## Chart of the Week: Iceland’s Tourism Eruption

_IMF Blog, August 14, 2017_

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**Canonical URL:** [Chart of the Week: Iceland’s Tourism Eruption](https://www.imf.org/en/blogs/articles/2017/08/14/chart-of-the-week-icelands-tourism-eruption)

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## Bibliographic details
- Authors: The Editors
- Published: August 14, 2017

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### Visitor trends and airport forecasts
- The number of foreign visitors to Iceland surged 40 percent to 1.8 million last year, dwarfing the island’s population of 335,000.
- Keflavík airport expects another 27 percent increase this year, to 2.2 million, according to estimates cited in a recent study by IMF economist Uwe Böwer.
- Iceland’s tourist industry is burgeoning as adventure-seeking visitors flock to partake in activities such as whale watching, ice climbing and spelunking.

### Share of exports and GDP
- Tourism now makes up about 25 percent of the nation’s export income.
- That figure rises to 39 percent when applying a wider definition that includes airline transport—exceeding fisheries, aluminum and silicon combined.
- Travel accounts for some 12 percent of gross domestic product.

### Comparative position
- As the chart shows, Iceland has raced ahead of its Nordic neighbors and Canada in travel receipts as a proportion of exports.

### Durability and macroeconomic implications
- That’s a remarkable achievement for a nation once known mainly for banking crises and volcanic eruptions—in April 2010, Eyjafjallajökull spouted a cloud of ash that closed much of Europe’s airspace for six days.
- Can the boom last? Probably yes, though the pace of growth is likely to moderate.
- Factors supporting continued tourism: Iceland’s natural wonders, well-developed tourism infrastructure, low crime rate and welcoming atmosphere.
- So far, visitors haven’t been deterred by an appreciation of the currency.
- Even if gains in the currency start to have an impact, it’s likely that a slowdown in demand will damp further appreciation, helping to keep tourism at a sustainable level.

*Source: Chart of the Week: Iceland’s Tourism Eruption (IMF Blog), August 14, 2017.*

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## References

- [https://www.imf.org/wp-content/uploads/2017/08/BLOG-1024x600-ICELAND-girls-infront-of-iceberg-Paul-Mayall-Newscom-dpaphotostwo760664.jpg](https://www.imf.org/wp-content/uploads/2017/08/BLOG-1024x600-ICELAND-girls-infront-of-iceberg-Paul-Mayall-Newscom-dpaphotostwo760664.jpg)
- [study](http://www.imf.org/en/Publications/CR/Issues/2017/06/22/Iceland-Selected-Issues-44999)
- [https://www.imf.org/wp-content/uploads/2017/08/ENG_Aug_8_Iceland.jpg](https://www.imf.org/wp-content/uploads/2017/08/ENG_Aug_8_Iceland.jpg)

_Source: https://www.imf.org/en/blogs/articles/2017/08/14/chart-of-the-week-icelands-tourism-eruption_