Denmark: Eco-Tourism Grant Benefits

Denmark is a small Nordic state comprised of 5.8 million people, 2.9 million of which

are eligible to work, and is the 7th largest economy in Europe and 36th worldwide as of 2022 (The

World Bank, 2021; The World Bank, 2022). It is a free-market economy that boasts a strong and

diverse array of industries and services with its largest being energy production, a large

agriculture sector, and a prominent tourism industry. While agriculture has always been a

substantial part of the Danish economic system, and in recent decades the energy sector has

grown and reached into renewable energy forms, tourism is where the Danish economy shows

the most need and potential for growth. There are around 2.7 tourists per citizen in Denmark, and

it ranks 16th among the world economies and 1st among the Nordic countries for tourism (The

World Bank, 2022). Therefore, grants should be put towards expanding tourist attractions mainly

in the forms of parks and nature conservation. These new eco-tourist attractions would not only

benefit the state monetarily but improve the lives and health of the citizens translating into a

healthier and more economically strong country.

Agriculture has always been a large part of Danish society dating back to when the first

farms were established, “by 3000 BC, farms had begun to appear on the flat, fertile land we now

call Denmark” (Ministry of Foreign Affairs of Denmark, 2022). The current state of Danish

agriculture began in 1784 when major reforms took place replacing the feudal system of village

farms with privately owned lands and capital. We can see how this trend has lasted to the modern

day and shaped the Danish economy where now 60% of the land in Denmark is utilized for

farming and agricultural goods comprise 24% of the country’s exports (Ibanez, 2021). With such

success in agriculture the country should not provide additional grants or economic stimulus to
the sector as it already does well enough on its own. Instead, it should focus on using any land

left for conservation in the form of parks or natural attractions for tourists and the Danish people.

Currently only 8.3% of Denmark’s land is protected through parks or other systems but with an

increase to these numbers the already $9.10 billion dollar tourism industry will receive the boost

it needs to produce even more revenue for the state (EUROPARC Nordic-Baltic Section, 2022).

This will also slow the consumption of land by the farms and agricultural companies, thereby

preserving what precious natural land Denmark still possesses.

Denmark’s energy sector is one of the largest and cleanest in Europe, however, much of

the energy they use is from non-renewable resources, such as coal, natural gas, and oil, and only

27% from renewable sources such as wind and geothermal (Ibanez, 2021). The process of

attaining non-renewable resources such as oil leaves a negative lasting impact on the

environment and has been doing so since 1972 when Denmark began its oil production. Even

though Denmark is the 2nd largest producer of oil in the EU, they are on the right track to a

completely sustainable energy system which has been growing at a steady rate (The World Bank,

2022). Thus, additional grant funds should not be given to a system that is naturally growing and

changing on its own. We should rather provide the grants to the tourist industry which will only

grow in the coming years as it recovers from the side effects of Covid-19. The choice to provide

the tourist industry with grants for parks also allows for a more rapid decline in land that could

be used for oil production, and would create a more natural and healthier environment for its

current residents and tourists.

When contemplating nature conservation programs such as eco-tourism and the addition

of parks we may fixate on the monetary economic outcomes they may bring, however, it is also

important to think of the positive social economic outcomes that these programs would
contribute to Denmark. A natural environment and nature in general have proven to be a large

contributor to the mental well-being and happiness of people. Studies show that exposure to

nature not only makes you feel better emotionally, it contributes to your physical wellbeing,

reducing blood pressure, heart rate, muscle tension, and the production of stress hormones

(University of Minnesota, 2016). These health benefits to the people of Denmark would directly

translate to less strain on the healthcare system, thus lowering costs as Denmark currently spends

10% of its GDP on healthcare (The World Bank, 2022). The improved happiness of the people

would not only be good for the health of Denmark but also for its overall productivity. An

extensive study into happiness and productivity has found that “workers are 13% more

productive when happy” (University of Oxford, 2019). This substantial boost would stimulate all

facets of the Danish economy and allow companies to grow, create more revenue, and potentially

pay their employees larger amounts thus increasing their buying ability which in turn, would

increase sales and income tax revenue. This would help Denmark greatly when paying for their

numerous social systems as they are a strong supplier of welfare benefits and get most of their

funds for these programs from their tax system. All of these benefits to the nation and state of

Denmark could be attained through using grants for natural conservation efforts, which are less

costly than other economic sector improvements.

By choosing to direct grants towards natural conservation efforts and eco-tourism, the

Danish economy and nation will experience substantial growth monetarily and socially. The

boost in revenue from tourists combined with the increased happiness and productivity of their

people will usher in a new economic boom and lasting positive change for Denmark.
 Works Cited

EUROPARC Nordic-Baltic Section. (2022) Denmark. http://www.europarc-nb.org/protected-

areas/denmark

Kærgård, N. (2022, March 23) The Economic History of Denmark, 1784-2019. Oxford Research

Encyclopedia of Economics and Finance.

https://oxfordre.com/economics/view/10.1093/acrefore/9780190625979.001.0001/acrefore-

9780190625979-e-681

Ministry of Foreign Affairs of Denmark. (2022, September) The History of Denmark.

https://denmark.dk/people-and-culture/history

University of Minnesota, Earl E. Bakken Center for Spirituality & Healing. (2016) How Does

Nature Impact Our Wellbeing? https://www.takingcharge.csh.umn.edu/how-does-nature-impact-

our-wellbeing

University of Oxford. (2019, October 24). Happy workers are 13%

more productive. https://www.ox.ac.uk/news/2019-10-24-happy-

workers-are-13-more-productive
The World Bank. (2021). Social, Environmental, Population, and Industry - Denmark.

https://data.worldbank.org/country/denmark

The World Bank. (2022, January 30). Current health expenditure (% of GDP) – Denmark. World

Health Organization Global Health Expenditure database.

https://data.worldbank.org/indicator/SH.XPD.CHEX.GD.ZS?

end=2019&locations=DK&start=2000