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

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.