REYKJAVIK, Iceland – 300,000 more tourists are expected to visit Iceland in 2016 than last year, with export revenue linked to tourism increasing significantly, according to new figures from Icelandic bank Landsbankinn.
According to economist Gústaf Steingrímsson, Landsbankinn estimates that tourism-related export revenue for Iceland will exceed ISK 400 billion (approx. €2.8 billion) – almost double the amount generated just three years ago in 2013.
“A hefty surplus in tourism is pushing up the króna exchange rate and creating a level of wealth comparable to the inflow of foreign cash from the financial sector before the banking crash,” explains Steingrímsson.
“This wealth creation manifests itself in higher real exchange rates and more purchasing power thanks to cheaper imported goods, but could also crowd out other export sectors.”