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Substantial drop in bookings at hotels, restaurants and excursions in Reykjavík in May 6514

13. mar 2023 20:50

Representatives for the tourist industry in Reykjavík are concerned about a substantial drop in bookings at hotels, restaurants and entertainment for tourist the first three weeks of May compared with last year. Some of them report a 40% decrease in bookings, according to local news site Vísir. Some companies might be forced to cut down their operation if the trend continues.

According to Isavia, which operates Keflavík Airport,  a drop in the number of visiting tourists has not been detected there. Forecasts are still predicting an increase in the number of visitors.

Read more: Official figures possibly overstate the number of foreign travellers visiting Iceland

However, there are clues that the number of tourists visiting Iceland could be overstated. Local news site Turisti.is reported on a discrepancy between an increase in the number of visitors and nights spent at hotels in Iceland.

That could be partly due to how visiting tourists are counted at Keflavík Airport. Since the tourists are counted at the security check, transit passengers who have to check-in at Keflavík are counted as visitors, even if they never leave the airport.

Stronger Króna means less spending by tourists
The relative strength of the Icelandic Króna recently has also been cited as a potential reason tourists seem to be spending less in Iceland.

One hears that tourists are spending less, buying cheaper food at budget super markets, spending fewer nights and choosing cheaper entertainment options, said Rannveig Grétarsdóttir, general manager of the whale watching company Elding and board member of the Icelandic Tourist Industry Association.

Representatives for the tourist industry in Reykjavík are concerned about a substantial drop in bookings at hotels, restaurants and entertainment for tourist the first three weeks of May compared with last year. Some of them report a 40% decrease in bookings, according to local news site Vísir. Some companies might be forced to cut down their operation if the trend continues.

According to Isavia, which operates Keflavík Airport,  a drop in the number of visiting tourists has not been detected there. Forecasts are still predicting an increase in the number of visitors.

Read more: Official figures possibly overstate the number of foreign travellers visiting Iceland

However, there are clues that the number of tourists visiting Iceland could be overstated. Local news site Turisti.is reported on a discrepancy between an increase in the number of visitors and nights spent at hotels in Iceland.

That could be partly due to how visiting tourists are counted at Keflavík Airport. Since the tourists are counted at the security check, transit passengers who have to check-in at Keflavík are counted as visitors, even if they never leave the airport.

Stronger Króna means less spending by tourists
The relative strength of the Icelandic Króna recently has also been cited as a potential reason tourists seem to be spending less in Iceland.

One hears that tourists are spending less, buying cheaper food at budget super markets, spending fewer nights and choosing cheaper entertainment options, said Rannveig Grétarsdóttir, general manager of the whale watching company Elding and board member of the Icelandic Tourist Industry Association.