Iceland joins Majorca, Tenerife, Lanzarote in 'fighting' UK tourists

Iceland is joining Majorca, Tenerife and Lanzarote in fighting overtourism. The European Union holiday hotspot Iceland's Prime Minister Bjarni Benediktsson told CNBC via video conference: “We are trying still to mold the taxation system for the tourism sector for the future.

"We would like to lean more towards a system where the user pays. As I see it, we would want to go more toward accession fees to the magnets, as we call them, around the country. By doing that, we could control traffic. So, at the height of demand, we could have a higher tax that we could control by amending the fees both within the day or between months, or during parts of the year.

"But this is still in the making.” Mr Benediktsson described his predecessor's reintroduction of the tourism tax as an "important decision" for the country. He said the government was working with its own "sustainability balance check" to develop its tourism taxation system.

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He said: “We came up with a system under which we look at certain indicators: Is nature in balance in a certain spot? Is society happy with the development? Is that on a green, yellow or red light? If we see that places are being damaged by the number of people that visit let's say at Geysir where we have the hot springs, we need to take action.

“Those are the things we are trying to develop, and we are trying to follow the indicators and make sure that the industry grows in good acceptance with society but also with nature.” You can travel to the Schengen area, which includes Iceland, for up to 90 days in any 180-day period without a visa.

This applies if you travel as a tourist or to visit family or friends, the Foreign Office says.