Norway continued to subsidise the coal mining activities of Store Norsk. But with the continued contraction of the coal industry, other avenues of employment, revenue and development were needed.

Research and higher education initiatives helped to launch Longyearbyen’s massive transformation into a modern, family community. The University centre in Svalbard was established in 1993, attracting foreign students.

Tourism was another avenue for developing Longyearbyen. In 1989 Spitsbergen Travel AS was created with aim of developing the local tourism industry.