Lofoten region is a special region in NCS, where the Norwegian government prefers to keep the region away from any petroleum and related activities. Sample exploration activities made in the region have confirmed that the region is very rich in petroleum reserve. The decision made to keep the region intact is then looked absurd and would normally draw the attention of
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anyone who has an interest in studying the Norwegian petroleum industry. Before indulging deep into what and why logical questions, however, let us just have a clear understanding of what the region looks like so that we can form our rational base of economic analysis yet to come in the next parts. A discussion of existing economic activities of the region, which could be suspected to have a strong impact on oil company ban in the region, is preceded by a brief description of familiarizing the reader with the geographical settings of the region.
2.3.1 Lofoten Region at a Glance:
The Lofoton region as the collection of few and economically very important islands in Norwegian continental shelf consists of six counties in northern part of Norway including Vestvågøy, Gimsøy, Vestvågøy, Flakstadøy, Moskensøy, Væroy, and Røst. The following map helps easy imagination of where the region is located.
FIGURE 2:LOFOTEN REGION MAP.
Northern lights, exotic sea creatures, mesmerizing natural beauty with a lot of tourist activities like hiking, recreational fishing and many more for what Norway has been known to the world
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tourism industry; call can be found in one place and that is Lofoten. Even many more exotic things that only can be found in this area like the largest stock of cod fish in the world that made Lofoten one of the major fishing hubs of not only Norway but also in whole Europe. In addition, it also has a lot of tourists attract only to see the largest number of the killer whale family. So many interesting attractions have made Lofoten the top tourist destination in Norway (visitnorway, 2019). The majority of Norwegian fishing industry revenue generated from this part which makes Lofoten more and more economically important. Since it is also important in terms of biodiversity and due to environmental significance, allowing Lofoten for petroleum activities could be a devastating decision for the whole of Norway and the word environment. Before getting into this debate let's have a look on the Lofoten island at a glance.
Lofoten has six municipalities and they precisely discussed below;
Vestvågøy:
With a population of 11,140 and a size of 423.1 square kilometers, Vestvågøy municipality is the largest municipality of Lofoten region. Center attraction of Lofoten tourism this municipality has the beautiful and mesmerizing scenic view that consists of steep mountains and sandy beaches. Beside considered as the geographical center of Lofoten, Vestvågøy is also enriched with marine life underneath the sea in terms of fishing. That makes it the most important fishing municipality of entire Norway. This area is also famous for Northern lights and the Midnight Sun. No wonder this area is the center of attraction for tourist who visits northern Norway. To meet a large number of tourists, demand this area has a good number of accommodation and restaurant services. People are very welcoming, and love has a traditional way of living in their modern living style (gonorway, 2019).
Røst:
The traditional municipality established in an island consists of 365 islands. Around 650 inhabitants live there, and the size of this municipality is 10.6 square kilometer. For more than 1000 years ago people started to live here and the main economic activity us fishing. More precisely, well known for dry fish export. About 35 percent dry fish of Lofoten produce here.
This social fishing coast municipality has very impressive economic growth. Røst is also a tourist attraction for the midnight sun, old church and church ruins, polar night, northern lights and bird watching (gonorway, 2019).
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Værøy:
The size is about 17.7 square kilometer and the population is approximately 750. Among them, around 80 percent of the workforce is in the fishing industry. Værøy has a long mountain ridge and contains a various number of activity options for tourist attraction. Like, northern lights, stockfish, bird cliff, old church, polar night, fishing and golf course (gonorway, 2019). It has different fish species that are available in different seasons and that make Værøy more attractive to any travel lover around the year (Bakos, 2009).
Moskenes:
Very famous for its scenic beauty that contains a vast mesmerizing landscape and narrow shoreline made a unique spot of Norway. Around 1200 inhabitants are living here and the area is 118.6 square kilometer. Moskenes has the highest mountain of the Western Lofoten region named Hermannsdalstinden which is 1029 meter above the sea level. Famous tourist attraction beside the northern lights and polar nights are boat trips. despite dangerous ocean, a current boat trip is one of the main adventures that attract tourists. Salmon farming and tourism are getting popular in this region in recent years (gonorway, 2019).
Flakstad:
About 1400 inhabitants live in this municipality and the size of this municipality is about 178.1 square kilometers. Most of the household are along the cost side facing the ocean. Along with fishing villages, Flakstad also has farmlands. Besides fishing, northern lights and polar nights, surprisingly it is very much well known for swimming. Because Flakstad is a warmer place compared to the other municipalities in Lofoten. Ramberg is the administrative center of Flakstad consists of a library and other urban facilities (gonorway, 2019).
Vågan (Austvågøy and Gimsøy):
Vågan municipality includes almost 9100 inhabitants and the area is 477.5 square kilometers.
It also includes the Austvågøy and Gimsøy along with some other islands. As Austvågøy and Gimsøy are separately mentioned in the map of Lofoten tourism but they fall mostly under Vågan municipality. This area sometimes has the largest number of tourist concentration since Vågan is the main gateway for tourists. Several numbers of tourist attractions are present here.
Including coastal steamer, Lofoten museum, Lofoten aquarium, Lofoten cathedral and many more. The largest fishing village of Lofoten can found here too (gonorway, 2019).
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2.3.2 Economic Activities in Lofoten Region:
Major economic activities in the region, which are expected to fall under the direct influence of petroleum activities, are fishing and tourism sector for which the region has already won prominence. Historically the region has been known to be rich in its fish resources since the time of the Viking giving economic importance for about 1000 year. one of the most important features of the region is the fact that it is a hatching ground for different species of fish in the Barents Sea.it is also known that fishing industry stood second to oil from which Norway generates its export revenue. This old industry sector has been challenged by the giant and more valuable underground oil reserves whose value is no comparable with fish. Opening the region for oil operation has a decisive negative impact on fishing. Fish stock may be reduced due to a seismic explosion during exploration and importantly fish catching area can be limited .to the worst case however oil spill may occur which will be a cause for the total halt of the operation for sometimes and losing revenue associated with. There is a need then to investigate thoroughly if there is a mutual mechanism by which the two operate along one another.
On the other hand, the region has won wide recognition for its tourist attraction. Beautiful fjord with blue water and with combination of mountains and naturally decorated sandy beaches, the Lofoten region has a mesmerizing view that attracts thousands of tourists every year around the world (Egeland & Frøystein, 2016). Studies show that the tourism sector has been increasing in the region. It is feared that engagement of oil industry to the region might have a dampening impact on tourism revenue for oil platforms on the horizon and petroleum processing facilities on the island will have a dampening impact on the physical attraction of the region.