In yet another sign that the growth in truism is slowing down in Iceland the number of overnight stays at hotels increased by only 2% year-over-year in July 2017. The year-over-year increase has in recent years regularly topped 20, 30 and even 40%. The number of hotel stays in the capital increased by only 1% compared to July 2016.
Growth finally leveling off
According to data from Statistics Iceland Icelandic hotels recorded a total of 4,189,000 overnight stays in the 12 month period August 2016-July 2017, a 26% increase over the previous 12 months. At the same time the supply of hotel rooms increased by 6.4%. The occupancy ratio is still very high at Icelandic hotels, which helps keep hotel prices high as well as justifying further investment in hotel construction. Reykjavík hotels had an occupancy ratio of 92.7% in July. were occupied.
Read more: Minister of tourism: Our goal is not to increase the number of tourists further
Drop in regions further from Reykjavík
Behind the slower growth in hotel stays are worrying signs for the tourism industry in the North, the West and East of Iceland, regions which are relatively far from the capital region.
Overnight stays in the Southwest region saw an increase of 63% from the previous year, and South Iceland hotels saw a 6% increase. West Iceland and the Westfjords on the other hand saw a decrease of 14%. There was also a 9% decrease of overnight stays in the North, and a 7% decrease in the East, compared with July 2016.
Read more: Despite dramatic growth in tourism in Iceland, fewer people visit the magnificent Westfjords
Non-residents with the most overnight stays in Iceland in July were from the USA (126,600), Germany (74,400) and UK (34,700), while overnight stays of Icelanders in July were 37,700. Nights spent by foreign tourists accounted for 92% of the total number of overnight stays in July.
In yet another sign that the growth in truism is slowing down in Iceland the number of overnight stays at hotels increased by only 2% year-over-year in July 2017. The year-over-year increase has in recent years regularly topped 20, 30 and even 40%. The number of hotel stays in the capital increased by only 1% compared to July 2016.
Growth finally leveling off
According to data from Statistics Iceland Icelandic hotels recorded a total of 4,189,000 overnight stays in the 12 month period August 2016-July 2017, a 26% increase over the previous 12 months. At the same time the supply of hotel rooms increased by 6.4%. The occupancy ratio is still very high at Icelandic hotels, which helps keep hotel prices high as well as justifying further investment in hotel construction. Reykjavík hotels had an occupancy ratio of 92.7% in July. were occupied.
Read more: Minister of tourism: Our goal is not to increase the number of tourists further
Drop in regions further from Reykjavík
Behind the slower growth in hotel stays are worrying signs for the tourism industry in the North, the West and East of Iceland, regions which are relatively far from the capital region.
Overnight stays in the Southwest region saw an increase of 63% from the previous year, and South Iceland hotels saw a 6% increase. West Iceland and the Westfjords on the other hand saw a decrease of 14%. There was also a 9% decrease of overnight stays in the North, and a 7% decrease in the East, compared with July 2016.
Read more: Despite dramatic growth in tourism in Iceland, fewer people visit the magnificent Westfjords
Non-residents with the most overnight stays in Iceland in July were from the USA (126,600), Germany (74,400) and UK (34,700), while overnight stays of Icelanders in July were 37,700. Nights spent by foreign tourists accounted for 92% of the total number of overnight stays in July.
