Iceland’s Tourist Industry against Higher Taxes Skip to content

Iceland’s Tourist Industry against Higher Taxes

The Icelandic Travel Industry Association (SAF) has issued a statement to protest against 12 percent higher taxes on alcoholic beverages, oil and other products included in new laws, accepted by Iceland’s Althingi parliament on December 11.

Tourists in Iceland. Snaefellsjökull glacier in the background. Copyright: Icelandic Photo Agency.

The statement argues that tourism is one of the three main industries of the Icelandic economy, the industry that has grown the most in recent years and has the chance to grow further if its operational environment is satisfactory.

Many companies involved in tourism in Iceland are experiencing operational difficulties because of the economic crisis, among other reasons because of loans in foreign currencies that have grown immensely with the depreciation of the króna.

The weak króna also results in higher costs for tourist companies, primarily on oil, which is a significant part of the expenses for companies that offer jeep tours and car rentals.

The rising price of alcohol has an impact on the operations of restaurants.

SAF concludes by saying that everyone should be aware that the main objective ahead is to keep Icelandic companies alive. That will not happen with higher taxes, the statement reasons.

Click here to read more about the new laws.

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