Finland’s South Karelia Loses €1 Million Daily Without Russian Tourists

The border region of South Karelia in Finland is losing €1 million a day due to the absence of Russian tourists and workers, reports Bloomberg. Finland closed its border checkpoints in 2023 following the migrant situation at the frontier.

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Finnish flag

The Transformation of Imatra

The center of the border city of Imatra has changed completely: most shops have closed, and tourists and buses that once filled the roads have vanished. Local spa resorts are experiencing severe financial difficulties. The city had to allocate budget funds to maintain a historic hotel.

"Russian money was easy, but it left too many services for the city. The easy money is gone," said Jaakko Jappinen, marketing and tourism director of Imatra.

Impact on Industry and Employment

The region’s steel plant has reduced its workforce, and three forest industry companies — UPM-Kymmene Oyj, Stora Enso Oyj, and Metsä Group — have also announced staff cuts. Local healthcare had to dismiss some employees as well.

Government Measures and Future Prospects

Finnish Prime Minister Petteri Orpo in October indicated that reopening the Russian-Finnish border could be possible in the near future. According to him, Russian authorities would need to guarantee a ban on illegal migrants entering Finland.

At the end of 2024, the Finnish government allocated a total of €7 million for the development of eastern regions of the country. Imatra, once one of the most popular destinations for Russian tourists, will receive €4 million. The funds will support the competitiveness of local enterprises and investment. Imatra’s mayor, Mattias Hilden, emphasized the development of the Karelian railway as a priority to preserve the forestry industry.

Background

In the autumn of 2023, the Finnish government began gradually closing the border due to an influx of asylum seekers from the Middle East and Africa. Helsinki considers Moscow partly responsible for the migrant influx. That same year, Finland joined NATO.

The Russian side rejected the accusations, stating that it has "no ability to prevent citizens of third countries from coming to the Finnish border."