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The Impact of Second Home Tourism on Local Economic Development in Rural Areas in Norway

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  • Jan Velvin

    (Norwegian University of Life Sciences, Universitetstunet 3, NO-1432 Ã…s, Norway, and Department of Business and Social Science, Buskerud University College, Frogsvei 41, PO251, N-3603 Kongsberg, Norway)

  • Tor Martin Kvikstad

    (Department of Business and Social Science, Buskerud University College, Kongsberg, Norway)

  • Eivind Drag

    (Department of Business and Social Science, Buskerud University College, Kongsberg, Norway)

  • Erling Krogh

    (Norwegian University of Life Sciences, Ã…s, Norway)

Abstract

Over recent decades, rural–urban migration and a decrease in wealth have been major challenges faced by European rural areas. Maintaining urban and rural settlements throughout the country has been an important aim of Norwegian regional politics. This paper assesses the impact of second home tourism on local economic development in rural municipalities in Norway. The study is based on data collected as part of an ongoing research project initiated in 2002. Having developed and tested a model consisting of socio-economic factors and factors associated with the second home as such, the authors examine how and to what extent these factors explain the impact of second home tourism on local economic growth. They find that the size and standard of the recreational home are important factors in explaining variations in annual consumption by second home owners, and more so in rural communities with a broad and well-structured trading activity than in areas with a weaker trading structure. It appears that urban recreational tourism based on second homes of high standard offers the best potential for sustainable local rural economic growth. Based on their findings, the authors also discuss possible local government strategies to achieve economic growth through second home tourism.

Suggested Citation

  • Jan Velvin & Tor Martin Kvikstad & Eivind Drag & Erling Krogh, 2013. "The Impact of Second Home Tourism on Local Economic Development in Rural Areas in Norway," Tourism Economics, , vol. 19(3), pages 689-705, June.
    • Handle: RePEc:sae:toueco:v:19:y:2013:i:3:p:689-705
    DOI: 10.5367/te.2013.0216
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    References listed on IDEAS

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    1. World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808.
    2. Seong†Hoon Cho & David H. Newman & David N. Wear, 2003. "Impacts of Second Home Development on Housing Prices in the Southern Appalachian Highlands," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 15(3), pages 208-225, November.
    3. Gijsbert Hoogendoorn & Gustav Visser, 2010. "The role of second homes in local economic development in five small South African towns," Development Southern Africa, Taylor & Francis Journals, vol. 27(4), pages 547-562.
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    Cited by:

    1. Daniel Puciato & Ewa Dziedzic, 2017. "Attractiveness of South-West Poland municipalities for independent hotel investors," Tourism Economics, , vol. 23(3), pages 702-711, May.
    2. David Boto-García & José Francisco Baños Pino, 2024. "The economics of second-home tourism: Are there expenditure reallocation effects from accommodation savings?," Tourism Economics, , vol. 30(4), pages 969-995, June.

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