the icelandic tourism sector
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The Icelandic Tourism sector. Facts , figures and future prospects February 2009. The objective. To promote the development of tourism as an economic sector and an important facet of Icelandic economic and societal activity. The guiding principles. Economic efficiency Icelandic culture - PowerPoint PPT PresentationTRANSCRIPT
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 1April 21, 2023
The Icelandic Tourism sector
Facts, figures and future prospectsFacts, figures and future prospects
February 2009February 2009
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 2April 21, 2023
The objective
To promote the development of tourism as an economic sector and an important facet of Icelandic economic and societal activity.
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 3April 21, 2023
The guiding principles
Economic efficiency Icelandic culture Environmental protection Professionalism Safeguarding of consumer interests
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 4April 21, 2023
The focus of the government
Strengthening the ITB Better utilization of government funding Regional tourism offices Development of new tourism sites Emphasizing on tourism research New way of promoting Iceland abroad
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 5April 21, 2023
Additional public funding
Regional tourism offices, 80 millj. IKR Development of new tourism sites, 100 millj. IKR. Regonal development fund 80 millj.
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 6April 21, 2023
Number of visitors 1985 - 2008
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 7April 21, 2023
Number of overnights in thous.
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 8April 21, 2023
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 9April 21, 2023
Tourism in numbers
One of the fastest-growing sectors of the Icelandic economy.
Is the second-largest foreign currency earner 19% of the country’s income from foreign sources.
Provided an estimated 8,200 jobs in 2006. Accounts for about 4.6% of the GNP (2000-2006).
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 10April 21, 2023
The industry in numbers
Accommodations 692 Recreation 511 Museums etc. 214 Travel agencies 116 Tour operators 143 Tourist info. 30
January 2009
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 11April 21, 2023
The characteristics
Strong self image More professionalism Flexibility Optimism – yes we can
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 12April 21, 2023
Main Markets
Scandinavia UK US and Canada Europe Other
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 13April 21, 2023
Visitors profile
Male 58%, female 42% Average age: 41 years
Household income low average 9% average 40% high average 39%, high 12%
Average length of stay 8,6 nights
Source: Icelandic Tourist Board. Survey Data 2007.
Profession (%)
•Professionals/university 41
•Managerial 21
•Clerical/service 10
•Vocationals/technicians 9
•Students 9
•Retired/housewives 5
•Other 5
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 14April 21, 2023
Factors affecting people to visit Iceland
0
10
20
30
40
50
60
70
80
Icelandicnature
Icelandicculture/history
Friends,relatives in
Iceland
Price offer,low airfare
Business Stop overpossibility
Special event Conference,meeting
Source: Icelandic Tourist Board: Survey Data 2007
%
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 15April 21, 2023
Outlook for 2009
Forecast 2009- international tourist arrivals between -2% and 0% Travel behaviour in crisis Some good news on global scale Some good news for Iceland
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 16April 21, 2023
Changes to marketing
• The aim is to better utilise the funding available for marketing
• Increased collaboration will be undertaken with other parties involved in promoting Iceland - Trade Council of Iceland and the Ministry for Foreign
Affairs
•Greater possibilities in the utilisation of funding for direct marketing efforts
•Good relations with different agents within these key markets for Icelandic tourism will continue to be maintained
•Has worked well for the UK-market
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 17April 21, 2023
Travel agencies
Security requirement for
package tours
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 18April 21, 2023
Travel agency
Any party intending to operate as a travel agency shall obtain a licence from the Icelandic Tourist Board (ITB)
The licence is not subject to expire ITB maintains a register of those holding licences and publishes it on
www.ferdamalastofa.is Travel agency organises, offers, and sells package tours Package tour is predetermined combination of no fewer than two of the following items:
transportation, accommodation, and/or other services rendered to the customer
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Security funds
The sale of package tours requires a security funds in the event of bankruptcy or the cessation of the travel agency´s operations.
Package tour has not taken place Transportation home from a package tour To complete a package tour in accordance with the original itinerary of that tour
Only direct financial loss is compensated by the security funds
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Security amount
The amount of the security shall be determined from among the following items; the item yielding the highest security amount shall be used as the basis for the calculation:
60 % of the turnover for the two consecutive months with the highest sales; 35% the turnover for the four consecutive months with the highest sales; 15% of total annual turnover
The security amount shall not, however, be less than ISK 1 million Each year ITB determine whether the security amount shall be changed or
not
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 21April 21, 2023
The situation today
On many occasions security amounts have been raised due to increased turnover in the years 2007/2008
The collapse of the financial system caused some problems for travel agencies
• Decreasing competency - decreasing turnover for 2009• The collapse of the banking system• Fewer tourists
Travel agencies have requested maintaining or decreasing present security amount
They think the security amount is unfair according to a schedule of activities planned for the operational year
ITB is not legally authorised to maintain or decrease the present amount if all the data have caused the amount to be increased.
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Nafn fyrirlestrar (Edit/Breyta - Header/Footer) 22April 21, 2023
Problems
• The problem today– Despite the ITB´s decision of raising security amounts, there
is a lack of returning securities to ITB– Travel agencies do not comply with the ITB´s decision to
increase the security amount – It is more difficult to obtain surety issued by a commercial or
savings bank or insurance company– Banks claim more guarantees for the surety– Difficult for travel agencies to submit guarantees to the
banks– Decreasing bookings i.e. fewer tourists
• ITB is authorised to revoke a license if a travel agency does not meet the requirements