Challenges of Overtourism in Coastal Iceland

Issues related to unconstrained tourism growth in the most visited regions are increasingly described using the term ‘overtourism', which refers not only to overcrowding, but also to exceeding various capacity thresholds in a destination. Rapid tourism growth in Iceland played a crucial role in the country's economic recovery after the financial crisis of 2008. However, the increasing number of tourists visiting the sparsely populated island has resulted in a variety of issues affecting Icelandic society and the environment. This chapter aims to provide deeper insights into the challenges related to (over)tourism in coastal areas of Iceland. The findings reveal that overtourism issues in Iceland stem from high seasonality and the uneven distribution of tourists and, consequently, of the economic benefits. Municipalities receiving the highest tourist numbers deal with high pressure on existing facilities, infrastructure, and services related to meeting the needs of tourists, together with those of new, often temporary residents who come to work in the tourism industry. Despite that, Icelandic residents tend to remain mostly positive towards tourism. Iceland has employed various strategies to deal with tourism impacts and to protect its highly fragile environment. With tourist arrivals to the country predicted to continue increasing, further challenges are expected, testing the effectiveness of current and future strategies.