Brexit May Affect Tourism In Iceland

The economic fallout of Brexit could mean significantly fewer British tourists to Iceland.

Viðskiptablaðið reports that Brits were amongst the largest tourist groups to visit Iceland last year, comprising about a fifth of all tourists to the country. This is especially the case in the greater Reykjavík area, where 36% of all hotel rooms booked were by British tourists.

However, the UK’s recent referendum to leave the European Union has already started to have its economic consequences, as the British pound is in free-fall.

Clive Stacey, the owner of the travel agency Discover the World, is worried the situation will negatively impact tourism in Iceland, one of the country’s biggest sources of revenue.

“The vast majority of those Brits who visit Iceland over the winter months travel cheap to Reykjavík,” he said. “The continuing depreciation of the pound will certainly have an effect on this group, as they are particularly vulnerable to price increases.”

In related news, RÚV reports that Minister of Foreign Affairs Lilja Alfreðsdóttir has announced that an EFTA agreement has been reached between EFTA nations to begin working on bringing Britain into the fold, and establishing new trade relations with the country. Iceland will take the leadership position of EFTA on July 1.