The Icelandic government is planning to charge international visitors a tax to support climate change and sustainability goals.
Speaking at the United Nations Climate Ambition Summit 2023 in New York, Prime Minister Katrín Jakobsdóttir said the tax would not be high, reports schengenvisainfo.com.
Despite being severely affected by the pandemic, Iceland’s tourism has rapidly recovered, as it welcomed more than 8,5 million visitors in 2022. In June 2023 a total of 1 176 600 overnight stays were registered with the Icelandic government – a 17% increase over June 2022.
“We have announced that we are putting increased taxes on tourism in Iceland. Not high taxes to begin with, but we are talking about city taxes, etcetera, for people who stay in Iceland.”
Jakobsdóttir added that companies in the Icelandic tourism sector were already using renewable energy, emphasising the looming sustainability change in the industry and the challenges that are appearing as a result.
She also said the new tax would contribute to government efforts to promote slow tourism and travel. The government has been encouraging shorter trips to avoid overcrowding and recommending sustainable means of transport to visiting tourists.
Authorities in Iceland unveiled plans to reduce carbon emissions by 55% by 2030, with the aim of reaching carbon neutrality by no later than 2040.