The tourism sector was hit by a sudden and drastic drop in demand in 2020 due to the coronavirus pandemic. Tourism consumption in the country decreased by 38 percent in 2020 compared to the previous year. The consequences were reduced employment and a reduced contribution to the economy. This is shown by a new report from the Swedish Agency for Economic and Regional Growth.
– The lack of tourism from abroad is what has hit us the hardest. When our neighboring countries closed their borders, tourists stayed home. From Norway, which is normally our largest foreign market, almost 90 percent of tourists disappeared, says Kristian Seth, Head of Analysis at the Swedish Agency for Economic and Regional Development.
Tourism's share of GDP fell to 1.6 percent
Tourism's contribution to the economy, measured as a share in relation to GDP, has been between 2.4 and 2.7 percent during the years 2015 to 2019. In 2020, it fell to 1.6 percent, which corresponds to a decrease in tourism's value added of 33 percent compared to the previous year, calculated in 2020 prices.
The average number of people employed in tourism decreased by 9 percent
In 2020, the average number of people employed in tourism was just over 123,000, a decrease of almost 9 percent compared to the previous year. Tourism has been one of the hardest hit sectors during the pandemic. The crisis has hit hard on industries such as hotels, restaurants and parts of trade, which are important sub-industries within tourism.
– The pandemic has thrown the distribution of resources within the economy, not least in terms of labor. Many people left the most affected industries to look for other jobs during the crisis. Now there is a rapid recovery in the service sectors and it is important to find staff again. This may mean that companies in the hospitality industry will have difficulty with the supply of skills for a period to come, says Kristian Seth, Head of Analysis at the Swedish Agency for Economic and Regional Development.
Recovery during the summer of 2021
During the summer of 2021, the tourism industry has gradually recovered. The number of guest nights increased in all counties compared to the corresponding period the previous year. Stockholm County had the largest relative increase, followed by Kronoberg County and Västerbotten County. The number of guest nights in Stockholm County increased by 69 percent compared to the summer season in 2020. Kronoberg County had an increase of 58 percent and Västerbotten County by 52 percent compared to the summer season in 2020.
In many counties, guest nights were even more than before the pandemic.
Read more about summer tourism 2021 here
Source: Swedish Agency for Economic and Social Development
