Analysis by economists at Landsbankinn bank (pdf) concludes that foreign travellers have adjusted their travel and spending habits in response to the strong appreciation of the Icelandic krona in the last couple of years.
Read more: Have we reached Peak Puffin? Tourism in Iceland grew slower during Q4 than projected
Measured in Icelandic krona spending by foreign visitors increased by just 12% in 2017, when the number of foreign visitors increased twice as much, or by 24%. This means each visitor spent 9.8% less during their stay. However, when spending is measured in foreign currencies, spending increased 25.4%, slightly more than the increase in numbers.
The analysis, which is based on data on credit card use, shows that foreign visitors spent 3.5% and 3.1% less at stores and on culture and recreation. Spending on accommodation, at restaurants and on tours increased. The largest increase was registered in spending on gasoline and car repair, 8.4%.
Read more: Do I need to leave a tip in Iceland?
One interesting finding is that cash withdrawals from ATMs using foreign credit cards dropped by 23%. Cash withdrawals have been dropping each year since 2012, from 10% of total spending by foreign visitors to just about 5%. Since you can pay with credit or debit cards everywhere in Iceland it is usually unnecessary to carry large amounts of cash when travelling in Iceland.
Analysis by economists at Landsbankinn bank (pdf) concludes that foreign travellers have adjusted their travel and spending habits in response to the strong appreciation of the Icelandic krona in the last couple of years.
Read more: Have we reached Peak Puffin? Tourism in Iceland grew slower during Q4 than projected
Measured in Icelandic krona spending by foreign visitors increased by just 12% in 2017, when the number of foreign visitors increased twice as much, or by 24%. This means each visitor spent 9.8% less during their stay. However, when spending is measured in foreign currencies, spending increased 25.4%, slightly more than the increase in numbers.
The analysis, which is based on data on credit card use, shows that foreign visitors spent 3.5% and 3.1% less at stores and on culture and recreation. Spending on accommodation, at restaurants and on tours increased. The largest increase was registered in spending on gasoline and car repair, 8.4%.
Read more: Do I need to leave a tip in Iceland?
One interesting finding is that cash withdrawals from ATMs using foreign credit cards dropped by 23%. Cash withdrawals have been dropping each year since 2012, from 10% of total spending by foreign visitors to just about 5%. Since you can pay with credit or debit cards everywhere in Iceland it is usually unnecessary to carry large amounts of cash when travelling in Iceland.
