South Iceland groups oppose planned tourism fee

Municipal associations and Icelandair have criticised a proposed nature and infrastructure fee, with the South Iceland Association of Municipalities calling the planned system an unacceptable blow to tourism in the region, mbl.is reported.

The association, known as SASS, said the proposal would make one part of the country a specific revenue base for the state, even though the money would fund tourism-related work nationwide, including marketing, research, nature conservation and other development.

The planned fee would apply at three of South Iceland’s most popular tourist destinations: Thingvellir, Gullfoss and Geysir. SASS said visitors to the region would face a charge that tourists travelling elsewhere would not have to pay in the same way. It warned that this could affect travel patterns, businesses’ competitive position and value creation in the country’s most important tourist region.

In its submission, Icelandair said tourism was one of Iceland’s most important export industries but that its competitiveness had weakened in recent years. The airline cited a strong real exchange rate and faster wage growth in Iceland than in competing countries as factors that had harmed the country’s appeal as a destination.

The submission also pointed to planned increases in other charges, including a mileage fee and value-added tax on bathing lagoons.