March 2006 | Visit WWW.FINLAND.COM.AU 

© Copyright 2006 Finland Australia Chamber of Commerce Inc

If you do not wish to receive these communications, please unsubscribe by clicking here.

FACC Newsletter - March 2006

From the Editor's desk

The new board of FACC hopes that all FACC members have had a great start for 2006. The board's first meeting of the year generated an exacting plan with several new events added to the year's program, including a Finnish grayfish party in August. Please see the event calendar for details.

Finland's President Tarja Halonen has been elected for a second six-year term. The elections gained some colour and made international news headlines when President Halonen received some unexpected promotional help from a US late night TV host, Conan O'Brian. O'Brian recently traveled to Finland and met with the President.

"Scandophiles" we have learned, are those who have passion for Scandinavian design. We meet one of them Kathy Pulkkinen, the owner of St Ives based Arktik Design shop specializing in Finnish and Scandinavian design products.

Finland is still a fairly unknown tourist destination in Australia, but recent years have seen significant rise in Australian overnights to Finland. Finnish Tourist Board, the sponsor of the month, has been represented in Australia for over 10 years with good results and is looking for a stronger presence in the future. Finland's other trade to Australia grew by 2.2 - 2.4%, compared to 2004. The forecast for 2006 is also looking positive as economic outlook for both countries looks healthy.

Annual General Meeting Follow Up

The FACC Annual General Meeting was held 9 November 2005 at the Consulate General of Finland. The minutes of the meeting are available from the Chamber secretariat. Please contact Ilkka Hakkinen, the Honorary Secretary - Email facc@finconsyd.net.

The FACC new board was elected at the AGM in 9 November 2005

The President:Mr. Tim PurcellManaging Director
The KIX Group
The Vice President:Ms. Silke KoernickeSenior Associate
TressCox Lawyers
The Treasurer:Dr. Joakim WesterholmSenior Lecturer
University of Sydney
The Secretary:Mr. Ilkka HakkinenConsular Officer
Consulate of Finland
The Members:Mr. Geoff CharnockPartner
Hicksons Lawyers
Mr. Valtteri HirvonenCounsellor
Embassy of Finland
Mr. Jari Tuorila,Area Director – Asia Pacific
Normet Corporation
The board members can be contacted at facc@finconsyd.net

FACC Events Calendar for 2006

May FACC Business Seminar I
July - December Finland resumes EU Presidency for six months
August FACC Grayfish Party
September FACC Business Seminar II
November FACC Annual General Meeting
December Sydney Symphony Orchestra concert series featuring the Finnish conductor Osmo Vanska and violinist Jaakko Kuusisto on 13, 14, 15 & 16 December 2006 at the Sydney Opera House. The program includes Rautavaara's Violin Concerto and Sibelius' Symphony No 1. FACC is negotiating concessions for members.

Please, note that the dates are yet to be confirmed. For enquiries and suggestions for future events please contact: the FACC secretariat facc@finconsyd.net or call 02-9327 5164

Four Percent Economic Growth in 2006

If the forecast proves accurate, the GDP in Finland will grow at double the rate of the Euro zone. Having been declared the most competitive country in the world in a survey by the World Economic Forum, Finland seems to be doing well. Thanks for the sound state of the economy go to the Finnish consumer. A favorable trend in wages coupled with low interest rates has fed private consumption. Additionally, last year Finland's exports grew by as much as six per cent. The Nokia sector accounts for seven per cent of Finland's GDP, and its strong fluctuations sometimes rock economic development quite noticeably. It seems fairly certain, however, that even unfavorable production trends at Nokia will not change the favorable basic pattern of economic growth*.

Taxpayers' Association predicts buying power of average income to grow 2.4 percent. Half of the increase comes from lower taxes**.

Source:
*Nov 2005 Arvopaperi, Finland's leading magazine for stock market investors.
**Helsingin Sanomat

Tarja Halonen to reign another six years

Tarja Halonen (the SDP and Left Alliance candidate) has been re-elected for a second six-year term as Finland's President of the Republic. She secured 51.8% of the votes cast in the runoff, against 48.2% for the challenger Sauli Niinistö of National Coalition. Voter turnout was 77.1%, around 3%-points down on the second round in 2000. Voting is not compulsory in Finland.

Halonen, 62, began her political career in 1974, holding various parliamentary posts before becoming the first woman to assume the Finnish presidency in 2000. Her popularity peaked at over 92% last year. She was listed as the 31st in the Most Powerful Women in the World list by Forbes in 2005. (www.forbes.com)

Halonen's campaign also got an endorsement of a different sort as the redheaded US late-night talk show host Conan O'Brien promoted Halonen's re-election bid as part of a long-running joke about their supposed physical similarities. His gags and mock campaign ads for Halonen did not go unnoticed in the Finnish press and also received worldwide press coverage. Halonen, 62, who apparently does not mind being compared to the 42-year-old O'Brien is said to be pleased about the positive promotion for Finland. O'Brien recently traveled to Finland and met with the newly re-elected President at the Telvis Awards ("Finnish Golden Globe Awards") held in February 14 in Helsinki. He received an award for being "the most surprising and entertaining TV personality in Finland". His visit to Finland will be featured in his show in the near future.

Record results for the largest underground mine in Finland

The sharp rise in world market prices for metals brought a record profit increase of 95% to the largest underground mine in Finland. Last year's turnover for the Canadian-owned Pyhäsalmi copper, zinc, and sulphur mine was almost €130 million (AU$ 210 million), of which nearly €40 million (AU$ 64.6 million) was profit. In 2004 a turnover of €70 million brought €21 million in profits.

The Pyhäsalmi mine employs 214 people. The mine is owned by the Canadian Inmet Mining Corporation, which bought it from Finnish Outokumpu three years ago.

Trade between Finland and Australia

As positive Australian economic trends are continuing, Finland's trade to Australia is increasing. The overall Australian economic growth in 2005 are expected to have grown by 2.2 - 2.4%, compared to 2004. The forecast for 2006 is also looking positive, as specialists are predicting a 3.2 - 3.5% economic growth.

The coming years are showing great potential for Finland in Australia. Finland's most important areas of trading to Australia are different machinery, mining equipment, telecommunications, IT and biotechnology. It is expected that Finland will maintain its strong position in these industries. There is also potential to reach other industries.

Handy hints for trading with Finland

Contact Finland 2005 directory provides companies and investors interested in Finland with information, contact details on business services and partners. It is published by the Central Chamber of Commerce of Finland. Visit www.contactfinland.fi for more information.

Finn of the month - Kathy Pulkkinen

The owner of Arktik Design - a designer gift and homewares store that specialises in Scandinavian designed products - Kathy Pulkkinen is one of the champions of Scandinavian design in Australia.

With a vision to cater for those who love beautifully designed and unique products, Kathy established Arktik Design in 2004 and has since run and managed the store.

The store carries a large array of products - from jewellery, watches and clocks to glassware, linen, cookware, bags and bathware. Manufacturers include Iittala, Aarikka, Marrimeko and Kalevala; Swedish Boda Nova, Kikki K and Ekelund; Norwegian Tripp Trapp High Chairs; and Danish Rosendahl, Pilgrim and Skagen Watches. Kathy was born in Australia to Finnish parents who arrived in Australia in the late 50s. Her older sister Anita was also born in Australia, and now resides with her family in Melbourne. Although the family has established their lives in Australia, they still hold on to Finnish traditions. Every year the family gets together to celebrate Joulu (Christmas) in traditional Finnish manner.

Together with her Finnish partner Jari, Kathy has a three year old son named Mika. The family still speaks Finnish at home (with the occasional "Finnglish" thrown in) and Mika attends the Finnish School in Sydney.

What did you do before you founded Arktik Design?

I have worked in various types of positions from the corporate environment to sourcing products for Segaworld and Disney. I have traveled the world extensively and finally found myself best suited working for myself in my own shop, surrounded by beautifully designed products from Scandinavia.

How did you end up starting the business?

I have worked in various types of positions from the corporate environment to sourcing products for Segaworld and Disney. I have traveled the world extensively and finally found myself best suited working for myself in my own shop, surrounded by beautifully designed products from Scandinavia.

After the demise of several Scandinavian stores in the eighties I found it virtually impossible to buy Iittala, Marimekko and Aarikka anywhere. Having researched the market extensively I found there was a niche that needed to be filled.

Why do you think Finnish/Scandinavian design appeals to Australians?

From the feedback that I have received from my customers there seems to be a lack of beautifully designed products that have clean fresh lines. They absolutely love the aesthetic appeal and sophistication of well designed Scandinavian products.

Who are your customers?

Our customers are predominantly Finnish and Australian, with a lot of interest from Scandophiles [those people who have a passion for Scandinavian Designs products] and with the occasional Swede, Dane and Norwegian coming in.

What is a typical day for you?

In the mornings I usually check all my emails and get the shop ready for the day. During the course of the day, should I have a quiet spell between serving customers, I take to the internet to source for new and unusual products.

What do you do when you're not working?

My priority after hours is to spend as much time as possible with my son Mika. We go to the park, have a swim, read or draw - basically whatever he is in the mood for. Once Mika has gone to bed I take to doing paperwork for the shop.

What do you think Australia and Finland have in common?

The strong work ethic and the desire to succeed and enjoy life at the same time.

What are the differences between doing business with Australians and Finns?

At first, the Finns are very weary and closed. Over time they become very welcoming and extremely accommodating. In some cases I have received stock from Finland prior to payment - this is very unusual.

In Australia, as I am not approaching from foreign shores, it is like business as usual, depending on who I am dealing with and the report that is built over time. As with most situations you have the good and the bad.

What things do you miss about Finland?

Snow, sauna and summer holidays by the lake. Mushroom and berry picking.

What is your favorite Australian thing?

The Sydney lifestyle, the beaches, the sun and the Opera House.

Arktik Designs
Shop 2
198 Mona Vale Road
St Ives NSW 2075

Phone: 02 9988 3633
Email arktikdesigns@aol.com

Iittala's Aalto vase celebrates 70th anniversary

Designer and architect Alvar Aalto's vase, one of the design icons of the 20th century, celebrates its 70th anniversary this year. The sensuous shape of the Aalto vase is showcased worldwide in galleries and museum collections, such as the Museum of Modern Art in New York.

The Iittala Group, the leading design company in homewares of modern Scandinavian design also celebrates its 125th Anniversary. Iittala is a market leader in its home markets in Finland, Sweden and Norway with the homemarket brands, Arabia, Hackman, Iittala, BodaNova, Höganäs Keramik, Rörstrand and Hoyang-Polaris. In the international market the company focuses on developing the Iittala brand. The turnover of the Iittala Group in 2004 was €168 million and the number of personnel 1356. The owners of Iittala Group are its operative management together with ABN AMRO Capital.

Visit www.iittala.fi for more information.

In Australia Iittala is successfully represented by Sydney based FACC member Design Mode.

Sponsor's corner

Europe makes up 21% of Australia's outbound travel. It is a desirable destination for many Australian travellers as it offers a wide range of cultural and social experiences that are significantly different than in Australia.

Many Australians also have strong heritage and connection to Europe. This offers great potential for Nordic countries such as Finland, to promote and establish themselves as unique destinations within the Australian market. A typical traveller to Finland is 50 + well traveled, with higher disposal income. Finnish Tourist Board (FTB) has been represented in Australia since 1995 by Sydney based Finnesse Communications. Prior to that FTB was represented in Australia by Finnair's GSA (1992-95).

Finland's image strengths

Finland is a country with many faces. It offers colorful culture, history, four seasons and wonderful Helsinki - one of the Northern European trendiest cities. But there is so much more to Finland that Australians love discovering - gorgeous countryside, lake regions, exotic Lapland, the Midnight Sun and Northern lights, historic towns like Porvoo and Turku and remarkable stories relating to Russian and Scandinavian influence and heritage, sophisticated culture and the Nordic Oddity. Finland's Nordic identity with the mixture of East and West makes Finland an appealing destination. The country's ideal location makes it a perfect gateway to Scandinavia, Russia and the Baltics. Transfers between the countries are quick and simple, thanks to good connections by air, rail and sea.

One of Finland's biggest selling points is of course the big man in the red suit in Finland's North. Santa Claus in Rovaniemi attracts a large number of visitors every year. While visiting Santa, the Finnish winter lasting six months also makes it possible to enjoy a wide variety of other activities in an impressive setting.

The Australian market showing great potential to Finland

Finland has raised its profile in Australia over the past few years as a different and interesting four-season destination. Australian overnights to Finland have increased strongly during that time. In 2004 they exceeded an extraordinary 30,000 overnights, growing by 18.7% compared to 2003. Australian overnights have continued to boom also in 2005, as the 30,000 margin was outdone already by November 2005. FTB is estimating a total increase of 7 % for 2005, in comparison with 2004. There is a positive economic outlook for the next few years in Australia, which is expected to lead to increasing consumer confidence and higher consumer spending. In 2004, there were 4.36 million outbound departures from Australia. This figure is estimated to increase by 4% annually, representing 6.1 million outbound departures by 2016.

Australian outbound tourism is characterised by long stays and high spending, and travel during the peak season months of May - October and mid November - February to Europe and Nordic countries. Australian travellers, on average, expect to pay between A$3000-4,000 (€1800-2500) for a vacation to the Nordic countries. The average duration of a trip to Nordic countries is 12 days and daily expenditures amount to approximately AU$80-100 (€50-65) per traveller.

Finland's marketing strategy in Australia targets mainly travel trade and press. FTB is strengthening its commitment to Australia and will be increasing its presence from 2007 onwards.

For more information, please visit www.visitfinland.com. For more information regarding FTB in Australia please email finland@finnesse.com.au or call 02 -99296044.

Traveller's tip - take advantage of the great airfares to Finland

Finnair offers special early bird fares from Australia to Helsinki starting at A$1745 plus taxes. Finnair combination class fares start at A$4045 + taxes. The combination fares fly you to Asia in economy class with Finnair oneworld partners (Qantas, British Airways, Cathay Pacific and Australian Airlines) and in business class from Asia to Finland with Finnair. Finnair business class fares start from A$6425 + taxes. For details contact your AFTA travel agent or phone Finnair on (02) 9244 2299.

New FACC member Scandinavian Airlines System offers special Scanfares from Australia to Helsinki starting from A$1869 + taxes (Ex SYD/MEL/BNE/PER/CNS). Flying with partner airline Qantas via Tokyo/Shanghai/Bejing then onwards with SAS to over 50 destinations in Europe and Scandinavia (including Helsinki). Inbound can be done via Bangkok with Thai Airways.

Business Combination is from A$3189 + taxes (until 31 March 06). SAS business class special in combination with Thai Airways in both directions ex SYD/MEL/BNE/PER start from A$5665 + taxes. Rate is valid for travel until 31 March 2006. Visit www.flysas.com or call 1300 707 737 for more information

Winter events in Finland

The Finnish National Opera and Helsinki Philharmonic offer concerts, ballets and operas featuring internationally-known stars well into the spring.

More than 80 museums are open and there's a new Design District to trawl for the best of Finnish design.

A short ferry ride across Helsinki Harbor is the 18th century Suomenlinna Fortress. A visitor can take guided winter walks around the Fortress, on Saturdays and Sundays until late May. Please visit www.suomenlinna.fi

It's also easy to make a day trip to Lapland from Helsinki. The unforgettable winter adventures offered include snowmobile safaris, visits to Santa's village, reindeer sledding and overnight stays in a real igloo. Please visit www.hel.fi/tourism