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Tourism

Investment Opportunities in Tourism

After a period of phenomenal growth in number of visitors and with investment in both hospitality and recreation still lagging, Iceland offers good opportunities for investors and operators. With strong political and business supportpublic-private partnerships and emphasis on sustainable development, targeted marketing and infrastructure investments, Icelandic tourism is a key sector. 

Located midway between two of the world's strongest markets; North America and Europe, Iceland is accessible from multiple key airports. 

Iceland has experienced a phenomenal growth in number of visitors since 2010. Early 2019 Icelandic low-cost carrier Wow Air ceased operations which resulted in fewer arrivals.

During Iceland's weakest months in 2019 the total number of visitors was higher than during peak season up till 2011 and 2012. Iceland is now an established year round destination.

The hotel sector experienced a record number of overnight stays in 2019, despite a drop in the total number of visitors. The share of budget accommodation and AirBnb fell.

Reykjavik, Iceland's capital area, has strong key performance indicators despite the hotel industry having to adjust to challenges in 2019. Compared to the other Nordic capitals Reykjavik has strong daily rates, revenue per available room in EUR and the highest occupancy rate in Q4.

Reducing seasonality is a key target in Iceland's tourism strategy and marketing effort. The results are highly encouraging and today Iceland vent from having the most seasonal tourism industry of the Nordic countries to being the least seasonal in 2015.

With emphasis on quality and value over volume, sustainable development and targeted marketing the majority of visitors to Iceland have above average income. USA and China have been the growth markets while the British Isles and Central and Southern Europe have long been Iceland's core markets.

Iceland's official tourism strategy is focused on sustainable development in harmony with both nature and the people of Iceland. Quality and a uniqe visitor experience is key. Authorities have published a thorough tourism impact assessment and the action plan regarding infrastructure invesments and product development is based both on the overall vision, the impact assessment and regional destination management plans.

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Get in touch

For further information on the benefits of establishing a business in Iceland please feel free to contact us.

Contact

Arnar Guðmundsson

Project Manager
+354 511 4000
E-mail: arnar[at]invest.is

For further information

Strategy for Icelandic tourism

Extract from a Master Mapping report

Quality of Life

Throughout the years, Iceland has been placed on top of lists in terms of happiness and general satisfaction. Lively culture, high life expectancy, and excellent education system are just a few of the many great qualities of living in Iceland.