Iceland, a small Nordic island nation, is renowned for its stunning natural beauty, vibrant culture, and thriving tourism industry. In recent years, Iceland’s economy has seen a significant shift towards the tourism sector. In this article, we will explore the question – what percentage of Iceland’s economy is tourism?
The Rise of Tourism in Iceland
In the past decade or so, Iceland has emerged as a top tourist destination. The country’s unique landscape, including glaciers, hot springs, and volcanoes, coupled with its rich cultural heritage and modern amenities has attracted millions of visitors from around the world.
According to data from the Icelandic Tourist Board, the number of tourists visiting Iceland has skyrocketed in recent years. In 2010, approximately 488 thousand people visited Iceland. By 2019 that number had risen to over 2 million.
The Importance of Tourism to Iceland’s Economy
Tourism has become an integral part of Iceland’s economy over the last decade. According to Statistics Iceland, tourism accounted for approximately 42% of Iceland’s gross domestic product (GDP) in 2018. This is a significant increase from just under 16% in 2010.
The growth of tourism has also led to job creation in various sectors such as hospitality, transportation, and retail. In fact, it is estimated that one out of every ten jobs in Iceland is directly or indirectly related to tourism.
The Impact of COVID-19 on Icelandic Tourism
Like many other countries around the world, Iceland’s tourism industry has been severely affected by the COVID-19 pandemic. The country closed its borders to foreign visitors in March 2020 and only recently began accepting vaccinated travelers again.
The number of tourists visiting Iceland dropped by almost two-thirds in 2020 compared to the previous year. This decline had a significant impact on various sectors of the Icelandic economy that rely heavily on tourism.
Conclusion
In conclusion, tourism has become a major contributor to Iceland’s economy, accounting for over 40% of its GDP. With its unique natural beauty and cultural heritage, Iceland is well-positioned to continue attracting visitors from around the world.
However, the COVID-19 pandemic has reminded us that the tourism industry is not immune to external factors. Nevertheless, Iceland’s resilience and adaptability make it a promising destination for future travelers.