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.