There will be economic ripple effects of SKREI. SKREI wants to achieve 100,000 ? 120,000 visitors per year. Menon Economics has conducted an economic ripple effect analysis. Based on the following, SKREI will result in a consumption growth in the region worth NOK 43.6 million per year:
- 5% of visitors to SKREI choose to holiday in the region because of SKREI
- 30% of visitors to SKREI will spend 5 hours longer in the region as a result of visits to SKREI
- 65% of visitors to SKREI do not extend their total stay in the region even though they visit SKREI
If the percentage distribution used as a basis changes, the effect will change.
Basis for calculating economic value added
5% would have chosen another destination if SKREI was not realised. Daily consumption NOK 1660 per day *, average length of stay 2.5 days.
30% stays 5 hours longer in the region and consumes an average of NOK 70 per hour*.
The turnover from these tourists provides the basis for value creation and employment in the following industries:
- Merchandising
- Transport
- Serving
- Night
- Experiences
The ripple effects are estimated at an estimated growth in the tourism industry in the Lofoten and Vesterålen region of NOK 43.6 million
(*based on the Tourism Survey for Northern Norway 2018 (Innovation Norway) and an assumed distribution between leisure travellers and business travellers of 85/15 and the amount is CPI-adjusted to 2023 NOK)
Other spin-off effects and value creation
In addition to the direct economic ripple effects, SKREI also creates other values (Menon Economics report, page 11)
- “SKREI will contribute to increased awareness and knowledge of the importance of fishing for Norway.”
- “SKREI contributes to a broader range of activities in the region” (most of the tourism in Lofoten and Vesterålen is currently linked to nature-based activities).
- “SKREI, with its proximity to Svolvær and modern and suitable premises, will be able to strengthen the region as a course and conference location.”
- “One can assume that SKREI will be positive for the tourism brand (Lofoten, our note) and for the seafood industry. SKREI becomes weather independent.”
There will be economic ripple effects of SKREI. You can read the full report here (Norwegian only. Please contact us if you need further information)