Norway is experiencing a surge in tourism in 2024, aided by the weakening value of the Norwegian kroner. What has previously been known as one of Europe’s most expensive countries, Norway is recording an increase in visitors from countries such as China, the United States, Germany, the Netherlands, and neighbours Sweden and Denmark, with the summer months of June to August being typically the busiest time.
Since the year began, the Norwegian kroner (NOK)/US Dollar (USD) comparison has dipped 5.85% whereas against the euro, the kroner has seen a decline of 4.84%. For a country known for its many outdoor adventure activities, the Norwegian tourist experience has suddenly become an accessible option for many more travellers.
Online sales are showing that the most popular endeavours sought by tourists are package holidays, with activities such as hiking, kayaking in the fjords and trips to view the Northern Lights during the winter. Following Norway’s increased investment in sustainable tourism, the country is attracting many eco-conscious travellers, creating a rise in demand for polar bear expeditions, whale and bird watching.
Norway’s travel and tourism market is expected to generate a revenue of $4,682 million (€4,291 million) in 2024, according to Statista. Furthermore, a 3.03% annual growth rate is predicted between 2024 and 2029, leading to a potential market value of $5,436 million (€4,977 million) by 2029.
One of the reasons for the currency’s depreciation is largely due to its sensitivity towards oil and gas prices, particularly as a nation that depends significantly on these commodities. The demand for petrol is declining and oil industry share prices are losing value, which in turn is taking a toll on reliant countries such as Norway.
“The krone’s recent weakness is down to two main factors. The first one is a rapid deterioration in investor risk appetite, and the second one is quicker-than-expected falls in Norwegian inflation,” said Kyle Chapman, forex market analyst at Ballinger Group.
Given the recent fall, Norwegian authorities are upping tax rates on areas such as wealth and exit tax for billionaires looking to leave the country. It’s also rumoured that inheritance tax may be reintroduced.
