Rovaniemi mayor proposes curbing short-term rentals

Rovaniemi’s new city manager, Joonas Hänninen, has proposed banning short-term rentals in new developments to ease the city’s housing shortage, Yle reports. More than 5,000 homes in Rovaniemi currently lack permanent residents, largely because they are used for short-term rentals.

Hänninen discussed the issue at a public meeting on Thursday, where residents also raised concerns about the city’s focus on tourism, young people moving away after completing their studies and potholes in the roads.

He said Rovaniemi should direct accommodation investment towards hotels and resorts offering cabin accommodation. This would shift more overnight stays towards professional accommodation and reduce pressure to use permanent homes for short-term rentals, he said.

Hänninen also said the shortage of affordable rental homes was partly linked to state support for reasonably priced housing construction being concentrated in the Helsinki metropolitan area.

He said he wanted tourism to become a year-round industry. In his view, this would bring more residents to the city, strengthen its tax base and leave more tourism revenue with the local community.

Several dozen residents attended the meeting outside Rovaniemi’s main library. After an initial formal interview, Hänninen joined the audience for a group photograph before residents were invited to speak.

One resident criticised the city’s focus on tourism, saying the Arctic city had been turned into a marketplace for Santa Claus and that all its efforts had been placed in one basket. She asked whether Rovaniemi could attract a hydrogen industry.

Hänninen replied that Kemi would be a more likely location for hydrogen industry. Such projects are generally built near biogenic carbon dioxide, forestry industry hubs and ports, he said.

Juhani Uosikkinen, who attended in a wheelchair, asked the city to level potholes in the roads each spring while taking people with reduced mobility into account. Hänninen said the city had a substantial maintenance backlog and a large investment programme that would require new sources of funding.

He suggested that a possible future tourist tax could be used to improve infrastructure.

Student Aukusti Myllynen said he was concerned that Rovaniemi could not retain students after graduation. Hänninen said the city needed to create jobs, housing opportunities and an enjoyable range of leisure activities.

Viktoriia Chuhova, who came to Finland from Ukraine, thanked the city for providing her with a place to live. Hänninen welcomed her to Rovaniemi.

Hänninen became Rovaniemi’s city manager after previously holding the same position in Varkaus. He began his new job at the start of August.

He has said that Rovaniemi’s business friendliness can be improved through closer dialogue with entrepreneurs and companies. Hänninen considers the city’s financial situation good, but said its large investment programme was a concern. Investments should focus on strengthening the city’s vitality and creating jobs, he said.