Background
Tourism in the Faroe Islands is centred around the islands' natural landscapes, rich birdlife, and cultural experiences. Visitors are mainly drawn to the Faroe Islands for activities such as hiking, bird watching, and exploring traditional Faroese villages. The islands' commitment to sustainable tourism is evident in initiatives such as the "Closed for Maintenance" program, where certain areas are temporarily closed to tourists to allow for environmental restoration (Visit Faroe Islands, 2025).
Historically, tourism in the Faroe Islands has developed gradually. In recent years, the sector has seen significant growth, with increased marketing efforts and the development of tourism infrastructure, including accommodations and transportation. Tourism is expected to continue its growth, and in 2023, Visit Faroe Islands launched a new strategy setting out the direction of travel and goals for Faroese tourism over the coming years. The role of tourism in the Faroese economy has grown significantly, generating revenue, creating employment opportunities, and supporting local businesses (interviewee 16). The strategic location of the Faroe Islands between Europe and North America, along with direct flights from several European cities, has further bolstered the sector's growth. However, this increased growth has also brought about certain challenges.
The socio-economic context of The Faroe Islands
The Faroe Islands face several social and economic challenges. One of the primary issues is demographic decline, particularly among the younger population, who often migrate to Denmark and mainland Europe for education and more diverse employment opportunities (interviewee 15). This migration has resulted in an aging population, putting additional pressure on social services and healthcare systems (Tyril, 2023). Economically, the Faroe Islands are heavily reliant on fishing and aquaculture, making them vulnerable to fluctuations in global markets and environmental changes. The limited range of employment opportunities further contributes to the outmigration of young people seeking better prospects (interviewee 16). Additionally, the geographical isolation and rugged terrain of the islands pose challenges for infrastructure development and accessibility, with gaps in public services such as transportation, healthcare, and education affecting the quality of life for residents (interviewee 18).
Tourism is seen as a potential solution to some of these challenges. It can provide an alternative source of income, reducing the dependency on fishing and aquaculture, and create employment opportunities, particularly for young people. By creating jobs and improving infrastructure, tourism is seen as one tool to help retain the local population and attract new residents, especially to the areas outside the capital and in the rural regions. Moreover, tourism is considered by some as a way to help promote and preserve the unique Faroese culture, making it an attractive place to live and visit (interviewee 14).
The perception of international tourism among locals is mixed. Many locals recognize the economic benefits of tourism, including job creation and increased revenue, and see it as a way to promote and preserve Faroese culture and traditions. However, some residents are concerned about overcrowding and the impact on their quality of life, as well as the environmental impact of increased tourism and the potential for damage to natural sites (interviewee 14, 17 & 18).
While tourism presents significant opportunities for economic and cultural development in the Faroe Islands, it also brings challenges that need to be carefully managed to ensure sustainable growth and positive outcomes for both residents and visitors.
Tourism governance structure in the Faroe Islands
The governance of tourism in the Faroe Islands is primarily overseen by the Faroe Islands Tourist Board, which operates under the Ministry of Environment, Industry, and Trade. The board is responsible for maintaining connections with and collaborating with the tourism industry. The HEIM: Tourism Strategy towards 2030, launched by Visit Faroe Islands in 2023, aims to develop a sustainable and balanced tourism sector. This strategy emphasizes environmental preservation, social responsibility, and economic benefits. It includes initiatives to spread tourism throughout the year, promote niche markets like business and cultural tourism, and enhance infrastructure and mobility (Visit Faroe Islands, 2023).
Despite these efforts, there are challenges in achieving effective governance and policy implementation. One of the primary issues is the fragmented collaboration among tourism stakeholders. Many stakeholders operate in isolation, focusing on local rather than regional collaboration, which limits the overall impact of tourism initiatives (interviewee 18). The HEIM strategy emphasizes the importance of inclusive community involvement, aiming to ensure that tourism development aligns with local needs and values. However, the success of this approach is not yet to be seen, and according to interviewees, it can be hard to achieve (interviewee 17 & 18). While there have been efforts to involve local communities in tourism planning and decision-making processes, the level of participation varies. Some initiatives, like the nationwide conversation initiated by Visit Faroe Islands in 2022, have successfully gathered input from various stakeholders, including the public, industry representatives, and political decision-makers (interviewee 14). However, there are still gaps in ensuring that all segments of the population are equally involved and benefit from tourism development.
The strategies and policies addressing sustainable tourism in the Faroe Islands have in the past been well-articulated at the national level but often lack strong linkages to local or regional strategies. This disconnect has led to inconsistencies in policy implementation and challenges in achieving cohesive and sustainable tourism development. The focus on inclusive community involvement is evident in the new national tourism strategy, which promotes local ownership, job creation, and environmental protection. However, the practical implementation of these principles varies, with some areas showing more progress than others (interview 17 & 18).
Collaboration among key stakeholders in the tourism sector ranges from informal to formal structures. The North Atlantic Tourism Association (NATA) promotes and supports cooperation in tourism for the West Nordic countries, including the Faroe Islands, Greenland, and Iceland. This collaboration provides opportunities and grants for joint ventures and cultural exchanges within the region. However, there is still a need for more structured and consistent collaboration at the local level to ensure that tourism development is sustainable and benefits all stakeholders. Some municipalities also have their own strategies in place, such as the capital Tórshavn with its “People and Tourism – Side by Side,” adopted by the city council in May 2022 and covers the years 2022-2026 (Tórshavn Municipality, 2022).
This strategy includes 26 recommendations and specific actions aimed at sustainable tourism development through culture, balance between residents and visitors and green solutions. The strategy also includes specific actions such as developing a cultural policy with visions and goals for the next 10-12 years, increasing funding and support for business tourism, establishing more tourism-related educational programs, improving tourism statistics, and revisiting the cruise strategy to manage visitor impact on popular sites (interviewee 15). The policy involves collaboration between the municipality, local businesses, and various stakeholders, with regular assessments and adjustments to ensure the policy’s goals are met (Tórshavn Municipality, 2022).
On the policy level, Faroe islands therefore has a good foundation for cooperation and the policies are a result of extensive consultations focusing on local involvement and sustainable practices. It must also be considered that tourism at a larger scale is a new phenomenon on the islands and governance structures, infrastructure and ways to handle the new reality are therefore in the midst of implementation. Still, there are areas of concern among the Faroese people regarding tourism development on the islands. The involvement of foreign companies and "outsiders" in the tourism industry is one area of concern (interviewee 15). This is apparent with the cruise ship tourism that has grown considerably in recent years. While international collaborations and investments can bring valuable resources and expertise, they can also lead to tensions and conflicts with local stakeholders. The presence of foreign companies in the tourism sector can sometimes result in perceived inequities and dissatisfaction among local businesses and communities (interviewee 20). This has been an area of dispute that resulted in certain changes in fundamental laws in 2024 to meet the new reality.
Discussion
Tourism in the Faroe Islands has become increasingly intertwined with the local social and economic fabric over the past 10-20 years. The region has seen significant growth in tourism, which has brought both opportunities and challenges. Economically, the influx of visitors has provided a much-needed boost to the local economy. Tourism has created jobs, stimulated entrepreneurship, and generated revenue through taxes and spending on local services and products (interviewee 16).
The development of tourism has also had positive effects on services and infrastructure. Investments in transportation, accommodation, and public amenities have improved the overall quality of life for residents and made the islands more accessible to visitors. However, the rapid growth of tourism has also put pressure on existing infrastructure and services, leading to concerns about sustainability and the capacity to manage increased visitor numbers (interviewee 18 & 19).
Socially, tourism has had a mixed impact on the Faroe Islands. On the one hand, it has promoted cultural exchange and increased awareness of Faroese culture and traditions. On the other hand, the influx of tourists has sometimes led to overcrowding and disruptions to the tranquil lifestyle of the local population (interviewee 18 & 20). There are also concerns about the environmental impact of tourism, particularly in terms of preserving the islands' natural beauty and biodiversity.
While tourism has helped many local businesses stay viable year-round, maintaining employment and essential services, it has also brought challenges. The seasonal nature of tourism means that some businesses struggle during off-peak periods, leading to fluctuations in employment and income (interviewee 19 & 20). Additionally, the focus on tourism can sometimes lead to the neglect of other important sectors, creating an over-reliance on tourism for economic stability.
The governance and policy framework for tourism in the Faroe Islands is in many ways a bit of a complex landscape of opportunities and challenges. While the new tourism strategy towards 2030 outlines a comprehensive vision for sustainable tourism, the practical implementation of these policies reveals several gaps and areas for improvement. One of the primary issues identified is the fragmented collaboration among tourism stakeholders (interviewee 19). Many stakeholders operate independently, focusing on local rather than regional collaboration, which limits the overall impact of tourism initiatives. This lack of cohesive strategies disrupts continuity and hinders long-term planning. While the new tourism strategy addresses some of these issues, stakeholders in general have pointed out the absence of comprehensive measurements to evaluate the full spectrum of tourism's impact (interviewee 18). While some data are available, there is a need for more holistic indicators that encompass economic, social, and ecological aspects. This gap in data collection and analysis makes it challenging to assess the true impact of tourism and to develop targeted interventions.
The emphasis on inclusive community involvement in the new strategy is commendable, but the success of this approach has so far been mixed and efforts to involve local communities in implementing tourism planning and decision-making have varied in effectiveness (interviewee 18 & 19). While initiatives like the nationwide conversation initiated by Visit Faroe Islands in 2022 have successfully gathered input from various stakeholders, there are still gaps in ensuring that all segments of the population are equally involved and benefit from tourism development. This uneven participation can lead to perceived inequities and dissatisfaction among local communities (interviewee 17).
Socially, tourism has had a mixed impact on the Faroe Islands. While it has promoted cultural exchange and increased awareness of Faroese culture and traditions, it has also led to overcrowding and disruptions to the tranquil lifestyle of the local population (interviewee 18). The environmental impact of tourism is another critical concern, particularly in terms of preserving the islands' natural beauty and biodiversity. Initiatives like the "Closed for Maintenance" program, where certain areas are temporarily closed to tourists for environmental restoration, highlight the need for sustainable practices. It also showcases commitment of authorities to protect natural and social values, but at the same time such initiatives have made global news, further promoting Faroe Islands as a destination and ultimately resulting in more visitors (interviewee 18). According to tourism planners in Faroe Islands this however is also the intended goal, to be able to increase tourism at a gradual rate while also creating the means to support and manage that increase in visitor numbers without effecting the natural landscape or social composition of the islands in a negative way (interviewee 14). None the less, these initiatives also face criticism for their scope and effectiveness.
Socially Sustainable Tourism Conflicts
Local concerns about tourism development are significant (interviewee 19). Research by Plieninger et al. (2018) highlighted that more than half of the Faroese respondents expressed concerns regarding tourism development, worrying about the potential impact on their culture and environment. This sentiment is still shared in some smaller villages where residents express concerns about the influx of tourists disrupting their daily lives, some saying that tourism development seems focused on catering to tourists rather than addressing local needs (interviewee 19). Some locals also feel that although strategies have been made and policies put in place, the smaller villages often experience loss of control in the tourism development and that they sometimes experience “being on display” for visiting tourists for the benefit of others (interviewee 19). This is also reflected in strain on infrastructure which smaller communities see as a challenge as managing the influx of tourists due to limited resources and infrastructure can be problematic. This includes issues with transportation, waste management, the maintenance of public facilities and other services.
Some economic disparities also arise from tourism development in the more rural regions. While tourism brings economic benefits, local businesses and residents feel that the majority of the financial gains are concentrated to foreign companies or in the capital, Tórshavn, rather than benefiting the rural areas directly (interviewee 20). While the governance and policy framework for tourism in the Faroe Islands has recently tried to address the challenges of fragmented collaboration, data gaps, and uneven community involvement there are still some grievances and scepticism.
A recent change in laws in the Faroe Islands also shows clearly what the disputes regarding tourism development have concentrated around in the past few years. The law addresses some needs of landowners and farmers in the more rural regions of the islands. The law is aimed at protecting the environment and supporting some local interests. This legislation introduces a few key measures, including specific guidelines for hiking across the islands, which now require access fees for certain trails. Additionally, tourists aged 16 and above staying in paid accommodations must pay a sustainability fee of 20 krona per night, capped at 200 krona (around 25 euro). The revenue generated from these fees is to be allocated to maintaining hiking paths, supporting tourism planning, and improving conditions for tourists. The law also allows for access restrictions to certain areas during specific times, such as lambing season or adverse weather conditions, and grants local communities the authority to limit the number of tourists to ensure the quality of life for residents SUSTON. (2024). Overall, the law aims to achieve environmental, social, and economic sustainability by protecting the natural environment, supporting agricultural activities, and ensuring local participation.
The enactment of this law addresses several challenges and reasons for its necessity. The previous legislation from 1937 was outdated and did not account for modern tourism, leading to unregulated and unauthorized systems by farmers and tourism operators. The surge in tourism in recent years created a pressing need for regulation to manage its impact on the environment and local communities (interviewee 18). However, the introduction of the law was met with strong protests from farmers and groups advocating for the right to roam, similar to other Nordic countries, resulting in heated political and public debates. The law's development involved a long consultation process with multiple rounds to address various concerns and reach a consensus, ultimately aiming to balance the benefits of tourism with the preservation of the Faroese way of life and natural heritage.
These recent changes have to some state settled certain disputes regarding tourism development but understandably, there are still divided opinions on the overall development of tourism in the Faroe Islands. The example also shows clearly that the social, economic, and environmental impacts of tourism need to be carefully managed to ensure sustainable development and positive outcomes for both residents and visitors. By prioritizing comprehensive data collection, inclusive community participation, and sustainable practices, the Faroe Islands could continue to develop a tourism model that benefits all stakeholders and preserves the character of the islands.
Conclusion and Recommendations
The Faroe Islands' tourism sector has experienced significant growth, bringing both opportunities and challenges. Social sustainability remains a critical area of focus, particularly in addressing the cultural and economic impacts of tourism. Tourism has been identified as a potential tool to counterbalance challenges of demographic decline and rural development by providing alternative sources of income and creating employment opportunities, particularly for young people. However, the rapid growth of tourism has also led to concerns about overcrowding, environmental degradation, and the impact on the quality of life for residents. The perception of international tourism among locals is mixed, with some recognizing the economic benefits and others expressing concerns about the potential negative impacts on their daily lives and the environment. The governance and policy framework for tourism in the Faroe Islands, while well-articulated at the national level, often lacks strong linkages to local or regional strategies, leading to inconsistencies in policy implementation and challenges in achieving cohesive and sustainable tourism development.
The fragmented collaboration among tourism stakeholders further complicates the effective governance of tourism. Many stakeholders operate independently, focusing on local rather than regional collaboration, which limits the overall impact of tourism initiatives. The emphasis on inclusive community involvement in the new national tourism strategy is commendable, but the success of this approach has been mixed. The surge in tourism in recent years created a pressing need for regulation to manage its impact on the environment and local communities. New laws introduce specific guidelines for the right to roam. Additionally, tourists must pay a sustainability fee which is allocated to maintaining tourism infrastructure, supporting tourism planning, and improving conditions in popular destinations. This legislation aims to achieve environmental, social, and economic sustainability by protecting the natural environment, supporting agricultural activities, and ensuring local participation.
While tourism has generated possible benefits for the local community, it also brings challenges that need to be carefully managed. At the policy level, the key to sustainable tourism development in the Faroe Islands is said to be in balancing economic growth with social and environmental considerations, ensuring that tourism benefits all stakeholders and preserves the unique character of the islands. That way the aim is to grow at a pace that is manageable, a sustainable growth. Still, the pace of movement of the tourism industry in Faroe Islands is disputed by locals. By addressing the challenges of fragmented collaboration, data gaps, and perceived uneven community involvement and benefits, the Faroe Islands can keep developing a sustainable tourism model that benefits all stakeholders while also preserving the character of the islands, both environmentally and socially.
Based on the Faroe Island case the following recommendations have been highlighted:
Enhance Stakeholder Collaboration: Establish formal structures for collaboration among tourism stakeholders to ensure cohesive strategies and effective governance. Coordination between different levels of governance, mainly between rural municipalities and the more central level.
Improve Data Collection and Analysis: Develop comprehensive indicators that encompass economic, social, and ecological aspects of tourism. This includes considering the cultural and social fabric of local communities, ensuring that data collection methods are sensitive to place-based and local needs. By incorporating these aspects, tourism development can be more aligned with the unique characteristics and values of each island and settlement.
Promote Inclusive Community Involvement: Ensure that all segments of the population are involved in tourism planning and decision-making processes. While this is done to some degree, some remote areas still feel that inclusion and cooperation could be better.
Environmental Sustainability: Implement and enforce sustainable tourism practices to minimize environmental impact. Expand initiatives like the "Closed for Maintenance" program and invest in conservation projects to protect natural resources and biodiversity. Continue and expand the encouragement of eco-friendly practices among tourists and businesses.
Capacity Building and Education: Invest in capacity building and education programs to equip local residents with the skills and knowledge needed to participate in and benefit from the tourism industry. Promote awareness of sustainable tourism practices among both residents and visitors. Offer training sessions and educational materials to enhance understanding.
Capacity Building and Education: Invest in capacity building and education programs to equip local residents with the skills and knowledge needed to participate in and benefit from the tourism industry. Promote awareness of sustainable tourism practices among both residents and visitors.