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Hotels Face Challenges Due to Strengthening Króna

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Hotels Face Challenges Due to Strengthening Króna

Hótel Búðir.

Photo: Hótel Búðir.

Icelandic hotels are facing more operational challenges this year, not least due to the strengthening króna, Kjarninn reports.

“We’re looking at one of the worst springs in the last five years or so,” Páll L. Sigurjónsson, the managing director of Kea Hotels stated in an interview with Frettabladið. He added that operating conditions are particularly challenging for hotels in the countryside, as there have, for example, been fewer group tours making bookings outside of the capital area.

“Group tours around the country from Central Europe,” he named as an example. “They aren’t what they were and these have been the mainstay of county hotels’ business.” Tours like these have simply become more expensive as the króna has become stronger. “As it is now, things are particularly unfavorable for tourism. There’s no question about it.”

Although the state of tourism may not be as strong as it has been in previous years, however, most forecasts show that the tourism sector will continue to grow this year. 2.3 million tourists came to Iceland last year—this year, analysts say that number could increase to nearly 2.6 million.

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