An increasingly weaker krona can make a holiday abroad more expensive for Swedes. But for those who want to travel to Sweden, it is the opposite.

In these expensive times, the cheap Swedish currency is something that can attract more tourists, the industry hopes.

There is an old image that persists that things are expensive in Sweden, according to Susanne Andersson. She is CEO of Visit Sweden, which markets Sweden as a travel destination.

But that's not really true anymore. Sweden may not be the number one low-cost country, but it's still a pretty affordable alternative, she says.

Among other things, because the kronor of our closest neighbors Norway and Denmark is stronger than the Swedish one. The Danish kronor is currently worth close to 1.5 kronor. The Norwegian one, on the other hand, has lost some weight, and one Norwegian kronor is currently worth 1.06 kronor.

– It is clear that when they (editor's note: Norwegians and Danes) account for a large part of international travel, the Swedish krona becomes very important. After the pandemic, the Danes have been one of the countries that started traveling again the fastest. Here, the currency has played a role in starting it all, says Susanne Andersson.

The famous ice hotel in Jukkasjärvi has been used in Visit Sweden's marketing to highlight northern Sweden for foreign tourists.

According to the hotel's CEO Marie Herrey, there is increasing interest from abroad, especially from the USA and the German- and French-speaking parts of Europe. Around half of the hotel's visitors are from abroad.

– The fact that the krona is weak has certainly been a contributing factor, but at the same time the worst of the pandemic is probably over and many may have postponed their trip for a couple of years, so now is the time to take advantage, she says.

However, it is a very uncertain situation right now, emphasizes Thomas Jakobsson, chief economist at the tourism industry's trade organization Visita. It is not only in Sweden that most households are under pressure financially, which is not good for tourism in general.

– At the same time, the falling currency can be an airbag. The most interesting group for Swedish winter tourism is Norwegians, who account for around 20 percent of the hotels' guest nights. The Norwegian krone has strengthened against the Swedish one, and even though it is not a huge difference, it can still play a role on the margin – especially along the Norwegian border, he says.

That's something that Therese Sjölundh, CEO of Destination Åre, agrees with. For the ski resort of Åre, which is located close to the Norwegian border, around a quarter of the guests are international. Around half of them are from Norway.

– Our basic target group is still the Swedish guest, but for the international target group there is a potential for there to be more international guests this year due to the krona and because people can travel here again, she says.

Thomas Jakobsson also believes that the weaker krona could also benefit domestic tourism this winter, when more Swedes who would otherwise have gone to the Alps on a ski trip instead choose to stay home. The krona has also lost value against the euro. One euro now equals 11 kronor.

“I think that will be the big effect,” he says.

Overall, however, tourism may decline when some Swedes may go from vacationing in Sweden to not vacationing at all, according to Thomas Jakobsson.

Visit Sweden is already seeing an upsurge in interest in Sweden as a destination, but whether this is an effect of the krona's loss in value is uncertain. Sweden has, together with Iceland, for the first time ever emerged as one of the most interesting travel destinations for the American market. Previously, it was Norway and Denmark.

At the same time, price increases, and more specifically electricity prices, have begun to be used by countries in their marketing to tourists. Earlier this week, it was reported that Spain and Greece are trying to attract pensioners to northern countries this winter by promising that they will save money by avoiding expensive electricity bills at home.

The fact that the weaker krona can be used as a marketing ploy to make Sweden stand out in expensive times may be something to think about, believes Susanne Andersson.

– Now many people are fighting for the same customer groups and then you have to think about how you can be a little better.

Loss on a broad front for the crown

1 euro costs 11 kronor. A year ago 10:01 kronor

1 dollar costs 11:31 kronor. A year ago 8:64 kronor

1 Norwegian krone costs 1.06 kronor. A year ago 1.02 kronor

1 Danish krone costs 1.48 kronor. A year ago 1.35 kronor

Exchange rates from the foreign exchange market on October 14

Source:SvD-TT.SE