– It has never looked darker – E24

On October 20, a new crisis package of NOK 1.4 billion was presented to Norwegian tourism, but there are still major concerns about how the industry will fare in 2021.

In particular, the government’s new crown measures, recommending everyone to avoid unnecessary domestic travel and stay at home as much as possible, make things worse for tourism.

Virke Reiseliv’s Astrid Bergmål is concerned that more companies will not be left with sufficient funds to pay bills that arrive in January.

– It has never looked darker. We are very concerned that many will be smoking when January rolls around, and there is a danger that more people will go bankrupt by spring of next year, he tells E24.

– When we have more restrictions, it is very similar to March and April, but the big difference is that in March tourism had equity that they could consume.

Now the situation is completely opposite, according to Bergmål.

– Everyone is already on the brink, everyone is fighting for bankruptcy, many have been laid off and are in the process of being laid off, and then you get this too?

– This makes the need for financial aid even greater now than in March, says Bergmål.

Bergmål believes that the lack of predictability makes it difficult to raise funds even for “healthy” companies.

– Our assessment is that tourism faces the most difficult year in history, due to the backdrop that is taking place this year, says Astrid Bergmål in the organization.

Needs clearer feedback

Stephen Meinich-Bache is the CEO of Classic Norway Hotels, a hotel chain that operates 18 small and large hotels from Grimstad in the south to Lofoten in the north.

– The world changed a bit on Thursday. When Erna encourages people to stay home, it affects us and everyone in the tourism industry, Meinich-Bache says.

He experiences, in line with Bergmål, that one of the biggest challenges in the industry is a lack of predictability, making it uncertain what to expect and believe in the future.

– I wish there were clearer comments on the alternatives for us in the industry, he tells E24.

The hotel chain itself has received compensation for the spring and summer.

– First of all, we do not want to depend on this compensation scheme, but there is some uncertainty as of January for several of our hotels, he says.

It can go against layoffs

When the layoffs expire in March, he thinks they face a big risk depending on how the market will develop.

– The greatest activity does not begin until mid-May, and if we do not catch during that period, we must go to layoffs, he says.

Meinich-Bache sees demanding decisions at the political level, but believes the costs could be enormous if politicians do not act.

– If we don’t make the right moves now, we run the risk of having an industry that has been on its knees for many years.

– Reconstruction will take many, many years, says Meinich-Bache.

Peak season can smoke

Oddrun Glad at Anker brygge in Svolvær tells E24 that they too are excited about how winter will unfold.

– Lofoten season in February and March is normally high season for us. There is a danger that it will now smoke if we don’t stop the second wave, he says.

She says the entire industry is struggling with the delay in lost business during the pandemic, and that although the small accommodation in Lofoten has been fixed so far, the current fixed cost support scheme is not enough.

– For the industry to remain open and survive this crisis, more resources and more long-term thinking are needed, he says.

Depending on foreign tourists

Lyngen Adventure, which offers both experiences and accommodations at Aurora Fjord Cabins in Lyngen, among other places, often relies on international tourism during the winter months.

The business has exited the state support scheme and although the summer exceeded expectations, they are worried about the winter.

– If it doesn’t open for international travelers, which we doubt will happen in 2020, we will miss much of the Northern Lights season, which is entirely dependent on international tourists, says Mads Harald at Lyngen Adventures.

According to figures from the World Tourism Organization (UNWTO), international tourism fell by 70 percent in the first 8 months of 2020 due to the virus.