Costs and benefits of environmental change in Arctic tourism: the industry's perceptions and responses to changes in northern Finland

In tourism, research has aimed to establish the impacts of environmental change among tourism businesses. Especially the perceived costs of climate change have been increasingly studied. However, the interplay between costs... [ view full abstract ]

In tourism, research has aimed to establish the impacts of environmental change among tourism businesses. Especially the perceived costs of climate change have been increasingly studied. However, the interplay between costs and benefits resulting from changing environmental conditions for the industry has been less scrutinised. This paper identifies the locally observed changes in the natural and socio-economic environments and aims to analyse the financial costs and benefits of environmental change to tourism businesses in two tourism-dependent communities in northern Finland. The specific focus is on adaptation, which is understood as an investment creating not only implementation costs but also benefits. The data was collected through interviews and survey from local tourism businesses. The results indicate that the evaluated current benefits of environmental change exceed those of costs conforming to the ongoing discourse of climate change – tourism -relations associated with the Arctic region. The results can help to identify the most vulnerable sectors in tourism and assist entrepreneurs preparing for environmental and climate change. However, the paper concludes that while global environmental change, with suitable adaptation strategies, may create short-term benefits, a long-term sustainability of tourism in the Arctic depends on local and global responses to climate change.