Measures against “overtourism” reach Iceland – visitors obsessive about hot springs

Iceland, home to hot springs and volcanoes, desired to attract tourists with its stunning natural attractions. This triggered a meteoric rise in visitor numbers, from lower than 500,000 in 2010 to expected 2.3 million this 12 months. While this has been a goldmine for Iceland’s tourism industry, it has also created recent housing problems for the individuals who call the country home.

But the country has had enough. It now desires to combat “overtourism” with taxes and better fees in an effort to keep tourist numbers under control without damaging a lucrative sector of its economy.

“We are still trying to shape the tax system for the tourism sector for the future,” said Iceland’s Prime Minister Bjarni Benediktsson. told CNBC On Monday.

A possible recent measure can be just like a price increase, with the next tax being charged during peak travel times than at other times of the 12 months – although this continues to be within the works, Benediktsson added. He also said a “sustainability audit” was being considered to guard Iceland’s nature and native communities.

Earlier this 12 months, Iceland reinstated a tourist tax that had been abolished through the COVID-19 pandemic. The modest fee – about 600 Icelandic krona ($4.34) – applies to hotels, campsites, cruise ships and other accommodations. While Benediktsson sees the measure as an “important decision,” he also believes more must be done.

“We would focus more on a user-pays system. The way I see it, we would focus more on joining fees for the magnets, as we call them, across the country,” the prime minister said.

Tourism is vital to the Icelandic economy, accounting for 8.5 percent of the country’s GDP, data shows. by Statistics Iceland. Out of game of Thrones From fans to lovers of the Blue Lagoon, Iceland has captured the interest of many, with visitor numbers increasing lately despite disruptions similar to the COVID-19 pandemic and volcanic eruptions.

At the identical time, locals are having a tough time renting an apartment as increasingly persons are renting out to visitors on a short-term basis. Prices have also risen on account of higher rates of interest, which frequently drives tenants out of their homes.

Iceland is not the only country fighting back against overtourism – Venice recently introduced a short-term visitor fee of 5 dollars, which could help stem the flow of tourists to a city known for being inundated with tourists for much of the 12 months.

Given the interest within the historic Italian city, Venice collected 37 million euros (39.6 million dollars) in tourist taxes last 12 months.

Spain, for its part, has introduced a brand new fee that will likely be reflected in hotel bills and can contribute to a fund for warmth pumps and solar panels in schools.

“Until now, we have spent these taxes to offset the impact of tourists on the city, including cleaning services, security and public transport,” Jordi Valls, Barcelona’s head of economic and tourism promotion, told Bloomberg in February. “This year, we decided to go a step further and spend the tax to finance public services from a climate perspective.”

It is unclear whether these fees will deter enough visitors to unravel the issue of overtourism and its consequences. In Venice, for instance, the brand new fee has to date failed to scale back visitor numbers. Locals have also protested against the tourist tax policy, arguing that it might not have as big an impact.

With the pandemic behind us, hundreds of additional tourists are expected to reach in Iceland every year. The country faces the difficult task of finding a method that, on the one hand, encourages tourists to proceed coming to town, but however, limits their numbers and offers priority to locals.