 1 566 1 947 2 593 1 621 2 083 2 900 1 699 2 348 3 325 Private Sector Monthly Salaries in Finland in 2007 Source: Statistics Finland (own translation) NOTE: the Finnish average is lifted up by the considerably higher costs in the Helsinki region. Energy Prices by Type of Consumer Price of electricity by type of consumer1, c/kWh (Prices include electrical energy, the distribution of electricity, and taxes.) Household Agriculture Apartment house Detached house 1.7.2006 12,00 10,17 1.7.2008 13,67 11,78 Electric heating Industry Direct Accumulating Small-scale (0,15 GWh/a) 9,59 8,13 7,41 8,23 7,30 7,21 11,15 9,58 8,86 na na na Medium-scale Medium-scale (2 GWh/a) (10 GWh/a) 43 Source: Statistics Finland 1) The prices are tax-inclusive averages weighted by the sales volumes of liable electricity retailers. On 1 January 1997, taxes on the energy sources of electricity generation were abandoned, while taxes and a precautionary stock fee on electricity consumption were taken into use. Types of consumer: 1. Apartment house, consumption 2 000 kWh/a, fuse 1 x 25 A 2. Detached house 5 000 kWh/a, 3 x 25 A 3. Agriculture 10 000 kWh/a, 3 x 35 A 4. Detached house, direct electric heating, 18 000 kWh/a (whereof 8 000 kWh by night), 3 x 25 A 5. Detached house, partly accumulating electric heating, 20 000 kWh/a (whereof 14 400 kWh by night(, 3 x 25 A 6. Small-scale industry, 1-shift enterprise, 150 MWh/a (whereof 35 MWh by night), charged capacity 75 kW, effective time of capacity use 2 000 h/a 7. Medium-scale industry, 2-shift, 2 000 MWh/a (whereof 625 MWh by night),500 kW, 4 000 h 8. Medium-scale industry, 2-shift, 10 000 MWh/a (whereof 3 130 MWh by night), 2 500 kW, 4 000 h Rent of Dwellings in Finland Published: 20 February 2009 Rents increased by 3.4 per cent in 2008 Rents of residential dwellings increased by an average of 3.4 per cent in 2008 from the year before. Rents of non-subsidised rental dwellings increased as well in the whole country, by an average of 3.4 per cent. In Greater Helsinki the rents of non-subsidised rental dwellings increased by 4.2 per cent and in the rest of Finland by 3.0 per cent. The rents of government-subsidised rental dwellings increased by 3.4 per cent in the whole country. The average rent per square metre of non-subsidised rental dwellings was EUR 9.73 per square metre in the whole country. The average rent per square metre for non-subsidised rental dwellings was EUR 12.69 per square metre in Greater Helsinki and EUR 8.71 per square metre in the rest of Finland. The average rent per square metre of government-subsidised rental dwellings was EUR 8.38 per square metre in the whole country. In Greater Helsinki it stood at EUR 9.38 and in the rest of Finland at EUR 7.96 per square metre In Helsinki the rents of non-subsidised rental dwellings increased by 4.4 per cent, in Espoo by 3.5 and in Vantaa by 3.7 per cent. In Tampere rents increased by 4.2 and in Turku by 4.3 per cent. Rents in Jyväskylä rose by 0.7 per cent, in Kuopio by 3.6 and in Lahti by 3.3 per cent. These data derive from Statistics Finland’s annual statistics on the rents of dwellings. The statistics are based on interview data collected in connection with the Labour Force Survey and data obtained from the Social Security Institution’s housing register. Statistics on rents of dwellings include some 216,000 rental dwellings. The data concerning the Autonomous Territory of Åland Islands: http://www.asub.ax/files/HYRA2008NY.pdf Source: Rents of dwellings, Statistics Finland Inquiries: Martti Korhonen (09) 1734 3451, Paula Paavilainen (09) 1734 3397 Director in charge: Kari Molnar 44