Rovaniemi: the magical hometown of Santa Claus and its overtourism challenges

Santa Claus Village in Rovaniemi, Finland. Picture: X/@DiscoverFinland

Santa Claus Village in Rovaniemi, Finland. Picture: X/@DiscoverFinland

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It’s that time of year again when the festive spirit is in full swing across the world, and Rovaniemi in Finland, is feeling the holiday magic more than ever.

Located on the Arctic Circle, Rovaniemi is proudly known as the "official hometown of Santa Claus“.

Visitors flock here from around the world to experience the enchanting snow-covered landscapes, visit Santa Claus himself, and enjoy the unique holiday vibes the city offers.

The Santa Claus Village, a winter-themed amusement park, is one of the main attractions, drawing in more than 600,000 people annually.

This festive wonderland is home to the official Santa Claus post office, where you can send letters to Saint Nick, and a variety of winter activities like husky sledding, snowmobiling and even reindeer sleigh rides.

It’s a place where the Christmas spirit comes alive, with festive decorations, snow and the chance to meet Santa in person. The village is especially magical during the holiday season, offering a true winter wonderland experience.

“This is like my dream came true,” a Polish visitor Elzbieta Nazaruk, told “CNN”. “I’m really excited to be here.”

And she’s not alone — tourism in Rovaniemi is booming, and locals are seeing an influx of visitors, especially during the festive season, when the town's population swells to more than 10 times its size.

Rovaniemi saw a record 1.2 million overnight visitors in 2023. Picture: X/@allaboutlapland

But while tourism is a major source of revenue for Rovaniemi, not everyone is thrilled with the rapid growth. The local population has expressed concerns about the rise in visitors and the effects of "overtourism“.

“We are worried about the overgrowth of tourism. Tourism has grown so rapidly, it’s not anymore in control,” said 43-year-old Antti Pakkanen, a photographer and member of a local housing network that organised a rally against the issue.

Across Europe, many communities have raised similar concerns as mass tourism threatens to overwhelm infrastructure and degrade the quality of life for locals. Rovaniemi saw a record 1.2 million overnight visitors in 2023, facing its own challenges as it deals with the surge in tourists.

“Nordic is a trend,” said Visit Rovaniemi CEO, Sanna Karkkainen. “People want to travel to cool countries to see the snow, to see the Northern Lights, and, of course, to see Santa Claus.”

This growing interest in the region is evident in the increase in new flight routes to Rovaniemi, with passengers arriving from cities like Geneva, Berlin, and Bordeaux.

While most tourists come from European countries like France, Germany and the UK, Rovaniemi’s appeal is spreading further across the globe.

Hotel rooms are in short supply this winter, and the rise in short-term rentals has pushed up accommodation prices. Many apartment buildings in Rovaniemi’s city centre, which were once homes for locals, are now being used as accommodation services during peak season.

This has left some long-term residents struggling to find affordable housing, and critics are calling for stricter regulations to protect the city’s residents. Finnish law prohibits professional accommodation services in buildings intended for residential use, but enforcement of these rules has been inconsistent.

“The rules must be enforced better,” said Pakkanen, advocating for more control over the growing number of short-term rentals.

While the situation may improve in the future, it’s unlikely that any significant changes will come before this holiday season.

For now, it seems that Rovaniemi’s magical atmosphere, especially during the holidays, is irresistible to tourists.

Despite concerns about overtourism, the city is bracing for an even busier 2025.