Rovaniemi City Council cuts funding for Visit Rovaniemi amidst budget review

Friday 1st November 2024 on 06:44 in Finland

travel

During a recent meeting, the Rovaniemi City Council discussed the Mayor’s budget proposal for the upcoming year alongside the financial plan for 2026-2028. Unfortunately, the meeting did not yield positive news for Visit Rovaniemi, the city’s tourism marketing company. Council member Riku Tapio proposed cutting the funding for the Council’s service contracts and consultancy services by €200,000, which was approved with a vote of 8-3.

This cut effectively reduces Visit Rovaniemi’s funding, which currently totals €700,000, posing a significant challenge to its operating budget. The issue echoes sentiments expressed last spring by the leftist group in the City Council, which even suggested completely eliminating Visit Rovaniemi. At that time, Susanna Viitala, the Chair of the City Council, had tempered such thoughts but now acknowledges the necessity of budget cuts.

Despite these challenges, Rovaniemi’s tourism is on a robust upward trajectory, particularly in air travel, with last year’s airport passenger numbers reaching 738,003 and expected to grow by 10% this year. Increasingly, the region is also appealing to individual travelers rather than groups, which presents higher marketing costs, according to Sanna Kärkkäinen, CEO of Visit Rovaniemi.

She emphasizes that cutting funding during a critical time for promoting summer tourism, which requires substantial investment, seems misguided. Alongside local entrepreneur Rami Korhonen, who underscores the need for strategic investment in the seasonal market, both assert the importance of marketing to ensure sustainable growth amidst changing travel dynamics.

The fate of Visit Rovaniemi’s funding now rests in the hands of the City Council, which is set to review the budget proposal on November 11.

Source 
(via yle.fi)