ÅLAND - Economy
Åland set out on its road to prosperity in the 1970s and 1980s. In 2001, Åland was the wealthiest region in Finland, with a GDP per capita of 33 595 Purchasing Power Parities per inhabitant, almost twice that of Itä-Suomi, Finland's poorest region. This is especially due to the capital-intensive shipping industry. Compared to the EU average, the GDP per capita was 45% higher in the archipelago in 2001.
Åland's wealth is largely explained by the economic expansion in Mariehamn, the region's economic hub. The success of the region's strong business sectors, tourism and capital-intensive transport, has helped Åland to cope with the latest recession with hardly any damage. More than half of the service sector revenue comes from trade, the hotel- and catering business, and communications. The service sector generated more than 80% of Åland's GVA in 2001. The region has the highest level of productivity in Finland, at 21% above the national average in 2001. This represents an increase in productivity of 27% compared to 1996.
Shipping is very important
Historically, international shipping has been the most important source of economic prosperity in the Åland islands. Today Mariehamn is Finland's third biggest shipping town, after Helsinki and Turku. A quarter of Finland's merchant fleet is registered in Åland
Shipping and tourism account for an indispensable part of Åland's value-added and jobs. With one sole exception, the biggest companies in terms of employment are shipping companies. As well as passenger traffic in the Baltic Sea, Åland companies commonly engage in merchant shipping on the high seas. Their operating environment has, however, become more difficult with the increasingly keen competition between Finnish, Swedish, Baltic and Åland shipping companies.
The service sector is the second main support of Åland's economy, and the archipelago accounts for a significant proportion of total tourism revenues in Finland. Most of the tourists come from other Scandinavian countries. The importance of tourism is further enhanced by the fact that it generates indirectly a major proportion of value-added and of jobs in communications and trade.
Important agriculture
The manufacturing industry in Åland is mostly focused on the processing of agricultural and fishery products. Ab Chips Ltd, by far the largest industrial enterprise, is primarily known for its potato products.
Natural conditions and the fragmented patches of arable land have forced Åland's farmers to specialize. For reasons of profitability, horticultural crops have replaced dairy farming on the best arable land. Sugar beet, potatoes, onions, Chinese cabbage and apples are particularly successful. Åland had in 2001 a production of 17 500 tonnes of cereals and 16 800 tonnes of potatoes.
The three main agricultural products in 2001 in terms of their share in total agricultural output were field crops (42%), milk (30%) and vegetable and fruits (15%). Representative in the livestock of the region were cattle (7 600 heads in 2001) and sheep (5 100 heads).
The traditional island fishing has largely turned into open-sea trawling. The catch mainly comprises Baltic herring, sprat and salmon. The biggest operators within the fisheries today are fish farmers.
Transport volumes
In 2001, there were 912 kilometres of road in Åland. There were 17 700 vehicles registered, of which slightly more than 80% were private cars.
The volume of freight carried by air varies greatly over the years: in 2001, it represented approx. 600 tonnes, of which 69% were unloaded in the region's airports. In terms of passengers, there has been a steadily decline over the 1990's (-40% between 1990 and 2001) and in 2001, there were 86 000 passengers arriving or leaving Åland by air.
In 2001 maritime transport was responsible of the transport for 230 000 tonnes freight to/from Åland and about 3.4 million passengers.
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