1 / 22

The Icelandic Tourism sector

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

harvey
Download Presentation

The Icelandic Tourism sector

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. The Icelandic Tourism sector Facts, figuresandfutureprospects February 2009

  2. The objective To promote the development of tourism as an economic sector and an important facet of Icelandic economic and societal activity.

  3. The guiding principles • Economic efficiency • Icelandic culture • Environmental protection • Professionalism • Safeguarding of consumer interests

  4. 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

  5. Additional public funding • Regional tourism offices, 80 millj. IKR • Development of new tourism sites, 100 millj. IKR. • Regonal development fund 80 millj.

  6. Number of visitors 1985 - 2008

  7. Number of overnights in thous.

  8. 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).

  9. The industry in numbers • Accommodations 692 • Recreation 511 • Museums etc. 214 • Travel agencies 116 • Tour operators 143 • Tourist info. 30 January 2009

  10. The characteristics • Strong self image • More professionalism • Flexibility • Optimism – yes we can

  11. Main Markets • Scandinavia • UK • US and Canada • Europe • Other

  12. Visitorsprofile • 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

  13. FactorsaffectingpeopletovisitIceland % Source: Icelandic Tourist Board: Survey Data 2007

  14. 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

  15. 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

  16. Travel agencies Security requirement for package tours

  17. 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

  18. 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

  19. 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

  20. 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.

  21. 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

More Related