In 2024, the turnover of all sectors in Lapland decreased by one per cent from the previous year. Turnover decreased for the second year in a row, but in 2024, the decrease was more moderate than in 2023, when turnover decreased by 6.5%.
“Lapland’s turnover decreased less than the country’s as a whole, where the turnover of all sectors fell by 1.7% in 2024,” says Heino Vasara, Strategy Manager at the ELY Centre for Lapland.
According to the preliminary estimate, Lapland’s turnover in 2024 was nearly EUR 16.3 billion.
Of the sectors examined in the economic trend report, industry accounted for the largest share of turnover. Industry, including mining, accounted for 48% of turnover. Trade accounted for 18% of turnover, tourism-typical sectors, such as accommodation, catering and tourism services accounted for 8%, and construction for 6%.
“As a whole, Lapland did well, even though the challenging cyclical situation was reflected in the development of industrial turnover,” says Satu Luiro, Development Manager for the Regional Council of Lapland.
Number of personnel develops in Lapland more positively than in the country as a whole
In 2024, the annual change in the number of personnel in all sectors (including the public sector) was more positive than turnover in Lapland, even though the growth remained at a smaller than in the previous year. The number of personnel increased by 0.4%. The number of personnel in all sectors throughout the country decreased by 1.4%. The number of personnel increased in tourism services, accommodation and catering, mining, and transport and storage.
“New flight routes significantly improved Lapland’s accessibility. Companies also made new investments in increasing the capacity of both accommodation and restaurant seating. General appeal attracted both international stars and ordinary tourists. The tourism and restaurant sector has a major impact on employment, and growth was also reflected in other sectors,” says Kimmo Gauriloff, Regional Director of Barona.
Tourism boosts growth in other sectors, a difficult period for industry
In 2024, tourism, mining, and transport and storage were the sectors with the greatest growth. Accommodation and catering saw a growth of 10.3% in net sales and 3.8% in personnel quantity compared to the previous year. Turnover in tourism services increased by 17.7% and the number of personnel by 8.8%. Recovery from the drop in 2020 has been rapid in tourism.
“Tourism’s significance as one of the important foundations increases year by year. Tourism continues to have excellent conditions for growth, and we are not even close to the limits of growth. Of course, we must ensure sustainable and generally acceptable growth,” says Ari Vuorentausta, CEO of Lapland Hotels, and Chairman of the Board at the Lapland Chamber of Commerce.
It is noteworthy that the development of turnover and number of personnel in construction in Lapland has been better than in the country as a whole. In 2024, the turnover of Lapland’s construction sector grew by 0.1% and its number of personnel decreased by 1.2%. On the other hand, the turnover of the construction sector in Finland as a whole decreased by 6.7% and its number of personnel by 7.1%.
The long-term growth trend in mining turnover and personnel numbers has stabilised from its strongest growth years. In 2024, the mining and quarrying sector generated a 15.8% higher turnover in Lapland and 5.5% more in throughout the country than in the previous year. On the other hand, the sector’s turnover decreased by as much as 18.4% the year prior.
The trend has lost the most momentum in industry, where the trend in both turnover and personnel numbers is below that of reference year 2021. In 2024, industry’s turnover decreased by 9.9% and that of exports by 11.1% from the previous year.
“The overall outlook for the Finnish export industry has been negative, and the uncertainty of the international economy weakens exports. Fortunately, growth is gradually picking up. The Kemi-Tornio sub-region continues to hold a strong position in the exports and industrial sectors,” says Kari Rantamaa, Chairman of the board at Tormets Oy, and Chair of the Industry Committee of the Lapland Chamber of Commerce.
In 2024, transport and storage grew the most in other sectors, with a 6.7% increase in turnover and 0.5% increase in personnel numbers. The turnover of business services sector grew by 3.6%, but its number of personnel decreased by 1.8%. The turnover of wholesale and retail sales increased cautiously by 0.3%, while the number of personnel in the sector decreased by 0.4%. In the creative and cultural sectors, turnover grew by 3.1%, the number of personnel decreased by 3.4%. The creative and cultural sectors have been included as new sectors to be monitored in the economic trends report.
Read more about the Lapland economic trend report on the Lapin Luotsi website: https://lapinluotsi.fi/lapin-nakymia/elinkeinojen-nakymia/lapin-suhdannekatsaus-2/
What is the Lapland economic trend report?
The Lapland economic trend report compiles data yearly on the trends in turnover, number of personnel and industrial exports in selected sectors. The economic trend report examines developments in Lapland as a whole, in business groups in the tourism centres, and in the Kemi-Tornio, Rovaniemi and Fell Lapland sub-regions. The economic trend report is an important knowledge-based management tool.
The Lapland economic trend report is implemented in cooperation between the Regional Council of Lapland, ELY Centre for Lapland, Lapland Chamber of Commerce, Entrepreneurs in Lapland, Finnvera, the City of Rovaniemi, Sea Lapland Development Centre, and Fell Lapland Development.
The data in the economic trend report is based on data from Statistics Finland. The report’s content has been built in cooperation with experts from Statistics Finland.