Santa Claus also hit by recession

The global credit crunch and recession has hit many of the biggest companies and countries, but now even Santa Claus is also feeling the heat of this downturn as Finland is selling its stake in Santapark - the home to Father Christmas - to several Finnish organisations.

Santapark, situated on the Arctic Circle at the city of Rovaniemi in Finland, has proven to be its, and Lapland's, most attractive destinations, both in winter and in summer.

In recent years, 50,000 – 60,000 people per year have visited Santapark, although the number of visitors dipped last year. The Finnish government expects the numbers to dip even further this year due to the ongoing global recession.

But with Finland also being weighed down with the global economic downturn, the city of Rovaniemi, the Finnish government and the travel bureau of Lapland, Lapin Matkailu Oy, are selling their 32-per cent stake to Santa's Holding Oy, which will give it control among other local investors over the Lapland-based park.

Santapark has struggled financially since opening in 1998 and the Finnish government feels that the park would operate better if it was in private hands. Santa's Holding Oy is confident of increasing the number of visitors to the park with added marketing and investment and raise annual sales from the now €1.5 million to €2.7 million.

Santa's Holding Oy said that the time to implement the new plans will be in 2010–2011, and the objective will be to improve customer activities, boost the Christmas theme and increase profitability.

Katja Ikäheimo-Länkinen, director Santa's Holding Oy said that the company will also make changes aimed at improving efficiency as early as Christmas 2009 with the aim to be Finland's leading provider of Christmas tourism services over the next five years.

Mayor of Rovaniemi, Mauri Gardin, said that the transaction will safeguard Santapark's operating environment, both now and in the future. "As far as Santapark's future is concerned, it is important that ownership is transferred to a strong, focused, local and active party. The new majority owners will reinforce the Christmas activities on offer to tourists in Father Christmas' home town, Rovaniemi''