Ähtäri faces €7.6 million write-off as tourism companies struggle

The city of Ähtäri has been forced to write off a staggering €7.6 million in sales and loan receivables from its tourism companies, resulting in a substantial budget deficit of €2.6 million. With the departure of giant pandas, the annual costs previously amounting to approximately €1.5 million will no longer burden these companies. However, the city still faces challenges in stabilizing its finances.

Minna Punakallio, the chief economist for the Municipal Association, is well aware of Ähtäri’s situation. She highlights the need for adjustments but notes the difficulty in identifying where cuts can be made. Currently, Ähtäri is not in crisis management, though Punakallio doesn’t rule out the possibility in the future, suggesting that such a process could be beneficial. “Crisis management provides constructive and affordable consulting assistance, with experts coming in to help municipalities,” she noted.

Previously, Ähtäri has undergone crisis management twice, implementing severe budget cuts. The city’s financial situation was precarious even before the pandas arrived, and their presence was not the relief officials had hoped for.

Punakallio believes that some form of adjustment is necessary, typically meaning cuts to services such as schools. Presently, Ähtäri’s cultural and educational spending per capita stands at €2,200, which she considers low compared to the national average.

She also points out that previous financial burdens have intensified, stating that problems have compounded over time. Financial adjustments are essential for the city to maintain its autonomy. While Ähtäri’s situation is unique with its pandas, similar challenges are being faced by many municipalities, particularly regarding vacant social service properties that incur additional costs.