From Fortune:

Iceland’s increase in tourism has boosted its economy and created jobs, but it’s come at a cost- fewer, more expensive housing for its citizens. As a result, many homes are being converted into Airbnb lodgings to meet the demand. The government is working on a housing policy, but it has been unable to keep up with the demand.

Iceland’s economy has received a boost from tourism, leading to growth in jobs amidst economic challenges. However, it has put pressure on infrastructure including the housing market, leaving housing in short supply. The government is currently working out a housing policy to provide more housing for its citizens amid the increase in tourist numbers.

Iceland is not alone in its struggle to find a balance between tourism and local living conditions. Portugal also has had to address high house prices as a result of tourism. The government took measures to stop the conversion of apartments into Airbnbs and put an end to its Golden Visa program, but housing prices are still high and locals are being priced out.



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