Status Quo analysis for Lake Saimaa region

Regional Cultural Heritage
Status Quo based on the
KRAFT Method
Local Flavours: Authentic tourism based
on local cultural flavours
Pellervo Kokkonen | Juha Matikainen | Susanna Peura
Cover Photo: Panu Litmanen, 2021.
This project report reflects the author’s views only and the Interreg Europe programme authorities
are not liable for any use that may be made of the information contained therein.
2021
Savonlinna
Development
Services Ltd.

2
Content
1 Background and context 4
1.1 Project summary 4
1.2 Nature of regional disparities 5
2 The Creative City – Sustainable Region (KRAFT) Methodology 5
2.1 The Onion model – how to identify regions/ territories? 5
2.2 Importance of regional, territorial planning 6
2.3 KRAFT METHODOLOGY 7
2.4 Research Model for Savonlinna and Saimaa Phenomenon 11
2.5 Power of networks, identity and transformational capacities in the contemporary society 12
3 Research area 12
4 Policy framework 13
4.1 Introduction of the Policy Instrument 13
4.2 Development priorities for Eastern Finland 13
4.3 The New Policy Instrument 16
4.4 Other relevant policy instruments 16
4.5 Inter-regional collaboration and macro projects 17
4.6 Other relevant policies 17
4.7 How the Status Quo addresses the Policy Instrument 18
5 Regional development framework and cultural heritage status quo in Lake Saimaa area 19
5.1 General description of the area 19
5.1.1 Location 19
5.1.2 Physical geography 19
5.1.3 Human geography 20
5.1.4 History 24
5.2 Natural and geographical environment – assets and challenges 25
5.2.1 Saimaa Phenomenon – synthesizing the Art of Living on Lake Saimaa 26
5.2.2 East meets west – the meaning of the border 26
5.3 Social and demographic potential and social inclusion 30
5.3.1 The demographic development 30
5.3.2 Sociodemographic characteristics 32
5.4 Identity, brand and recognition of the area 32
5.4.1 Regional identity 32
5.4.2 Saimaa ringed seal 36
5.4.3 Image of Lake Saimaa abroad 36
5.4.4 Tourism branding 36

3
5.5 Economic development 37
5.5.1 The impact of accessibility 37
5.5.2 The overall economic dynamic in the region 38
5.5.3 The labour market 39
5.5.4 Economic dynamic through entrepreneurship and specialization 39
5.5.5 Public economic incentives for enterprises 40
5.5.6 Tourism development 41
5.6 Cultural production and creative industries 42
5.6.1 Cultural heritage and arts in Lake Saimaa area 42
5.6.2 The economic significance of cultural and creative industries 43
5.6.3 The role of cultural heritage – assets and deficiencies 45
5.6.4 Creative networking 45
5.6.5 The creative potential – competencies through specialized education 46
5.6.6 Perspectives of cultural production and creative industries 47
5.7 The impact of the Covid-19 pandemic in the area 48
6 Conclusion 49
7 Refined Aspirations 50
8 References 52

4
1 Background and context
1.1 Project summary
Major tourism attractions are emerging as internationally acclaimed hubs of visits and services, leading to oversight
of other cultural sites and to non-sustainability of most-visited destinations. At the same time tourists are upgrading
authentic cultural heritage, offering specific experience rooted in local history and the preserved cultural legacy of
communities, adding unique flavors and excitement to their adventure.
Small and medium sized towns with rich but undervalued cultural heritage possess the potential to offer new,
unique and authentic experiences, but suffer from either the dominance of major attractions in their vicinity, or from
their relatively remote locations. Positioning them as authentic destinations can simultaneously sustain local cultural
heritage and create better prospects for locals. The attraction of tourists to less recognized places can create a more
even distribution of tourism and more cohesive regional economies.
Local Cultural Flavors’ objective is to improve policies supporting places unable to fully exploit their cultural legacies
due to less-advantaged locations. The project will help partners to meet the challenge of identifying the most
effective ways to support unique local sites with an innovative analysis toolkit, extensive knowledge sharing and with
assisted interaction with local public and private stakeholders. This way the specific local and regional potentials and
bottlenecks can be properly explored and used to elaborate the right policy frameworks elevating and positioning
new authentic destinations.
Local Flavours applies innovative analysis and decision-making methods to less-
recognised but unique locations with the goal to exploit their authentic cultural
heritage as part of regional tourism.

5
1.2 Nature of regional disparities
One of the main barriers against harmonized development is the uneven distribution of wealth. Not by coincidence,
the cohesion policy of the European Union is dedicated to promote and support the ‘overall harmonious
development’ of its Member States and regions. It must be stated, that regions, with specific structures often
represent an inner core-periphery system, where the importance of cities, larger settlements is high, the
neighbourhood often depends on the economic viability and growth of core areas (like urban-rural linkages).
Regional development, aiming to maximize the welfare of inhabitants, to create a sustainable territorial structure for
long-term viability through the mobilization and exploitation of local resources has a high importance for population
retention. Nevertheless, as while Simmie and Martin (2010) point out regional development is far from a smooth
and incremental process, instead, it is the subject to all sorts of interruptions and disruptions (such as periodic
economic recessions, the unpredictable rise of major competitors, unexpected plant closures, the challenges arising
from technological change and the like), and the state responses answering these challenges and the degree of
decentralization and the adaptive capacity of territories differs to a high extent even in the same national economy.
Due to the continuous changes in World’s economy and persistent differences among wealth among and inside
national economies, the importance of smaller-scale assessments is ascending in order to assess the state of various
territories. Regional development as a strategic management process begins with the assessment of territories. In
this regional development framework from humans’ wealth perspective the role of cities and their networks are
unquestionable. Accordingly, considering the importance of cities in regional developments several attempts have
been made in order to assess and make comparable the performance of cities in maximising human wealth. This
often embodies creating new concepts of city regions and indicators illustrating development. The core element
between the welfare and urban areas are the societal functions which enable inhabitants to satisfy their needs.
These societal functions are:
1. working,
2. housing/ lodgement,
3. learning, training capabilities,
4. communication,
5. consumption,
6. leisure and recreational opportunities,
7. being part of a community.
The social and productive infrastructure embody the possibilities of these functions. But we must add that different
territories, not just urban centres and SMSTs could provide different facilities for satisfying inhabitants’ needs. That’s
why regional development initiatives must take into consideration the values, attitudes, capabilities of different
communities to elaborate successful programs which meet societal needs. And furthermore, the constitution of
inhabitants from generation perspective also determines what could be valuable, since the utility functions of these
groups could be quite divergent.
2 The Creative City – Sustainable Region (KRAFT) Methodology
2.1 The Onion model – how to identify regions/ territories?
We construct categories that help us identify, classify, categorize regions. These categories are not mutually
exclusive: how we define something has much to do with what we are looking for or why we want to look for it.
We can look at a very small “snapshot” of an area, or look at quite large territorial expanses, and both are
considered regions! We can look at Regions as “Worlds within Worlds” – The Onion Metaphor; Contextual reality,
like peeling back layers of onion.

6
According to Agnew (2000 and 2001) and Haukkala et al. (1999) regions are often conceptualized as units of social-
economic space characterized by production structure of all ownership forms, population, employment
concentration as well as governmental institutions. Fundamentally, they are a social, cultural, political and
economic interaction system (Agnew, 2000, 2001 and Haukkala et al., 1999 in Palekiene et al., 2015), which face
several challenges regarding the well-being of their inhabitants. The KRAFT Methodology provides a system which
could be used for analyse this “Worlds within Worlds” emphasizing the importance of local values, resources and
institutions which make places “unique”.
2.2 Importance of regional, territorial planning
● Regional = spatial, territorial
● Level of investigation, analysis
● Households, enterprises, cities, city regions, administrative regions, regions above national level
Haas – Schlesinger (2007)
How do we conceptualize regions?
● Special or unique criteria identify regions
● These criteria can be:
o Spatial (a particular location on the earth’s surface)
▪ Boundaries that delimit spaces
o Physical
▪ Climate, Vegetation
o Cultural:
▪ Language, or Religion, or Cultural Practices
o Economic:
▪ Agriculture, Industry
Sustainabililty
Ecological
dimension
Time
dimension
Economic
dimension
Regional
(spatial)
dimension
Societal
dimension
Technological
dimension

7
2.3 KRAFT METHODOLOGY
The Creative City – Sustainable Region (KRAFT) is a concept that perceives effective regional cooperation among
economic and social actors as the measure of successful investment and development. It is rooted in the conviction
that the key to successful development initiatives and projects is the effective cooperation between the socio-
economic stakeholders of the relevant region. The concept takes into consideration individual (company, city,
university etc.) and community interests in the region.
How can cities, groups of cities or strings of cities (and their regional – agglomeration environment) offer
appealing living and working conditions with the valorisation of their cultural heritage?
o Creation, accumulation and spread of new knowledge
o Creation and strengthening creative workforce
o Increase the economic, social and environmental conditions
One of the major outcomes of the initiative is the ‘KRAFT’ complex system of indicators (‘KRAFT-index’), an analytical
tool suitable to demonstrate regional development tendencies regarding specific development areas.
Themes of the ‘KRAFT’ complex system of indicators. (Source: compilation by Institute of Advanced Studies)
The complex system of indicators covers hard and soft ones. Hard indicators of the KRAFT-index come from already
existing databases. Soft indicators, on the contrary represent the attitudes, opinions of local residents after survey.
Table: Themes and subject of the ‘KRAFT’ complex system of indicators with examples of the data sources used by
iASK
Key areas of
intervention
(themes)
No. Subject Content
Attribute
(hard/ soft)
Data source1
Economic
development
1. Economic activity
Number of registered, working SMEs hard
HCSO REGIONAL
STATISTICS (HCSO
REG. STAT)
Number of registered, working enterprises hard HCSO REG. STAT
Local business tax hard LG
2.
Local economic
incentives
Local economic incentives provided by the
local government
hard LG
3.
General economic
and income status
of inhabitants
Households incomes soft on-site survey
New houses and flats built hard HCSO REG. STAT
Number of jobseekers hard HCSO REG. STAT
4. Entrepreneurship
Creativity of inhabitants soft on-site survey
Entrepreneurial plans of inhabitants soft on-site survey
Governance 1. Sense of security
Behavior and actions in case of abuses soft on-site survey
Extent of discrimination (against
themselves and neighborhood)
soft on-site survey
To what extent people feels the city and
vicinity/ neighborhood safe
soft on-site survey
1
Main data source types are: Hungarian Central Statistical Office [HCSO], data from the Local Government/ Municipality [LG],
questionnaire for on-site survey at households [on-site survey]
economic
development
governance social vitality health heritage culture
natural and
built
environment
networks
education,
learning

8
Key areas of
intervention
(themes)
No. Subject Content
Attribute
(hard/ soft)
Data source1
2.
Citizen satisfaction
with governance
Satisfaction with services provided by the
local government
soft on-site survey
Satisfaction with public administration soft on-site survey
Number of proceedings against public
administration at the Court of First
Instance
hard LG
3. Advocacy
Advocacy of parliamentarians soft on-site survey
Advocacy of the municipality soft on-site survey
3. Social engagement
To what extent the municipality asks and
considers the opinion of the inhabitants in
case of local matters/ affairs
soft on-site survey
To what extent the inhabitants are
informed about the local development
strategies, plans of the municipality
soft on-site survey
To what extent the inhabitants express
their opinion on various platforms (public
forums, community office hours)
soft on-site survey
Number of followers of Facebook site of
the settlement
hard LG
Participation at elections hard
National Election
Office
Social vitality
1. Confidence
To what extent the person may rely on
others at his or her surroundings
soft on-site survey
Level of confidence towards local/ regional
institutions (for e.g. local government,
police, justice, educational institutions)
soft on-site survey
Corruption soft on-site survey
2.
Demographic
patterns
Population change hard HCSO REG. STAT
Motivations of delocalization soft on-site survey
Migration hard HCSO REG. STAT
Aging society hard HCSO statistics
3. Social responsibility
NGOs hard birosag.hu
voluntary work soft on-site survey
4. Local identity
To what extent the inhabitant is linked to
the settlement
soft on-site survey
Solidarity of peoples soft on-site survey
People’s wishes their children would live
and work in the settlement
soft on-site survey
5.
Support the local
citizens in need
Family support hard LG
Elderly support hard LG
Disabled persons support hard LG
Health
1. Health condition
Number of organ disorders hard Hospital data
Number of psychological disorders hard Hospital data
General health situation soft on-site survey
Happiness soft on-site survey
2. Health services
Satisfaction with local health services soft on-site survey
Number of beds in hospitals hard HCSO REG. STAT
Number of doctors hard HCSO REG. STAT
Number of child doctors hard HCSO REG. STAT
3. Citizens’ way of life
Health-conscious nutrition soft on-site survey
Number of inhabitants visiting health
screening, health assessment programs
soft on-site survey
Leisure activity soft on-site survey
4. Health support
Health support provided by the local
government
hard LG

9
Key areas of
intervention
(themes)
No. Subject Content
Attribute
(hard/ soft)
Data source1
Heritage
1. Tangible heritage
Museums, Monuments, Heritage sites and
resources, Geographical place names,
Heraldry and national symbols, Archives
and public records
hard thematic research
2. Intangible heritage
Cultural traditions, Customs, Oral history,
Performance-based Cultural Heritage,
Ritual, Popular Memory, Social mores
soft thematic research
Culture
1. Cultural activity
Frequency of cultural activity soft on-site survey
Number of people at cultural courses,
activities
hard HCSO REG. STAT
Number of people at cultural events hard HCSO REG. STAT
2. Cultural supply
Number of cultural institutions hard HCSO REG. STAT
Satisfaction with the local cultural supply soft on-site survey
3. Cultural support
Cultural support provided by the local
government
soft LG
Natural and
built
environment
1.
Satisfaction with
the natural and
built environment
Satisfaction with the natural environment
(quality of for e.g. air, water, ground,
plants), cleanness of the streets
soft on-site survey
Satisfaction with the public transport soft on-site survey
State of roads, buildings in the
surroundings
soft on-site survey
2.
Level of
environmental
activity
Gathering information about the state of
the near environment (for e.g. air, water,
noises…)
soft on-site survey
Use of alternative energy soft on-site survey
3.
State of the
environment
Air pollution hard
Hungarian Air Quality
Network
Green spaces hard HCSO REG. STAT
4.
Urban
infrastructure
Assessment of the quality of the air hard
Hungarian Air Quality
Network
Water usage hard HCSO REG. STAT
Sewerage system hard HCSO REG. STAT
Selective waste collection hard HCSO REG. STAT
Bike paths, roads, public areas hard HCSO REG. STAT
Networks
1. Regional identity
To what extent the inhabitant is linked to
the region
soft on-site survey
2. Human relations
Tolerance level towards minor groups (for
e.g. elderly, disabled persons, Gypsy
peoples, homosexuals, etc.)
soft on-site survey
To what extent the settlement is
preferable, convenient for certain groups
of people (for e.g. families, immigrants,
qualified persons, etc.)
soft on-site survey
3. Social inclusion
Level of participation at NGOs soft on-site survey
To what extent people buy and consume
products and serviced provided by the
local economy
soft on-site survey
To what extent people are aware and
know the different developments of the
surroundings
soft on-site survey
4. Digitalization
Internet usage hard HCSO REG. STAT
Number of free public WiFi spots hard LG
Education,
learning
1. Qualification
Qualified persons from creative disciplines hard
ENIC/NARIC Hungary:
Felvi.hu (?)
Graduates from primary school hard HCSO REG. STAT
Graduates from high school hard HCSO REG. STAT
Graduates from universities hard HCSO REG. STAT

10
Key areas of
intervention
(themes)
No. Subject Content
Attribute
(hard/ soft)
Data source1
Graduates from technical school hard HCSO REG. STAT
Graduates from secondary vocational
schools
hard HCSO REG. STAT
2. Competences
IT competence soft on-site survey
Language skills and competences soft on-site survey
Self-development soft on-site survey
3.
Research &
Development
(R& D)
Number of Research & Development
places and employees
hard HCSO
4.
Satisfaction with
education
Satisfaction with education institutes soft on-site survey
5. Education support
Education support provided by the local
government
hard LG
As we can see the methodology covers wide range of themes and examination areas. In the next chapter, we
introduce the themes of the status quo analysis using the classification of the KRAFT.

2.4 Research Model for Savonlinna and Saimaa Phenomenon
Description of the task
Themes of the ‘KRAFT’ complex system of indicators
economic
development
governance social
vitality
health heritage culture natural and
built
environment
networks education,
learning
1.
How does accessibility
affect the vitality of the
region?
x x x x x
2.
How does the critical mass
of creativity form and who
are its chief actors?
x x x x x x x
3.
How does the environment
inspire and work as an
attractive force to the
area?
x x x x x x x
4.
Tourism as a booster of
interaction and vitality
x x x x x x x x
5.
The economic dynamic of
the cultural business
ecosystem
x x x x x x x x
6.
How does the Covid-19
pandemic affect tourism
and creative industries in
the region?
x x
7.
Awareness and recognition
of regional identity and
international recognition
x x x x x
8.
Social environment,
inclusion diversity,
demographic challenges,
equality
x x x x x

2.5 Power of networks, identity and transformational capacities in the contemporary society
The status quo analysis for Lake Saimaa region is based on the theses of Manuel Castells (Castells 1996, 1997 and
2000) and an interpretation of Castells’ propositions in a predominantly rural environment (Nuur, Cali & Staffan
Laestadius 2009).
The basic premises adapted from Castells that economic and social development are driven by ‘creative class’ which
is determining the futures of regions and cities integrating into ICT-based global information capitalism. The new
information society is organized and shaped by the new power of networks of people and information.
Transformation and possible marginalization of groups of people and the possible emergence of conflicts in localities
and societies are based on the capacity to formulate emancipatory identities that become objects of identification
for the creative classes. Also the future of regions is determined by their positioning and status in the creative
networks, ability to formulate emancipatory and empowering collective identities and thus attracting the labour
force representing the creative class.
Whereas the usual interpretation of Castells has been that the critical mass for creativity is primarily created in large
urban conglomerations, there are increasingly signals that the creative class is attracted by the possibilities of
integrating the urban and the rural in symbiotic relationship. There are numerous examples of rural localities that
have become attractive hubs for the creative class by providing networking opportunities, inspiration, experiences
and opportunities for recuperation. The prospects and economic development of rural localities are increasingly
determined by members of the creative class initiating new business and building new networks and capacities. An
enabler of this process is the significant digital transformation taking place in the 2020s with telepresence and
distance-working becoming everyday reality.
3 Research area
The status quo analysis for Savonlinna Development Services
(SDS) involves areas in Eastern Finland participating in the bid
for the European Capital of Culture 2026 - Savonlinna - Saimaa
Phenomenon. It includes four administrative regions (as
indicated on the map nos. 5, 6, 10, 11) in Finland who joined the
application for the ECoC. Via SDS as a project partner, Local
Flavours project has significantly contributed to the preparation
of the ECoC application “Saimaa Phenomenon” through
interregional learning and reported the preparation project as a
policy change. While the goals of the Saimaa Phenomenon
largely are similar to the Local Flavours project, it is relevant to
analyze the current situation and impacts in the wider context of
the Saimaa Phenomenon area.
In this status quo analysis indicators for the larger area including
the four regions will be described and elaborated, while in more
specific questions focus will be placed on the city of Savonlinna
as the hub and central city of the proposed ECoC Programme.
On 2 June 2021 it was announced that Savonlinna was not
granted the status of the European Capital of Culture 2026. This
decision underlies the urgency of actuating policy change in the
area of cultural and creative industries in Eastern Finland and in
the Savonlinna Region. The consortium committed to the ECoC
bid will resume dialogue and discussion of the promotion of the
most promising proposals developed in the ECoC bid.

13
4 Policy framework
4.1 Introduction of the Policy Instrument
Sustainable growth and jobs 2014–2020 is Finland's structural funds programme. It has five priority axes and
13 specific objectives. Each project must deliver at least one of these specific objectives.
The Finnish government has adopted a programme document, which must still be approved by the European
Commission.
1. Competiveness of SMEs (ERDF)
● Generating new business
● Improving transport and logistic connections that are important to SMEs (only in Eastern and Northern
Finland)
● Promoting growth and internationalisation of enterprises
● Promoting energy efficiency in SMEs
2. Producing and using the latest information and knowledge (ERDF)
● Development of the centres of research, expertise and innovation on the basis of regional strengths
● Strengthening innovation in enterprises
● Developing solutions based on renewable energy and energy-efficient solutions
3. Employment and labour mobility (ESF)
● Promotion of employment among the young and other groups that are in a weak position in the labour
market
● Improving productivity and well-being at work
● Reducing gender segregation in education and work
4. Education, skills and lifelong learning (ESF)
● Improving services supporting transitional periods and equality in education
● Improving the availability and quality of education in growth sectors and sectors affected by structural
change
5. Social inclusion and combating poverty (ESF)
● Improving the working and functional capacity of people outside working life
4.2 Development priorities for Eastern Finland
The joint Sustainable Growth and Jobs 2014–2020 structural fund programme has been realised throughout
mainland Finland and includes both European Regional Development Fund (ERDF) and European Social Fund (ESF)
activities. Eastern and Northern Finland are sparsely populated northern regions the development of which the EU
has decided to support with abundant aid.
Eastern Finland, as part of the northern sparsely populated area, will face great challenges during the upcoming
programming period. The most significant of these are the expansion of globalisation, climate change, energy prices
and changes in energy policy, as well as an aging population structure and population decline in broad areas.
Realisation of activities that will improve accessibility is essential, if the region wishes to improve the competitiveness
of its areas and their economy. Development priorities in Finland's Eastern and Northern regions have been specified

14
in the regional plan for Eastern and Northern Finland, which supplements the Sustainable Growth and Labour
Programme.
Saimaa area as the object of this status quo analysis comprises four regions: North Karelia, North Savo, South Karelia
and South Savo. Savonlinna is located in the regional sub-programme of the South Savo region.
Region Area km² Population Population density /km²
Northern Karelia 21 583,67 163 499 9,21
Northern Savonia 20 366,19 248 181 14,8
Southern Karelia 6 872,10 126 845 23,81
Southern Savonia
(focus region of the study)
19 130,40 132 636 9,3
Specific objectives of South Savo region are described in the following diagram:

15
Development priorities of North Savo are as follows:
Priorities of North Karelia are presented in the following infographic:

16
South Karelia as a part of the Saimaa area, belongs to the Southern Finland programme area, where the subsidy level
of the Growth and Jobs programme is lower than in Eastern and Northern Finland. The focus areas of South Karelia
based on strengths are: Spontaneous and Caring eKarelia, Entrepreneurial eKarelia, Sustainable and responsible
eKarelia, International eKarelia.
It has been widely recognized that the fragmentation of the area in four region sub-programme areas does not
encourage stakeholders to tackle the large structural development challenges requiring interregional cooperation.
These include transportation and accessibility, education and optimizing its impact in an equitable way benefitting the
whole area, and the promotion of tourism. Programme managing authorities have not provided incentives for
stakeholders for developing inter-regional project proposals.
More detailed info on policy instrument can be found in www.structuralfunds.fi
4.3 The New Policy Instrument
The new ESIF policy instrument for 2021–2027 is expected to be approved and opened for first calls in September-
October 2021. It is organized as a national programme with a sub-programme for Northern and Eastern Finland. The
funds are being administered by the regional councils as the managing on the regional level. The priorities of the
ERDF and ESF programmes are interpreted by each regional council based on the respective regional strategy.
The objectives of the new programme are:
• Objective 1: (ERDF) Innovative Finland
o Promotion of research and innovation capabilities
o Harnessing the benefits of digitalization
o SME growth and competitiveness
• Objectice 2: (ERDF) Carbon neutral Finland
o 2.1. Promoting energy efficiency measures and reducing greenhouse gas emissions
o 2.2. Promoting climate change adaptation, risk prevention and disaster preparedness and resilience
o 2.3. Promoting the transition to a circular economy
• Objective 3: (ERDF) Accessible Finland
o 3.1. Developing regional and local accessibility
• Objective 4: (ESF) Participative and inclusive labor markets in Finland
o 4.1. Paths to work
o 4.2. New skills for the labor market
o 4.3. Equal inclusion
4.4 Other relevant policy instruments
Regarding areas of valorization of cultural heritage, creative industries and improving quality of life, other relevant
policy instruments include:
● Cross Border Cooperation Programmes (CBC) EU - Russia. Relevant programmes to the Lake Saimaa area are
South-East Finland - Russia CBC (SEFR) and Karelia CBC. Both programmes promote cross border business
environment and SMEs. Regarding the themes of the SQA relevant priorities in SEFR include education and
“attractive and clean environment”. In Karelia CBC relevant themes include in addition “attractive cultural
environment”. CBC programme funding has been used for tourism promotion projects and projects aimed at

17
promoting the utilization of cross-border waterways. Also environmental projects contribute toward
cleaning the environment and communicating to the public about the value of a clean environment and risks
associated with environmental change. In the SEFR on the Finnish side, South Karelia and South Savo belong
to the programme area whereas North Karelia and North Savo are adjoining regions with more limited
participation. In Karelia, North Karelia belongs to the programme area, while the rest of regions are adjoining
regions. On the Russian side, Karelian republic belongs to the Karelia CBC whereas Leningrad region and St.
Petersburg belong to the SEFR CBC. Considering potential cooperation, the administrative division into two
exclusive areas presents a clear obstacle and disadvantage. This has been recognized by the policy
authorities and will be addressed in the upcoming new programmes.
● LEADER group funding programme. In the area of the four regions, there are 10 local LEADER groups
operating.
● Rural Finland rural development programme. In addition to support to primary production, the programme
aims to facilitate development of services and villages and start-up entrepreneurship in the countryside.
(LEADER funding is administered via Rural Finland.) www.rural.fi
● Finnish national regional development funding (maakunnan kehittämisraha) to support sustainable regional
development. Governed by the ministry of employment and economy and granted on regional basis by
regional councils. The grants are distributed through different sub-programmes such as funding for self-
defined development actions, 2021 (maakunnan omaehtoinen kehittämisrahoitus, MOKRA).
4.5 Inter-regional collaboration and macro projects
The administrative regions of Lake Saimaa area have formed a number of inter-regional consortia and projects to
promote and integrate larger development goals. These macro projects are effectively facilitated through funding via
EU policy instruments, most notable Structural Funds and Neighbourhood programmes. Most significant of these
include
1. Saimaa Phenomenon, Savonlinna. European Capital of Culture application. The provinces of eastern Finland
and their central cities nominated in 2020 the city of Savonlinna as their joint candidate for the title of
European Capital of Culture (ECoC) 2026. The prestigious title will usher in new benefits and opportunities to
the area. Growth and Jobs structural funds programme has been used to support application processing with
co-funding by Saimaa area cities and regional councils. The preparation phase of Saimaa Phenomenon has
generated in 2020-2021 a significant amount of interregional cooperation in the cultural and creative
industries. Despite the unsuccessful bid, the proposal contains many projects that can be implemented with
the help of other policy instruments.
2. Applications for UNESCO natural heritage site “Saimaa ringed seal archipelago” and UNESCO Saimaa
Geopark. These have been supported by large projects Nature Saimaa (Luonto-Saimaa) and GeoNaCu from
the structural funds.
3. Promotion of Lake Saimaa inland waterways through Navi Saimaa ERDF project and CBC project for
developing cruise tourism in Lake Saimaa area.
4.6 Other relevant policies
● The Saimaa Treaty was signed in 2017 and 2020 to establish cooperation in tourism promotion between
South Karelia and South Savo with the city of Varkaus participating from the North Savo region. Including a
new joint tourism strategy for South Karelia and South Savo regions 2021-2024.
● Eastern Finland transportation and transport safety master plan is developed and implemented by the
regional Centre for Economic Development, Transport and the Environment.
● Saimaa Charter 2019: Statement by government institutions, regional councils, municipalities in Eastern
Finland / Lake Saimaa area concerning commitment to sustainable development goals regarding the
preservation of clean nature and undisturbed lake ecosystems in the River Vuoksi watershed - including Lake
Saimaa.

18
4.7 How the Status Quo addresses the Policy Instrument
Objective of the policy instrument 2021-2027 Status quo analysis research questions
Objective 1: (ERDF) Innovative Finland
1.1. Promotion of research and innovation capabilities
1.2. Harnessing the benefits of digitalization
1.3. SME growth and competitiveness
The SQA will analyse creative potential and openness of
the regional networks and the business environment as
factors supporting innovation potential. It is recognized
that the underlying logic of the policy instrument is in
supporting industry and technology sectors to grow (or
can be easily perceived in that way). The SQA will
question this logic and explore deeper the perspective
of promoting an open, creative and innovative
economy. SQA also addresses the question inward
potential of entrepreneurship and creating and
presenting an attractive environment for business
coming from outside of the region. SQA also analyses
potential for growth innovation in tourism business
related to CCI.
Objectice 2: (ERDF) Carbon neutral Finland
2.1. Promoting energy efficiency measures and reducing
greenhouse gas emissions
2.2. Promoting climate change adaptation, risk
prevention and disaster preparedness and resilience
2.3. Promoting the transition to a circular economy
One of the main assets of the region is its clean
environment and favourable climatic conditions.
Integral part of the sustainable development in the
region is ecological sustainability in its different forms
and the ability of the region to attract actors and
business committed to and promoting responsible
action in terms of the environment. However, SQA does
not directly address the question of carbon neutrality.
Objective 3: (ERDF) Accessible Finland
3.1. Developing regional and local accessibility
Internal, domestic and international accessibility are
critical factors enabling a sustainable, vibrant and
creative regional economy to develop. The SQA will
analyse national and international connectivity of the
region and the overall service standards of public
transportation.
Objective 4: (ESF) Participative and inclusive labour
markets in Finland
4.1. Paths to work
4.2. New skills for the labour market
4.3. Equal inclusion
The SQA addresses challenges concerning labour-
market issues related to the CCIs in terms of skills,
capacities and human potential. Essential perspectives
are education and paths to employment in the CCIs and
availability of skilled professionals and their potential to
develop. The SQA also addresses issues of social and
cultural inclusion and ways to tackle social problems
through inclusive CCI approach.
Challenges related to policy formulation are discussed in more detail under the topical headings below.

19
5 Regional development framework and cultural heritage status quo in Lake
Saimaa area
5.1 General description of the area
5.1.1 Location
Lake Saimaa is situated in south-eastern Finland, in
the Finnish Lakeland area. It covers ca. 4,400 square
kilometres and extends in the area of four regions:
South Savo, North Savo, South Karelia and North
Karelia. Savonlinna is located in the centre of the
area thus having waterway connections to all the
corners of Lake Saimaa. The Vuoksi River connects
the lake system to Lake Ladoga (in Russia) and
Saimaa Canal to the Gulf of Finland. From Savonlinna,
distance to Helsinki is 334 km and distance to St.
Petersburg is 317 km. The distances between major
cities in the area are in the range of 100 to 170 km.
5.1.2 Physical geography
The area is characterized by post-glacial landscape and affected by post-glacial rebound of the continental shelf
which has greatly affected the hydrography of the region by re-shaping the watersheds.
The vegetation consists of northern boreal
forests with a podsolic soil. Soils suitable for
agriculture can be found on exposed clay
deposits of former lake areas and on the
high grounds that have not been submerged
in glacial lakes during the ice age. Mostly,
the area belongs to the subarctic climate
(Dfc).
In addition to aquatic resources, the area is
rich in forests. Up to 85 % of the area is
covered by forests. Forests in the area also
contain substantial quantities of wood
biomass compared to other regions and are
the fastest growing forest resources in Finland. Although most of the forest area is subject to intensive economic
exploitation, some of the most significant old-growth primeval forests are found in the national parks and nature
protection areas.

20
Thus, the area belongs to the interior lake plateau of Finland with relatively small differentiation in elevations (on
average 75-80 m above sea level). The most characteristic geographical feature of the area is Lake Saimaa lacustrine
system in river Vuoksi watershed. Lake Saimaa is at 4,400 square kilometres the largest lake in Finland and the fourth
largest natural freshwater lake in Europe. The lake as well the whole Vuoksi watershed area has been formed by
glacial processes on the bedrock of the Fennoscandian shield - consisting of granitoids and migmatitic gneiss. The
geomorphology of the area was determined by the ice age forming drumlins, eskers and end moraines that delineate
the lake basins. Lake Saimaa is a labyrinthine system of lakes and channels consisting of the main basin Suur-Saimaa
and Etelä-Saimaa, Pihlajavesi, Haukivesi, Puruvesi, Orivesi and Pyhäselkä which connect cities of Lappeenranta,
Mikkeli, Savonlinna, Joensuu and Varkaus. In addition to Lake Saimaa, River Vuoksi watershed consists in the north
of lakes Unnukka, Kallavesi, Pielinen, Kermajärvi, Juojärvi and Suvasvesi. River Vuoksi discharges through the Karelian
Isthmus (Russian Federation) to Lake Ladoga. (Hakulinen 2012.)
5.1.3 Human geography
Settlement structure in Eastern Finland is sparse and the cities in the area are relatively small.
City Population Region Status
Kuopio 120 246 North Savo Regional capital
Joensuu 76 985 North Karelia Regional capital
Lappeenranta 72 679 South Karelia Regional capital
Mikkeli 52 604 South Savo Regional capital
Savonlinna 32 670 South Savo 2nd tier city
Imatra 26 076 South Karelia 2nd tier city

21
Culturally dominant features in the area are Karelian
and Savonian traditions with respective dialects. In
North Karelia there are individual speakers of the
Karelian language (originating from former Finnish
Karelian areas and Russian Karelia). Historically, the
congregations of the Orthodox Church of Finland
have been located in Eastern Finland - therefore the
influence of eastern traditions is relatively strong. It
shows for example in the cookery, vocabulary and
architecture.
Especially South Savo is characterized by a high
number of second homes. As can be seen from the
study of Nordregio (Community Impact by second
home users in 2018, 2020) the regional impact of
second home users is among the highest in Finland in
the municipalities located in the southern part of the
area.
Above: Representants of two Ortohodox monasteries and an
Orthodox nunnery meet in Heinävesi. Photo: Sot.virk. M.
Aaltonen, Sotamuseo, Finna.fi
On the left: Eastern Finnish cuisine is a good example of the
eastern influence. The use of mushrooms in cooking stems
from the Russian cuisine. Picking mushrooms is nowadays a
popular recreation. Courses, cruises and weekend activities
around it are offered in autumn. Photo: S. Peura

22
Regional and local impact of second home ownership. Source: Nordregio.

23
Population projection for regions in Northern Europe. Study area highlighted with red circle. Map: Nordregio.

24
5.1.4 History
The first humans came to the area after the last ice age more than 10 000 years ago. The forests and lakes offered
food and often the earliest signs of settlement have been found on ancient shores. Numerous rock-paintings in the
Lakeland area tell the story of the early inhabitants. Most of the Finnish rock-paintings, which typically depict boats,
hunters and (game) animals, such as elks, have been made on islands and by the side of lakes or rivers.
In the first centuries of the second millennium Finland was drawn in the Swedish and Russian sphere of influence.
Consequently, the Lake Saimaa area became a frontier
area for hundreds of years for which both states
contended every now and then.
Lake Saimaa area in Southeastern Finland has been since
the Treaty of Nöteborg (1323) divided between
Novgorod/Russia and Sweden/Finland. In the 17th century
during the maximum territorial expansion of the kingdom
of Sweden, the border moved to the east, but returned
with treaties of Nystad (1721) and Åbo (1743), the latter
dividing the area in the Swedish northern and western part
and Russian southeastern part, including Savonlinna as a
peculiar isthmus of Russian controlled area surrounded by
Swedish lands.
A longer time of peace (Pax Russica) commenced in the
beginning of the 19th century, when Finland was joined to
the Russian empire as an autonomous grand duchy. The mainland offered opportunities for business and education.
The southeast part of Finland benefited greatly especially from St. Petersburg which was founded in 1703. The
capital needed construction materials, it offered work for builders, workers, servants, goldsmiths etc. and limitless
chances to build a career. In the 1850s the Saimaa Canal was opened. It enabled more effective commerce to St.
Petersburg, as increasing numbers of firewood and foodstuff were needed in the growing capital. Lake Saimaa area
became an important source of resources and way for transport. Thanks to the brisk trade, industry and tourism
started to develop rapidly in the area towards
the end of the 19th century. Destinations like
the famous Imatrankoski rapids in Imatra or
Punkaharju ridge became popular tourist
attractions for the Russian upper class
especially during the 1st World War, when
travelling to Central and Southern Europe
wasn’t possible. Unlike other areas in the
empire, Finland was not treated as a Russian
province, but it had its own laws and other
rights which normally only an independent
country has. (Konttinen 2021.)
The situation changed dramatically, when
Finland became independent in 1917 during the
aftermath of the Russian revolution. Later the
Saimaa Canal was partly ceded to the Soviet
Union as a result of the Second World War and the present-day border was drawn. As a result of the area losses
based on the peace treaty Finland had to resettle more than 400,000 Finnish Karelians, who had lost their homes.
The re-settlers were subsidized e.g. with allocation of land in proportion to their former property, while the private
owners who gave land to re-settlers were compensated monetarily for the loss of their real estate. (Evacuation of
Border changes between Sweden and Russia/Novgorod. Source:
Wikimedia Commons, Roxanna. Copyright: CC BY-SA 4.0.
Imatrankoski rapids in the 1890s. Photo: Ståhlberg, K. E., Museovirasto / Finna.fi

25
Finnish Karelia 2021.) The first post-war years were labelled by austerity and rebuilding of the country. Finland was
not yet fully industrialized, even though industrialization began in the 1860s, but a major part of the population were
still working in agriculture, mining and forestry (Economy of Finland 2021).
In the first decades after the war industrial development accelerated. Over the years it yielded to a service- and
information-oriented economy. In the 1980s the Finnish economy grew quickly, when business relations to the
eastern and western Europe flourished. In the 1990s Finland experienced economic recession, when the Soviet
Union collapsed, and Europe drifted into a general economic slump. The economy started to recover slower again in
the middle of the decade, when Finland refocused its trade toward western Europe and retooled its industry.
(Economy of Finland 2021.) In 1995 Finland became a member of the European Union.
5.2 Natural and geographical environment – assets and challenges
Lakes and forests are the characteristic landscape features in the area. Forest has always been a significant source of
livelihood for the local inhabitants. Furs were traded abroad already in the iron age (Rossi 2016) and in the 17th
century the forested Lake Saimaa area became one of Europe’s most important tar production centres (Tervakauppa
2021). Later in the 19th
century great quantities of firewood were exported through the Saimaa Canal to St.
Petersburg and other cities around the Baltic Sea.
Nowadays Finland is one of the world’s biggest paper manufacturers. Forests provide raw material for mechanical
and chemical forest industries. Forests also provide opportunities for hunting and recreation. Forests are a
significant source of income in the form of collection of natural products, primarily berries and mushrooms.
Lakes represent a resource of clean water and opportunities for transportation, fishing and recreation. The lakes of
Saimaa area are a labyrinthine system of open lake areas and narrows, straits and short rapids connecting different
parts of the lake together. The length of Lake Saimaa shoreline is 14,500 km and there are some 13,700 islands in
Lake Saimaa alone (Keto & al. 2005). To get the full picture, one should add to this the shoreline and islands of the
thousands of other lakes in the area. In terms of the diversity of the natural and living environment, Lake Saimaa
area is unique in Europe.
The geographical setting characterized by the complex lacustrine system as well as the harsh winter conditions
naturally cause challenges for traffic. When the lakes are frozen in winter, the waterway transports are ceased. Even
the Saimaa Canal is closed during the coldest winter months. Distances are usually relatively long: The population is
generally scarce outside of the biggest population centres. Besides that, road traffic is directed along land and island
chains, which often causes long detours. The high number of islands and lakes results in higher infrastructure
investment costs, when bridges must be built and maintained. Due to long winters efficient maintenance of the
roads is needed which also results in higher infrastructure costs.
This special environment has been officially recognised since the late 1940s and since 1981, Finland has had an
Island Development Act. It obliges the State and municipalities to safeguard the development of islands by funding
basic services, transport and infrastructure and by protecting the often-delicate island environment. A municipality
can get a special island or part-island status and subsidies due the conditions in its area. For example, in South Savo
there are three municipalities with full island status and three with part-island status (of the region’s 12
municipalities in 2021). The subsidies are significant source of income for some of the municipalities: In 2019 the
municipality of Sulkava received ca. 5 % of its yearly income from the special island subsidy (Kuuva 2020). In South
Karelia there are three municipalities with part-island status, in North Savo two and in North Karelia five
municipalities with the status. Thus, South Savo is the only region of the area with municipalities having full island
statuses (Saaristokunta 2021).

26
5.2.1 Saimaa Phenomenon – synthesizing the Art of Living on Lake Saimaa
In the preparation of the bid for the European Capital of Culture, the Saimaa Phenomenon team summarized the
art of living in the regional and described a particular ‘lacustrine lifestyle’ in lake archipelagos in the midst of
boreal forest near the border to Russia.
The lacustrine environment is the basis of living cultural heritage with transport on water, recreational boating
and fishing and second homes on the lakeshore. The environment has also created a rich industrial heritage with
the world's largest fleet of operational steamboats, several industrial sites of mills and iron foundries where
waterpower could be harnessed and an extensive network of waterways. During wintertime the lakes become a
platform of ice fishing and ice swimming. Ice roads across lakes can provide shortcuts saving even 50 km of travel
distance and temporarily improving accessibility to villages located on lake islands.
The culture of the forest and the lake are present daily in the lifestyles of many households. A significant
proportion of food is derived directly from nature: game, berries, mushrooms, fish. Hobbies and recreation take
place in forests and lakeshores. Wood is the source of energy, main construction material for dwellings and
traditionally the raw material for the construction of many tools and equipment.
5.2.2 East meets west – the meaning of the border
The Lake Saimaa area has always been a territory, where the East meets the West. As described above it has
played historically a significant role in the power struggle of Sweden and Russia, thus getting influences from both
the western and eastern culture and religion. The first border was drawn through the area in 1323 and the latest
changes in the national boundaries were made in the 1940s, when parts of South and North Karelia were ceded to
the Soviet Union after the Winter War. Today the regions participating the Saimaa Phenomenon share together
600 km border with Russia of the total length of 1,340 kilometres (Leinonen 2021).

27
Even though the vicinity of the border has led to skirmishes during the past centuries, it has also offered
opportunities for business, education and tourism. The southeast part of Finland has greatly benefited especially
from St. Petersburg which was founded in 1703 as the former capital of Russia. In fact, St. Petersburg is closer to
many towns of the Saimaa area than the Finnish capital Helsinki.
Nowadays the vicinity of Russia is significant in the standpoint of commerce and tourism. The Finnish exports to
Russia covered 95,6 million euros (5,5 %) of the total amount of 1,8 billion euros in the recent years. This ratio has
stayed almost the same even during the Covid-19 pandemic. (Vienti- ja tuontitilastot 2021). In 2020 Russia was the
6th
biggest country of destination, while in the imports it was the 3rd
biggest country of origin (Kauppa 2021).
According to a report produced by Tulevaisuusloikka project of the Regional Council of South Savo in 2016, Russia
comes to the 3rd
place with Norway, amongst the 103 countries to which the companies in the region export. Only
Sweden and Germany went ahead in the listing. (Etelä-Savon vientikatsaus 2016.) Products exported from eastern
Finland mainly derive from the field of industry.
For the Lake Saimaa area Russian tourists have played a significant role in the tourism since the fall of the Iron
Curtain. The pure nature and safe environment are valued by the Russians in Finland. In the year 2019, i.e. before
the first Covid-19 pandemic year, 3.3 million Russians visited Finland over the eastern border. Before the
pandemic the proportion of the Russian tourists in the bed nights covered 10-12 % of total nights in the area of
South Savo, while the proportion in South Karelia was even more significant (ca. 24 %) – both figures being clearly
above the Finnish average. Of the registered visitors in South Savo ca. 6-7 % were Russians and in South Karelia ca.
25 %, while the number in the whole Finland was only about 3 %. Main crossing points are in the area of the
Saimaa Phenomenon.
The picture below shows, how the crossings by the Russian travellers coming to Finland were divided between the
border stations in 2019 (South Savonia – Accommodation and Travel Stats, retrieved 2021).

28
Table: Proportion of Russian tourists in bed nights and visitors in the Lake Saimaa area (Data: Travel stats made
simple 2021)
Year Bed nights in South Savo
Russian visitors (all)
Bed nights in South Karelia
Bed nights in whole Finland
2017 11,81 % 78 400 (664 000) 24,69 % 173 000 (693 000) 3,75 % 821 698 (21 914 154)
2018 11,21 % 73 100 (652 000) 23,90 % 169 000 (707 000) 3,72 % 826 251 (22 235 084)
2019 10,26 % 67 300 (656 000) 23,73 % 178 000 (750 000) 3,55 % 820 888 (23 095 660)
2020 8,87 % 45 600 (514 000)
Year Visitors in South Savo
Visitors in South Karelia
Visitors in whole Finland
2017 7,69 % 26 900 (350 000) 26,13 % 98 000 (375 000) 3,24 % 382 114 (11 794 394)
2018 7,32 % 24 800 (339 000) 24,06 % 91 900 (382 000) 3,16 % 377 633 (11 967 117)
2019 6,40 % 22 000 (344 000) 24,94 % 99 500 (399 000) 3,12 % 387 415 (12 426 677)
2020 9,27 % 24 200 (261 000)
It is obvious that the vicinity of Russia is very important for the economy in the Lake Saimaa area. It enables a lot
of business opportunities, but on the other hand risks, such as the low rouble rates, Russian political tendencies
and pandemics occur without a notice. The Covid-19 crisis has shown this economic significance in practice: it is
estimated that the regional economy of South Karelia misses almost 1 000 000 euros, when the Russo-Finnish
border is closed.
Besides economic factors, the closeness of Russia is seen in the everyday life. As the table (Population 2021)
below shows, Russian is spoken more often in Finland than Sami, the third national language of Finland. 1,5 %
percentage of the population has Russian as the mother tongue of the total ratio of foreign languages, which
cover a total of 7,8 % of the population. 28 866 Russians were living in Finland in year 2020 and they were the
second biggest nationality after Estonians (50 866 inhabitants) of the total population of Finland’s ca. 5,5 million
inhabitants.

29
Population by language on 31 December
2017 2018 2019 2020 %
National languages, total 5 139 805 5 126 173 5 112 648 5 100 946 92,0
Finnish 4 848 761 4 835 778 4 822 690 4 811 067 86,9
Swedish 289 052 288 400 287 954 287 871 5,2
Sami 1 992 1 995 2 004 2 008 0,0
Foreign languages, total 373 325 391 746 412 644 432 847 7,8
Russian 77 177 79 225 81 606 84 190 1,5
Estonian 49 590 49 691 49 427 49 551 0,9
Arabic 26 467 29 462 31 920 34 282 0,6
English 19 626 20 713 22 052 23 433 0,4
Somali 20 007 20 944 21 920 22 794 0,4
Kurdish 13 327 14 054 14 803 15 368 0,3
Persian, Farsi 12 090 13 017 14 118 15 105 0,3
Chinese 11 825 12 407 13 064 13 778 0,2
Albanian 10 391 10 990 11 806 12 664 0,2
Vietnamese 9 872 10 440 11 094 11 562 0,2
Total 5 513 130 5 517 919 5 525 292 5 533 793 100

30
Summary Challenges to be addressed
Lake Saimaa area is rich in geographical and natural
biodiversity. Forests and lake archipelago provide an
attractive physical setting with universal outstanding
value both in natural and cultural heritage. The area has
been and still is a field of rich cultural interaction –
especially between East and West; Finland, EU and
Russia.
Fragmentation of settlement structure and interaction
patterns due to difficult geographical environment.
Dwindling resources for the maintenance of heritage
values. The attractivity of the region needs to be
developed to compensate for challenges posed by the
geographical environment.
Border with Russia presents opportunities for obtaining
complementary expertise and talent for the region from
St. Petersburg area. It poses threats in terms of
unstable regulatory and political environment.
Instability on the Russian side also means that the
attraction value of Lake Saimaa area for Russians
increases.
5.3 Social and demographic potential and social inclusion
5.3.1 The demographic development
With the exception of cities of Kuopio and Lappeenranta, the social and demographic challenges are characterized
by:
- outmigration of young people
- low level of education
- population loss due to outmigration and
- challenging age structure - age pyramid
Example of an unfavourable migration pattern is the city of Savonlinna, where outmigration in the age group 15-34
reached over 1 000 people in 2010s (in a population of 32 000). The highest age net migration loss occurred in the
age group 20-24 (-195). (Data: Statistics Finland, 2020.). The covid-19 situation and some yet poorly understood
factors changed the migration balance of some municipalities in the region into positive figure in 2020. It is possible
that current trends are favouring living in the countryside and smaller cities and already show in the population
figures.

31
In this study the focus area for analysing the change is the South Savo region. Due to a high level of natural decrease
of population and high level of outmigration, net annual population decrease has persisted over 30 years,
reaching -2348 in 2018. In the period of 1990-2020 population in the region has decreased from 163 462 to 132 702.
According to demographic forecast (Statistics Finland 2019), the population will decrease to 110 000 by 2040 unless
some intervening factor and developments change the trend to increase in-migration significantly.
The age-gender pyramid of South Savo shows the highest
age cohorts in the ranges of 60-75 years. A very dramatic
decrease of age cohorts in the youngest age group 0-4 is
also visible.
The negative population development is partly caused by
a low level of education offer in South Savo with
deficiency especially in higher education. This is reflected
in the brain drain of the younger educated population.
Consequently, the education level of the population
deviates from the national figure. The proportion of
people with higher education degrees is only 25,8 %
compared to the national average of 32,3 %. Similar or
lower figures are typical for the rural areas and cities with
no university campus. With the exception of university
campus locations Kuopio and Joensuu, the whole area
belongs to the lower categories of education level
classification in Finland. (Data: Statistics Finland, 2019.)

32
5.3.2 Sociodemographic characteristics
The small size of South Savo region and the lack of the education opportunities have meant that the region has a
lower level of education, higher unemployment and a poorer general health situation compared to the rest of
Finland. Partly as a result of these, the tax accumulations and economic situation of the municipalities in the region
are also weaker than the national average. Morbidity and sparsely populated region create special challenges and
cost pressures in public health and social services.
Welfare has developed in a better direction in the province in recent decades. The GPI (Genuine Progress Indicator)
index shows that overall well-being progress in South Savo is clearly faster than in the rest of the country. The South
Savo GPI index is the third best in the country. Yet by many measures, the province still lags behind the rest of the
country.
However, the residents of the province perceive their quality of life as reasonably good, and satisfaction with the
living environment and especially security is higher compared to the whole country. (Etelä-Savo ennakoi 2021.)
The Lake Saimaa area is constantly losing population:
Young people migrate away due to the lack of higher-
level education and work possibilities. Their opinion
about the area is often coloured by a negative attitude
caused by the deficient offer of leisure activities. They
don’t see the area as a potential living place in the
future.
Polarisation and the feeling of missing opportunities for
the future make people feel marginalized. When they
don’t feel inclusion, they become estranged from the
cultural heritage.
The age structure becomes challenging, which results in
the fact that cultural heritage – especially its intangible
forms – is kept alive increasingly by elderly people.
There is a considerable risk that local cultural heritage
will be lost, when the elderly die.
The area should be able to leverage its rich cultural and
natural heritage as a source of identity and attraction
value for creative entrepreneurial people to address the
demographic challenge and attract new inhabitants.
The challenge is to inspire young people to become
interested in local cultural heritage and its preservation,
so that they would see its possibilities even after their
outmigration. How can the potential of the cultural
heritage to be seen as resource for welfare and
prosperity?
Increasing inclusion in order mitigate social problems
and enable children and young find their talent &
integrate into local community. This could in the long
term decrease out-migration and positive childhood
experience would encourage return-migration after
studies.
5.4 Identity, brand and recognition of the area
5.4.1 Regional identity
The area is the heartland of both Savonian and Karelian cultures based on the historic provinces and ethno-
linguistic heritage. Karelian culture comes with a mix of influences from Russian culture, most significantly the

33
Orthodox Christian tradition. Part of the present-day Karelia has been influenced by the Finnic settlement of what
is now Karelian Republic of the Russian Federation with its own distinct Karelian language.
Savo (Savonia) was mentioned as a province for the first time in the peace treaty of Nöteborg in 1323. The first
reference to Savonian people was made in the foreword of the Finnish translation of the New Testament by
Mikael Agricola in 1548. However, the Savonian subgroup is told to be formed first ca. 1700s as a mix of the
Karelians and the Tavastians. (Pasanen & Kääriäinen, 2020.) Savo was populated from the 14th
until the end of the
17th
century (Savolaisten asutusliike 2020). The immigration culminated in the 16th
century, when king Gustav I of
Sweden pushed for the settlement of the wilderness in order to collect more tax and expand the influence of the
Swedish kingdom. Consequently, the Savonian population
spread widely to the North and West which is still reflected in
the contemporary dialect areas of the Finnish language
(coloured areas in the picture left; Savolaismurteet 2020).
The identity of the Finnish people is strongly based on stories,
but religions, like Catholicism and Orthodoxy, have influenced
the formation of Finnish communities - and the identity of the
people of eastern Finland. The Finnish national epic Kalevala was
published in 1835 and it played a role in the identification of
Finns. The epic separated us from the Russians and Swedes. Its
poems were collected in the eastern parts of Finland and in
White Karelia, and they have since then inspired numerous
artists. (Pasanen & Kääriäinen, 2020.)
One connecting factor of the regions of eastern Finland are wars
and border skirmishes. Karelia and Savonia were previously
more dangerous places to live than the regions in other parts of
Finland. As people the Karelians are described as talkative, hard-
working and spirited, while the Savonians are famous for their
often-indirect way of expressing their thoughts. These old
stereotypes hold on still today. The Vuoksi watershed and the
large number of summer cottages also characterize both
regions. (Pasanen & Kääriäinen, 2020.)
Within Finland, the area has become iconic for its combination
of lake and forest nature and history as a border area. Especially
in the Finnish nation-building process prior to independence in
the 19th
century the area became an essential building block of
Finnish national identity which was expressed in national
romantic culture. Consequently, it has been part of the idealized landscape of Finland where the Finnish Lakeland
and Lake Saimaa hold a prestigious place as a concentration of official national landscapes of Finland. The
definition of national landscapes has further affected the development of regional identities (Pasanen &
Kääriäinen, 2020).
Figure: The distribution of Savonian dialects.

34
Officially nominated national landscapes of Finland in the Lake Saimaa area
Name Description Image
Olavinlinna castle and
lake Pihlajavesi,
Savonlinna
Olavinlinna castle (1475) is located on a cliff
in the middle Lake Pihlajavesi (Saimaa) is
unique historic milieu. The castle is the home
of the annual Savonlinna Opera Festival.
Image: Savonlinna Opera Festival.
Punkaharju ridge,
Savonlinna
Glacial esker formation became in the 19th
century the iconic Finnish national landscape
portrayed by artists and praised by the
national poet J.L. Runeberg. One of Europe’s
and world’s first nature protection areas and
first developed tourist destinations in
Finland.
Image: Wikimedia Commons. CC-0.
Heinävesi waterway and
historic canals
Historic waterway connecting Lake Saimaa,
Kermajärvi and Kallavesi.
Image: Saimaan Laivamatkat Oy
Imatrankoski rapids Through Imatrankoski waters of Lake Saimaa
discharge into river Vuoksi. Even Catherine
the Great visited the site to see the mighty
rapids and tourism increased significantly in
the 19th
century.
Image: Imatrankoski, 1893. Painting
by Akseli Gallen-Kallela, romantic
nationalist painter.

35
Koli hill and Lake Pielinen The Koli hill landscape was inspiration to
“karelianism” movement of artists, including
painters and composer Jean Sibelius. Koli in
now a national landscape with traces of
former slash-and-burn agriculture in its
forests.
Eero Järnefelt: Landscape of Koli,
1935.
Väisälänmäki village,
Lapinlahti
Historic village milieu that has been the
inspiration of painters. Area of traditional
slash-and-burn farming.
Eero Järnefelt: Drudges, 1893.
North Karelian hilltop
villages
Villages located on hilltops to avoid summer
night-time frost damage and exploit the
richer soil to be found there.
Image: National Board of Antiquities

36
5.4.2 Saimaa ringed seal
Saimaa ringed seal (Pusa hispida saimensis) is a subspecies of ringed seal living in
Lake Saimaa. The population continued living in the lake, when it was cut off from
the sea after the ice age. It is the most endangered species of seals with a population
of only some 430 seals. The seal has adapted to living in the lacustrine environment.
New pups are born every winter in snow caves dug by the seal in piled snow.
Currently the seal is threatened by human activity and disturbance and fish nets.
Global warming and reduced snow cover are making it increasingly difficult for the
seals to prepare breeding dens in the snow.
After long period of intense hunting, the seal was protected by the endangered
species act in 1955. Since the protection began, Saimaa seal has become a symbol of
nature protection to the degree that it was adapted to the logo of Finnish
Association for Nature Conservation. The protection of the Saimaa seal has enjoyed
wide popular support and mobilizes a large number of volunteers in the protection
work.
Saimaa seal has become a popular subject in cultural production. In 2013 Savonlinna
Opera Festival staged the “Saimaa Seal Opera” (Norppa-ooppera) composed by
Timo-Juhani Kyllönen. This was an opera production for children.
The story of the Saimaa seal is very appealing and a significant feature profiling the
area. It is increasingly becoming a part of the tourism brand of the region as well. .
5.4.3 Image of Lake Saimaa abroad
The broader international renown of Lake Saimaa started to develop with the advent of the steam ship fleet
connecting towns and villages in the area. Until the 1980s the main international attraction and product was inland
waterways travel. In the 1970s especially German tourists found the area as their holiday destination.
Now Lake Saimaa is getting increased international recognition as a unique and outstanding destination as well as a
natural and geographical feature. Recognition that is helping to promote tourism is the designation of Saimaa
Geopark as UNESCO Geopark (UNESCO designates eight new Global Geoparks 2021) as well as the nomination of
“Lake Saimaa Seal archipelago” on the Finnish tentative list of UNESCO world heritage sites in 2021.
There is a growing recognition of the Lake Saimaa area around the world as one of the most distinctive lacustrine
environments in the world. This has been facilitated by globally circulated numerous documentaries telling especially
the story of Saimaa ringed seal, the unique lake and the lifestyle of people living in the area. Most importantly these
include the work of filmmaker Juha Taskinen. The most widely distributed nature film so far was probably Taskinen’s
Ice Loving seals (2010) produced by YLE 1 & ARTE (43 min).
Testimony of global renown are recent articles in international media i.e. New York Times, The Independent, Daily
Mail, The Wall Street Journal and The Telegraph among others.
5.4.4 Tourism branding
Lake Saimaa is now branded as novel and sustainable destination providing safety, clean environment, friendly
people, quality service and outstanding local food. Top products offered are holidays in a cottage with a private
lakeshore, nature activities, cultural roundtrips and a combination of Lake Saimaa and St. Petersburg. (Lake Saimaa
Brand Book 2017.)
Figure. Poster of Saimaa seal by
Finnish graphic artist Erik Bruun

37
The destinations of the area have received several tourism promoting nominations in the recent years. For example,
the old Punkaharju ridge road was chosen for the road of the century in 2017 and Savonlinna as the best Finnish
summer holiday town in 2020 in national votes. Many tourism companies have additionally been rewarded by both
national and regional tourism and business associations.
Rich natural and cultural heritage has been recognized
on the national level in the form of national parks,
national landscapes and cultural representations. There
are the basis local place images and branding as well as
the branding of Lake Saimaa as a tourism destination
with unique stories and offering exceptional
experiences for visitors.
The area is well on the way of redefining and
rebranding its heritage internationally. These initiatives
include acquisition of international labels such as
UNESCO Geopark and UNESCO world heritage site.
Lake Saimaa is in a situation where there is a need to
present the heritage values internationally by
developing heritage interpretation, visitor experience,
developing the offering of authentic and responsible
tourism services and improving the accessibility of
heritage for people from different linguistic and cultural
backgrounds.
There is a need to develop synergies between CCIs and
the visitor economy. Tourism can provide vital
distribution and marketing channel for many SMEs in
the CCIs and generate new demand for products and
services.
5.5 Economic development
5.5.1 The impact of accessibility
The area is accessible by railway, road and inland waterway routes. Due to geomorphology and relatively large
number of lakes, the fastest and most economical way to improve accessibility in the 19th
century was the
establishment of Lake Saimaa waterway system including Saimaa Canal connecting the lake system to the Baltic Sea.
The system of waterways gave the area relative advantage compared to other areas of Finland in the 19th
century.
Waterways were modernized after WW2 to accommodate larger vessels capable of serving the need of the
industries.
By contrast, connecting the area with a road network was a relatively slow process due to the large number of lake
crossings required. After WW2 when road as means of transport took over, many centres in the area found
themselves in unfavourable locations that could be reached only by lengthy travel around larger lakes. This is
especially true of Savonlinna which in the late 19th
century and the early 20th
century was the transportation hub of a
network of steamship routes serving whole Eastern Finland but became a small town that you could research from
the south only after lengthy travel around Lake Saimaa.
By rail, the area became accessible via Kouvola-Mikkeli-Kuopio railway (opened 1902) and Lappeenranta-Joensuu
railway (1894). Savonlinna was connected to Lappeenranta-Joensuu railway via Parikkala in 1908. The trunk lines
have been electrified but are operated only at the speed of 140 km/h. In the modernization of railways VR (Finnish
Railways Company) has prioritized the trunk lines in western and southern Finland. Improved rail connection to St.
Petersburg and the introduction of Allegro train service improved links to Russia. St. Petersburg and the adjacent
Leningrad Oblast with their 12 million inhabitants provide significant customer potential for the visitor economy and
a talent pool for creative industries. With the improved rail link, travel time to St. Petersburg has been reduced to c.
3-4 hours.
The area is served by six commercial airports:

38
Name IATA code Scheduled service* Passenger
volume**
Ownership
Joensuu JOE Helsinki, seasonal charter 126 613 Finavia
Kuopio KUO Helsinki, seasonal charter 243 529 Finavia
Lappeenranta LPP Bergamo, Berlin, Budapest, Vienna,
Memmingen
81 160 Municipality
Mikkeli MIK No service Municipality
Savonlinna SVL Helsinki (public service obligation),
seasonal charter
10 495 Finavia
Varkaus-Joroinen VRK No service since 2014. Finavia
*) Service situation prior to Covid-19 pandemic 2020-2021.
**) Data: Finavia and LPP airport 2019.
Overall accessibility of the area is satisfactory both
internationally and nationally. Due to small user base,
there is lack of intermodal connections. Distances are
relatively long, and many destinations cannot be
reached with public transportation.
The service level of public transportation has been
deteriorating and has not so far not been compensated
with e.g. novel MAAS concepts. Visitors and
professionals increasingly prefer public to private
transportation. The area has not been able to follow
this trend with novel logistics solutions.
The networking of professionals and tourism require
smoother and faster connections to St. Petersburg and
Central Europe.
Many business and cultural heritage sites struggle to
build value proposition to customers that would
motivate 3-4 hours travel to reach the destination.
Operators can jointly build attractive offer and lengthen
the stay of visitors.
5.5.2 The overall economic dynamic in the region
South Savo region together with other Saimaa area regions is facing a set of challenges that have made it a “school-
book example” of structural problem area. The structural economic problems in turn reflect in the demographic
challenge the area is also facing. The industrialization of the area was based on the exploitation of forest resources
after improved accessibility in the form of connecting waterways was established in the 19th
century. What began as
production of tar and firewood, evolved into a number of large-scale pulp and paper industry conglomerates in
Varkaus, Kuopio, Lappeenranta, Imatra and Joensuu and a number of sawmills producing timber. The main regional
driver in the early phase was the demand generated by St. Petersburg in the 19th
century. Changes in global demand
and decreasing competitiveness of forest industries have resulted in a decline in the relative decline of the
importance of forest industry and a sequence of plant closures. Counter-balancing processes of new industrial
development have not taken place on the large scale (Eskelinen & Niiranen 2003).

39
As a consequence, the general picture of Eastern Finland in the 21st
century is that of relatively small service-
oriented towns as regional hubs together with some declining forest industry towns and areas. The overall decline is
illustrated by the GNP lagging at 86 % of the national average, household disposable income lower than national
average and unemployment several percentage points above the national figure. While the industries have suffered,
private services sector has also remained relatively weak. The recession of the 1990s left the regions “behind” and
unable to catch up. (Eskelinen & Niiranen 2003, 7.) Restructuring of public services has eliminated lot of jobs in
public administration and education in second-tier towns such as Savonlinna. Sources of optimism are a number of
high technology firms which have established themselves as strong players on the global market with their highly
specialized products. Also, in science park of the area healthy start-up scene has developed in Kuopio (medicine and
health sciences), Joensuu (optics, forestry), Lappeenranta (several technologies, including synthetic fuels), Mikkeli
(cleantech and security) and Savonlinna Technology Park (fibre technologies, cleantech, biotech and wood
construction).
The dynamic of the Russian / Soviet border has as an external influence greatly affected the economic prospects of
the area. The period of the autonomy of Finland as part of the Russian Empire in the 19th
century marked the golden
age of the area, when the St. Petersburg market was open. The Russian Revolution and closing of the border in 1917
in turn was a serious setback for Eastern Finland. During the interwar period Vyborg and the Finnish Karelian isthmus
gave still economic stimulus. However, the loss of the Karelian isthmus and Vyborg to Soviet Union (1939/1945) and
the closure of the Saimaa Canal (1939-1968) due to the wars were another devastating blow, which isolated the
industry and created dysfunctional regional structure. Since the 1990s and the opening up of the Russian society,
cooperation with Russia has significantly increased and the economic development policies of South Savo and South
Karelia have heavily relied on the expected potential of the Russian market.
5.5.3 The labour market
The number of job seekers in South Savo was 6 948 (November 2020). 11,2 % of work force was unemployed.
The post-covid-19 economic recovery had led to a situation where the majority of industries and 75 % enteprises
report severe labour shortage and obstacle to growth (Itä-Savo 2021).
5.5.4 Economic dynamic through entrepreneurship and specialization
Overall, the area is rich with SMEs. South Savo Region belongs to the group of regions with the highest level of SME
activity. Relative to population, South Savo
represents the highest level of
entrepreneurship that is significantly above the
national level and above the level of
neighbouring regions. This is explained by a
historical continuum from the 19th
century,
when the economic opportunity opened
through the Saimaa Canal was embraced in
South Savo. In contrast, in the 20th
century, in
the neighbouring regions of Karelia and Savo,
heavy industries have been in a dominant
position, attracted the labour force and in this
way suppressed entrepreneurial activity. South
Karelia, South Savo and North Savo in contrast
have developed since 1940s through heavy

40
industries: mainly pulp and paper. This is reflected in the level of private entrepreneurship as well as economic
structures. Good examples of later specialized and competitive production are the PLCs registered in the area:
Name Industry Place of registration
Olvi Brewing Iisalmi - North Savo
Genelec Hi End loudspeakers Iisalmi - North Savo
Tulikivi Soapstone products, fireplaces Juuka - North Karelia
Kesla Forest machinery Joensuu - North Karelia
Pohjois-Karjalan kirjapaino Printing Joensuu - North Karelia
Atria Meat processing Kuopio - North Savo
Ponsse Forest machines Vieremä - North Savo
Valoe Solar energy Mikkeli - South Savo
Exel Composites Composite materials manufacturing Mäntyharju - South Savo
With some exceptions, industry is based on local natural resources extraction and/or extraction technologies. In
addition to forest and mineral-related industries, lately there have emerged a number of internationally recognized
manufacturers of highly specialized goods who compete by providing high-end products on the world market. Some
of these are closely related to creative industries: Genelec Loudspeakers in Iisalmi and OR Loudspeakers in Mikkeli
(used to be the biggest manufacturer in Finland).
5.5.5 Public economic incentives for enterprises
Economic support for new and innovative enterprises is distributed by the Centre of Economic Development,
Transport and the Environment (ELY Centre).
ELY Centre supports the establishment,
growth and development of SME´s by
providing advisory, training and expert
services and by granting funding for
investment and development projects.
In 2020, the ELY Centre granted
31 mEUR in development funding to
SME companies in South Savo. Almost
9 mEUR of the company's development
aid was granted from the Structural
Funds programme. From the European
agricultural fund for rural development
(EAFRD), the ELY Centre granted
6,5 mEUR in business support. In 2020, most of the business support granted from the EAFRD went to the tourism
sector. Circa 1,2 mEUR was granted to enterprise development services.
Funding of c. 16,5 mEUR for the development and investment of SMEs increased the companies' development
investments to 60 mEUR, the creation of c. 370 new jobs and a turnover of more than 70 m€ in SME companies. In
addition, the financing is estimated to increase exports by more than 34 mEUR. (ELY Centre 2020.)

41
After the earlier phase of industrialization, the
economic drivers in the area are smaller specialized
companies, who often are globally integrated and
sometimes global market leaders in their niche. This has
left some localities struggling with structural change.
The level of entrepreneurship is high especially in South
Savo and Savonlinna. The relative importance of CCIs in
the regional economy is increasing but still has limited
dynamic economical effect. At the moment there are
only a few examples of gentrification of industrial sites
and communities into hubs of creative industries. Level
of incomes is lower compared to the national average.
Unemployment is on the level of national average and
has been reduced. Majority of growing enterprises
report lack of professional labor force
There is a need to develop and strengthen new business
and innovation “ecosystems” to facilitate the
emergence of new sources of livelihood.
The area needs to develop its attraction value for skilled
labor force and develop ways to attract professionals
from abroad and other regions in Finland.
CCIs represent essential competences in
communication, design and innovation for enterprises
and for building a cultural environment for attracting
new inhabitants.
5.5.6 Tourism development
An area with long traditions in tourism, Lake Saimaa is now emerging as an international tourism destination. In the
1990-2000s tourism industry underwent a structural change from corporately owned (trade unions, foundations)
tourism facilities to a tourism economy driven by
private entrepreneurship. An example of the
entrepreneur-driven and well networked operation is
the development of the Saimaa Holiday concept in
Savonlinna and Rantasalmi, offering nature tourism
service in the national park of Linnansaari.
(Kokkonen, P. & Anja Tuohino, 2007). New
investments in Savonlinna area have reached some
100 mEUR and replaced outdated capacity.
Overall tourism numbers in the 2000s have stagnated
due to various influences cancelling each other out.
Rapid growth in 2010-2013 due to increased number
of arriving Russian tourists came to a halt after the
Russian economic crisis.
In 2015-2020 regional cooperation between
destination management organizations has been
initialized, joint promotion with Visit Finland has
started and Ryanair has expanded routes in
Lappeenranta airport improving accessibility.
Negotiations are underway with tour operators in
Europe and new sales channels are being opened.
In addition to experiences in the national park, Järvisydän
Resort in Rantasalmi offers exclusive spa experience all
year round. SMTE networking has initiated and enabled the
growth and investments in the Saimaa Holiday network
spanning the Linnansaari national park north of
Savonlinna. Image courtesy Järvisydän Resort.

42
5.6 Cultural production and creative industries
5.6.1 Cultural heritage and arts in Lake Saimaa area
The cultural history of Lake Saimaa area is traditionally characterized by motives originating from its nature: by the
rich forests and the vast lakes, which have provided a
livelihood and a sanctuary for the inhabitants during
thousands of years. On the other hand, the location
between two rivalling countries has also left its marks.
Nowadays the cultural supply varies from folklore and
other traditional forms of culture to “high culture”,
comprising a world-famous opera festival, ballet festivals,
gastronomy festivals etc.
Cultural heritage plays a significant role amongst the
attractions in the observed area. Sites such as New
Valamo monastery and Forest museum Lusto noticeably
present cultural heritage in its different forms. According
to the bid-book of the Saimaa Phenomenon totally
173 museums operate in the Lake Saimaa area. Art
centres and many summer galleries exhibit visual arts. On
the other hand, natural heritage sites like national parks
are important attractions as well. Especially during the
Covid-19 pandemic their visitor numbers have increased,
when people want to find safe attractions.
The table by Statics Finland below shows some examples of distribution of cultural heritage and arts in 2019 in
comparison with whole Finland. South Savo stands out from the other observed regions in the number of protected
buildings and heritage ships. This difference is likely to be derived from the history of Savonlinna, when the
Olavinlinna Castle served as an old centre of administration and later the town was an important crossroads for the
steam ship traffic in Lake Saimaa. In the recent years the traditional steam ships used for daily traffic around
Savonlinna in the first half of the 20th
century have been preserved and are now used as a touristic attraction by
offering nostalgic landscape cruises.
Destination management organizations in South Savo and
South Karelia have agreed to promote the Lake Saimaa
area jointly with the slogan “Lake Saimaa – Purest
Finland”. Picture: Lake Saimaa Brand Book 2017.

43
5.6.2 The economic significance of cultural and creative industries
The events scene in the Lake Saimaa area is very lively. Music festivals and cultural events have been the
characteristic feature of the area since the 1970s. The festivals have been particularly important in driving tourism
demand during the summer season.
The biggest festivals feature internationally recognized artists. The smaller ones often cater for specialized niche
audiences or local demand. Examples of the dozens of festivals include:
Name/Location* Type History Audience
small (<5000) medium
>5000 larger >10 000
Savonlinna Opera Festival Opera festival in St. Olav’s
Castle, Savonlinna
1912-1930, occasionally, annual
since 1965. Cancelled 2020-
2021.
70 000
Ilosaari Rock/Joensuu Rock festival Since 1971 67 000
Baroque Kuopio Baroque Music Since 2005 small
Joroinen Music Days Classical/mixed Since 1980 small
Kangasniemi Music Weeks Classical Since 1983 small
Lemi Music Festival Classical Since 1983 small
Lieksa Brass Week Classical/mixed Since 1980 small
Mikkeli Music Festival Classical, with Mariinsky
Theatre/St. Petersburg
Since 1992 medium
Savonlinna Music Academy
Summer Concerts
Classical, masterclass students
and teachers
Since 1950 medium
Heinävesi Music Days Classical Since 2010 medium
Kihaus Folk Festival Folk music Since 2007 small
Sulkava Rowing Race Rowing event Since 1968 10 000 rowers, 20 000 visitors
*) For more detailed info concerning events in South Savo, see table below.

44
In Savonlinna the opera festival has been organized annually since 1967. It is the oldest music festival in Finland,
the first festival was arranged in
1912 by the famous Finnish opera
singer Aino Ackté. The Savonlinna
Opera Festival has been ranked
among the five most significant
opera festivals in the world
together with Salzburg,
Glyndebourne and Verona among
others. The performances take
place in the medieval castle
Olavinlinna surrounded by lake on
all sides and the festival lasts now
around six weeks. It is the biggest
event in South Savo with more
than 60 000 visitors annually. In
year 2019 its budget was ca.
8.5 million euros, when the famous Milanese opera house La Scala performed on the festival (Lempinen-Vesa
2019). The festival employs in the summer months more than 500 people (Tietoa oopperajuhlista, retrieved 2021),
most of which come from other Finnish or foreign towns to spend the summer with their families in Savonlinna.
During the covid-19 pandemic, the opera festival was cancelled for two consecutive years (2020, 2021) due to
uncertainties concerning safety requirements.
In addition to festivals, Art Centre Salmela in Mäntyharju and newly renovated Retretti Art Centre in Savonlinna
attract significant numbers of visitor increasing the attraction value of Lake Saimaa as tourist destination.
Testimony of the revival of Retretti Art Centre is that the new offer attracted over 30 000 visitors in the summer of
2021.
Cultural industries have played an important role in the
development of tourism in the area. Development of
internationally oriented tourism industry has taken
place in the period of 2005- onwards with a number of
new investment projects. With the help of new
initiatives and new offer, the strong seasonality has
been reduced.
In the area of cultural industries, the majority of events
are characterized by small size, lack of cooperation and
sustainable business model. The synergy between
events and tourism industry is low, e.g. packaging and
selling of events as tourist products is not common.
Renewal and internationalization of the events industry
and establishing closer cooperation with commercial
operators within the tourism industry.
Establishment of sustainable cooperation between
cultural production and tourism industry in sales and
marketing and destination branding. Development of
new cultural offer will significantly assist in developing
new seasons.
CCIs are essential for promotion in developing new
engaging content for audiences and developing visibility
of the region in the media.
Diversifying the events offer on the local level in
Savonlinna and regionally.
Supporting events industry recovery from the Covid-19
pandemic.

45
5.6.3 The role of cultural heritage – assets and deficiencies
Presently, the operations in the field of cultural heritage in Lake Saimaa area can be categorized roughly as follows:
itineraries & cultural routes, frontier area & military history, river & lake systems, places of worship, knowledge &
interpretation, geology, internationality, cuisine, arts and traditions. This categorization is based on the results,
which were received from a workshop organized by the Local Flavours project in 2020. Participants of the workshop
were operators working with cultural heritage around the Lake Saimaa area. They represent a wide range of
operators including entrepreneurs in the field of tourism, local regional administration, societies and associations
and even national museum authorities.
The operators share common values which were identified as localness and local cultural heritage, Lake Saimaa as
cultural framework, lifestyle interwoven with lakes and life by the lakeside and awareness of the history. The
strengths of the Lake Saimaa area are nature, culture and lake system. It was also discovered that many operators
already have their own distribution channels and a lot of know-how. There are large-scale themes that are and that
can be utilized in the valorisation of cultural heritage. Comprehensive cultural or touristic routes, such as St. Olav’s
Ways and Prehistoric Rock Art Trails, exist and are being built. The operators are willing to achieve joint goals, which
is also one of the important strengths in the whole Lake Saimaa area.
On the other hand, there are still many weaknesses that impair the utilisation of cultural heritage to boost tourist
offer and to increase the vitality deriving from it. One of the biggest challenges that the operators face in the field of
cultural heritage is that the demand of the audience and the offering don’t necessarily match: There are challenges
to make the operation continue all year round. The offerings related to cultural heritage and tourism are very often
limited to the summer season. The offering should be sufficient to attract visitors off-season as well, but at the same
time the demand has to be vast enough to ensure cost-effective business. Additionally, many operators work on a
non-professional and voluntary basis organising occasional events, which is a common bottleneck discovered in the
workshop. Ownership of events requires development and permanence. Lack of funding also causes challenges,
because improvement of coordination and level of professionalism requires money.
The values of the cultural heritage in Lake Saimaa area
are relatively well identified and shared by the
operators in the field of cultural heritage. Lake Saimaa
itself is a factor from which many “subthemes” are
derived. Even though the operators have often shared
goals, they would need support in finding a way how to
reach the goals together.
The cultural heritage in Lake Saimaa area has a lot of
unused potential for the development of the area.
Many cultural heritage operators would benefit from
better networking. They often work on voluntary basis,
which results in challenges in the actual operation.
Communication should also be improved. It is
challenging to make the operation continue all year
round, which reduces the offer and hinders the
increasing of visitor numbers.
5.6.4 Creative networking
As identified in the workshop organised by Local Flavours project in 2020, creative networking should be intensified
in order to enable more lucrative operation in the creative industries and especially in the field of cultural heritage.
By networking more efficiently even more small operators, who currently work mainly with the help of volunteers,
could for example reduce the seasonality or improve visibility actions.
For the CCIs, the Saimaa Phenomenon project has created a creative operations model which is according to current
knowledge new in Europe. The model brings together operators from all four project regions. A working group with
members from all the project regions and central cities has been leading the cooperation and all the various teams
working with the project have been interregional too. Additionally, co-operation of different fields of activities has

46
been essential in the successful implementation of the model. It is characterized by inclusion of the field operators:
Ideas are collected through workshops and complemented with questionnaires. Regions and cities have jointly
supported one town i.e. Savonlinna to create a joint vision of Eastern Finland as an attractive destination.
5.6.5 The creative potential – competencies through specialized education
The focus region of the study, South Savo, does not have its “own” university, which is reflected in the overall
regional dynamic in an adverse way. In South Karelia, Lappeenranta LUT University (6 500 degree students) offers
programs in the field of technology (engineering) and business administration. University of Eastern Finland (15 500
degree students) economics and business administration, education, forest sciences, humanities, health sciences,
natural sciences and social sciences.
In South Savo South East Finland University of Applied Sciences (XAMK) is active on two campuses in Savonlinna and
Mikkeli. The Savonlinna campus provides degrees in health, technology, business and social work. Mikkeli Campus
provides degrees in business, IT, tourism and hospitality, social work, forestry and technology. XAMK has altogether
9 480 students. In addition, the larger area is served by Savonia (Kuopio), Karelia (Joensuu) and Saimaa
(Lappeenranta) universities of applied sciences. Karelia in Joensuu provides skilled work force in arts and cultural
industries including media and communication.
Platforms for innovation and start-up incubation are technology parks that can be found in the cities. In Savonlinna
Technology Park Noheva hosts research units of LUKE Natural Resources Institute of Finland and Fiber optics
laboratory South East Finland University of Applied Sciences and provides a platform for cleantech start-ups.
Technology Centre Tuma in Mikkeli is profiled by cleantech, security technologies and digital archiving and
documentation technologies. Technology Center Teknia in Kuopio provides a platform for medicine and biosciences
and Joensuu Science Park for start-ups in Joensuu. Multidisciplinary international research on rural conditions is
carried out in the Ruralia Institute of Helsinki University in Mikkeli.
Totally there are 15 educational establishments (ca. 13,5 % of the total number in Finland in 2018) in the area of
Saimaa Phenomenon, where a degree in the field of culture can be taken. Half of them (7) are in North Savo, while 2
to 3 establishments are located in the other regions. (11zj --Kulttuuriperintö, taiteenalat sekä kulttuurin talous,
koulutus, työvoima ja tyritystoiminta alueittain, 2000-2020.)
When the places of cultural businesses are examined, the proportion is reduced by half: only 6,6 % of such
businesses are located in the Lake Saimaa area. The same tendency can be detected in the statistics concerning
workforce in employment, where the ratio is about 6.2 % of the workforce in cultural fields in the whole country
(11zj --Kulttuuriperintö, taiteenalat sekä kulttuurin talous, koulutus, työvoima ja tyritystoiminta alueittain, 2000-
2020). This implies that the area itself is not lucrative for such businesses. When the same figures are compared with
the Uusimaa region surrounding the Finnish capital Helsinki area, the direction is opposite. In the cultural field only
less than one third of the educational establishments are located there, but both the workforce in employment and
businesses in the area cover ca. 50 % of those nationwide. The low rate of employees and entrepreneurs in the
cultural industries reflects in the concepting of new events and tourism products utilizing cultural heritage in
Savonlinna and its surroundings. Several keepers of cultural heritage have communicated about problems to
organise new events because of the lack of professional events producers.

Status Quo analysis for Lake Saimaa region

Status Quo analysis for Lake Saimaa region

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à Status Quo analysis for Lake Saimaa region

Similaire à Status Quo analysis for Lake Saimaa region (20)

Plus de Matkailufoorumi

Plus de Matkailufoorumi (20)

Dernier

Dernier (20)

Status Quo analysis for Lake Saimaa region