The COVID-19 pandemic has hit the tourism industry exceptionally hard, shows Visit Greenland’s new tourism statistics report. In 2020, 70 percent fewer land-based tourists visited Greenland, and no cruise tourists came to Greenland at all. In April 2020, the Bank of Greenland estimated (article in Danish) that an 80 percent decline in tourism in 2020 would result in an economic loss for the community of 450 million Danish Kroner. Since the actual total decline in tourism is at least 70 percent, this means that the community has lost an amount in the area of 400 million Danish Kroner in 2020.
Due to the strict entry restrictions for people living outside the Kingdom of Denmark, the large majority of Greenland’s tourists in 2020 were Danes, although the industry also experienced a decrease of as much as 46.3 percent fewer Danish tourists compared to the previous year. For tourists from countries outside the Kingdom of Denmark, the decline was between 70 and 90 percent, and on the flight route from Iceland to Ilulissat there were 97 percent fewer passengers in 2020. Many of the Danish tourists were business travelers who traveled to Nuuk to meet with companies or representatives from the Greenlandic Government, and, therefore, the airport in the capital made it a little better through the crisis, while the destinations on the coast were hit even harder.
“The statistics show how differently destinations were hit. The flight route to Iceland was completely shut down and is still closed, and this deeply affects the places that are dependent on the connection to Iceland for tourists, ”says Visit Greenland’s director, Hjörtur Smarason.
Visit Greenland’s tourism statistics report is based on data from Statistics Greenland and surveys conducted among tourism operators and Greenlandic residents. The full report can be read here.
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In 2019, before COVID-19, 725 people were employed in the tourism industry in Greenland, and the industry had a turnover of around 400 million Danish Kroner. In the surveys, 25 percent of tour operators answer that they have had to lay off permanent employees as a consequence of the pandemic, and 55 percent lost between 50 and 99 percent of their revenue for 2020.
“The tourism industry generates jobs and supports economies out on the coast and in the settlements. We estimate that the community missed out on about 300 million Kroner from international tourists last year due to COVID-19. We will only have a complete overview of all the consequences for companies once the tourism industry starts up again,” says Hjörtur Smarason.
Visit Greenland does not currently have data on how many Greenlandic tourism operators have had to close down due to the COVID-19 crisis.
The report shows that the cost to the tourism industry would have been even greater if the operators had not received aid packages, and no staycation packages had been offered. The increased staycation trend led to 11.8 percent more Greenlandic guests in accommodations during the summer high season.
“The Nunarpuat Nuan campaign, as well as the Government’s support through discounting staycation packages, have been of great importance. This does not replace international tourists, except in a few special cases, but it may be what is needed for many companies to survive the crisis,” explains Visit Greenland’s director.
Visit Greenland, together with the industry, is in the process of launching initiatives that will recreate an international demand for Greenland as an adventure destination. The goal is that, already in 2022, there will be 100,000 tourists a year who set their paths for Greenland.
Hjörtur Smarason – for general inquiries
Managing Director – Visit Greenland
Mobile: +45 22 80 14 16 / +299 27 99 98
Email: hjortur@visitgreenland.com
Mads Lumholt – responsible for the tourism statistics report
Senior Marketing Analyst – Visit Greenland
Mobile: +45 31 22 11 71
Email: lumholt@visitgreenland.com
