Iceland Mag

8 Reykjavik

Iceland Mag

Economy

Turnover in the tourism industry in Iceland continues to increase

By Staff

  • Bus tour Land transport and travel agencies were not subject to VAT in Iceland before 2016. Both services have grown substantially. Photo/Vísir.

Economic activities related to tourism experienced a 25.9% increase in turnover in May 2016 to April 2017 compared to the same period in 2016, according to new data from Statistics Iceland.

In the same period, turnover in car rental increased by 25.2% and is now almost as high as in agriculture.

Read more: Car rental services set to be bigger than agriculture in Iceland

The figures come from data on activities that are subject to VAT. Those excluded travel agencies and land passenger transport before 2016 and are therefore not included in the data on turnover in the tourism industry now.

However, turnover in the category "Travel agency, tour operator and other reservation service and related activities" increased by 23.3% in March to April 2017 compared to the corresponding period in 2016.

Increase in total turnover by 0.8-1.3%
The total turnover of enterprises in VAT subjected activities, excluding travel agencies and land transport for the aforementioned reasons, amounted to 629 billion ISK in the period March to April 2017. That was an increase of 0.8% compared to 2016.

The total turnover of enterprises in activities that are subject to VAT amounted to 646 billion ISK in the period of March to April 2017, which is an increase of 1.3% compared to the same period in 2016.

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