Lapland tourism surges as Apukka warns growth could drive customers away

Lapland’s tourism industry is growing rapidly, but Apukka Resort’s chief executive says a decline in service quality could drive customers away, Yle reports. The resort’s revenue has increased more than fivefold since 2022 to about 27 million euros.

Apukka Resort, located in Rovaniemi, expects its revenue to exceed 30 million euros this year. Its EBITDA, a measure of profitability, is about 50 percent, a level achieved by few companies.

The resort has invested millions of euros in new igloos this year. Its largest investment to date has produced 35 new igloos and two restaurants.

Apukka targets international tourists who expect a high level of service rather than young backpackers. Most of its customers come from outside Europe. The largest group arrives from the United States, followed by visitors from Australia and, in Europe, the United Kingdom, Italy and Germany.

Competition for tourists is intensifying, with several tourism projects currently planned in the Rovaniemi region. Apukka chief executive Harri Mällinen welcomes the stronger competition, but says rapid growth could harm service quality.

“That is my biggest fear at the moment. If the quality does not remain good, it will reduce customers’ interest in Lapland,” Mällinen says.

Apukka Resort received a new owner more than a year ago when Sweden-based First Camp Group bought all of the company’s shares. First Camp operates 90 campsites and holiday villages in the Nordic countries, Germany and Switzerland.

Mällinen says cooperation with the new owner has proceeded as agreed and that Apukka has retained operational independence. The main difference is that financing now comes through a different channel, he says.

Apukka marketing director Kaisa Heiskari says the resort operates independently and that the new owner does not interfere in its daily work or instruct it on how to organise tourism. Investments and sales are nevertheless reviewed jointly with the owner.

The resort is now planning investments only one year ahead, compared with three to five years under its previous ownership. Mällinen says the company must closely monitor global events because of the international nature of its business.

International tourism’s sensitivity to global crises became clear last spring when the war between the United States and Iran began. Apukka’s customer numbers fell after airports in the Middle East that had served as transit points were closed.

“It was immediately visible. We in Lapland are not safe from turmoil in the world,” Heiskari says.