Hotel operators in Iceland express cautious optimism amid seismic challenges

Hotel operators in Iceland express cautious optimism despite ongoing discussions surrounding the industry. According to a survey conducted by the Icelandic Hotel and Guesthouse Association, over half of the business leaders in the hotel and accommodation sector have a fair outlook for the next six months. However, nearly 90% believe the ongoing seismic activity on the Reykjanes Peninsula has negatively impacted operations.

The survey from June also revealed that about one-third of respondents view the outlook as poor, although no one classified it as severely negative. Approximately 14% of members rated the prospects as good. Furthermore, 90% of those surveyed agree that the earthquakes are detrimental to the sector, indicating a significant perception of their effects.

Kristófer Oliverson, the chairman of the association, described the results as somewhat positive in light of recent discussions. He pointed out that Iceland’s pricing does not significantly deviate from trends seen elsewhere in Europe. While bookings for the upcoming year are acceptable, he warned of intense competition from other Nordic countries, particularly Norway and Finland, in the Northern Lights tourism market, which they expect will become pronounced in the coming winter.

The overall sentiment reflects concerns regarding external competition and the implications of environmental factors on the tourism industry, positioning it as a key issue for stakeholders as they navigate the next phase.