Icelandic residents 18 and older will each receive a voucher worth ISK 5,000 ($36/€33), redeemable at hotels and tourism companies around the country between June and December of this year. Minister of Tourism Þórdís Kolbrún Reykfjörð Gylfadóttir said the measure was “first and foremost symbolic,” but that it would make a difference to smaller companies. The measure was first announced as part of the government’s first economic response package to the COVID-19 pandemic.
The Icelandic Travel Industry Association and the Icelandic Tourist Board held an information meeting presenting the measure this morning. The voucher will likely be distributed via a smartphone app to all adult residents, who number around 250,000. The total cost of the measure will therefore be around ISK 1.5 billion ($10.8 million/€9.8 million).
The credit will be redeemable for accomodation, transporation, dining, and activities within the tourism industry. It will also be transferable, though no individual will be allowed to redeem more than 15 vouchers. Tourism companies will also have a cap on how many vouchers they may accept, though the cap is relatively high at 20,000 vouchers, or ISK 100 million ($723,000/€656,000).
Tourism Minister Þórdís Kolbrún stated that the government recognised the measure was not in and of itself enough to save struggling companies. “We realise that 5,000 krónur to all Icelanders 18 years and older does not change whether companies live or die. This is first and foremost a symbolic measure. But it will matter, especially for companies with smaller capacity.”