Like most Western capitals, Reykjavik, Iceland has not escaped from escalating rental prices in prominent, central locations. In fact, Reykjavik currently has the highest Airbnb rental prices on the website. While Iceland loves their tourists, in fact, the economy depends on them, there have been a few conundrums to solve as the country’s infrastructure has not been updated to accommodate the huge influx of tourists and the needs of tourists.
On top of this, many investors looking for easy profit use sharing markets such as AirBnB as a business model by buying entire apartment complexes to be rented out to tourists. Local residents report a shift in recent years, remembering a time when they were surrounded by neighbors instead of a steady rotation of tourists. This shift also includes a decrease in services downtown that caters to residents, for example, paint stores and even kindergartens. It has become a much more lucrative business to supply tourist items downtown instead.
Some locals in Reykjavik have spoken up about their use of Airbnb and expressed how they use the model as it was intended, to supplement their income by renting out their place to tourists for not more than three months of the year total, not as a business enterprise. Hopefully, the regulation of permits will soon be put into place and this type of model can be put to an end.
With Reykjavik being the cultural capital of the country, it is increasingly unaffordable for artists, as well. Not to mention that the price of an apartment has greatly increased, with a 10% increase each year for the past six years, the rental market in Reykjavik is definitely a terse discussion point. However, don’t let this deter you from all the amazing things there are to see and do in Iceland. It is the fault of government planners, not tourists, that we face problems such as this.
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Culture Trip launched in 2011 with a simple yet passionate mission: to inspire people to go beyond their boundaries and experience what makes a place, its people and its culture special and meaningful — and this is still in our DNA today. We are proud that, for more than a decade, millions like you have trusted our award-winning recommendations by people who deeply understand what makes certain places and communities so special.
Increasingly we believe the world needs more meaningful, real-life connections between curious travellers keen to explore the world in a more responsible way. That is why we have intensively curated a collection of premium small-group trips as an invitation to meet and connect with new, like-minded people for once-in-a-lifetime experiences in three categories: Culture Trips, Rail Trips and Private Trips. Our Trips are suitable for both solo travelers, couples and friends who want to explore the world together.
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