Abstract
Norway has become a high-cost country. Costs have increased particularly rapidly since the mid-1970s. If we arc to retain or develop our international competitiveness in a high-cost situation, our basic products must be ones which require expertise. A product adjustment of this type has not taken place in Norway. Research and development work in this field has not been very goal-oriented, and has been scattered and ineffective. This has led to the part of Norwegian tourism which is exposed to competition (the resource-based part) losing its international competitiveness. The production model which is used in conclusion indicates that this is a situation that can be rectified.