Innovation Norway. Report

Innovation Norway Report Key figures for Norwegian travel and tourism

Photo cover: Swords in Rock, Hafrsfjord Richard Larssen Visitnorway.com Photo on page 2 3 Atlantic Ocean Road, Møre og Romsdal Jacek Różycki Visitnorway.com innovasjonnorge.no Contents Record year for the tourism industries 4 1. Key figures 6 2. International tourism and Norway s market share 9 3. The Norwegian tourism year 17 4. Expenditure linked to trips in Norway 27 5. Holiday and leisure travellers in 33 6. Perceptions of Norway as a holiday destination 43 7. Norwegians on holiday 51 8. The congress segment 55 9. Innovation Norway in brief 56 10. Methods 57 11. Definitions 58 2 3

Key figures for Norwegian tourism Margrethe Helgebostad Editor Photo: Astrid Waller/Innovation Norway. Record year for the tourism industries thanks to increase in holiday and leisure traffic was an unusual year for Norwegian tourism. The decline in the oil sector led to fewer business overnight stays, and holiday and leisure traffic was therefore the sole growth driver. There were 31.6 million guest nights in commercial accommodation in, an increase of from the previous year. Tourists who stayed in commercial accommodation and on Hurtigruten spent NOK 68.6 billion in connection with their trip. Tourist satisfaction was higher than in previous years, and more tourists would recommend Norway as a holiday destination to others. The weak Norwegian krone is not the only reason for Norway s greater share of international tourism The increase in foreign guest nights was distributed across all the markets where Innovation Norway promotes Norway as a tourist destination, except Russia. More tourists chose Norway in. Part of the reason for this increase is the low exchange rate, which boosts foreign tourists spending power in Norway, but the low exchange rate is not the only cause behind the increase in Norway s share of international tourism. Even with a weaker exchange rate, Norway is not a low-cost country. Prices are high, and the results from the Tourism Survey show that it is the price level that tourists are least satisfied with in too. In order to get people to spend their precious time and money here, we must give them a good reason to do so. International tourism has an average annual growth rate of, and most countries in the world work actively to take their share of the pie. Innovation Norway heads Norway s efforts in this area. Good promotional work creates increased profitability The aim of all promotional work is to contribute to greater profitability in the tourism industries and to increase Norway s share of the international market. The people at Innovation Norway who work on tourism collaborate with the tourism industries to increase awareness of Norway as a destination and entice target groups in priority markets. Work involves long-term brand building, targeted market initiatives and campaigns, and facilitation of sales. And this work is bearing fruit. Interest in travel to Norway has increased significantly in our key markets in recent years. Simplified key figures The purpose of this key figure brochure is to provide a straightforward overview of the main key figures on Norwegian tourism. Here you can read about how Norwegian tourism is developing in the global perspective, the significance of the tourism industry for the Norwegian economy and employment, information about the tourists who visit Norway, and how Norway is perceived in our key markets. Most of the data in the key figure brochure is from surveys conducted by Innovation Norway. The main source is the Tourism Survey, which forms much of the basis for what we know about Norwegian and foreign tourism in Norway. The survey runs all year round and is nationwide, and Norwegian and foreign leisure and business travellers are interviewed. An important goal is to document the impact of the tourism industries on the Norwegian economy. At the same time, the results are used to be able to tailor the marketing of Norway as a tourist destination in the best way possible and further develop the Norwegian tourism product. To gain knowledge about the target group s perception of Norway, and the likelihood that they will travel here, Innovation Norway also conducts weekly tracker surveys in eight main markets. These surveys provide us with knowledge about people s motives for going on holiday, the prerequisites for them booking a holiday to Norway, and an indication of how successful our marketing campaigns have been. By assignment to the government The letter of assignment from the Norwegian Ministry of Trade, Industry and Fisheries states: Innovation Norway will collect and compile statistics, further develop market data and other analyses and documents that are relevant to the tourism industries, as well as actively communicating knowledge about markets and international trends to the tourism industries. Only a small excerpt of this information is included in this brochure. More detailed information and full reports can be found on Innovation Norway s website: innovasjonnorge.no/reiseliv/markedsdata. Enjoy the read! 4 5

1. Key figures Key figures THE SIGNIFICANCE OF TOURISM for the Norwegian economy is increasing. Tourists spent more money Statistics Norway s tourism satellite accounts show that in 2014 total tourism consumption amounted to more than NOK 151 billion for the first time (preliminary figures). This is an increase of from 2011 and almost 1 from 2007, measured by volume. According to Statistics Norway, most of the increase in tourism consumption was attributable to holiday and leisure tourism. The figures also show that foreign tourists spending has increased slightly more than that of Norwegian tourists in 2013 and 2014. The tourism industries have the highest growth in output When assessing the economic impact of tourism, it is useful to analyse the industries producing tourism products and to compare these with the overall economy, Statistics Norway writes. The output in the tourism industries in 2014 is preliminarily estimated to more than NOK 250 billion. Measured in volume, the output growth in the years 2011 2014 was around. This is similar to the output growth in mainland Norway in the same period. The fact that a The significance of tourism for Norway seasonal industry like tourism has managed to keep up with the other sectors is very good. The tourism industries share of the total output in mainland Norway was 5. in 2014. Declining industrial and oil production The tourism satellite accounts for will not be published until 2017, but there is much to indicate that the tourism industries will account for a larger share of GDP. For example, while the Tourism Survey reveal an increase in tourism expenditure in, Statistics Norway s index of industrial production shows a decline in manufacturing and oil production. The largest declines are in major industrial sectors such as machinery, shipbuilding and other suppliers to the petroleum industry. The economic impact of tourism in Norway is lower than the global average Figures from the World Tourism Organization (UNWTO) reveal that one of every eleven fulltime equivalents in the world is in tourism and that the tourism industries share of the world economy is. 2 2009 2010 2011 2012 2013 2014 Change from 2014 to Commercial* guest nights 28,026,511 28,540,497 29,074,313 29,914,832 29,243,016 30,306,594 31,653,839 Norwegian commercial guest nights 20,406,572 20,637,311 21,230,072 21,974,364 21,551,330 22,152,158 22,825,068 Foreign commercial guest nights 7,481,999 7,903,186 7,844,241 7,940,468 7,691,686 8,154,436 8,828,771 Share of foreign guest nights at hotels 5 6 6 6 6 6 6 Share of foreign guest nights at campsites 2 2 2 2 1 1 1 0% Share of foreign guest nights at cabin villages 1 1 1 - Share of foreign guest nights at youth/ family hostels 0% Cabin rental 1,138,242 1,127,284 1,057,871 988,467 1,101,595 1,181,185 n/a** n/a** Cabin rental guest nights Norwegian visitors 298,215 257,569 228,683 283,046 276,100 292,219 n/a** n/a** Cabin rental guest nights Foreign visitors 840,027 869,715 829,188 705,421 825,495 888,966 n/a** n/a** Cruise tourism Number of visiting cruise passengers 430,000 410,000 457,000 588,000 620,000 574,000 511,000-1 Number of day visitors from cruises to Norwegian ports 1,630,754 1,744,099 2,040,166 2,573,335 2,996,114 2,667,362 2,494,921 - Number of cruise ship port calls to Norwegian ports 1,572 1,647 1,678 2,066 2,187 1,985 1,787 - Norwegian holiday and leisure travel All holiday and leisure travel domestically and abroad 16,820,000 17,540,000 17,320,000 17,000,000 19,190,000 19,140,000 17,880,000 - Holiday and leisure travel in Norway 11,310,000 11,510,000 10,610,000 9,590,000 11,590,000 11,670,000 10,660,000-4, GDP in 1 15 people work in the tourism industries NOK 151,5 BILLION Total tourism consumption Foreign visitors' share of the total tourism consumption Holiday and leisure travel abroad 5,510,000 6,030,000 6,710,000 7,410,000 7,600,000 7,480,000 7,230,000 - All holiday and leisure guest nights domestically and abroad 84,530,000 90,660,000 91,510,000 93,180,000 99,660,000 105,280,000 95,280,000 - Holiday and leisure guest nights in Norway 42,860,000 43,540,000 39,460,000 35,390,000 43,970,000 45,180,000 39,860,000 Holiday and leisure guest nights abroad 41,660,000 47,120,000 52,050,000 57,790,000 55,700,000 60,090,000 55,420,000 - * Generic term for stays at commercial accommodation providers such as hotels, campsites, cabin villages and youth/family hostels. ** The figures from intermediaries of rental cabins were not available when this report was printed. -1 The figures for were not available when this report was printed. Statistics Norway Statistics Norway, Cruise Norway and Innovation Norway 6 7

Pulpit Rock, Lysefjord Per Eide Visitnorway.com innovasjonnorge.no 2. International tourism and Norway s market share WAS another record year for world tourism, with a staggering 50 million more travellers crossing national borders than the previous year. Highest traffic ever measured There were 1.2 billion tourist arrivals in according to figures from the World Tourism Organization (UNWTO). These figures include travel across national borders with at least one overnight stay and do not include domestic travel. International tourist arrivals have had an annual growth of or more since 2010. The traffic in, which is the highest ever recorded, amounts to 50 million more trips compared with 2014. International tourist arrivals have increased by 256 million since 2008, the year the financial crisis started. Europe, with its 609 million arrivals, remains the most visited continent. Europe, America, Asia and the Pacific countries can look back on a year with average growth of, while arrivals in the Middle East increased by. Africa had fewer tourist arrivals as a result of terrorism and unrest in several regions. Europe most visited Europe, with its 609 million arrivals, remains the most visited continent and also had the greatest relative growth. The growth of corresponds to 28 million more arrivals to European countries, compared with 2014. 8 9

There were 1,184 billion journeys across national borders with at least one overnight stay in. The tourism industries a major contributor to the world economy With a share of 5 of all arrivals, Europe is the most visited continent in, as it has always been historically. Nevertheless, Europe s share is decreasing when seen in a longer perspective. In 2014, Europe s market share was 5, while in 1980 it was 6. Never before has the world population travelled as much, but the competition is also greater than ever before. Destinations worldwide regard tourism as an important contributor to the country s economy and employment. Figures from the World Travel & Tourism Council (WTTC) show that the global travel and tourism sector grew by 3. in, while the total global GDP was 2.. The good figures for tourism are due to an increase in international air travel, and the hotel industry around the world can look back on a year with higher occupancy rates and increased RevPAR (revenue per available room), at the same time as there were more international tourist arrivals. will be the fourth consecutive year where the international tourism sector had higher relative growth than average GDP, meaning it is a major contributor to the world economy. Preliminary figures from WTTC show that tourism generated USD 7.8 trillion and created 284 million jobs worldwide in. New record for world tourism International tourist arrivals Breakdown of international tourist arrivals in 527 561 586 602 625 764 674 675 696 692 809 855 911 928 950 891 1134 1184 1088 1041 994 Tourist arrivals with at least one overnight stay 1 2 Europe Asia and the Pacific countries Africa America Middle East 5 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 World Tourism Organization (UNWTO) World Tourism Organization (UNWTO) 10 11

innovasjonnorge.no Changes in the number of tourist arrivals globally Changes in the number of tourist arrivals in Europe and Norway Tourist arrivals with at least one overnight stay. Tourist arrivals with at least one overnight stay. AMERICA EUROPE AFRICA MIDDLE EAST ASIA AND THE PACIFIC COUNTRIES 1 1 4 3,5 4, 2 2 4 - - - - - - - - - 3,5 4, 2010 2011 2012 2013 2014-2009 EUROPE 2010 World Tourism Organization (UNWTO) - - 2009 WORLD 12 0% - - - 0% - 1 NORWAY NORTHERN EUROPE WESTERN EUROPE SOUTHERN EUROPE CENTRAL AND EASTERN EUROPE 2011 2012 2013 2014 World Tourism Organization (UNWTO) and Statistics Norway Forecast for 2016-13

International tourist arrivals International tourist arrivals 1 International tourist arrivals at Norwegian hotels 1 International tourist arrivals at Norwegian hotels 3,5 4, In there were 3.6 million international tourist arrivals at Norwegian hotels. This is 382,000 more arrivals than in 2014, representing an increase of 1. This is far higher than the average growth worldwide, meaning that Norway took a larger market share of international tourism. In comparisons between developments in Norway and other countries, care is always taken to ensure we use countries that share certain similarities with Norway, i.e. countries with mature economies and Northern Europe. The figures for show that arrivals in Norway grew more than the average for arrivals in Northern Europe, which was, and arrivals in mature economies, which was. There are different ways of reporting the number of tourist arrivals. Some countries use border crossings, but the vast majority use foreign tourist arrivals at commercial accommodation providers. In Norway, we use arrivals at hotels. 0% International tourist arrivals at hotels International tourist arrivals at Norwegian hotels Norway s share in Northern Europe Norway s share among the mature economies - - - - -1, Share 4,000,000 - - - 3,500,000 - - - - 3,000,000 2,500,000 - - 2,000,000 4, 5,0% 4, 4, 4, 4, 4, 4, 4, 4, 1997 1998 2001 11 September. Al Qaida s terrorist attack in the USA. 2,982 people dead. Economic recession follows in the wake. 1999 2000 2001 2002 Events that have affected tourism: 2003 USA invades Iraq. SARS epidemic in Asia leads to 506 people dying during the month of May. The epidemic was contained by July. 2003 2004 2005 2004 1 March. Train bombings in Madrid. 191 people dead. 2006 2005 7 July. Suicide bombers on the London Underground. 52 people dead. 2007 2008 2009 2008 The financial crisis develops from the middle of the year. 2009 Swine flu (H1N1-virus) spreads from April. 2010 2011 2012 2013 2010 Volcanic eruption in Iceland in April. 2011 22 July. Terrorist attacks in Norway 77 people dead. 2014 Forecast Prognose for 2016 2016 19 August. Terrorist attacks near major tourist attraction in Istanbul, Turkey. 13 November. Terrorist attacks at various locations in Paris. 130 people dead. 1,500,000 1,000,000 500,000 0 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 2005 2007 2008 2009 2010 2011 2012 2013 2014 0% Tourist arrivals with at least one overnight stay. World Tourism Organization (UNWTO) and Statistics Norway World Tourism Organization (UNWTO) and Statistics Norway 14 15

Juvet Landscape Hotel Tina Stafrèn Visitnorway.com innovasjonnorge.no 3. The Norwegian tourism year THE WEAKER KRONE made Norway a cheaper holiday destination and boosted its competitiveness. The Norwegian krone depreciated against many currencies including the euro, pound and US dollar in 2014 and, which benefited the tourism industries. A weaker krone means that foreign tourists get more for their money in Norway. Norway s ability to compete can be measured using the trade-weighted exchange rate index. A rise in this index means a weaker krone, making Norway more competitive, and vice versa. From July 2014 to July Norway s ability to compete improved by 1. In the same period, there were 1 more foreign guest nights at hotels. From July 2013 to July, Norway s ability to compete has increased by 1, meaning foreign tourists got 1 more for their money in July than they did in 2013. In the same period, there were 2 more foreign guest nights at hotels. There is a correlation between developments in the exchange rate and the number of hotel guests, indicating that a lower exchange rate leads to more foreign guest nights. 2008 and 2009 were exceptions, as much of the world was impacted by the financial crisis. Guest nights and the trade-weighted exchange rate index 2006 Foreign hotel guest nights Trade-weighted exchange rate index 1,100,000 1,050,000 1,000,000 950,000 900,000 850,000 11 1 10 100% 9 90% 8 80% Foreign hotel guest nights Trade-weighted exchange rate index 800,000 7 M07 2014M07 2013M07 2012M07 2011M07 2010M07 2009M07 2008M07 2007M07 2006M07 Guest nights for July are used to isolate holiday traffic from business traffic, which cannot be influenced. Statistics Norway and Norges Bank 16 17

Growing interest in Norway as a holiday destination Good growth in commercial guest nights Innovation Norway conducts weekly tracker surveys in the majority of the main markets in Europe where Norway is marketed as a holiday destination. The surveys include questions about people s perception of Norway as a holiday destination and the likelihood that they will travel to Norway. Changes in responses provide Innovation Norway with an indication of the effectiveness of its marketing work. The survey, which is conducted among people in our target groups in Denmark, Norway, Sweden, the United Kingdom, Germany, the Netherlands, Russia and France, shows that interest in Norway as a holiday destination has increased considerably in recent years. Looking at the question: How likely is it that you will go on holiday in Norway in the next 12 months?, the results show that the percentage of the respondents who chose 8, 9 or 10 on a ten point scale has increased by 1 among the Norwegian respondents and by 3 among the foreign respondents from 2012 to. Looking at the development from 2014 to in isolation, the results show that interest in spending holidays in Norway has risen by among the Norwegian respondents and by 20% among the foreign respondents. There were 31.6 million guest nights in commercial accommodation in. This increase represents 1.3 million more guest nights. Norwegian guest nights rose by, while foreign guest nights rose by. New in is that there was a good increase in Norwegian and foreign guest nights in both the winter and the summer season. In summary, the Norwegian tourism sector had a fantastic winter season, followed by yet another record-breaking summer season. There were more guest nights from large and important volume markets such as Germany, Sweden, Denmark, the United Kingdom and the Netherlands. The number of guest nights from the USA has continued to grow, and the number of guest nights from France, Italy and Spain has also picked up. The development in the number of guest nights from Asia is unprecedented and larger than for our neighbouring countries. The main reason that the year was so good is the increase in holiday and leisure overnight stays. Holiday and leisure overnight stays at hotels increased by 1, while business overnight stays fell by. The decline is ascribable to the fall in oil prices that has impacted the oil industry, and it is the fjord counties that have been hardest hit. There has been no change in business traffic in Eastern Norway, Northern Norway and Trøndelag, while Fjord Norway has declined by and Southern Norway by. The number of overnight stays in connection with courses and conferences has increased by. How likely is it that you will go on holiday in Norway in the next 12 months? Markets in which Innovation Norway invests in tourism 2007 2010 2011 2012 2013 2014 Change from 2014 to Change 2007 70% 60% 53, 55, 57, Norway Total Foreign Total 28,663,930 28,540,497 29,074,313 29,914,832 29,243,016 30,306,594 31,653,839 Norway 20,338,157 20,637,311 21,230,072 21,974,364 21,551,330 22,152,158 22,825,068 1 All foreign 8,325,773 7,903,186 7,844,241 7,940,468 7,691,686 8,154,436 8,828,771 50% 48, +1 Other Europe 983,010 1,017,721 1,083,138 1,154,970 1,223,290 1,402,358 1,596,411 1 6 Germany 1,703,050 1,637,206 1,594,621 1,511,995 1,309,550 1,388,978 1,459,808-1 40% Sweden 912,915 958,838 932,923 1,022,597 999,339 1,040,168 1,097,231 20% Denmark 1,006,816 914,053 841,484 865,597 835,121 741,241 749,517-2 30% 20% 17, 10, 17,0% 10, +2 +3 17, 11, 21, 13, United Kingdom 755,172 520,428 519,471 570,316 581,496 614,876 704,508 1 - Netherlands 873,342 799,515 742,328 677,831 519,989 539,733 567,343-3 USA 330,727 315,436 315,376 303,279 303,199 397,801 425,295 2 Other Asia 154,269 165,183 194,350 212,297 257,614 287,063 364,921 2 13 France 291,826 318,280 309,784 301,197 285,525 301,889 326,866 1 China 70,694 68,133 91,715 93,532 161,878 176,767 287,153 6 30 Spain 313,766 245,638 253,607 194,069 174,862 200,441 253,590 2-1 2012 2013 2014 Italy 228,275 222,540 200,287 166,257 164,254 191,390 196,785-1 Russia 130,434 172,811 186,401 198,201 211,805 181,196 108,086-40% -1 Japan 115,962 104,014 101,124 119,558 103,882 91,091 98,203-1 The group Foreign includes people in the target group from Denmark, Sweden, the Netherlands, Germany, the United Kingdom, France and Russia. Tracker Data, Innovation Norway South Korea 40,609 38,008 45,272 62,167 57,042 56,825 71,381 2 7 18 Statistics Norway 19

The repercussions of the financial crisis are still Change in commercial guest nights by month being felt in some markets saw good growth from all the markets where Innovation Norway invests in tourism, apart from Russia, which declined by 40%. After many years of continuous growth in Russian guest nights, the trend turned in 2014 due to the financial crisis in Russia. The ruble is weak, and most people s wages are lower, resulting in reduced spending power. The number of commercial guest nights has increased by from 2007 to. In the same period, the number of Norwegian guest nights has increased by 1 and the number of foreign gust nights by. Nevertheless, the number of commercial guest nights from several markets is still lower than it was before the financial crisis. The financial crisis started in mid-2008 and led to a decline in the number of foreign guest nights. 20% 1 1 1 1 1 1 Change in Norwegian guest nights Change in foreign guest nights Change in commercial guest nights 2007 and 2014 The graph is sorted by the magnitude of the change 2014 0% 0% Statistics Norway Total China Spain Other Asia South Korea United Kingdom Other Europe Japan France All foreign USA Netherlands Sweden Germany Italy Norway Denmark Russia -3-40% -1-2 -1 - -1-1 -1 2 2 2 1 1 1 2 20% 1 6 6 7-50 0 50 100 150 200 250 300 13 30 Change 2007 Change 2014 January February March April May Composition of the foreign guest nights in 2007 and 2007 Germany, 20% Denmark, 1 Sweden, 1 Netherlands, United Kingdom, USA, France, Spain, Italy, Russia, China, Japan, South Korea, 0% Other countries, 1 June July August September October November December Germany, 1 Sweden, 1 United Kingdom, Denmark, Netherlands, USA, France, China, Spain, Italy, Russia, Japan, South Korea, Other countries, 2 Statistics Norway Statistics Norway 20 21

Holiday and leisure traffic drove the growth at hotels In, there were 21.5 million hotel guest nights, which is an increase of from 2014. The solid growth is largely due to the 1 increase in holiday overnight stays. The number of course and conference guest nights rose by, while business traffic fell by as a result of lower activity in the oil sector. This means that in, a total of 5 of all guest nights at hotels were holiday and leisure overnight stays. This is more than in 2014, when the proportion was 4. Guest nights per region Eastern Norway, consisting of seven counties, had the most Norwegian and foreign commercial guest nights in. Next came Fjord Norway, Northern Norway, Southern Norway and Trøndelag, as shown in the pie chart below. Since there are most Norwegian guest nights during the course of a year, it is natural that all parts of the country have a majority of Norwegian guest nights. The region Fjord Norway, with a share of 3, had the largest percentage of foreign guest nights, followed by Northern Norway with a share of 30%. Eastern Norway had a foreign guest nights share of 2, and Trøndelag 1. The region with the highest share of Norwegian guest nights is Southern Norway, where only 1 of all commercial guest nights were foreign. Both the winter and the summer season were good For the first time since 2010, there was an increase in the number of foreign guest nights, in both the summer and the winter season. We have to go back to 2012 to find the same trend in Norwegian guest nights. Change in hotel guest nights 2014 1 1 1 Composition of hotel guest nights by purpose in The figures in brackets are the change from 2014 Commercial guest nights broken down by region Change in the number of commercial guest nights during the 2014 winter and summer seasons % 0% - Change in hotel guest nights (%) 3 (-) 1 (-) 5 (+) 4 2 1 % % % % % % % Total Norway Foreign - Total Holiday and leisure Business Course and conference Holiday and leisure Business Course and conference Eastern Norway Fjord Norway Northern Norway Southern Norway Trøndelag % % Vintersesongen Winter season Sommersesongen Summer season Statistics Norway Statistics Norway 22 23

Winter season Summer season Eastern Norway, Northern Norway and Trøndelag saw solid relative growth in Norwegian and foreign guest nights in the winter season. In the summer season it was the fjord counties that saw the largest relative growth in foreign guest nights, while Northern Norway and Trøndelag achieved solid growth in the share of Norwegian guest nights. Commercial guest nights per region and change from 2014 Commercial guest nights per region and change from 2014 3,000,000 Commercial guest nights Change Commercial guest nights Change 30% 6,000,000 1 2,500,000 2 5,000,000 1 1 2,000,000 20% 4,000,000 1,500,000 1 3,000,000 1,000,000 1 2,000,000 500,000 0 0% 1,000,000 0 0% - - - - - - - Eastern Østlandet Norway Fjord Norway Norge Southern Sørlandet Norway Northern Nord-Norge Norway Trøndelag - Eastern Østlandet Norway Fjord Norway Norge Northern Nord-Norge Norway Trøndelag Southern Sørlandet Norway - Norwegian guest nights Foreign guest nights Change in Norwegian guest nights (%) Change in foreign guest nights (%) Norwegian guest nights Foreign guest nights Change in Norwegian guest nights (%) Change in foreign guest nights (%) Statistics Norway Statistics Norway 24 25

Kayak on the Hjørund Fjord Tomasz Furmanek Visitnorway.com innovasjonnorge.no 4. Expenditure linked to trips in Norway MORE FOREIGN tourists combined with Norwegians willingness to pay ensured high tourism expenditure in. Figures from the Tourism Survey show that tourists who had at least one overnight stay in commercial accommodation or on Hurtigruten had an estimated expenditure of NOK 68.6 billion in connection with their trip in Norway. This is an increase of 1 or NOK 8.1 billion compared with 2014, when expenditure was estimated to be NOK 60.4 billion. Norwegian tourists expenditure increased by or NOK 4.4 billion, while foreign tourists expenditure increased by 2 or NOK 3.7 billion. Of the total increase in expenditure of NOK 8.1 billion, NOK 6.3 billion can be attributed to holidaymakers and NOK 1.8 billion to people on business trips. The increase is due to several factors Around 40% of the increase can be attributed to Innovation Norway s expansion of the Tourism Survey to include tourists on Hurtigruten. They are in addition to people staying in commercial accommodation, as used in previous surveys. However, not all of the increase in tourism expenditure in can be explained by the expansion of the sample population. The increase in volume of tourists and higher average daily expenditure meant total expenditure among all tourists, both holiday/leisure travellers and business travellers, was higher. Norwegians spend the most money in Norway The average daily expenditure among Norwegian holidaymakers was NOK 1,355 in 2014. In this figure had risen to NOK 1,425. If we also include tourists who travelled on Hurtigruten, average daily expenditure rises to NOK 1,450. Foreign holidaymakers had an estimated average daily expenditure of NOK 1,730 in 2014, which fell to NOK 1,665 in. However, if we include foreign tourists on Hurtigruten, average daily expenditure rises to NOK 1,855. Not surprisingly, it is Norwegians who spend the most money in Norway, on both business and holiday/leisure travel. Norwegians accounted for 6 of the total expenditure. The expenditure figures shown here are for tourists who stayed in commercial accommodation and/ or on Hurtigruten. Tourists who only stay in private accommodation or accommodation that is not included in the official statistics are not included in the figures here. The figures here cover about half of the expenditure that is included in the tourism satellite accounts published by Statistics Norway, but they nevertheless provide a very good indication of trends in Norwegian tourism. Total expenditure among all tourists, both holiday/leisure travellers and business travellers, was higher. 26 27

Of the total expenditure of NOK 68.6 billion, NOK 34.5 billion was expenditure related to holiday and leisure travel. This is 2 more than in 2014. NOK 68.6 billion broken down into four-month periods Most of the expenditure was in May, June, July and August. 3rd four months 2 (2) 1st four months 2 (2) 2nd four months 4 (4) The figures in brackets are the share in 2014 The Tourism Survey, Innovation Norway Expenditure of tourists who stayed in commercial accommodation and Hurtigruten in Distribution of expenditure estimates by markets The arrows indicate the change from 2014 70,000,000,000 1 Total Norwegians Foreigners Market Expenditure Expenditure per holiday Daily expenditure Expenditure per holiday per person Daily expenditure per travel party Norway NOK 21,810,000,000 NOK 22,990 NOK 1,450 NOK 7,875 NOK 4,230 Sweden NOK 915,000,000 NOK 25,870 NOK 1,455 NOK 6,175 NOK 6,085 60,000,000,000 50,000,000,000 Denmark NOK 645,000,000 NOK 32,465 NOK 1,100 NOK 7,490 NOK 4,765 Germany NOK 2,490,000,000 NOK 47,255 NOK 1,500 NOK 21,575 NOK 3,285 Netherlands NOK 465,000,000 NOK 43,720 NOK 920 NOK 14,920 NOK 2,690 United Kingdom NOK 1,290,000,000 NOK 48,600 NOK 2,510 NOK 20,180 NOK 6,050 40,000,000,000 2 USA NOK 1,080,000,000 NOK 72,160 NOK 3,220 NOK 32,985 NOK 7,040 France NOK 705,000,000 NOK 82,050 NOK 2,780 NOK 35,040 NOK 6,505 Switzerland NOK 555,000,000 NOK 68,030 NOK 1,905 NOK 30,340 NOK 4,270 30,000,000,000 2 1 Other Europe NOK 1,875,000,000 NOK 52,350 NOK 1,740 NOK 17,170 NOK 5,305 Outside Europe NOK 2,655,000,000 NOK 63,860 NOK 2,715 NOK 22,505 NOK 7,710 20,000,000,000 4 Total foreign holidaymakers NOK 12,675,000,000 NOK 56,790 NOK 1,855 NOK 19,825 NOK 5,315 Total all holidaymakers NOK 34,485,000,000 10,000,000,000 - Total Totalt tourism turismeforbruk expenditure Holiday Ferieand og leisure fritidsreiseforbruk travel expenditure Business Forretningsreiseforbruk travel expenditure The results for are not directly comparable with those for 2014, as the sample population has been expanded to include Hurtigruten in. The Tourism Survey, Innovation Norway The expenditure estimates are based on people who stayed in commercial accommodation. The Tourism Survey, Innovation Norway 28 29

Expenditure is influenced by activity preferences The average daily expenditure of a Norwegian holidaymaker was NOK 1,450 in, but the survey found relatively large differences in expenditure based on which activities the individual tourist partakes in or plans to do. For a tourist who answered experience the Northern Lights, daily expenditure is approximately NOK 2,631 kroner. Tourists who answered experience the night life and test my limits also have a much higher average daily expenditure of NOK 1,785 and NOK 1,733 respectively. At the other end of the scale we find respondents who said they were planning to visit amusement parks. This group had an average daily expenditure of NOK 1,058, which is 2 less than average for the survey population as a whole. Wide spread in expenditure There are greater differences in foreign holidaymakers daily expenditure in Norway according to activity preferences than among the Norwegian holidaymakers. In, average daily expenditure was NOK 1,855, but among the tourists who answered that they had been or planned to go dog sledding, daily expenditure was NOK 2,667, and daily expenditure among the respondents who said they wanted to go to concerts and festivals was NOK 2,636. At the other end of the scale we find the respondents who answered salt water fishing. Here, the average daily expenditure was NOK 901. Daily expenditure according to activity (undertaken or planned). Norwegian holidaymakers Daily expenditure according to activity (undertaken or planned). Foreign holidaymakers Experience the northern lights* 8 Dog sledding 4 Night life 2 Go to concerts/festivals 4 Test my limits 20% Experience the northern lights 40% Shopping 1 Drive a snowmobile 3 Sightseeing 1 Night life 2 1 1 Peak walking Sightseeing Shopping 1 Experience traditions and national celebrations Experience local history and legends 1 Go to concerts/festivals Experience traditions and national celebrations 1 Participate in sports events Eat local food and drink local beverages 1 Experience local culture and ways of life Visit art exhibitions/museums Eat local food and drink local beverages Go to restaurants Go to restaurants Visit historic buildings/sites Experience the fjords Experience local culture and ways of life Have fun Experience the fjords Visit historic buildings/sites - Spend time with others 0% Experience local history and legends - Experience nature - Experience the mountains - Relax - Spend time with others - Have fun -1 Visit art exhibitions/museums - Experience the mountains -1 Relax - Visit national parks -1-1 Hiking (more than two hours) - Take part in a skiing course Sports activities (climbing, kiting, paragliding, etc.) -1 Experience nature - Peak walking -1 Fresh water fishing -1 Test my limits -1 Salt water fishing -1 Cross country skiing -1 Downhill skiing/snowboarding -1 Hiking (more than two hours) -1 Sports activities (climbing, kiting, paragliding, etc.) -1 Downhill skiing/snowboarding -2 Cross country skiing -2 Cycling -2 Visit national parks -2 Kayaking/canoeing -3 Cycling -2 Fresh water fishing -4 Visit amusement parks -2 Salt water fishing -5-40% % -20%% 0% 0 % 20% % 40% % 60% % 80% % 100% % -60% -40% -20% 0% 20% 40% 60% Daily expenditure of NOK 1,450 Norwegian holidaymakers. -60 % -40 % -20 % 0 % 20 % 40 % 60 % Daily expenditure of NOK 1,855 Foreign holidaymakers. * Only 2 of the Norwegian tourists said they planned to experience the Northern Lights. The Tourism Survey, Innovation Norway The Tourism Survey, Innovation Norway 30 31

Oslomarka, Skjennungen Terje Borud Visitnorway.com innovasjonnorge.no 5. Holidaymakers in MORE TOURISTS visited Norway in than in 2014, and the vast majority of them were very satisfied with their stay. At the same time, the average length of a holiday in Norway decreased slightly, the average age was higher, the share of first-time visitors increased, and both Norwegian and foreign holiday and leisure travellers undertook fewer activities than in 2014. Regardless of where the tourists come from, they would highly recommend a holiday in Norway to others. 32 33

Average holiday lasts one week The average length of a holiday in Norway was 7.1 days in, which is half a day shorter than in 2014. This means that the increase in commercial guest nights in is not due to the tourists staying longer, but rather that more people came to Norway compared with 2014. Stay length increased from many markets The reason for the reduction in average stay length in is that the average length of Norwegians holidays in Norway decreased from 5.6 to 5.4 days. There was also a decrease in average length of stay among tourists from large volume markets such as Sweden, Denmark, and some countries outside Europe, while British, French, American, German and Other Europe tourists stayed in Norway longer in. This means that a foreign tourist s average length of stay increased by over one day from 9.6 days in 2014 to 10.7 days in. Dutch and Germans stay longest Dutch tourists had an average of 16 guest nights on a holiday in Norway, while the average for German tourists was 14 guest nights. The French and Americans are also high on the list of foreigners who had a long holiday in Norway in. The average tourist is one year older The average age of people who holidayed in Norway rose from 47.6 years in 2014 to 49 years in. The age of the Norwegian tourists increased by more than one year, as did the average age of the foreign tourists. Both the Norwegian and the foreign holidaymakers were older, and the summer tourists were older than the winter tourists. While the summer tourists average age was 50.3 years, the winter tourists were over four years younger on average, which can be ascribed to skiing activities. Among the winter tourists, we also distinguish between people who come to Norway to ski and people who come to experience Northern Norway and the northern lights. The average age of ski tourists was 44 years, while the average age of Northern Norway tourists was 54 years. The age of the ski tourists is fairly similar across the markets, while there is much greater variation in the age of people who holiday in Northern Norway. Despite the more diverse age range, the average age in this group is still consistently higher per market than among the ski tourists. Summer season Average holiday tourist 50.3 years Norwegian: 50.1 years Foreign: 50.9 years Winter season Average holiday tourist 46 years Norwegian: 45.4 years Foreign: 47.2 years Length of stay Age Average number of guest nights Average age Average tourist Netherlands Germany France Average for foreign tourists USA Other Europe Countries outside Europe United Kingdom Denmark Norway Sweden 4,2 5,2 5,4 5,6 7,1 7,6 14,1 14,4 14,1 12,6 11,4 10,7 9,6 10,3 9,8 9,9 8,6 8,3 8,7 8 6,8 6,8 7,9 16,3 4 8 12 16 20 Days 2014 Average tourist USA Germany United Kingdom France Average for foreign tourists Netherlands Norway Sweden Denmark Other Europe Countries outside Europe 49 47,6 56,4 53 55,2 51 53,2 47,6 51,8 44,3 49,6 48 48,8 50,9 48,7 47,5 47,7 47,8 46,8 48,6 44,9 43,7 44,3 46,5 10 20 30 40 50 60 Years 2014 The results for are not directly comparable with those for 2014, as the sample population has been expanded to include Hurtigruten in. The Tourism Survey, Innovation Norway The results for are not directly comparable with those for 2014, as the sample population has been expanded to include Hurtigruten in. The average age applies to tourists over the age of 18 as children are not included as interview subjects. This means that any children in the travel party are not included when calculating averages. The Tourism Survey, Innovation Norway 34 35

Larger share of first-time visitors in Satisfaction with the holiday in Norway A good mix of first-time visitors and repeat visitors is a sign of a healthy tourism sector. In, 5 of the foreign holiday tourists had holidayed in Norway before, while 4 were holidaying in Norway for the first time. This is an increase of from 2014. Most first-time visitors were from countries outside Europe, and among the American tourists, there were more first-time visitors than in 2014. There were also more first-time visitors from Germany, while the share of first-time visitors from major markets such as Sweden and Denmark decreased. Fewest first time visitors from Denmark Some 9 of the Danes who holidayed in Norway in were repeat visitors. The majority of the Danes who visited Norway in came in the winter season. 8 of them visit Norway every third year or more frequently, they have an average age of 46 years and usually come to Eastern Norway for a skiing holiday. Tourists were very satisfied with their holiday in Norway in. The average satisfaction score was 8.7 on a scale from 1 10, where 1 is very dissatisfied and 10 is very satisfied. Improved results from many overseas markets On the whole, the tourists from most markets rated their holiday in Norway more highly than the tourists in 2014 did. British, American and Danish tourists in particular are more enthusiastic in, while Swedish and German tourists gave their holidays a slightly lower rating. Despite increased satisfaction from several markets, the average satisfaction score of 8.7 is unchanged from 2014. This is because two-thirds of all holidaymakers in Norway are Norwegians, and their satisfaction score was 8.7, unchanged from 2014. The Tourism Survey also shows that regardless of where the tourists come from, they would highly recommend a holiday in Norway to others. Americans would recommend Norway as a holiday destination to the greatest degree, followed by Norwegians, who would highly recommend a holiday here in Norway to others. First-time visitors Satisfaction Share of first-time visitors Average satisfaction Total foreign tourists Countries outside Europe USA France United Kingdom Other Europe Netherlands Germany Sweden Denmark 1 1 4 4 7 6 6 6 5 5 5 4 5 3 4 3 3 20% 30% 40% 50% 60% 70% 80% 80% 2014 First-time visitors Average tourist USA United Kingdom Denmark Norway Average for foreign tourists Other Europe France Sweden Countries outside Europe Germany Netherlands 8,2 8,4 8,4 8,4 7,8 8,0 8,2 8,4 8,6 8,8 9,0 9,2 8,5 8,5 8,5 8,5 8,5 8,5 8,6 8,6 8,6 8,6 8,6 8,7 8,7 8,7 8,7 8,7 8,7 8,8 8,9 9,1 2014 Satisfaction 9,6 10,0 The results for are not directly comparable with those for 2014, as the sample population has been expanded to include Hurtigruten in. The Tourism Survey, Innovation Norway The results for are not directly comparable with those for 2014, as the sample population has been expanded to include Hurtigruten in. The Tourism Survey, Innovation Norway 36 37

Fewer activities in The tourists who holidayed in Norway in undertook fewer activities than those who visited in 2014. Both Norwegian and foreign holidaymakers reported fewer activities when they were asked what they had done or planned to do on their holiday in Norway. Nevertheless, there were more Norwegian holidaymakers who answered that they intended to experience the fjords, experience the mountains, go fresh water fishing, go downhill skiing, and visit historic buildings and sites. When Norwegians holiday in their own country they generally want to relax, spend time with others, experience nature and have fun. Among the foreign tourists, there was an increase in the number of people who wanted to experience the northern lights, go dog sledding and go to concerts and festivals. There were also more respondents who said they wanted to eat local food and drink local beverages, visit historic buildings, experience the fjords and relax. Activities among Norwegian holidaymakers Activities among foreign holidaymakers Relax Spend time with others Experience nature Have fun Go to restaurants Eat local food and drink local beverages Shopping Experience the mountains Hiking (more than two hours) Participate in sports activities (climbing, kiting, paragliding, etc.) Visit historic buildings/sites Downhill skiing/snowboarding Experience the fjords Fresh water fishing Go to concerts/festivals Night life Cross country skiing Visit art exhibitions/museums Sightseeing Salt water fishing Cycling Visit amusement parks Experience local history and legends Peak walking Experience local culture and ways of life Test my limits Visit national parks Participate in sports events Kayaking/canoeing Experience traditions and national celebrations Experience the northern lights Visit theatres, ballet or opera shows Take part in a skiing course Drive a snowmobile Dog sledding 2 1 1 2 2 1 1 1 1 1 1 1 1 1 0% 2 3 3 3 3 3 4 4 4 4 4 4 5 5 2014 20% 30% 40% 50% 60% Experience nature Relax Experience the fjords Visit historic buildings/sites Eat local food and drink local beverages Have fun Experience the mountains Sightseeing Go to restaurants Hiking (more than two hours) Shopping Spend time with others Visit art exhibitions/museums Experience local culture and ways of life Visit national parks Experience local history and legends Participate in sports activities (climbing, kiting, paragliding, etc.) Experience the northern lights Salt water fishing Downhill skiing/snowboarding Experience traditions and national celebrations Go to concerts/festivals Peak walking Test my limits Cycling Kayaking/canoeing Night life Dog sledding Fresh water fishing Cross country skiing Take part in a skiing course Visit amusement parks Visit theatres, ballet or opera shows Participate in sports events Drive a snowmobile 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 4 4 4 4 4 4 4 4 40% 40% 3 3 3 3 3 3 5 5 6 6 2014 20% 30% 40% 50% 60% 70% The results for are not directly comparable with those for 2014, as the sample population has been expanded to include Hurtigruten in. The Tourism Survey, Innovation Norway The results for are not directly comparable with those for 2014, as the sample population has been expanded to include Hurtigruten in. The Tourism Survey, Innovation Norway 38 39

Satisfaction In addition to being asked about how satisfied they were with their holiday in Norway overall, the tourists were also asked to rate their satisfaction with various aspects of their holiday and whether they would recommend a holiday in Norway to others. Norwegian and foreign tourists agree on what makes a good holiday. What makes a good holiday In addition to how tourists evaluate the various parts of the holiday, it is also worth looking at how a good or poor evaluation of individual aspects affects the overall satisfaction. Analyses show that the dimension that has the greatest impact on overall satisfaction for Norwegian and foreign tourists alike is degree of hospitality. Satisfaction is explained 1 by hospitable locals. Other important aspects are good attractions and sights and good food and local specialities. Attractions and sites are slightly more important for foreign tourists, while for Norwegian holidaymakers, good food and local specialities has slightly greater significance. Satisfaction with various aspects of their holiday and whether they would recommend a holiday in Norway to others. What leads to good overall satisfaction The graph is sorted by the foreign respondents ratings. Foreign tourists Norwegian tourists Foreign tourists Norwegian tourists Recommend Norway as a holiday destination Overall satisfaction Trip planning The hospitality of the locals Travel in Norway 8,6 8,9 8,6 8,7 8,4 8,8 8,4 8,2 8,2 8,3 The hospitality of the locals Attractions and sights Activity options Travel in Norway 1 1 1 1 1 1 1 Attractions and sights 8,1 7,9 Access to good food and local specialities 1 1 Activity options Selection of package trips Access to good food and local specialities Price in relation to quality Price level 4,3 5,5 6,3 8,1 8,3 7,6 7,2 7,2 7,6 7,1 Satisfaction Price in relation to quality Trip planning Selection of package trips Price level 1 1 1 0,0 10,0 0% 1 1 1 1 The Tourism Survey, Innovation Norway The Tourism Survey, Innovation Norway 40 41

The Geiranger Fjord Terje Rakke/Nordic Life Visitnorway.com innovasjonnorge.no 6. Perceptions of Norway as a holiday destination FJORDS, MOUNTAINS AND NATURAL PHENOMENA top the list of things people associate with Norway. Innovation Norway conducts weekly surveys in Norway, Sweden, Denmark, the United Kingdom, Germany, the Netherlands, France and Russia, asking people about their perception of Norway as a holiday destination and likelihood that they will travel to Norway on holiday. Among other things, the respondents are asked to write down the first thing that comes to mind when they think of Norway as a tourist destination and holiday experiences in Norway. They are then asked to give their opinion on a number of statements related to holidaying in Norway. Scenic Norway The strongest association that most people have to Norway is fjords. Many people associate Norway with nature, fjords, mountains, cold and the northern lights. Many people also think of Norway as being a good place to pursue outdoor activities. Improved ratings for city life, culture and history In, more respondents agreed with the statement that they could experience interesting culture and history on a holiday in Norway. There were also more people who agreed that Norway is a place to experience exciting city life. More people regard Norway as a place for good food and local specialities than in 2014. At the same time Norway got a higher rating as a country with spectacular scenery and good opportunities to experience natural phenomena such as the midnight sun and northern lights, as well as offering excellent skiing, hiking and cycling. 42 43