– It costs too much to stay open – E24



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Tourism in northern Norway feared losing large sums of money during the “Norwegian summer”. Instead, it was a record month for several of the companies. Now, however, the time of darkness has come in full force.

After a summer with new records, darkness has settled over Lofoten. The absence of tourists has caused more people to close their doors this winter for the first time.

Hanna Kristin Hjardar / E24

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When E24 met the Lofotmat restaurant’s chef de cuisine, Siv Hilde Lillehaug, in May, she and the rest of Lofoten prepared for a ‘Norwegian summer’.

– We have never experienced so much pressure before. During the summer season, we tend to have full reservations a day or two in advance. In July, it was fully booked a week in advance. It was a new situation for us, Lillehaug tells E24 in December.

Chef Siv Hilde Lillehaug says the absence of tourists on the streets is not a sufficient basis to keep the restaurant’s doors open.

Hanna Kristin Hjardar / E24

Trygve Steen at XX Lofoten Activity Company also had a lot to do.

– I admit that it was much better than I feared this summer, he says and laughs when E24 calls him in December.

– Compensation for loss

In March, the Lofotmat restaurant in Henningsvær had to close its doors for the first time. Prospects for the future were bleak and the region was preparing to lose huge sums due to the absence of foreign tourists. But it didn’t get so dark.

Never before had so many people visited Lofoten in July, where 136,340 guest nights were recorded. There is a slight increase compared to last year, where 135,058 overnight stays were recorded in Lofoten in July, according to Destinasjon Lofoten.

– With a 132 percent increase in nights for Norwegian guests, this made up for the loss of foreigners, and a little more, says Lofoten tourism manager Line Renate Samuelsen.

This led to July becoming a “record high” for the restaurant.

Then fall came and it was black.

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– It costs too much to keep open

In recent years, Henningsvær has grown from a small fishing village with peak season in the summer months to a year-round tourist destination.

Therefore, the Lofotmat restaurant has also been open throughout the fall and winter to welcome tourists waiting to see the Northern Lights in the dark.

E24 visited the Lofotmat restaurant in May this year.

Hanna Kristin Hjardar / E24

This fall, Lillehaug had to close the restaurant after the Norwegians went home after a long summer vacation.

– We have been closed for part of the fall, including all of October. At the same time, we are usually closed on Monday and Tuesday, but this time we only open the doors on weekends, he says.

– It costs too much to stay open.

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Close the doors

In 2008, Ola Skjeseth took over the operations of Svinøya Rorbuer, a fishing village on a small island in the port of Svolvær with 40 fishermen’s huts and another ten houses on Svinøya.

Last year, the company made a profit of NOK 6.5 million. However, this year it will not be a plus.

Ola Skjeseth, Owner and CEO of Svinøya Rorbuer.

Hanna Kristin Hjardar / E24

– The situation became very critical after the summer ended and the Norwegians returned home, says Skjeseth.

During the summer, the fisherman’s owner was able to report an overwhelming six weeks, where in July they saw a 20 percent turnover growth compared to the same period in 2019.

Although the number of overnight stays did not increase significantly, it was the high consumption of Norwegians that helped set records for Svinøya rorbuer.

– We sold for 100,000 kronor extra in July in wine alone, says Skjeseth.

The extra crowns are not enough to make up for a whole year of losses. Fishing, mountain hikes and especially the Northern Lights are what often attract tourists to Svolvær during the winter months, but they are not traces of this year.

– The winter season is often a peak season for us, with a regular 100 percent occupancy. Now, however, there is an activity closer to zero.

Therefore, Skjeseth has made the difficult decision to shut down Svinøya Rorbuer until February 15, for the first time in 15 years.

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– A slap in the face

During a typical year, Svinøya Rorbuer experiences roughly 40,000 guest nights, with more than half of the activity taking place during the months of September to May.

– This is also the reason why we have managed to create a company that works all year round, and the fact that we now have to close this winter is a slap in the face, says Skjeseth.

Ola Skjeseth took over the Svinøya Rorbuer operation in 2008, after starting as a “cleaner” in the fishing village in 1993.

Hanna Kristin Hjardar / E24

So far, the company has laid off 10 of the 20 employees, while others have been relocated or taken the hammer away to contribute to the company’s redevelopment project.

– Fortunately, Svinøya is a solid company with good capital on the books, so we managed. We have applied for restructuring funds and he has helped us a lot with the restoration of fishermen’s houses and cabins, he says.

– We are very optimistic about the future.

If the situation changes during the winter and there are more orders, Skjeseth does not hide the fact that Svinøya Rorbuer may open a little earlier than planned.

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A different Christmas celebration

At Restaurant Lofotmat, four of the five employees have been laid off. Only Lillehaug remains, while the apprentice has been relocated to continue the study of the subject of food.

On December 20, the restaurant also closed its doors for this year, and will remain closed until February.

– It has been a slightly different Christmas celebration this year, where we have had to save on all costs, says Lillehaug.

On New Year’s Eve there is usually a good crowd at Restaurant Lofotmat, with nationalities from Asia and North America, among others.

Hanna Kristin Hjardar / E24

During Christmas in space, the tables are often packed with foreign tourists who have reserved tables in advance. This year, the restaurant had only received two inquiries on New Year’s Eve.

– Of course we will be open to groups who want to come to us and pre-order, but unfortunately we have to be extremely tough and focus on costs, and keep them as low as possible in order to weather the storm, says Lillehaug.

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He stays still on the dock

After a July in sight, the activity was doubled over the fall for the XX Lofoten activity company.

The absence of tourists who wanted to participate in gooseberry safaris, fishing and trips to the summit became too great, and in the end he said to stop.

– Now in the Christmas space, the numbers are usually small, so we tend to stand on the pier. We’ve been doing this since November, says Trygve Steen.

In reality, Trygve Steen was supposed to spend the winter months with fishing-loving tourists who wanted to experience the cod season in Lofoten.

Hanna Kristin Hjardar / E24

From January to April, cod fishing is usually among the most attractive activities the company offers. Now it seems that the ship must also be attached to the dock for several of these months.

– We cling to the naive hope that it will loosen in March, but we hope that January and February will pass smoothly. Maybe we can dare to wait for an impression after Easter, he says.

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– Corona offers us little more than challenges

– This is not a pleasant thing for the tourism industry, where many have lost the base to live, says E claim Holst in Destination Lofoten.

The former mayor (H) of Vågan municipality says that although there has been a compensation plan, it is not sufficient as a basis for creating activity in the area.

– Corona simply gives us very little more than challenges, as is the case in all industries, he says.

Evid Holst is Chairman of the Board of Directors of Destination Lofoten.

Hanna Kristin Hjardar / E24

Even though darkness has settled over Lofoten, there is still some activity in the area, to the extent that infection control allows. Holst, on the other hand, emphasizes that it is challenging to make money from this.

– We hope that Norway will get a vaccine and hopefully we can improve and accelerate the industry after Easter.

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