Rising Krona puts Icelandic tourism in tight spot

Published on : Friday, December 9, 2016

icelandic-tourism-in-tight-spotWage rises and expensive Krona will make prices higher for tourists from Iceland’s main markets, with the possibility of harming the tourist industry. Þórir Garðarsson, COB and Head of Corporate Development at tour operator Gray Line Iceland says, “It is clear that Icelandic tourism will not be as profitable this year as it was in 2015.

 

When we present foreign wholesalers and agencies with our tariffs for 2017, they see that Iceland is getting more expensive year on year. The increase is mainly due to the rise in Iceland’s national currency. Wage rises – leading to higher overheads for tourism operators – are also a factor, but less so than the stronger króna.”

 

The Krona has risen against the dollar and euro and the falling pound sterling is making Iceland more expensive for British tourists. It’s making Iceland 40% more expensive in a space of eleven months. Garðarsson says that the rising Krona is actually working against Iceland, since majority of its tourists come from the US, the UK and other European countries.

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