International Courant
The Blue Lagoon geothermal spa close to the fishing village of Grindavik, Iceland, on Could 23, 2024.
John Moore | Getty Photographs Information | Getty Photographs
Iceland desires vacationers to flock to its effervescent scorching springs, picturesque ice caps and moon-like lava landscapes – however not on the expense of its residents or the pure surroundings.
The small Scandinavian nation recognized for its fireplace and ice isn’t alone. From Amsterdam to Venice, hotspots around the globe have taken measures to attempt to sort out the unfavorable impacts of overtourism, whereas sustaining an usually massively essential supply of earnings.
“We’re nonetheless making an attempt to form the tax system for the tourism sector for the long run,” Icelandic Prime Minister Bjarni Benediktsson informed CNBC by way of video convention.
“We want to lean extra in the direction of a user-pays system. The best way I see it, we want to transfer extra in the direction of entrance charges for the magnets, as we name them, throughout the nation,” Benediktsson stated.
“By doing that, we might management visitors. So on the peak of demand we might have a better load, the place we might train management by adjusting charges, whether or not inside a day or between months, or throughout components of the yr. However that is nonetheless within the works.”
The Icelandic authorities has its so-called vacationer tax in the beginning of the yr, in an effort to lift cash for sustainability applications and mitigate the environmental impacts of mass tourism.
The levy, which was suspended throughout the Covid-19 pandemic, fees a nominal charge of 600 Icelandic kronor ($4.34) for lodge rooms, with various fees additionally utilized to campsites, cell properties and cruise ships.
Molten lava overflows on the street resulting in the well-known Blue Lagoon vacationer vacation spot close to Grindavik, western Iceland, on February 8, 2023.
Kristinn Magnusson | Episode | Getty Photographs
Benediktsson described his predecessor’s reintroduction of the vacationer tax as an “essential resolution” for the nation. Nevertheless, he says the federal government should go additional to search out the correct stability.
As head of Iceland’s right-wing Independence Celebration, Benediktsson to interchange Katrin Jakobsdóttir will turn out to be prime minister in the beginning of April. He was beforehand prime minister in 2017.
His second stint as chief of the nation comes because the nation struggles with rising rates of interest, excessive inflation and a sequence of volcanic eruptions.
On the finish of final month, a volcano in southwestern Iceland erupted fifth time since Decembererupting lava that after once more threatened the coastal city of Grindavik.
The seismic exercise additionally compelled the evacuation of one of many nation’s most visited websites, the Blue Lagoon geothermal spa. The lagoon has since reopened to vacationers after authorities stated the eruption had stabilized.
Rising earnings from tourism
The Icelandic tourism sector has recovered from a dip throughout the corona pandemic. The nation – that one inhabitants of roughly 383,000 — anticipated will obtain 2.3 million guests this yr, virtually 2.4 million in 2025 and as many as 2.5 million in 2026.
Tourism earnings has turn out to be more and more essential to the Icelandic economic system.
In accordance with figures, the tourism sector would account for 8.5% of the gross home product in 2023 Statistics Iceland, citing preliminary figures from the Tourism Satellite tv for pc Accounts. That is up from 7.5% in 2022 and exceeds the 8.2% common recorded throughout the pre-Covid interval from 2016 to 2019.
Skolavordustigur pedestrian avenue in Reykjavik, Iceland, on November 11, 2023.
Bloomberg | Bloomberg | Getty Photographs
Wanting forward, Benediktsson stated the federal government was conducting its personal “sustainability stability sheet audit” to develop its vacationer tax system.
“We’ve devised a system through which we have a look at sure indicators: is nature in stability in a sure place? Is society proud of the event? Is that inexperienced, yellow or crimson?” stated Benediktsson.
“Once we see locations being broken by the variety of individuals visiting Geysir, for instance, the place we’ve got the recent springs, we’ve got to take motion,” he added.
“These are the issues we are attempting to develop, and we are attempting to observe the indications and be sure that the business grows in good acceptance by society but in addition by nature.”
