Why is Iceland tourism declining?

Tourism is undergoing an unprecedented downturn all over the world, but several factors make Iceland particularly vulnerable to the industry’s crash: geographic isolation, a small domestic population, strict border measures and an economy that — after an extraordinary, decade-long tourism boom — had come to depend …

Is tourism down in Iceland?

Overall, there was a 75.8\% decrease in foreign visitors from 2019 to 2020.

How many tourists visited Iceland in 2019?

In 2020, roughly 486 thousand inbound tourists arrived in Iceland, whereas the number of international visitors reached approximately two million in 2019.

Why is Iceland becoming a popular tourist destination?

Tourists are drawn to Iceland because of its stunning natural beauty. The landscape is nothing short of mystical. The scenary promises an endless series of snow-covered volcanoes, mountains and ice fields. With a rugged, “other-worldly” terrain, the Nordic icy views are like nothing you’ll see in the rest of the world.

How does tourism affect Iceland?

Tourism is the major export earner in Iceland, accounting for ISK 520 billion in 2018 – equivalent to 39\% of total export revenue. The sector directly contributed 8.6\% of GDP in 2017, and employed some 30 000 people – representing 15.7\% of the workforce.

When did Iceland become so popular?

Iceland’s growth is astounding: In the late 1980s, Iceland saw some 130,000 annual visitors—many of whom were adventure travelers eager to backpack or cycle the rugged landscape.

How much of Iceland economy is tourism?

Who visits Iceland the most?

As of year 2014, Iceland’s largest tourism markets comprises tourists from Central/South Europe, followed by those from other regions: North America, the UK, then the Nordic countries. In terms of visitors from individual countries, the top five for 2014 were the UK, USA, Germany, France and Norway.

When did Iceland become a popular tourist destination?

Tourism in Iceland began to grow following the April 2010 eruption of the Eyjafjallajökull volcano in the country’s south. It was cheap to visit and costs were affordable due to the country’s weak currency; the eruption acted as a global billboard for Iceland’s natural beauty.

Is Iceland Dependant on tourism?

A concluding statement of the International Monetary Fund visit to Iceland states that Iceland’s dependence on tourism to fuel its economy has made the country “highly exposed to health, economic, and financial contagion from the COVID-19 pandemic”.

What benefits does tourism bring to Iceland?

Traditionally we have sustained our economy through fisheries and aluminum smelting. However, tourism definitely gives our economy a shot in the arm, especially every year during the high season. With more money going into communities, it, in turn, makes its way to the people.

Does Iceland have a lot of tourists?

Recently there has been a massive tourism boom in Iceland. The tourism sector has for example grown a lot and many jobs have been created, helping the country get out of the recession. There are also a lot more people in town, making Reykjavík and other towns feel really lively and fun.