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The Internationalization of Tourism Labor Markets in Rural Arctic Sweden

Research project Recently, tourism has developed very positively in northern Sweden, but the rapid industrialization in northern Sweden has now led to competition on the labor market. The result is that many tourism companies lack access to labor, which threatens their continued growth. Therefore, the workforce is increasingly being sought abroad, which means that the local anchoring is weakened. In this project, tourism companies' experiences and strategies for dealing with these challenges are analyzed.

This project examines what happens to companies and their local embeddedness when rural tourism entrepreneurs must find employees abroad. In the past decade, tourism has become an important livelihood in Arctic Sweden. Recently, however, businesses have been challenged by a lack of labor. International recruitment reduces the problem temporarily but also creates challenges. The project assesses the consequences of internationalizing the labor market and develops guidelines and good examples to secure local embeddedness.

Head of project

Dieter Müller
Professor, other position
E-mail
Email

Project overview

Project period:

2025-01-01 2027-12-31

Participating departments and units at Umeå University

Department of Geography

External funding

Kamprad Family Foundation

Project description

Over the past decade, tourism has become a critical economic asset for rural communities in northern Sweden, particularly in the Arctic regions of Västerbotten and Norrbotten. Here, small-scale entrepreneurs have successfully established accommodation and activity-based businesses attracting visitors from around the world. However, the ongoing industrial expansion in northern Sweden has led to exceptionally low unemployment rates, creating significant challenges for tourism companies in recruiting and retaining staff. To address this issue, international recruitment has become increasingly common, raising questions about local embeddedness and long-term sustainability.

This research project aims to analyze the consequences of labour market internationalization within the rural tourism sector in Arctic Sweden. By examining both quantitative and qualitative data, the project will shed light on how companies manage recruitment challenges, attract international labour, and build relationships with local communities. Key questions include: How does the internationalization of the labour force affect the economic and social dynamics of tourism companies? And what strategies can ensure local embeddedness despite a growing reliance on foreign labour?

The project is divided into several work areas. Statistical analyses will map changes in the labour market, while interviews with entrepreneurs and community representatives will provide deeper insights into the challenges and opportunities that arise. The project will also develop guidelines and examples of best practices to help businesses navigate the transition to a more international workforce. These findings will be communicated in collaboration with the Swedish Lapland Visitor Board and other regional stakeholders, with the goal of creating sustainable solutions for the tourism industry in the long term.

Societal Relevance and Expected Outcomes

Tourism is a vital factor for rural development by generating employment, tax revenue, and a positive image of the region. This project contributes to strengthening the rural tourism sector by identifying solutions for labor supply in a time of increasing competition from expanding industries. The results are expected to benefit not only tourism businesses but also enhance the economic and social well-being of local communities. Additionally, the knowledge gained from this project may have broader implications for other sectors and regions, both in Sweden and internationally.

Latest update: 2024-11-19