Iceland’s tourism drop affects car rental industry, calls for better international promotion

Iceland is seeing a decrease in tourism, with a drop of approximately 15% since last summer. The car rental industry has been affected by this trend, with fewer customers renting vehicles and for shorter periods compared to the previous year.

One of the owners of Blue Car Rental in Reykjanesbær, Magnús Sverrir Þorsteinsson, highlighted that there is not as much excitement as last year. He suggested that the high cost of living and misleading coverage of the volcanic eruption in Reykjanes Peninsula could be contributing factors to the decrease in tourism.

Þorsteinsson also mentioned that the country needs to advertise itself better internationally, rather than solely relying on government efforts. He said, “We need to keep promoting our country and people everywhere and never stop.”

One of the significant changes since the pandemic is that people are renting cars with less notice. It tends to be travel service companies that book with good notice. Þorsteinsson noted that these companies have seen the most cancellations. “They have booked a lot of trips to Iceland that have not sold as well as before.”

In conclusion, Iceland’s tourism industry is experiencing a downturn, with impacts being felt in sectors such as car rentals. This calls for more robust promotional efforts to attract tourists and ensure the industry’s sustainability.