Imatra struggles with steep decline in tourism following border closure with Russia

Five years ago, Russian tourists frequently flocked to the center of Imatra, a city with specialized shops rarely found in similar-sized towns in Finland. Today, the downtown area is quiet, with only a few people strolling along the main street. Many storefronts now stand empty, as businesses have closed one after another. The windows of the Koskenhelmi shopping center are covered with curtains.

Located just a few kilometers from the Finnish-Russian border, Imatra has experienced a dramatic decline in visitors. Before the COVID-19 pandemic, hundreds of Eastern tourists visited the city daily, with approximately 612,000 Russians arriving in 2019 and contributing around 88 million euros to the local economy. The complete closure of the border at the end of 2023, due to Russia’s ongoing military actions, marked a significant blow to tourism.

Walking through the downtown, one can see the sorrowful state of the once-bustling Koskenpata pedestrian street. An office building is being demolished, and the iconic Väärätalo, which previously housed a hotel and stores, has been vacant for years, deteriorating under the ownership of a Danish real estate investor.

The newer Koskentori shopping center, owned by the city’s property company, is struggling as major retailers like Kappahl and H&M have left. Many smaller businesses throughout the area are also closing. According to local development company CEO Antti Oravuo, the city is facing an economic crisis, heavily impacted by the reduction of purchasing power after the border’s closure.

Additionally, the recent closure of the Intersport store is another indication of the economic decline, with owner Markus Hämäläinen highlighting the loss of customers. Restaurant owner Kiril Georgiev also notes that even Finnish patrons have decreased, attributing the downturn to the pandemic and the war.

Despite the challenges, colorful shops like VirQ by Virkkukoukkunen offer a glimmer of hope, as entrepreneur Tiina Kärkäs-Sund remains optimistic about Imatra’s future, leveraging online sales to support her brick-and-mortar presence.