Overtourism Hits Santa Village, Say Finnish Locals

Rovaniemi, the capital of Finnish Lapland and the self-proclaimed “official hometown of Santa Claus,” has become a magnet for holiday tourism. Santa Claus Village, a winter-themed amusement park at the edge of the Arctic Circle, attracts over 600,000 visitors annually. Tourists from across the globe flock to experience reindeer sleigh rides, sip cocktails in ice bars, and, of course, meet Santa himself.

While the influx of tourists has brought economic benefits, including increased revenue for hotels, restaurants, and local businesses, it’s also sparked growing concerns among locals. Residents say the surge in visitors—nearly 10 times the town’s population during the holiday season—has overwhelmed infrastructure, raised housing costs, and disrupted daily life.

Photographer Antti Pakkanen, a local activist, voiced his concern, stating, “Tourism has grown so rapidly, it’s not anymore in control.” Pakkanen is part of a housing network that recently organized a rally to protest the overgrowth of tourism. Rovaniemi’s predicament mirrors similar struggles seen in European hotspots like Barcelona, Amsterdam, and Florence, where overtourism has strained local infrastructure and eroded residents’ quality of life.

In 2023, the town recorded 1.2 million overnight visitors, marking a 30% increase from the previous year. This boom was fueled by increased demand for “Nordic” experiences, with tourists eager to see snow, the Northern Lights, and Santa Claus. According to Sanna Karkkainen, CEO of Visit Rovaniemi, “People want to travel to cool countries…and, of course, to see Santa Claus.”

The surge was further supported by the introduction of 13 new flight routes to Rovaniemi Airport, connecting the town with cities like Geneva, Berlin, and Bordeaux. Most tourists hail from European nations, but visitors from as far away as Bangkok have also been drawn to the town’s wintry allure.

While tourism provides a financial boon, it’s also sparked a housing crisis. Many apartments in Rovaniemi’s city center have been converted into short-term rentals, reducing long-term housing options and driving up rental prices. Critics argue that this shift has transformed the city center into a “transient space for tourists” rather than a home for residents.

Local regulations prohibit commercial accommodation in residential buildings, but enforcement has been lax. Campaigners like Pakkanen are urging authorities to enforce the rules more strictly. “The rules must be enforced better,” he emphasized. However, not everyone agrees. Rovaniemi Mayor Ulla-Kirsikka Vainio highlighted that some residents benefit financially from short-term rental income.

Despite calls for change, no new regulations are expected before the 2024 holiday season. This leaves locals bracing for another influx of tourists, with little relief in sight. Hotel availability remains limited, and the Original Sokos Hotel’s general manager, Tiina Määttä, predicts even higher visitor numbers in 2024.

As more tourists seek the magic of a northern Christmas, Rovaniemi’s appeal as a winter wonderland is unlikely to fade. But for local residents, the question remains: How much growth is too much?