Sweden’s Tourism Industry Sees Post-Pandemic Growth, But Employment and Domestic Spending Lag

Published on December 19, 2025

Tourism in Sweden has fully recovered to pre-pandemic levels, according to recent data, with a significant boost driven by foreign demand. International visitors have returned to Sweden in full force, helping the country’s tourism sector bounce back from the economic setbacks caused by the COVID-19 pandemic. However, while tourism activity has rebounded, domestic consumption and employment in the sector have struggled to reach 2019 figures, leaving Sweden’s tourism balance in the negative.

The resurgence of international tourism is seen as a vital sign of recovery for Sweden’s travel and hospitality industries. Yet, underlying issues such as slower domestic spending and persistent employment challenges have tempered the positive outlook, presenting obstacles that will require further attention from both policymakers and industry leaders.

Tourism Rebounds with Foreign Demand Leading the Way

Tourism to Sweden has experienced a substantial increase, with 2025 visitor numbers returning to pre-pandemic levels, driven primarily by foreign demand. Visitors from the European Union, the United States, and other international markets have flocked back to popular destinations in Sweden, such as Stockholm, Gothenburg, and the northern Lapland region. The country’s natural beauty, cultural heritage, and vibrant urban centers remain key attractions for international travelers.

The Swedish Tourism Industry Board (STIB) reported that Sweden saw a significant influx of visitors during the 2025 summer season, with bookings for hotels, guided tours, and cultural experiences reaching pre-pandemic levels. This recovery has been vital in revitalizing sectors that were heavily impacted by the pandemic, such as airlines, hotels, and local attractions.

Foreign tourism has not only contributed to the recovery of Sweden’s tourism sector but also played a pivotal role in supporting the broader economy. International visitors tend to spend more on accommodation, food, and transportation, which boosts the local economy and helps create jobs in the service and hospitality sectors.

Domestic Consumption Lags Behind Recovery

While Sweden’s international tourism has bounced back, domestic tourism remains below 2019 levels. Swedes themselves are traveling less than before the pandemic, which is affecting overall tourism spending within the country. Domestic consumption in the tourism sector continues to lag, with fewer local travelers booking stays at hotels or participating in tours compared to previous years.

The slower recovery of domestic tourism has contributed to the country’s negative tourism balance, as Sweden continues to spend more on attracting foreign visitors than the income generated from domestic travel. To counteract this, local tourism initiatives are being launched to encourage Swedes to explore their own country, but challenges persist in stimulating demand from the domestic market.

Factors such as changing work patterns, with more people opting for remote work and staycations, have also impacted how Swedes engage with tourism. The trend of avoiding international travel during the pandemic has led to a shift in preferences, with many now focusing on short, regional getaways rather than long-haul vacations. While this has benefited some local businesses, it hasn’t been enough to make up for the overall decline in domestic tourism spending.

Employment in the Swedish Tourism Sector Remains Below Pre-Pandemic Levels

Despite the recovery of tourism activity, employment in Sweden’s tourism sector has yet to return to pre-pandemic levels. Many tourism-related jobs, particularly in hotels, restaurants, and entertainment services, remain unfilled or have not fully recovered, contributing to the ongoing challenges in the labor market.

A shortage of workers has been a significant issue in many parts of the tourism industry, with some sectors facing difficulties in finding qualified staff. While the return of tourists has brought much-needed business to the sector, the lack of a fully staffed workforce has limited the industry’s ability to capitalize on the increase in demand. Many businesses, especially in the hospitality and service industries, are struggling with staffing shortages that impact service quality and overall efficiency.

Sweden’s tourism sector also faces competition for labor, with workers in the sector often lured to other industries offering more stable or higher-paying jobs. The long-term sustainability of Sweden’s tourism recovery will depend on addressing these employment issues, ensuring that businesses can find and retain the workers needed to support the growth of the sector.

Tourism Balance Remains Negative as Economic Issues Persist

Despite the resurgence in tourism, Sweden’s tourism balance remains negative. The country continues to spend heavily on marketing campaigns and infrastructure aimed at attracting international visitors, while domestic tourism spending has not yet fully recovered. This imbalance, combined with slower employment growth, means that Sweden’s tourism industry is still facing some economic challenges.

The Swedish government has recognized the importance of a balanced tourism economy and is working on measures to boost domestic travel, improve tourism-related employment, and create a more sustainable industry. Encouraging local residents to travel more within Sweden, expanding seasonal tourism offerings, and improving support for businesses in the sector are part of the strategies being explored.

Looking Ahead: Opportunities for Growth and Challenges to Address

The recovery of Sweden’s tourism sector is undoubtedly a positive sign for the country’s economy, but challenges remain. To fully capitalize on the potential of its tourism industry, Sweden will need to address the ongoing issues of domestic consumption, employment, and the tourism balance.

Future efforts will likely focus on encouraging more local travel, attracting a diverse range of international tourists, and improving employment conditions within the sector. Sustainable tourism practices, which focus on minimizing environmental impact while maximizing local economic benefits, are also expected to play a role in Sweden’s long-term tourism strategy.

Overall, while Sweden’s tourism sector has made impressive strides toward recovery, ensuring its sustained growth will require addressing the current gaps in domestic spending, employment, and economic balance. By tackling these issues, Sweden can continue to build on its strong tourism foundation and maintain its position as a leading destination for travelers from around the world.