Tourist numbers hold steady despite reduced flight capacity

Tourist numbers in Iceland have fallen by just 1% so far this year despite reduced flight capacity to and from the country, according to mbl.is, citing a new analysis by Landsbanki’s economics department.

The analysis says the number of connecting passengers has declined, while Icelanders have taken fewer trips abroad than they did during the same period last year.

Recent card-spending figures indicate that tourist consumption increased over the summer. The impact of the solar eclipse appears to have been reflected more in increased spending than in a rise in visitor numbers, as almost as many tourists came to Iceland in August as in the same month last year.

Nearly 10% fewer passengers travelled through Keflavik Airport in August than in August last year, according to figures from Isavia. Since the start of the year, the number of foreign tourists has fallen by only 1%, while passenger traffic through the airport has declined by 8%.

Air travel is likely to remain weaker during the second half of the year. The outlook is nevertheless better than in the first half, partly because of base effects. Flight capacity dropped sharply from October last year after the airline Play collapsed.

Isavia’s forecast continues to point to a decline in flight capacity during the second half of the year, although the reduction is expected to be smaller than during the first half.