The considerable strengthening of the Icelandic Krona over the past year has begun to have a tangible impact on the tourism industry, mbl.is reports.We’ve already been getting cancelations for this upcoming winter,” Steinþór Jónsson, manager of Hótel Keflavík stated. “The other day we had a tour wholesaler cancel 40 groups for the winter. Other hotels must be experiencing the same cancelations”, he said. “This is just one of many examples of those cancelling entirely. [The tour operator] has stopped selling trips to Iceland because of the price.” Steinþór continued, mentioning that travel operators are now directing clients to more inexpensive countries instead, for instance, Norway and Ireland.
The appreciation of the Icelandic Krona is cited as the main factor responsible. While Iceland was not considered an inexpensive travel destination in the past, the Krona has seen a 10,6% rise in value in the past year alone making it increasingly expensive for many travelers.