Tourist card spending in Iceland reaches record high in first seven months

The foreign card expenditure by tourists in Iceland has reached an all-time high. In the first seven months of this year, it increased by 3.6% compared to the same period last year. Previous figures reported a decline of over 7% in the first half of the year.

Similar trends were noted in July, which recorded the highest foreign card spending ever at 47.5 billion Icelandic krónur, marking a 3.8% year-on-year increase at fixed exchange rates. This also indicates unprecedented spending per tourist during that month.

An analysis from Landsbankinn highlights that key indicators reflecting the state of the tourism industry are the number of tourists, overnight stays, and foreign card expenditures. Despite a reported 15% decrease in overnight stays in May and an 8% decline in June due to reduced interest from local airlines, the overall number of tourists has increased by nearly 1% this year. However, each tourist appears to be spending more than before.

Data suggests that July was a strong month for the tourism sector, indicating that the situation may not be as dire as previously thought, with the downturn being less severe than expected. Challenges remain, as rising costs have begun to affect demand for travel to Iceland, prompting calls for improved marketing strategies to promote the country more effectively.