On a crisp December afternoon, visitors shuffle excitedly across the icy ground at Santa Claus Village, a festive amusement park located on the edge of the Arctic Circle in Rovaniemi, the self-proclaimed “official hometown of Santa Claus.” Tourists from around the world come to experience reindeer sleigh rides, sip drinks in ice bars, and meet Santa Claus himself.
Tourism is booming in Rovaniemi, the capital of Finnish Lapland, with more than 600,000 annual visitors to Santa Claus Village alone. In 2023, overnight stays soared to a record 1.2 million, marking a 30% increase from the previous year as the area recovered from pandemic disruptions. Flights now connect Rovaniemi to major European cities like Berlin, Geneva, and Bordeaux, drawing crowds eager to see the Northern Lights and pristine winter landscapes.
“This is like my dream come true,” said Elzbieta Nazaruk, a visitor from Poland, echoing the excitement many feel when arriving in this winter wonderland. However, the sharp rise in tourism—10 times the local population—has left some residents uneasy.
Photographer Antti Pakkanen, a local critic of mass tourism, expressed concerns about its rapid and uncontrolled growth. “Tourism has grown so rapidly, it’s not any more in control,” he said. In September, a local housing network even organized a rally to protest against the negative impacts on daily life.
The issues faced by Rovaniemi mirror those seen in other European hotspots like Barcelona and Amsterdam, where “overtourism” has led to overcrowding, rising housing costs, and overwhelmed infrastructure. In Rovaniemi’s city center, short-term rentals have driven up property prices and reduced housing availability for long-term residents, turning once residential neighborhoods into “transient spaces for tourists.”
Finnish law prohibits professional accommodation services in residential buildings, but critics argue the rules are not being enforced strictly enough. Campaigners are calling for immediate action to address the issue. Meanwhile, Mayor Ulla-Kirsikka Vainio notes that short-term rentals also provide an economic boost for many residents.
Despite these tensions, Rovaniemi’s popularity shows no signs of slowing. The region’s unique holiday charm, snowy landscapes, and status as Santa Claus’s hometown ensure its appeal remains strong for visitors worldwide.
“It’s Christmas time, and we would love to see the Northern Lights,” said Joy, a tourist from Bangkok. “Rovaniemi seems to be a good place.”
As tourism grows, balancing economic benefits with the needs of the local community will be key to preserving this magical destination.
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