Iceland is about to see seven tourists for every one resident.
So how did the island become one of the world’s most popular tourist destinations?
From 2008 to 2011, Iceland received more negative publicity than ever before.
Hit by the global financial crisis, the entire banking system collapsed in its worst economic
crash in history.
Then in 2010 a series of local volcanic eruptions created a massive ash cloud, shutting down
a huge portion of European air traffic, affecting as many as 10 million travellers.
At the start of this downturn, passengers coming to Iceland’s airports dropped by
roughly 30%, crippling an already fledgling industry.
In light of these setbacks, the country’s Tourism Board saw an opportunity to use this
newfound publicity to embark on its biggest foreign advertising campaign ever.
They first produced a series of promotional videos called Inspired by Iceland, depicting
beautiful nature, food, and inspiring art and culture, as well as live-streams of some
of the country’s most iconic locations.
There was also a huge increase in tours country-wide, providing the infrastructure necessary to
support the jump in tourism.
But perhaps most importantly, two major airlines, Icelandair and WOW air began offering budget
flights to Iceland.
Some promotions were as low as $99 each way in 2016, down from as much as $1,500 just
years earlier.
Iceland was also able to play into traveller's fears about political instability elsewhere.
The country has been named the safest in the world by the Global Peace Index for six years
running.
Meanwhile, Europe and other popular destinations, have actually seen a drop-off in tourism.
Although a huge risk, the Promote Iceland campaign paid off, and according to the New
York Times, tourists are expected to outnumber locals by seven to one in 2017.
Just the number of American tourists jumped by more than 500% between 2010 and 2016.
Today, this industry indirectly constitutes roughly 27% of Iceland’s more than 16-billion-dollar
GDP.
More than a quarter of jobs in the country are also supported by tourism.
In total, roughly 2 million tourists visited Iceland in 2016, an incredible number for
a population of just 335,000.
Around the world, other countries are taking note and following in Iceland’s footsteps.
Thailand, Switzerland, and Greenland have begun promoting their countries on Instagram,
and producing more internet content to draw in tourists.
Others have taken advantage of film and television to get their country on the map, not unlike
the way Iceland agreed to serve as the backdrop for HBO’s Game of Thrones, a concept known
as “screen tourism”.
New Zealand is similarly famous for its role in the Lord of the Rings series, which bumped
tourism in the country by 50% since the films were released.
But while the economic benefits are massive, tourism does come with its own long-term drawbacks.
For example, the infrastructure improvements are necessary to make transportation and accommodation
more appealing to travelers, but governments usually don’t see profit from these investments
for many years, and can even cause them to go into debt.
Tourists themselves are not necessarily focused on making a country better.
Higher costs to foreigners can lead to displacement of locals and gentrification.
Even in Iceland this is a problem, as young people have since been priced out of the country’s
capital, and entire buildings are purchased solely to rent as AirBnb accommodations for
tourists.
Additionally, tourism also brings pollution, climate change, and degradation of natural
sites.
Not only is there increased carbon dioxide from travel vehicles, such as trains, planes
and automobiles, but also popular vacation spots, known for their beauty, can be destroyed
by having too many visitors.
Coral reefs, for example, are damaged all around the world by recreational scuba divers
and snorkelers, many of whom are tourists.
In Iceland, the increase in visitors has even led to an increase in traffic violations,
as tourists allegedly look at the Aurora Borealis in the sky rather than keeping their eyes
on the road.
Clearly, there are drawbacks.
In 83% of developing countries, tourism is a key economic force driving growth.
In just 17 years, earnings from tourism in developing countries jumped from $50 billion
dollars to $260 billion.
But those countries may not be ready to deal with a flood of tourists, should they get
as lucky as Iceland.
While Iceland can serve as a model for successful tourism advertising and investment, it is
not without risks.
Some countries may see the same success as Iceland, but others should be wary of the
pitfalls associated with a tourism boom.
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