Weak Norwegian krone spells good news for tourists in Norway

Since the turn of the year, Norway’s krone is down significantly compared to other currencies such as the pound, dollar and euro.

There are several factors behind the weaker krone, such as lower interest rates in Norway compared to the US or Eurozone, investors taking less risk, the central bank Norges Bank selling kroner, and the krone falling with the stock market and oil prices.

A weak krone has a number of effects on those in Norway and can contribute to higher inflation due to exports becoming more expensive.

However, the weak krone makes Norway a more attractive travel destination for visitors to the country.

This is because if they visit from a country that’s currency is performing strongly against the krone, they will get better value for money due to exchange rates.

A weak krone means better value for money than when Norway’s currency is strong, even if the price of a product remains the same or rises less than the difference between currencies. As an example, the krone is down 17 percent against the euro and 18 percent against the dollar over the past year while inflation is around 5.9 percent.

Tom Anker Skrede, head of tourism at Destinasjon Ålesund og Sunnmøre, told public broadcaster NRK that the weak krone was providing a boost for the tourism industry.

“Many people who have had Norway as a desired destination for several years now have an extra good reason to travel,” he said.

Meanwhile, Kari Kvikne, a booking manager from the Kviknes Hotell, told the broadcaster that more people were opting to pay for their stays later this year upfront rather than at check-in to take advantage of the weak krone.

Several analysts expect the krone to begin picking up towards the summer, meaning those paying in euros, dollars and pounds may get less value for their money towards the end of the summer.