The Northern Lights Tourism Industry

For millennia, the elusive beauty of the Northern Lights have captivated travelers worldwide, proving their magnetic draw. As more and more people flock to the northernmost parts of the world to try and catch a glimpse of the famous celestial light show, the international Northern Lights tourism industry has undergone a remarkable evolution, transitioning from niche interest to burgeoning global business.  

Also known as aurora borealis, the Northern Lights are a natural lights show that occur when waves of energized particles from the sun, called solar winds, collide with gasses in the Earth’s upper atmosphere. This phenomena results in a stunning display of colors flickering or “dancing” across the sky, including green- the most commonly observed shade- pink, dark blue, yellow, violet, and red.

While the enchantment with the aurora dates back to the narratives of indigenous communities across the Arctic regions, it wasn’t until the late 19th century that scientific curiosity and public fascination began to take hold, creating the Northern Lights tourism industry. Over the years, the industry began to develop as “aurora chasing” experiences and guides were created and people increasingly flocked to northern countries. In recent decades, propelled by advancements in travel infrastructure and a rising demand for distinctive experiences, the Northern Lights tourism industry is experiencing an unparalleled surge.

Countries enveloped by or in proximity to the Arctic Circle, including Norway, Sweden, Finland, Iceland, and Canada, have emerged as “prime” destinations to see the mystical aurora and reap the benefits of the industry’s growth. In Nordic countries, from 2009-2016, accommodation stays in cities within the Arctic Circle increased by 217%, while airport traffic and tourism expenditure both grew by roughly 280%. Furthermore, in 2022, the global polar travel market was valued at $830.5 million USD and is projected to have a compound annual growth rate, or CAGR, of 10.28% between 2023-2031, reaching $2,003.6 million.

2024 and 2025, specifically, may see a record boost in the Northern Lights tourism industry as the sun approaches the peak of its cycle. The Solar Maximum, which occurs approximately halfway through the Solar Cycle, produces “dramatically more” auroral displays to light up in the night sky, according to Sussex University physics and astronomy professor Darren Baskill. Thus, experts say that 2024 and early 2025 will be the best period to see dramatic auroras; from an international business perspective, the aurora industry will certainly benefit economically. 

In Finland alone, the Lapland (northernmost) region has witnessed an 18% increase in tourism-related businesses over the past three years, highlighting the importance of the Northern Lights as a catalyst for regional development. According to Statista, the revenue of Lapland hotels in Finland from 2017 grew from 32,125 to 73,648 euros, a 129% increase. In fact, Finnair, the country’s flagship airline, announced they will increase their capacity to Lapland by 20% to meet the growing demand for travel there. Similarly, in 2021, Icelandair began a special Northern Lights campaign and saw a 16% increase in passengers, a significant portion of these travelers originating from North America.

To the east, in Norway, 32% of foreign tourists in the 2019 winter season specifically were Northern Lights tourists, coming to experience the aurora. However, it’s not just tourism for the lights that is impacted; local tourist activities like dog sledding, ice fishing, and snowmobiling have also experienced significant increases.

Though still a relatively obscure industry, global Northern Lights tourism has experienced a trajectory of substantial growth, economic significance, and global influence. As the world continues to seek unique and awe-inspiring experiences- and as the sun gets closer to its peak-, the aurora stands out as a beacon, guiding arctic tourism into uncharted territories.