Icelandic Tourism: Past Directions—Future Challenges

Abstract

ttention has been focused primarily on warm-water islands; conversely, limited
\nattention has been paid to cold-water islands as destinations for tourists. This paper assesses
\nthe development of tourism in one such destination, Iceland, and discusses its history and the
\nchallenges confronting it. Tourism is one of the fastest growing sectors in the Icelandic economy.
\nTourism arrivals have multiplied in recent years, doubling, for instance, in the ten-year period
\nbetween 1997 (201,000) and 2007 (459,000). This growth in arrivals has prompted rapid
\nexpansion in the tourism sector, invoking questions with regards to both the opportunities
\ntourism presents and the challenges that will need to be addressed in the near future. In
\norder to underpin a critical appraisal of future challenges, this paper reviews the history of
\nmodern tourism in Iceland with a focus on policy and entrepreneurship in tourism. It describes
\nthe characteristics of tourism in Iceland and its development, and critically illustrates some
\nof the main challenges the tourism industry in Iceland is facing. In so doing, the paper seeks
\nto add to the understanding of the opportunities and challenges facing cold-water island
\ndestinations that are experiencing significant growth in tourism.
\nKeyWords: Cold-water island tourism, Iceland, tourism development, tourism policy, sociosustainability