Falling Krone can boost Norwegian tourism
"It has recently become much cheaper to travel to Norway. This will have an effect for us in 2015, says Market Strategist John Linløkken in Northen Norway Tourist Board. Whereas 2013 was a slow year for Norwegian tourism, the number of overnight stays in Norwegian hotels, camping sites and hostels has increased by 960,000 during the first three quarters of 2014 compared to the same period last year.
Tourism in all of Norway has increased by 3,7 percent the past year, and Northen Norway has experienced a tremendous growth of 8,6 percent. Now the entire tourism industry is being helped by the falling value of the Krone.
On Wednesday, the Euro cost NOK 9,25, according to Norges Bank. Sunday evening it cost NOK 9,01, still NOK 0,70 more than in October this year.
"The fall of the Krone will give us a double-positive effect. In 2015 I think we will see that Norwegians' travels abroad will decrease, and their travels in Norway will go up," says CEO of the Norwegian Hospitality Association, Kristin Krohn Devold. She adds that even though Norwegians may spend more time at the cottage next year, this will still have a positive effect on the hospitality industry because people will go out to eat, go skiing, or spend a day at a mountain spa.
The lower currency rate will also help attract more foreigners. With the current exchange rate, British tourists will get up to 30 percent more for the money than they did two years ago.
This can mean a lot to us in the competition against Iceland, Northern Finland and Northern Sweden. The signals we have been getting is that people think Norway is too expensive, and this can help change their impression, explains Linløkken in Northern Norway Tourist Board.