Fears Parking Fee Rise Will Drive Businesses Out Of Downtown - The Reykjavik Grapevine

Fears Parking Fee Rise Will Drive Businesses Out Of Downtown

Published February 24, 2012

A conservative Reykjavík city councilperson believes that raising the fees on parking metres will cause fewer people to park and shop downtown. The chairperson of the Environmental and Traffic Committee retorts that business will actually increase.
As reported, a resolution will soon be submitted to city council that would increase the hourly parking fee downtown from 150 ISK to 250 ISK. The authors of the resolution believe this will increase the parking turnover rate. The rate is still also far below parking rates in neighbouring countries – parking in Copenhagen costs about 619 ISK per hour; in Oslo, 677 ISK; and in Helsinki, 639 ISK.
Be that as it may, Vísir reports that Kjartan Magnússon, a city councilperson for the Independence Party, believes the 100 ISK rise could drive businesses out of downtown. He told reporters that he has heard business owners tell him personally that they fear fewer people will park downtown after the rise, resulting in fewer shoppers, a drop in business, and the need to move out of downtown.
Karl Sigurðsson, the chairperson of the Environmental and Traffic Committee for the city, believes the rise will actually have the opposite effect. A rise in parking fees should increase the parking turnover rate, thereby increasing the flow of people downtown, and creating a rise in shoppers.
The parking rate rise will likely be on the floor of city council next week.

Support The Reykjavík Grapevine!
Book your day tours in Iceland right here!

Next:
Previous:


Go travel with Grapevine tried and recommended tours by Grapevine. Fund Grapevine journalism by booking with us.


Show Me More!