1.5 Improving the infrastructure of tourism areas.

Many tourism areas are located in remote, sparsely populated regions, in many of which the tourism business is seasonal. Most staff employed by the business do not live in the region permanently and thus do not pay taxes on earned income there. This undermines the possibilities tourism areas have of constructing essential infrastructure based on their own tax revenues. Financing must be arranged from external sources.

The operational preconditions of tourism businesses can be improved by promoting investments in the infrastructure of tourism areas, which would not distort competition between enterprises. These include investments in transport connections, sanitary engineering, roads, enhancing energy efficiency and recreational areas. Moreover, financing for the establishment and maintenance of national parks, and of trekking and snowmobile routes, is vital to the success of tourism businesses.

2. Reinforcing the image of finland as a tourist destination

Reinforcing the image of Finland as a tourist destination will enhance Finland’s brand and make Finland an increasingly attractive and popular venue for tourists. This strength will be supported by the right kind of international publicity. Four Cs form the core of Finland’s country-specific brand of tourism: Finland has credibility as a tourism country, it is a nation of positive contrasts and creativity, which make it seem pleasant, relaxed and up to the minute, while also being clean and fresh, i.e. cool. The Finnish Tourist Board is responsible for leading and coordinating efforts to strengthen Finland’s image as a tourist destination.

2.1. Strengthening tourism marketing.

The Finnish Tourist Board is responsible for marketing Finland internationally as a tourism destination. International customers’ share of Finland’s tourism consumption came to EUR 3.1 billion in 2007. Such customers contributed some 800 million euros to the Finnish government in the form of various tax revenues and created around 18,000 man-years of employment for Finland. As a consequence of the change in Finnish Tourist Board operating methods, allocations from public funds decreased from 16.2 million euros in 2008 to 9.8 million in 2010.

2.2. Enhancing Finland’s international visibility

Alongside visibility in international media and exploitability as a travel destination, large international events are a key method of increasing Finland’s attractiveness, and general awareness of the country. The influence of major projects lasts substantially longer than the events themselves. Participants in major events, and smaller congresses, meetings, incentive trips and events also increase leisure travel flows.

3. General industrial policy starting points

Through its industrial policy, the Government creates the operational preconditions required to ensure the tourism industry’s international competitiveness.

3.1 Development of taxation.

3.1.1 Value-added tax and other taxes on consumption

Every year, the tourism industry pays two billion euro in value-added tax (2009). Value added tax rates have a major impact on Finland’s international competitiveness in tourism.

Value-added taxation and other taxes on consumption must be maintained at a level which is competitive on a European scale. Value-added tax increases must not be allowed to undermine the international competitiveness of the tourism industry.