Is Icelandic tourism set to decline?

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In March I submitted a blog post summarising the fall in value of the Icelandic Krona. I predicted that this would be positive for tourism with the Nordic country the most expensive place to visit in the world.

In the blog post, I predicted that country that has more tourists in at once than residents would expect to see more visitors as time goes on.

It seems my estimation was well off…

Travel agencies have come out and stated they are expecting to see a decline in bookings to the island.

“British travel agency Discover the World says that for the same price as an 8 day hiking trip in East Iceland they can offer a two week trip around New Zealand.”

While the currency may have decreased in value recently, prices and demand to visit continue to soar to the extent that it is too expensive for many tourists. This is proof that the country is definitely one of the most sought after vacations.

The demand and small population mean that the country has increased prices to deal with the numbers. This results in only the privileged get the opportunity to visit the country and see all it has to offer.

This increase on taxes will certainly deter many customers and the country will be hoping that they can continue to make Iceland a sought-after location despite the taxes.

Only time will tell whether we are likely to see travel agents decreasing the number of packages available to its potential customers.

 

Posted by Matthew Weston

Matt is a Freelance Writer and Travel Blogger. He also creates editorial and video content for UNILAD. Previously worked for the International Business Times and the BBC's Newsnight.

1 Comment

  • James Chamberlain says:

    Iceland isn’t just expensive it is ridiculously expensive so much so I would not recommend it just for that reason alone it does not have enough to offer to justify the cost. Northern lights are better viewed at other locations and the land is fairly barren. If you want to see geysers go to Yellowstone Park it will probably work out cheaper. I was really not impressed there are better places to visit in the world which will not leave your account overdrawn!!!

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