Decline for travel industry in 2009

The industry employed 5 711 persons; a reduction of 7 per cent compared with 2008. Operating revenues fell 6 per cent and totalled NOK 32.1 billion in 2009. The industry was made up of 1 846 companies, which is an increase of 3 per cent compared with the previous year.

Travel agencies are the largest sub-group in the industry

Travel agencies accounted for almost 55 per cent of the total value added, with almost NOK 3.0 billion in the industry for travel agencies and tour operators and related services in 2009. The value added for the travel agencies in isolation fell by 8 per cent compared with the previous year. The industry sub-group employed 3 091 persons and had a turnover of NOK 20.1 billion; a reduction of 6 and 8 per cent respectively. Operating revenues for the travel agencies fell by NOK 1.8 billion from 2008 to 2009.

 

Best operating profit in 2009

Tour operators achieved an operating profit of NOK 273 million. This is the highest operating profit among the industry sub-groups, despite being a 9 per cent drop from the previous year. Tour operators employed 1 384 persons and had a turnover of NOK 10.1 billion in 2009, making them the second largest industry sub-group. Tour operators had an operating margin of almost 3 per cent in 2009 and a fall in value added of 6 per cent compared with 2008.

Profitable tour guides and leaders

Tour guides and leaders had an operating margin of almost 11 per cent in 2009. This is an increase of 7 per cent compared with 2008. This industry sub-group is the only sub-group that had a positive development in profitability compared to the previous year. Operating revenues totalled NOK 92.1 million. Tour guides and leaders is the smallest industry in terms of numbers employed and earnings. In other words, the industry is small but profitable.

Highest value added in the adventure industry

The only industry sub-group to have an increase in the number of companies is the adventure , event and activities sub-group, with an additional 44 businesses. This corresponds to a growth of 10 per cent from 2008. The development with more companies within adventure tourism is therefore continuing. The companies in this industry sub-group had a value added of NOK 190 million; a 14 per cent increase from 2008. This was therefore the only sub-group to demonstrate a positive development in the value added compared with 2008.

Many small businesses

Five out of six businesses had fewer than five employees. These companies had a total value added of NOK 594 million in 2009. Small businesses employed 1 576 persons and had a turnover of approximately NOK 5.3 billion. More than a third of the total number of employees are found in the companies with more than 20 employees. Forty-three companies in this group accounted for 43 per cent of the total value added in the industry of travel agencies and tour operators and related services in 2009.

 

Better profitability in urban municipalities

The companies within activities of travel agencies and tour operators and related services in the six largest urban municipalities (Oslo, Bergen, Trondheim, Stavanger, Kristiansand and Tromsø) had a total value added of NOK 1.7 billion. The companies in the selected urban municipalities therefore accounted for almost 61 per cent of the total value added within the industry. The cities employed 3 083 persons and had a turnover of NOK 22 billion in 2009. This corresponds to 54 per cent of the employment and 69 per cent of the turnover in the industry.

The highest value added is found in the companies in Oslo, with NOK 1.1 billion, followed by the companies in Stavanger and Trondheim, with NOK 285 and 169 million respectively. The companies in Trondheim and Stavanger were on average the most profitable in 2009 and the companies in both of these towns had an operating margin of almost 3 per cent. The industry in Tromsø had a negative operating margin, i.e. the companies on average run at a loss.

Travel agencies and tour operators had a higher total operating margin in the city municipalities than the rest of Norway put together. The difference between the cities and the country as a whole was even greater for the companies that belong to other operators and related services. The companies in the cities in this industry classification had an operating margin of more than 3 per cent, while the corresponding figure for the country as a whole was just over 2 per cent. Other operators and related services are therefore more profitable than travel agencies and tour operators, which had an operating margin of around 2 per cent.

Tables:

• Table 1 Travel agency, tour operator and other reservation service and related activities. Main figures, by industry subclass. Local kind-of-activity units. 2007-2009
• Table 2 Travel agency, tour operator and other reservation service and related activities. Main figures, by number of people employed and industry group. Local kind-of-activity units. 2009
• Table 3 Travel agency, tour operator and other reservation service and related activities. Main figures, selected municipalities. Local kind-of-activity units. 2009