Tourism Views and Experiences of Micro- and Small Enterprises in Northern Finland and Russian Karelia during the COVID-19 Pandemic: A Cross-Border Operations Perspective

Globally, northern regions are characterized by sparse populations and long distances between settlements, often resulting in limited travel infrastructure. Because of the remoteness of locations in these regions, small companies looking to attract larger tourist groups face various challenges. However, recent developments show a growing interest in novel and unique places, which can entice tourists who value sustainability. Thus, to respond to this increased customer interest, these authentic, sparsely populated areas (SPAs) in rural regions have the potential to strengthen their economic activities by increasing tourism activities. In this chapter, we discuss tourism industries in the region of Northern Ostrobotnia and Kainuu in Finland and in Russian Karelia. We approach this case study using the political, economic, sociocultural, technological, environmental, and legal (PESTEL) analysis tool, which provides a structure for a strategic analysis of cross-border tourism opportunities and challenges. In light of recent global developments and preferences, such as a growing interest in individuals’ unique experiences, these regions possess ample tourism opportunities by placing value on real-life experiences, pure nature, and other authentic values. These opportunities have paved the way for the entrance of new actors in tourism-related industries, such as farming, fishery, and wellness, which can exploit the business opportunity of offering additional part-time services for tourists based on their main businesses. This will not only bring important economic income to these companies and the region, but can also create new, unique tourist experiences with little risk for either nature or humans; however, there are several challenges to overcome. We argue that this emerging trend supports sustainable tourism principles, and we highlight the challenges that will need to be overcome for these endeavors to succeed. This research was carried out prior to the invasion of Ukraine.