Tourism representatives warn proposed fees and tax rise could hurt region

Municipal and tourism representatives have called for an impact assessment and meaningful consultation on plans to charge visitors at three Golden Circle destinations and raise value-added tax on bathing lagoons from 11% to 24%, mbl.is reported.

The concerns were raised at a meeting called by the regional development officer for the Upper Árnessýsla area. Participants said the changes could have wide-ranging effects on businesses, employment and continued development in the region.

They criticised the proposed fees for targeting destinations on the Golden Circle, saying tourism in the region had grown through investment, cooperation and the development of services and travel routes. Changes in visitor numbers could affect businesses well beyond the places where fees are collected, they said.

Participants also warned that visitors have limited spending budgets and that higher charges could reduce spending on accommodation, restaurants, activities and shopping in nearby communities. They said the proposed tax increase on bathing lagoons could discourage investment and weaken the basis for further development outside the capital region.