ABSTRACT Hotels and the hotel sector is one of the most uprising sector on the market and individuals travels more and in Sweden the capacity of logy and hotels continue to grow. The development of the industry increases the need to more capacity of hotel room in Sweden and in the destination in this study area Örnsköldsvik. The effects of higher competition along actors is an important subject to study because it is one industry that seams to grow with time. The results lead to guidance for similar destinations to see the effect of a changed market. Hotels is important for a destination to offer the potential tourist somewhere to stay and that leads to higher finance for the local area. Recent studies have shown that hotels can be a sign for a destinations welfare and economic stability and is one way for municipality to increase the interested for This thesis aims to describe and analyze the effect of a change market and what this means for the existing actors. Also what+ higher capacity of rooms make for a destination to reach some types of events and conference. To get the results for this study statistic from different database has been collected and is supplemented with interview with the municipality of Örnsköldsvik. It is proven in this study that hotel is important for the development of tourism and is one key factor to attract different events. Keywords: Interactions, Competition, Changed market