By Ragnhildur Sigurdardottir, Bloomberg – Jan 31, 2019 9:00 am

Iceland’s tourism industry is forecasting a first drop in visitors in a decade amid trouble at its airlines. But market operators say the predicted slowdown in the country’s biggest export market is not as severe as some had feared.

According to airport operator Isavia, passenger numbers at Keflavik International Airport will fall 8.7 percent this year, from 9.8 million to 8.95 million. With low-cost carrier Wow Air forced to cut flights and sell plans, the biggest reason for the drop is fewer connecting flights. Overall tourist numbers are expected to fall 2.4 percent from last year’s peak.

Erna Sverrisdottir, an economist at Arion Bank, described this week’s forecast as “positive news,” considering the “uncertainty about flight supply to Iceland.”

Sverrisdottir sees no major impact on the industry and argues that the recent weakening of the krona might help “counterbalance” the drop.

According to Bjorn Oli Hauksson, Isavia’s chief executive officer, Icelandic airlines still have margins to grow above the predicted global increase in airline numbers of 1 to 3 percent and has renewed his calls to expand the island’s main airport “as soon as possible.”

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This article was written by Ragnhildur Sigurdardottir from Bloomberg and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

Sources: https://skift.com/2019/01/31/tourism-in-iceland-might-drop-this-year-as-airlines-cant-keep-up/

 

Iceland’s tourism industry is preparing for a fall of visitors, amid the problems that airlines have had. The operator of Isavia airport says that the number of passengers will fall by 8.7%, the main reason for this event is that connection flights were decreased.

The executive director of Isavia, insurance that the airlines of Iceland have a great possibility of growing on the global increase that was planned.

 Risks:

  • The fall of visitors in Iceland will have a decrease in the tourism sector, for the coming months.

Benefits:

  • It’s presumed that the weakening of the crown could be a factor to counteract the fall.
  • Icelandic airlines have a great chance of growing, and they have the idea of expanding the main airport as soon as possible.

 

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Author: leslie_venegas