Sharp Rise In Demand and Price of Hotel Accomodation Skip to content

Sharp Rise In Demand and Price of Hotel Accomodation

By Iceland Review

Icelandair Marina Hotel
Photo: Páll Stefánsson..

The Statistics Office of Iceland reports that overnight stays in Icelandic hotels have nearly tripled since the same time in the previous year.

The primary driver of this increased demand came from the tourism industry, with tourists making up some 79% of overnight stays. The largest increase has been recorded in the capital region.

Increased prices have accompanied the increased demand for accommodation. In a recent article in Fréttablaðið, Icelandic traveller Þorsteinn Gunnarsson stated that just a three-night stay in Akureyri would have cost him some ISK 263,000 ($1,974 / €1,888). Þorsteinn claims that these prices raise questions of ethics and greed, and he regrets that Icelanders cannot tour their own country, choosing instead to vacation in Tenerife, for example.

Snorri Pétur Eggertson, managing director of Kea Hotel’s sales and marketing division, did not dispute Þorsteinn’s claims but attributed the rise in price to the global pandemic, supply chain shocks, inflation, and increased numbers in tourism.

According to the Statistics Office, there were already 558,000 overnight stays in Iceland in May, with more projected for the coming summer months.

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