| By: |
Douglas Sutherland;
Jane Stacey |
| Abstract: |
Iceland has been experiencing a tourism boom. The number of tourists visiting
annually quadrupled between 2010 and 2016 and shows continued strength. The
tourism sector is now the major export earner and is also creating new jobs
and supporting new businesses. The government budget has also benefitted from
high tax revenues. The surge in tourism supported growth after the crisis and
the sector has become a major pillar of the economy. But, the breakneck growth
of tourism has created a number of challenges. Growing pains have emerged as
accommodation supply has lagged in the wake of unexpectedly large number of
tourists, contributing to pressure on the local housing market. The
environment, particularly in some popular sites, has also come under pressure.
The government has reacted to these environmental and social impacts and has
worked with the industry to agree on a path forward. Sustaining a nature-based
tourism for Iceland will require more coordinated policy across government and
a long-term strategic plan that builds on Iceland's strengths. Protecting the
unique environmental attractions of Iceland - while mitigating adverse social
impacts - will lay the basis for the healthy development of a new important
sector. This working paper relates to the 2017 OECD Economic Survey of Iceland (http://www.oecd.org/eco/surveys/economi
c-survey-iceland.htm). |
| Keywords: |
environment, growth, housing, sustainabile development, Tourism |
| JEL: |
O44 Q56 R31 |
| Date: |
2017–10–11 |
| URL: |
http://d.repec.org/n?u=RePEc:oec:ecoaaa:1422-en&r=tur |