Norwegian Tourism 2005
www.innovasjonnorge.no/reiseliv
visitnorway.com
Key Figures
Photo: © Terje Rakke/Nordic life/Innovation Norway
New direction – increased investment! International tourism is on the increase, but at the same time, competetition for travellers is growing – in Norway and elsewhere in the world. We want to stand to the competition and ensure that Norway obtains a greater share of the growth. So, Innovation Norway has mapped out a new direction for Norway as a travel destination. We are now increasing our investment in marketing Norway abroad. Demanding tourists and greater visibility is increasing the importance of innovation and quality in every area. No single player, on its own, can promise that. If we work more closely together, I am certain we will collectively achieve the targets for increased profitability in the travel industry and that 3.5 million tourists will be visiting Norway annually by the year 2010.
Sandra Hovland Director of Tourism, Innovation Norway
More information? See www.innovasjonnorge.no/reiseliv for up-to-date statistics, marketing data and information about our services to the tourism industries. You can also register here to ensure you receive our e-mail-based newsletter «Reiselivsnytt» [Tourism News].
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Contents page 4
1. Key Figures
page 5
2. International tourism
page 8
3. Seasonal distribution
page 9
4. Tourist consumption
page 12
5. Important markets
page 14
6. Where do the tourists stay?
page 15
7. How are overnight stays distributed nationwide?
page 16
8. Why do tourists choose Norway?
page 18
9. What do tourists think of their Norwegian holiday?
page 19
Definitions
page 19
About Innovation Norway
Photo: © Terje Rakke/Nordic life/Innovation Norway
Photo: © Terje Rakke/Nordic life/Innovation Norway
Photo: © Gaby Bohle/Innovation Norway
1. Key Figures
Photo: © Marte Kopperud/Innovation Norway
2001
2002
Photo: © Terje Rakke/Nordic life/Innovation Norwa
2003
2004
2005
Percentage change 2004–2005
Holiday and leisure arrivals: 1 Holiday and leisure arrivals
2,297,000
2,373,000
2,520,000
2,780,000
2,946,000
6
464,000
532,000
674,000
819,000
900,000
10
Holiday and leisure arrivals on day-trips
908,000
897,000
853,000
881,000
920,000
8
Cruise passengers (day-visits)
804,000
914,000
1,014,000
1,207,000
1,444,000
20
16,799,000
17,363,000
19,003,000
21,000,000
22,125,000
5
7.3
7.3
7.5
7.6
7.5
-0.5
22 415
21 458
22 232
24 423
n/a
n/a
n/a
6 232
n/a
n/a
5 847
n/a
n/a
761
n/a
n/a
718
n/a
23.80%
24.60%
25.10%
25.90%
25.40%
-3.6%
25.48%
23.72%
25.02%
26.40%
n/a
n/a
Holiday and leisure arrivals by plane
Holiday and leisure guest nights: Holiday and leisure guest nights Average length of holiday Holiday and leisure consumption: Total tourist consumption – foreigners (MNOK) 2 Consumption per holiday trip during the summer season 3 Consumption per day of holiday during the summer season Shares: Proportion of foreign hotel guest-nights in Scandinavia 4 Proportion of foreign hotel holiday and leisure arrivals in Scandinavia 5
1 2 3 4 5
TØI, Guest survey 2005 (report 813/2005) SSB, Satellite accounting for tourism 2004 TØI, Foreign tourist’s consumption in Norway 2005 (report 823/2006) MEK – Finnish Tourist Board UNWTO, Tourism Market Trends, 2005 Edition
Photo: © Nancy Bundt/Innovation Norway
4
Photo: © Terje Rakke/Nordic life/Innovation Norway
Key Figures Norwegian Tourism 2005
2. International tourism Norway takes a greater proportion of the international holiday and leisure traffic than it did previously, compared with Europe and the rest of the world. The negative trend from the end of the 1990s is in the process of being turned around. In 2005, there were 808 million tourist arrivals on a global basis. The World Tourism Organization (UNWTO) states that this is an increase of 5.5% on 2004. The growth of 4% in Europe is less than the average growth globally. For that reason, it is a positive sign that Norway had 6% growth in the number of tourist arrivals in 2005. The table below shows, in percentage terms, the change in the number of arrivals as compared to the previous year. Percentage change in the number of tourist arrivals broken down by region 30
27,9
2003
2004
2005
25 20
18
15 11,2
10,7 10
7
5,5
5,1
5
10 6
4
6
4,3
2,9
10
8
7
6
0,7 0 -5
-1,5
-3
-10
-9 World
Market share of global tourist arrivals (2005)
Europe
Asia and Pacific
America
Middle East
Africa
Norway
54.9%
19.3%
16.5%
4.8%
4.5%
0.4%
Source: UNWTO, World Tourism Barometer, January 2006 and TØI, Guest Survey 2005
Photo: © Terje Rakke/Nordic life/Innovation Norway
www.innovasjonnorge.no/reiseliv
Photo: © Terje Rakke/Nordic life/Innovation Norway
5
Percentage change in the number of tourist arrivals in Europe 20
2003
2004
2005 15,2
15 10
10
8,5 7 5,1
5
6
5,5 4 2,1
1,8
0,7
6
6
4 2,2
2 0,1
0 -1,4
-5 Whole of Europe
Northern Europe
Western Europe
Central and Eastern Europe
Southern Europe
Norway
11.7%
31.8%
20.8%
35.8%
0.7%
Market share of tourist arrivals in Europe (2005)
Source: UNWTO, World Tourism Barometer, January 2006 and TØI, Guest Survey 2005
Trend in Norway’s market share for holiday and leisure arrivals 2001–2005 Each year, from 2002 onwards, the growth in tourist arrivals has been greater in Norway than in both Europe and the rest of the world. Tourist arrivals (thousands)
Market share
4,000
0.70%
3,500
0.60%
3,000
0.50%
2,500 0.40% 2,000 0.30% 1,500 0.20%
1,000
0.10%
500 0
0.00% 2001
Arrivals
2002 Market share – world
2003
2004
2005
Market share – Europe
Source: UNWTO and TØI, Guest survey 2005
6
Key ratios Norwegian tourism 2005
Photo: © Nancy Bundt/Innovation Norway
Photo: © Nancy Bundt/Innovation Norway
Nordic hotel tourism In 2005, there were 18.7 million foreign guest-nights at hotels in the Nordic countries. This is an increase on 2004 of 6% or 1 million hotel guest-nights. At Norwegian hotels, there were 4.7 million foreign guest-nights in 2005. This constitutes a market share of 25% of all foreign guest nights in Scandinavia. Norway’s market share has increased by 0.5 percentage points from 2004 to 2005. Market share of foreign hotel guest-nights in the Nordic region
Foreign hotel guest-nights 6,000,000
35
5,000,000
30 25
4,000,000
20 3,000,000 15 2,000,000
10
1,000,000
5
0
0 Sweden
2004
2005
Denmark
Norway
Finland
Market share of all foreign hotel guest nights in Scandinavia (2005)
Source: MEK – Finnish Tourist Council
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3. Seasonal distribution If we compare ourselves with our neighbours, Norway is the country with the greatest seasonal variation. We have most foreign guest-nights at hotels during the winter months of February and March. From May to June, Norway has an increase in foreign guest nights of 147%, and the hotels in Norway also have most foreign guests during the summer months of June, July and August. From August to October, there is a drop of a full 99% in foreign guest-nights at Norwegian hotels. Foreign hotel guest-nights 1,000,000
Denmark Finland
900,000
Norway
800,000
Sweden
700,000 600,000 500,000 400,000 300,000 200,000 100,000
r
r De
ce m
be
be
er
No w em
Oc
to b
r
us t
be Se pt em
Au g
Ju ly
ne Ju
ay M
ril Ap
ar ch M
ar y Fe br u
Ja nu
ar
y
0
Source: MEK – Finnish Tourist Council
Photo: © Nancy Bundt/Innovation Norway
8
Photo: © Terje Rakke/Nordic life/Innovation Norway
Key ratios Norwegian tourism 2005
4. Tourist consumption It is clear from satellite accounting for tourism that overall consumption from foreign tourists rose by NOK 1.3 billion from 2000 to 2004. However, during the same period, consumption per arrival has dropped by 13%. Since the length of holiday has remained stable during the period, the increased turnover is due mainly to the fact that there were 20% more overnight-stay guests in 2004 than there were in 2000. The tourists are using a larger part of their holiday budget on refreshments and experiences, and less on transport. Turnover for activities and food/drink purchasing has increased by just over NOK 1 billion. At the same time, turnover in air transportation has dropped by more than NOK 500 million. Price reductions on transport services are probably also the main reason for daily consumption decreasing by around NOK 200. At the same time, a relatively large number of visitors from the neighbouring countries are arriving, and these spend less money in Norway than the average.
Tourist consumption in total (MNOK)
Proportion of GNP 6.0%
45,000 40,000
5.0% 35,000 4.0%
30,000 25,000
3.0% 20,000 15,000
2.0%
10,000 1.0% 5,000 0
0.0% 2000
Norwegians
2001 Foreigners
2002
2003
2004
Tourist consumption
Source: SSB, National Accounting and Satellite Accounting for Tourism 2004
Photo: © Niels Jørgensen/Innovation Norway
www.innovasjonnorge.no/reiseliv
Photo: © Nancy Bundt/Innovation Norway
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Comparison of satellite accounts for tourism 2004 Norway’s turnover is only half as much per arrival as that of Sweden. If foreign tourists had spent the same amount per visit in Norway as they do in Sweden, that would have meant an annual increase in turnover of around NOK 30 billion – more than doubling the income from foreign tourists. Arrivals per inhabitant
NOK
1,00
16,000 14,000
0,80
12,000 10,000
0,60
8,000 0,40
6,000 4,000
0,20
2,000 0,00
0 Sweden Revenue per arrival
Denmark
Norway
Arrivals per inhabitant
Source: WTO, Tourism Market Trends, 2005 Edition – Annex 7 SSB, Tourism, Satellite Accounting 2004 Nutek & SCB / National Accounts AKF, VisitDenmark 2006
Photo: © Nancy Bundt/Innovation Norway
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Photo: © Terje Rakke/Nordic life/Innovation Norway
Key Figures Norwegian Tourism 2005
Type of transportation
No. of arrivals
Pre-paid
Paid in Norway
Total Consumption
Total 2002 Total 2005 Motoring tourists 2002 Motoring tourists 2005 Air tourists 2002 Air tourists 2005
2,306,000 2,859,000 1,774,000 1,959,000 532,000 900,000
2,177 2,564 1,180 1,675 5,502 4,498
4,055 3,283 2,941 2,790 7,771 4,357
6,232 5,847 4,121 4,465 13,273 8,855
Consumption per Foreign Holidaymaker in the summer seasons of 2002 and 2005. By payment date and means of transport on departure (NOK).
Source: TØI, Guest survey 2005
On average, foreign motoring tourists’ consumption amounted to almost NOK 4,500 on their journey. This is approx. 8% higher than it was in 2002, reflecting the price increases during the period. Consumption per visit appears to have remained at the same level, although average daily consumption has decreased. This is related to the fact that the average length of stay for motoring tourists has increased. The proportion of pre-paid expenses for motoring tourists is considerably higher in 2005 (38%) than it was in 2002 (29%). This may be due to the fact that more people are booking and paying over the Internet. The increase in the number of holiday and leisure arrivals from 2002 to 2005 has been 24%, with the majority of these arrivals being attributable to an increase in airline traffic. If we look at air tourists, there is a considerable drop in consumption from 2002 to 2005. Expenditure during the course of a stay in Norway has decreased in particular. One reason for this may be that the demographics for tourists coming to Norway have been different due to the low-price companies and generally cheaper airfares. If we look simultaneously at growth within various types of overnight stays, the category «Family and friends» is the one that increases most during the period, and figures from TØI indicate that it is this group that is spending least money during the stay in Norway. Although Italian tourists spend most money per day, turnover from the Italian market is low, because Italians only represent 2% of foreign arrivals to Norway in 2005. Germany is decidedly the largest market, gauged by total turnover. NOK 2,000 1,750
1,592
1,500 1,250
1,136
1,066
1,000 733
667
700
640
640
636
507
500
345
602
573
468
383
332
332
328
557
352
396
Fr an ce
725
k
750
311
386
250
Paid in Norway
Total daily consumption
n Sw ed e
nm
ar
nd De
la Fin
st ria Ne th er la nd s
Au
nd itz er la
he rs
Sw
Ot
Ge
rm
an y
UK
A US
Ita
ly
0
Average
Source: TØI, Guest survey 2005
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5. Important markets The number of arrivals increases by 6% to 2.95 million, and the number of guest-nights increases by 5% to 22.1 million. Most arrivals to Norway last year came from our local markets. Swedes alone dominate with 743,000 arrivals, next come the Danes with 454,000 arrivals and the Finns with 218,000 arrivals. 22.1 million foreign guest-nights is the highest figure calculated since the Guest Survey started in 1998. In 2005, there was a very strong growth in visitors from the UK, Netherlands and Russia.
Holiday and leisure arrivals 2004–2005 Total figures 2005
Percentage change in holiday and leisure arrivals 2004–2005
Arrivals by air
Holiday and leisure guest nights
2,946,000
6%
900,000
22,125,000
Sweden
743,000
8%
76,000
2,955,000
Germany
513,000
3%
90,000
5,396,000
Denmark
454,000
-2%
65,000
3,082,000 1,646,000
UK
205,000
7%
171,000
Netherlands
135,000
18%
45,000
1,383,000
USA
111,000
-14%
n/a
1,217,000 756,000
France
89,000
4%
n/a
Italy
46,000
-20%
n/a
427,000
Spain
45,000
-7%
n/a
529,000
Japan
30,000
32%
n/a
117,000
Russia
23,000
6%
n/a
188,000
Source: TØI, Guest survey 2005
Netherlands 5% UK 7%
Arrivals distributed by market The local markets of Sweden, Germany and Denmark represented 57% of all holiday trips to Norway in 2005. Each market’s share of foreign arrivals with at least one overnight stay.
USA 4%
France 3% Italy 2% Spain 2% Russia1% Japan 1%
Denmark 15%
Sweden 25%
Germany 17% Other countries 19%
Source: TØI, Guest survey 2005
12
Key ratios Norwegian tourism 2005
Photo: © Terje Rakke/Nordic life/Innovation Norway
Percentage change in holiday and leisure guest-nights 2004–2005
Photo: © Gaby Bohle/Innovation Norway
Average length of stay
Consumption for foreign holidaymakers during the summer season 2005 Per day
Total consumption
Income per market
5%
7,5
n/a
n/a
n/a
5%
4
386
1,544
1,140,630,000
0%
10,5
733
7,697
3,955,268,000
-2%
6,8
573
3,896
1,765,986,000
11%
8
1,066
8,528
1,754,636,000
13%
10,2
636
6,487
879,588,000
-13%
11
1,136
12,496
1,382,512,000
-6%
8,5
557
4,735
421,092,000
-22%
9,3
1,592
14,806
679,784,000
-2%
11,8
n/a
n/a
n/a
8%
3,9
n/a
n/a
n/a
20%
8,2
n/a
n/a
n/a
USA 12%
France 4% Italy 6%
Netherlands 7% Sweden 10%
UK 15%
Denmark 14%
Germany 32%
Consumption broken down by market Germans spend most money on holiday in Norway. They have a lower daily consumption rate than both Italians, Americans and British, but since the average German holiday in Norway lasts a full 10.5 days, and more than half a million Germans come here, the total turnover is definitely the highest.
Source: TØI, Guest survey 2005
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6. Where do the tourists stay? A full 26% of all foreign tourists who come to Norway stay with friends and family. This is also the form of overnight stay that has shown most growth since 2001. (Figures in 1000s). 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2001
2002
2003
Friends and family
Rented cabin
Free camping
Other
Own or hired cabin
Camping at camp site
2004
2005
Hotel, guesthouse etc.
Source: TØI, Guest survey 2005
Photo: © Nancy Bundt/Innovation Norway
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Photo: © Terje Rakke/Nordic life/Innovation Norway
Key Figures Norwegian Tourism 2005
7. How are overnight stays distributed nationwide? In 2005, there were 7.5 million guest-nights using the accommodation forms of hotel, camp site and cabin complex. Number of guest-nights and market shares are broken down into regions as follows:
Northern Norway 836,000 11%
Photo: © Terje Rakke/Nordic life/Innovation Norway
Trøndelag 386,000 5%
Fjord Norway 2,147,000 29%
East-Norway 3,495,000 47%
South-Norway 584,000 8% Source: SSB, Overnight stay statistics Photo: © Gaby Bohle/Innovation Norway
www.innovasjonnorge.no/reiseliv
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8. Why do tourists choose Norway? The tourists who have chosen Norway as their holiday destination, are generally very interested in experiencing the unique natural environment. They give priority, above all, to experiencing nature. What elements are important to you in experiencing the distinctive features of a travel destination (summer 2005)? 3,0
80% 70%
2,5
60% 2,0
50%
1,5
40% 30%
1,0
20% 0,5
10% 0%
Na tu co ral un en try vi sid ron e, m an en Th im t a th e al nd e lan pe g lif e rm ua an ge en sp t r ok es en id b en y ts Lo r ca la rc hi te To ct ur th ur e e ist tra a ve ttra l d ct es ion tin s at at io n Lo ca lc ui sin e Ac tiv ity op In tio sig ns ht in to lo ca lh ist or y Th cli e m w at ea ic th co er Th nd a th e g iti nd e e on pe ne s op ra le l w at ay th o e fl lo ife ca o tio f n
0,0
Score 0-5
Proportion of extremely important
Source: TØI, Guest survey 2005
Photo: © Anders Gjengedal/Innovation Norway
16
Photo: © Gaby Bohle/Innovation Norway
Key ratios Norwegian tourism 2005
The tourists who came to Norway in summer 2005 came here to enjoy nature in peace and quiet. They wanted a break from the stresses and strains of everyday life. Which of the following factors were important in your choice of Norway as a holiday destination (summer 2005)? 3,0
80% 70%
2,5
60% 2,0
50%
1,5
40% 30%
1,0
20% 0,5
10%
0,0
Lig ht ev en in gs /n ig ht s Na tu Pr ra ice an l en s d vi co ro un nm try e sid nt e Ho Sa sp fe ty ita lit on y th e jo ur ne y At tra ct Ac io Go ns tiv od i t y kn op ow Ha tio ve le ns dg fa e m of ily In No /f te rie re rw st nd ay in si g n to No w ns rw /p Ex ay la pe ce rie s nc to e vi pe sit ac e an d qu ie Fo t od an Ge d ne dr in th ral k e sta en n vi da ro rd nm o en f t
0%
Score 0-5
Proportion of extremely important
Source: TØI, Guest survey 2005
Photo: © Terje Rakke/Nordic life/Innovation Norway
www.innovasjonnorge.no/reiseliv
Photo: © Terje Rakke/Nordic life/Innovation Norway
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9. What do tourists think of their Norwegian holiday? 63% of everyone who came to Norway in summer 2005 and 52% of all of the winter tourists that same year, were extremely satisfied with their holiday in Norway when they left the country. The tourists were asked about the general intention of their holiday and, based on the responses, a satisfaction index has been drawn up in which five is the highest possible score. The table shows that the Danes are the least satisfied, while the British are most satisfied. Your general opinion(s) of this holiday (summer 2005) 4,7
80%
4,6
70% 60%
4,5
50% 4,4 40% 4,3 30% 4,2
20%
ne an rra
M
ed
ite
Ot he rc ou nt rie s
/A nd
co un tri es
us tri
a
an y rm Ge
itz er la
bu rg
/L lg iu m
Be
Sw
er
ux em
la
nd
UK Ne th
Fin
la
k ar nm De
Sw ed
Fr an ce
0%
s
4,0
nd
10%
en
4,1
Score 0-5
Proportion of extremely good
Source: TØI, Guest survey 2005
Photo: © Terje Rakke/Nordic life/Innovation Norway
18
Photo: © Terje Rakke/Nordic life/Innovation Norway
Key ratios Norwegian tourism 2005
Definitions Arrival – a holiday and leisure trip to Norway with a stay of at least one night. Motoring tourist – foreign holidaymaker who has left Norway in a saloon car, camper van or car with caravan. Day trip – holiday trip with no overnight stay. Holiday travel – a trip in which the main purpose is stated as being: • visit to friends and family • holiday/leisure travel, including a skiing holiday • shopping Pre-paid fee – a fee in conjunction with travelling to Norway which has been paid before a person travels in to Norway. Guest-night – the number of overnight stays when travelling in Norway. Summer season – the period from May to September inclusive. SSB – Statistics Norway. TØI – Norway’s Institute of Transport Economics. Foreigner – a person who is registered as domiciled in a country outside Norway. Fee paid in Norway – fee that a person has had to pay for during the stay in Norway.
Innovation Norway Innovation Norway offers products and services that are intended to contribute to the development of districts, increase innovation in trade and industry throughout the country, and give Norwegian trade/industry and Norway itself a profile as a travel destination. On 1 January 2004, Innovation Norway took over the duties of the Norwegian Industrial and Regional Development Fund (SND), Norway’s Trade Council, the Government Consultative Office for Inventors (SVO) and the Norwegian Tourist Board. Having offices in all counties and in more than 30 countries worldwide makes it easy to get in touch with us. Our total workforce of around 700 employees are knowledgeable about local and international conditions that should contribute to customer ideas becoming business successes. If you would like more information about Innovation Norway’s areas of investment, collaborative partners and finance opportunities, get in touch with your nearest Innovation Norway office. A list of our offices is available on our website: www.innovasjonnorge.no The company’s vision is: «We give local ideas global opportunities.» For more information, contact: Innovation Norway PO Box 448 Sentrum NO-0104 Oslo Norway Telephone: +47 22 00 25 00 Fax: +47 22 00 25 01 e-mail:
[email protected] www.innovasjonnorge.no
www.innovasjonnorge.no/reiseliv
19
www.modul.no
visitnorway.com
PO Box 448 Sentrum, NO-0104 Oslo Telephone: +47 22 00 25 00, Fax: +47 22 00 25 01 E-mail:
[email protected], Internet: www.innovasjonnorge.no ISSN: 0809-8328
Photo front: © Terje Rakke/Nordic life/Innovation Norway, © Kurt Hamann/Innovation Norway. Photo back: © Nancy Bundt/Innovation Norway.
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