December 4, 2023

The Struggling Tourism Industry

The tourism industry has taken a big hit because of the Covid virus pandemic. Tourism in Iceland is no exception. Few foreign tourists are expected this year even though the country will open its  borders on June 15th with certain conditions.

The government has spent tens of billions of Icelandic kronas to support struggling companies and set legislation that will help them survive. Iceland’s largest airliner, Icelandair, is doing everything it can to prevent bankruptcy and has secured assistance from the government if stockholders will provide necessary equity.

On the sidelines a new airline, Play,  is watching closely how things will evolve and hopes to step in if Icelandair’s struggles continue, but it will not replace Icelandair according to Icelandic Travel Industry Association.

However, there is also good news. Most Icelanders will travel domestically this year. Hiking and climbing is more popular than ever where will is all it takes to start going uphill. Hotels and guesthouses are offering good deals on accommodation. This will help many travel companies survive the hard times until travel restrictions will become a thing of the past.