Tourism and sustainability : Iceland makes it work

Lauryne
Digital GEMs
Published in
6 min readJul 6, 2023

There are some countries that you really can visit all year around — so let me take you on a trip to Iceland. The country attracts a lot of tourists with its beautiful natural landscapes including glaciers, hot springs, geysers, waterfalls, and of course the magical Northern lights.

The sun voyager monument, Iceland

If you are lucky enough and not afraid to brave the cold Icelandic nights, you can experience a surreal dance show that inspired many folklore tales.

The Aurora borealis, sometimes referred to as the Northern Lights, is a natural phenomenon that is characterized by a vibrant display of lights in the night sky that typically occurs in polar regions like Iceland.

Charged particles from the sun collide with the Earth’s atmosphere, causing the lights.

A mountain of snow with green Northern lights in the background.

These landscapes contribute significantly to the country’s economy, and Iceland is committed to sustainable tourism, having implemented several initiatives to reduce the environmental impact of tourism.

Indeed, Iceland is working towards balancing the benefits of tourism while preserving its unique environment and is focused on diversifying its economy for future stability and growth. These initiatives include promoting sustainable transportation options, such as car rentals with low-emission vehicles and encouraging visitors to use public transportation. Furthermore, the country is working to reduce waste and promote eco-friendly practices in the tourism industry, such as using renewable energy in hotels and reducing plastic usage.

Image of boats parked in a snowy port, buildings in the background

The country also has strict regulations to protect its natural resources, such as geysers and hot springs, and to maintain sustainable fishing and aquaculture practices. It is a leader in sustainable fishing and aquaculture, using methods that minimize waste and protect fish stocks. It also established national parks and reserves, while promoting sustainable tourism practices.

Overall, Iceland is committed to balancing the benefits of tourism with the preservation of its unique environment.

Tourism is a major contributor to the country’s economy, accounting for a significant portion of its gross domestic product (GDP) and employment. This industry contributes in several ways to its growth:

  • Revenue: tourism generates significant revenue for the country through the spending of visitors, including on transportation, accommodations, food, and entertainment.
  • Employment: tourism creates jobs in a variety of industries, including hotels, restaurants, transportation, and retail.
  • Cultural impact: tourism increases awareness of the unique culture, landscapes, and heritage, which can lead to increased investment and economic growth.

Overall, tourism plays a crucial role in the Icelandic economy and is a major source of income and employment for the country. By promoting sustainable tourism practices, Iceland can ensure that the benefits of the industry are sustainable and long-lasting.

Colorful houses in the city during a snowy winter

This is very important in bigger cities, especially in the capital Reykjavik.

It is a major hub for tourism in the country and has a thriving economy that is closely tied to the industry. Tourism provides significant revenue to the city through spending by visitors.

Additionally, the tourism industry drives jobs in a variety of industries aforementioned.

Reykjavik is also a cultural centre in Iceland, with a rich heritage and vibrant arts scene, which attracts many visitors. The city is known for its stunning architecture, including colourful buildings, and its location on the coast offers breathtaking views of the sea and surrounding mountains which adds to its appeal as a tourist destination.

Overall, Reykjavik’s economy is closely tied to the tourism industry and the city benefits significantly from the revenue generated by visitors. By promoting sustainable tourism practices and preserving its unique cultural heritage, the city ensures that its economy remains strong and continues to attract visitors for years to come as eco tourism is now something people look for.

Iceland also generally has a rich and distinctive cultural heritage, including its language, music, folklore and everyone speaks English which makes it easier for tourists. Although very homogeneous, the country puts lots of emphasis on diversity and inclusion for the well-being of its citizens. Despite the cold, you will only encounter friendly smiley faces.

It is comparable to other nations with exceptional natural beauty and flourishing tourism businesses, such as Norway, which is well-known for its breathtaking glaciers and waterfalls as well as a strong emphasis on eco-tourism and sustainable travel.

The industry has experienced rapid growth in recent years, driven by increasing numbers of international visitors attracted by Iceland’s unique experience.

Despite these successes, Iceland still faces sustainability challenges, including managing its fast-growing tourism industry and preserving its fragile ecosystems in the face of climate change. Moreover, due to the COVID-19 pandemic, the tourism industry has been suffering from a decrease in international visitors and restrictions on travel.

With the pandemic now over, the country is slowly getting back on track, with 1.6 million tourist arrivals in 2022 as a whole (June 2022 : Iceland’s busiest tourist month in nearly three years, 2022) which is still way less than what the numbers used to be like back in 2019, where there were 2.3 million tourists that visited Iceland.

Being a leader in sustainable tourism, the country has made efforts to minimize the impact of tourism on the environment. It is very difficult to find plastic waste, even in restaurants or hotels. All the material used is reusable or recyclable and the use of plastic is close to none. For example, you would not be able to buy a plastic water bottle in stores, everyone drinks very high-quality tap water or carries a reusable water bottle.

Iceland is also one of the world’s largest producers of clean energy and is often considered one of the most sustainable countries in the world. This is because of the use of renewable sources such as hydropower and geothermal energy. This has led to a low carbon footprint.

For instance, the hot water in showers directly comes from natural hot springs, and it feels amazing. Taking a shower almost becomes a spa experience.

The inside of a sauna with a glass window through which people are looking at the view of a sunset

But I guarantee you there is nothing like enjoying the sunset in a sauna while it’s 20°F degrees outside.

So if you have an eco-friendly conscience and are looking for a magical experience, Iceland is your go-to destination!

About this article

This article has been written by a student on the Grenoble Ecole de Management’s Advanced Masters in Digital Strategy Management. As part of a content creation assignment, students are given the task of writing articles based on their digital interests and disseminating the articles online. Articles are marked but we make minimal changes to the content. Thanks for reading! James Barisic, Programme Director, MS DSM.

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