Iceland seeks greater value from wellness tourism

In a submitted article published by mbl.is, Sigríður Margrét Oddsdóttir says Iceland has a clear opportunity to create more value from each visitor, make better use of its infrastructure throughout the year and build on the strengths that make the country unique.

She identifies experience and wellness tourism as one of the most credible ways to achieve that.

The Blue Lagoon has helped pave the way for a new industry in Iceland over recent decades. From the beginning, its vision was to generate export revenues under Iceland’s identity as a health and wellness destination.

That vision required targeted investments in design, science and quality, the article says. Through those investments, the company built a distinctive brand known worldwide and capable of matching international standards. It has since become a leading force in the rapid development of Icelandic tourism.

The company is now working on Iceland’s largest single investment project in tourism, in Þjórsárdal. The project will focus on wellbeing in harmony with nature and the local community. It reflects the opportunities available in developing high-quality tourism in more parts of the country, which would increase long-term value creation.

More value, not just more visitors

Continued growth in Icelandic tourism should not primarily depend on attracting ever-increasing numbers of visitors, the article says. A more sensible approach would be to increase the value of each visit by extending and distributing the travel season more evenly and making better use of the infrastructure already in place.

Iceland is particularly well positioned in experience and wellness tourism. The country’s unique nature, its location and its existing infrastructure create clear opportunities to attract visitors who stay longer and travel more widely, leaving more value behind.

Better use of the tourism infrastructure outside the peak season could generate about 250 billion Icelandic krónur in additional export revenues, according to the article. That value creation could provide the state with an additional 55 billion krónur in revenue. Including indirect effects, state revenues could increase by an estimated 100 billion krónur annually.

Global demand for travel has never been higher, while rising demand for experience and wellness tourism fits Iceland’s strengths and distinctiveness particularly well.

Three out of four tourists visiting Iceland go to a nature bath or bathing lagoon during their stay, the article says. The bathing culture built around Iceland’s distinctive nature, along with the services developed around it, is unique worldwide. It is therefore one of the most important parts of the experience Iceland offers and appeals to a broad range of visitors.

Tax policy to support greater value creation

Icelandic tourism does not avoid paying taxes, the article says. The government and the industry have recently been discussing the design of a nature infrastructure charge.

Investment in infrastructure, nature conservation and services that support the industry’s long-term vision and growth across the country is necessary, the article says.