Strong króna means Iceland tourists are not staying as long
Photo: Iceland Monitor/Ómar Óskarsson
A strengthening national currency is resulting in tourists opting for shorter stays in Iceland, new data has revealed.
In the first nine months of 2016, foreign tourists spent a total of 2,600,000 nights in hotel accommodation in Iceland. This is just under 30% higher than last year, as compared to an overall rise in tourist numbers of 34% over the same period.
According to Icelandic bank Landsbankinn, it can therefore be concluded that average length of stay has fallen as compared to last year.
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This is not unexpected, it is claimed, as a strengthening króna has considerably reduced the purchasing power of foreign visitors to Iceland and there is a strong correlation between the strength of the national currency and the length of tourist stays.
“This correlation emerged most clearly in 2008-09 when the collapse of the króna led to a considerable lengthening of tourist stays in Iceland,” says Landsbankinn.
