- Iceland wants tourists to flock to its picturesque ice caps and moon-like lava landscapes, but not at the expense of its residents and the natural environment.
- From Amsterdam to Venice, hotspots around the world are introducing measures to crack down on the negative effects of overtourism while preserving tourism, which is often a vital source of income.
- “If we see that places like Geysir, where the hot springs are, are being damaged by the number of people visiting, for example, then we need to take action,” Iceland’s Prime Minister Bjarni Benediksson told CNBC.
The Blue Lagoon geothermal hot springs near the fishing village of Grindavik, Iceland, on May 23, 2024.
John Moore | Getty Images News | Getty Images
Iceland wants tourists to flock to its bubbling hot springs, picturesque ice caps and moon-like lava landscapes, but not at the expense of its residents or the natural environment.
The tiny Nordic nation of fire and ice isn’t alone: Hotspots around the world, from Amsterdam to Venice, are introducing measures to crack down on the negative effects of overtourism while preserving tourism, which is often a vital source of income.
“We are trying to set up a tax system for the tourism sector for the future,” Icelandic Prime Minister Bjarni Benediksson told CNBC via video conference.
“We want to lean more toward a user-pays system, and in my opinion, we want to put more emphasis on membership fees to national magnets, as we call them,” Benedictson said.
“That way, we can control the traffic volume. So, when there is peak demand, we can impose higher taxes by fixing the rates for a day or a few months or even for some periods of the year. But this is still in the planning stages.”
The Icelandic government has Tourist tax Earlier this year it raised funds for sustainability programs, aiming to reduce the environmental impact of mass tourism.
The tax, which was suspended during the COVID-19 pandemic, imposes a small fee of 600 Icelandic krona ($4.34) on hotel rooms and various charges on campgrounds, mobile homes and cruise ships.
Lava floods the road leading to the famous tourist spot, the Blue Lagoon, near Grindavik, western Iceland, on February 8, 2023.
Kristin Magnusson | Editorial photo via Getty Images
Benediktsson said his predecessor’s reintroduction of a tourist tax was an “important decision” for the country, but he said the government needed to work harder to find the right balance.
Benediktsson, leader of Iceland’s right-wing pro-business Independence Party, Replaced Katrín Jakobsdottir took office as prime minister in early April. She also served as prime minister in 2017.
His second term as leader came at a time when the country was struggling with rising interest rates, high inflation and a series of volcanic eruptions.
A volcano in southwest Iceland erupted last month. The fifth time since DecemberIt spewed lava and once again threatened the coastal town of Grindavik.
The seismic activity also forced the evacuation of the Blue Lagoon geothermal hot springs, one of the country’s most popular tourist attractions. The lagoon was subsequently Reopening to tourists Officials said the eruption had stabilised.
Iceland’s tourism industry has recovered rapidly from the decline caused by the coronavirus pandemic. population Of approximately 383,000 people expect It is expected that the number of tourists will reach 2.3 million this year, nearly 2.4 million in 2025 and as many as 2.5 million in 2026.
Revenues from tourism are becoming increasingly important to Iceland’s economy.
In fact, it is reported that the tourism sector will account for 8.5% of the country’s gross domestic product in 2023. Statistics IcelandThis is up from 7.5% in 2022 and above the average of 8.2% recorded in the pre-COVID period from 2016 to 2019, it said, citing provisional figures from the tourism satellite account.
Skolavoldustiguur pedestrian walkway in Reykjavik, Iceland on November 11, 2023.
Bloomberg | Bloomberg | Getty Images
Looking ahead, Benediktson said the Government was undertaking its own “sustainability balancing check” on the development of the tourism tax system.
“We came up with a system that looks at certain indicators: Is nature in balance in a certain place? Is society happy with development? Is it a green, yellow or red light?” Benedictsson said.
“If we see that the number of people visiting Geysir hot springs, for example, is damaging the place, then we need to take action,” he added.
“These are things we are trying to develop, following the indicators and making sure that this industry grows while being embraced by society as well as nature.”