Tourism

Tourism is one of the largest industries in Iceland and an important driver of economic growth and improved living standards in Iceland. The large and steady stream of foreign currency that tourism generates is vital for a small and open economy like ours. It supports the strength of the krona, thus contributing to lower inflation than would otherwise be the case.

Tourism has similarly improved living conditions all around the country, being the largest spontaneous regional development in Iceland's history. Higher employment levels around the country as well as a greatly increased supply of services in entertainment, accommodation, food and drink, along with better access to natural attractions, are circumstances that both residents and foreign visitors benefit from. Framsókn wants to enhance opportunities for residence and jobs throughout the country, where tourism plays a key role. Small and medium-sized businesses owned by locals in each area return profit to communities and create a foundation for further development of services and other activities in the region.

The rapid growth in the number of foreign tourists to the country in the years before the pandemic certainly came with growing pains. However, much has been achieved in recent years in building the necessary infrastructure to accommodate this increased number. Numerous opportunities for advancement exist to further improve these aspects, contributing to sustainable growth. If forecasts regarding the number of foreign tourists turn out to be correct, the outlook is good for tourism and all value creation based on it.

Recently, work has been underway on a tourism strategy extending to the year 2030, along with an action plan. The main theme is for Icelandic tourism to lead in sustainable development based on economic, environmental, and social balance.

The foundation for value creation in tourism is that it is profitable and competitive while operating in harmony with the land and nation. Framsókn wants to strengthen the framework of tourism and create better conditions for it to grow and flourish in line with the tourism policy and increased value creation. Framsókn considers it evident that an increase in VAT on tourism in the upper tier will lead to price increases and have very negative consequences on the country's competitiveness. Experience from neighbouring countries shows that these changes have not only short-term effects but also influence attendance in the long term. Iceland is already one of the most expensive destinations in the world.

It is important to maintain and strengthen the image and reputation of Iceland as a destination. Targeted, consistent, and holistic marketing delivers significant economic benefits for the country and has secondary effects on other export sectors abroad. It's crucial to ensure that marketing of Iceland, Icelandic tourism, and Icelandic products are always conducted professionally and in accordance with the emphases stated in the tourism policy and its action plan.

To ensure targeted, consistent, and holistic marketing to foreign tourists that delivers significant economic benefits for the country and has secondary effects on other export sectors abroad, it's necessary to guarantee long-term funding for consumer marketing by Íslandsstofa. This would be in line with what is done in our main competitor countries, such as in the Nordic countries. It is crucial to ensure that the marketing of Iceland, Icelandic tourism, and Icelandic products is always conducted professionally and in line with the emphases stated in the tourism policy and its action plan.

Work will continue on building infrastructure in step with modest growth in tourists to protect the country's nature and ensure a positive experience for tourists.

Emphasis is placed on building tourism infrastructure sustainably and that their design blends well with the environment.

Framsókn emphasises strengthening international flights through Akureyri and Egilsstaðir to promote greater distribution of tourists around the country. It's crucial to ensure the competitiveness of the airports regarding facilities, landing fees, and fuel prices. A coordinated transportation network in the country that connects domestic and international networks, whether by air or scheduled sea and land routes, needs to be built.

Framsókn emphasises that access should not be closed to large parts of the country or specific areas unless absolutely necessary.

It is important to establish a comprehensive tourism plan in the country to prevent overcrowding and negative environmental impacts. Both the state and municipalities benefit from creating a comprehensive land use and tourist management plan throughout the country.

Access management should be applied in the form of specific charges in areas where there is significant pressure and the development and maintenance of infrastructure are costly. Such charging ensures local revenues, which should partly go to those responsible for the development and protection of the area. Proper implementation would ensure funding for the development of necessary infrastructure in the areas, with safety, experience, and nature conservation as guiding lights.

Proper implementation of local access management would facilitate the distribution of tourists both around the country and throughout the year. Charges of this type could thus become a tool enabling the state, municipalities, and other stakeholders to develop tourism infrastructure more responsibly and effectively with secure funding.

It's essential to review the tourism industry's operating environment to ensure its competitiveness. Streamlining the operational environment is necessary to increase efficiency and encourage greater innovation and entrepreneurship in the sector. It will be required that foreign tourism companies operating in the country meet the same standards as those imposed on domestic tourism businesses. Laws and regulations on the activities of foreign entities in the country must be clarified to ensure equality and prevent social dumping. Active monitoring of illegal business operations in the sector must be ensured, and those found to be in violation should receive appropriate and severe penalties. The role of such monitoring is also intended to ensure the quality of tourism with an emphasis on consumer protection, culture, and the conservation of the country's nature.