Popular European holiday destination to introduce tourist tax

A European holiday destination which has grown popular with tourists will begin charging a tax in a bid to help protect the environment.

Iceland's Prime Minister Katrín Jakobsdóttir confirmed the plans during an interview with Bloomberg this week while attending the United Nations Climate Ambition Summit 2023 in New York City. Millions of tourists flock to the Nordic country each year, with Iceland's stunning natural scenery a huge draw.

Following the coronavirus pandemic, Iceland saw a 146 percent increase in holidaymakers, with 1.7 million visiting in 2022 compared to just more than 700,000 in 2021. Ms Jakobsdóttir said at the summit: “Tourism has really grown exponentially in Iceland in the last decade and that obviously is not just creating effects on the climate."

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However the Prime Minister did not confirm how much the tax would cost, but said it would 'not be high'. The tariff would be implemented as city taxes for those staying in Iceland.

Ms Jakobsdóttir added that the Icelandic government has been working closely with tourism companies throughout the country to make changes that are sustainable for the environment, including companies moving their fleet of vehicles to electric.

Iceland is known for its geothermal spas, including the Blue Lagoon in Grindavik, as well as its glaciers, ice caves, waterfalls and volcanoes. Skygazers flock to the country to get the best views of the Northern Lights, while in summer people gather to watch the midnight sun - which doesn't set until after midnight and rises again at around 3am.

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