Your Iceland holiday is about to get more expensive, all thanks to a new tourism tax
Iceland is responding to the exponential growth of tourism and its impact on the country's pristine wilderness by turning to tax measures, according to Prime Minister Katrin Jakobsdottir.
In an interview with Shery Ahn on Bloomberg Television from New York, Prime Minister Jakobsdottir acknowledged the significant and rapid expansion of tourism in Iceland over the past decade. This growth not only affects the environment but also exerts pressure on the unspoiled natural landscapes that draw visitors to the island.
To address the climate impact of increased travel, Iceland is considering the introduction of taxes for tourists staying in the country.
However, Prime Minister Jakobsdottir emphasized that these levies would not be initially set at high rates. The 47-year-old leader of the North Atlantic nation recognizes the delicate balance between promoting sustainable tourism and supporting an essential industry.
Tourism holds a prominent position in Iceland's economy, accounting for approximately 6% of the country's gross domestic product.
Iceland, known as the «land of fire and ice,» attracts travelers with its unique geological features, including lava flows, hot springs, geysers, and waterfalls. Moreover, its strategic location between Europe and North America makes it a busy air-travel hub.
The tourism industry plays a pivotal role in Iceland's commitment to becoming carbon neutral by 2040.
Prime Minister Jakobsdottir highlighted the efforts of many tourism companies to transition to a circular economy and reduce their reliance on fossil fuels. These measures include adopting electric cars, contributing to the broader shift toward sustainability.
Since her government took office in 2017, Prime Minister
