Capital-area municipalities delay Skálafell ski resort development

Plans to redevelop the Skálafell ski area have been put on hold after capital-area municipalities postponed decisions on further construction for 2027, Morgunblaðið reports. The next steps will be considered during preparations for the 2028 budget.

The ski area has been closed for four years. A 2018 agreement was intended to launch redevelopment, which has been estimated to cost 5 billion to 6 billion Icelandic krónur.

In September, the capital-area ski areas’ cooperation committee agreed to examine whether the 2018 agreement should be revised.

Ásdís Kristjánsdóttir, mayor of Kópavogur, said high interest rates and inflation were putting pressure on municipal finances. The delay would give officials more time to assess Skálafell’s future options and potential links with other development in the region, she said.

Kristjánsdóttir said significant investment in the Bláfjöll ski area in recent years had improved its facilities to meet demand from capital-area residents. She acknowledged that people waiting for development at Skálafell might be disappointed, but said large projects should not proceed before their financial basis, long-term outlook and realistic alternatives had been thoroughly assessed.

She said she expected the review to produce clear options for decisions during the 2028 budget process.