
Andrey Mineev is a researcher at the High North Center. Photo credit: Markus J. Thonhaugen.
This article is based on Mineev's original commentary published in Nordnorsk debatt. The Norwegian source can be found here.
A recent scenario report from Business Index North highlights how attracting, educating, and retaining skilled professionals is crucial for Northern Norway's future. High transportation and travel costs play a significant role in this challenge. Mineev believes this topic is particularly relevant during the holiday season and urges public discussion.
– We see a correlation between high travel costs and the region's struggle to develop a robust knowledge-based economy, says Andrey Mineev, researcher at the High North Center at Nord University.
Mineev leads the Business Index North (BIN) project, which has revealed several thought-provoking examples of economic disparities between northern and southern Norway.
He illustrates this with a hypothetical family from Nordland, using calculations based on actual prices and costs:
– Consider a family of four from Mo i Rana going on a vacation to Reykjavik, Mineev begins.
– They must pay 2.4 times more than a similar family from Oslo for the same holiday. For a family from Vardø, the trip would cost 3.3 times as much.
Highlighting a Broader Challenge
In this example, a five-day vacation to Reykjavik would cost the Mo i Rana family around $3,880, while the same trip for an Oslo family would cost about $3,000 (the difference in airfare alone is $880).
The airfare difference for the family from Vardø compared to Oslo is $1,400.
– I've used this example in a lecture, and now during holiday season, it strikes me how relevant it is, Mineev says.
In this scenario, the vacation becomes approximately 25-30% more expensive for the family from Northern Norway.
– It's not just about expensive holidays. This represents a larger challenge for several regions across the Arctic, he explains.
Mineev uses the term 'connectivity' - a concept that encompasses more than just transportation. It refers to the region's overall accessibility, including information flow, movement of goods, and knowledge exchange. All crucial for economic development and innovation in the Arctic.
He points out that most Arctic regions struggle with issues connected to connectivity.
– Through our work with Business Index North, we see similar patterns in many places across the Arctic. High travel costs and poor accessibility create barriers to innovation and economic growth throughout the region.
Multiple Consequences
The BIN project, which analyzes economic development in Arctic areas, has identified several consequences of high travel costs in Arctic regions:
- It becomes more difficult to attract and retain highly skilled workers
- Opportunities for knowledge exchange and networking are limited
- Barriers arise in developing a modern, knowledge-based economy
Mineev calls for a debate on this topic. He encourages decision-makers, businesses, and the public to engage in discussions about overcoming these obstacles and contributing to growth and innovation in the north.
– This is a discussion that concerns not just Northern Norway, but the entire circumpolar region, he concludes.
Disclaimer: This article was automatically translated from the Norwegian version using the AI tool Claude. The editor has reviewed and corrected obvious errors, but some grammatical issues may remain.
Facts about the family price example mentioned in the text
Date of price search and sources: The prices for the trip to Reykjavik were gathered about three-four weeks before the trip from various reputable travel websites. The primary sources included:
- Flight prices were obtained from Skyscanner and Google Flights.
- Accommodation costs were checked on Booking.com.
- Activities and excursion prices were gathered from TripAdvisor reviews.
- Food and dining estimates were taken from TripAdvisor reviews and local Reykjavik restaurant menus.
- Local transport costs from/to airport were not included.
Planning horizon: Travel date was set for February 2024, and the trip was planned around 30 days ahead. It was not the high season.
Accommodation: The accommodation selected included a mix of mid-range hotels in central Reykjavik. The estimated costs accounted for a stay of 5 days and 4 nights.
Activities and excursions: The planned activities included two popular excursions to choose from:
- A guided Golden Circle tour
- A visit to the Blue Lagoon
- Northern Lights hunting tour
- Reykjavik city walking tour
- The lava tunnel tour
Food and dining: The daily food budget was calculated based on average prices found on TripAdvisor reviews and local restaurant menus.
The total estimated cost was a sum of:
- Round-trip flight tickets
- Accommodation for the entire stay
- Planned activities and excursions
- Food and some small daily expenses
About Business Index North
- The main goal of the Business Index North (BIN) project is to increase awareness of opportunities as well as challenges for sustainable development in the Arctic. In doing so, BIN develops analytical tools and contribute to dialogue arenas for Arctic stakeholders.
-
One of the main outputs is a periodic analytical report, “Business Index North”. The report provides valuable information for International institutions, National, Regional, and Local authorities, Arctic officials, Educators, Media stakeholders, and students interested in the Arctic.