Iceland wants to “protect” the country’s pristine nature from overtourism with a new accommodation fee, thereby safeguarding untouched natural areas from an excessive influx of tourists.

Over the last decade, the number of tourists in Iceland has risen rapidly. From 2010 to 2018, the number of visitors to the country grew by more than 400%, exceeding 2.3 million. Following the pandemic, numbers have risen sharply, reaching 1.7 million in 2022.

In an interview with the news agency Bloomberg, Iceland's Prime Minister Katrín Jakobsdóttir (Katrín Jakobsdóttir) said that a tourist tax could help address the impact of visitors on the country’s climate and environment. “Most of the guests who come to us visit pristine natural areas, which undoubtedly puts them under pressure,” the Prime Minister emphasised.

The country has set ambitious climate goals, including achieving net-zero emissions by 2040.

How high will Iceland’s tourist tax be?

Although the Prime Minister did not specify the likely amount of the Icelandic tourist tax, she told Bloomberg that “it will not be large at the beginning,” explaining that the scheme will be introduced as a city levy for people staying in Iceland.

Companies in the tourism sector are also improving sustainability, for example, by introducing a circular economy and using electric vehicles, added K. Jakobsdóttir. It is being done, but it is a known risk.

How will a tourist tax help the environment?

Tourists place a significant burden on infrastructure, public services, and the sites they visit.

A tourist tax can help these destinations “withstand” the load caused by tourists, as well as deter visitors, thereby limiting the influx of tourists. The tax can be used to fund public transport infrastructure, repair damage caused by the influx of tourists, and support sustainability and its initiatives.

Iceland is not the only country to have introduced a tourist tax. It is common throughout Europe, with levies also introduced in major cities – Paris, Berlin, Amsterdam and Rome.

The city authorities of Manchester (United Kingdom) announced that they would start charging an accommodation tax to visitors this year, while Santiago de Compostela in Spain announced that it plans to introduce a regional tax this summer to reduce the overcrowding caused by tourist flows.

Venice had warned of the introduction of a visitor fee well in advance, recently setting its start date, which is scheduled for the beginning of the 2024 summer season.
https://www.euronews.com/travel/2023/09/25/sustainable-tourism-this-nordic-nation-is-introducing-tourist-tax-to-protect-its-unspoilt-