15.06.2011

Finland needs a wider range of hotels

There is a lack of luxury guesthouses and budget hotel alternatives in Finland, according to consultant Martti Palonperä.

Finland’s hotel sector lacks diversity because most of the current hotels are in the mid-price range and resemble each other, according to Martti Palonperä, an experienced consultant in the sector. He believes that there is a distinct lack of luxury guesthouses, budget hotels and two star family hotels in Finland.

The Finnish hotel market is dominated by three large chains: Restel, Scandic and S-Group, who mostly compete with each other, according to Palonperä. Currently the Omenahotelli chain is the only budget hotel in the market and Palonperä believes that the well-branded budget chains that have been a success in other European countries would also have demand in Finland.

Hotels and restaurants in Finland are preparing for a busier summer and autumn season than last year, according to the Finnish Hospitality Association Mara. Sales increased by 4% in Finland’s hotel, restaurant and travel services sector during the first quarter of this year.

Fast food restaurants enjoyed the fastest growth and the revenue per available room increased in hotels, especially thanks to the increasing number of overnight stays by international tourists. According to Mara, companies in the sector have also benefited from the reduction in VAT on restaurant food, the general growth of the Finnish economy and increased spending by Finnish households.