One of the key challenges facing the Norwegian tourism industry is its relatively low level of value creation and profitability compared to that of other industries. This is due to factors such as the low share of high value added tourism products, a high level of seasonality, and lack of co-operation both within the tourism industry itself and with other stakeholders involved in tourism. In certain parts of the country, overcrowding is a major issue.
In May 2017, the Parliament approved a government report (white paper) on Norwegian tourism. The report lays out the Government’s overall policy for the tourism industry, including the ways in which the Government will strengthen the foundation for the industry’s development in the longer term.
The report concluded that the main national policy priorities for developing the Norwegian tourism industry are:
Establishing sound framework conditions for business activity in Norway by lowering levels of business tax, improving infrastructure, digitalising the public sector,
Developing a sustainable tourism industry,
Increasing co-operation between stakeholders,
Continuing to promote Norway as a tourism destination,
Increasing knowledge and expertise in the tourism industry.
As the Government amends framework conditions in order to strengthening the business climate in Norway, the tourism industry is one beneficiary. The Government is prioritising tax and fee relief for Norwegian companies and is focused on simplification and digitalisation of the public sector, so companies can spend less time on their reporting duties and following regulations, and more time creating value and jobs.
Accessibility is another key factor to competitiveness in tourism. In 2017, the Norwegian Parliament approved the next 12-year national plan for infrastructure in Norway, with a record high level of investment. The plan has a focus on developing safer, more efficient and greener transport solutions, by utilising, and adapting to, the massive technological changes taking place within the sector.
Increased co-operation between the tourism industry and other parts of the economy can contribute to developing Norwegian destinations and tourism products further. The white paper on tourism concluded that a joint strategy for culture and tourism will be prepared by Government. This strategy will be in parallel to the Government’s agriculture based rural tourism strategy, presented in January 2017.
In order to improve coordination within the tourism industry, both public and private initiatives have been taken to put in place more effective destination management organisations. In 2013, overall responsibility for a restructuring exercise of these organisations was given to the industry itself. New and considerably larger destination management entities have been designed to secure more reliable and stable financial arrangements, as well as facilitating coordination between the local tourism industry and tourism activities undertaken by local public authorities. By 2017, the process was almost completed, with the new local management boards up and running and showing initial indications of enhanced coordination and co-operation between stakeholders.
Nature is a significant aspect of what the Norwegian tourism industry markets. Over time, increased traffic and crowding could undermine the quality of the surroundings, the tourism product and even affect safety. In order to achieve national and international environmental goals, the tourism industry must base its activities on sustainability. The Government will promote management of human traffic in nature by providing information, signage and simple infrastructure. As part of this effort, the Government will market a selection of prepared hiking trails as National Hiking Trails, on the model of Norway’s National Tourist Routes for roads. The objective is to make the trails sustainable and more accessible, and thus attractive for travel and business activity.
