Blue Lagoon in southwest Iceland has been experiencing a recovery in guest bookings despite repeated closures due to volcanic activity. Occupancy for September and October was at around 70%, in line with numbers from the previous year. The summer months also saw occupancy levels similar to last year. Despite the challenges faced due to the closures, the retreat is hopeful for the future, with projections indicating a potential increase in bookings for the upcoming year.
Between November 2023 and August 2024, Blue Lagoon experienced multiple closures due to earthquakes caused by the volcano in southwest Iceland. The spa was closed for a total of 100 nonconsecutive days, with July being the only full month in which it remained open. The recent reopening of the spa on August 28 was met with positivity, as the facility was not damaged by the eruptions or earthquakes. Changes were made to infrastructure, including the construction of a new road to replace the one destroyed by lava flow, and the installation of a protective barrier for the spa.
Blue Lagoon has noticed a shift in its guest mix, with more individual bookings compared to planned tour groups. Travel agencies have been hesitant to make bookings due to the uncertainty of potential closures in the future. This shift has been viewed positively by Blue Lagoon’s management, as they believe that individual bookings lead to better business outcomes. Despite the challenges faced by the tourism industry in Iceland, there is a sense of optimism at Blue Lagoon regarding the potential for growth in the coming year.
Iceland has seen a slowdown in international tourism this year, with over 1.2 million foreign tourists arriving on the island by air between January and July. This represented a 1% increase from the same period in the previous year. However, there has been a drop in demand compared to last year, as indicated by various tourism metrics such as total overnight stays in hotels by foreign visitors. Excessive news coverage and safety concerns have played a role in deterring potential tourists from visiting Iceland, despite efforts by the government and tourism industry to address these issues.
The safety of tourists visiting Iceland, including popular attractions like Blue Lagoon, has been a significant concern. Many potential visitors are unsure about the safety of traveling to the island, despite efforts to improve eruption predictions and communication. This sentiment has been echoed by industry leaders, with some expressing the belief that Iceland is still deemed unsafe by many potential clients. However, the tourism industry remains hopeful for a rebound in bookings and a return to normalcy in the near future.
In conclusion, Blue Lagoon in Iceland has seen a recovery in guest bookings following repeated closures due to volcanic activity. Despite challenges faced by the tourism industry in Iceland, there is optimism for growth in the coming year. Safety concerns and a slowdown in international tourism have impacted the industry, but efforts are being made to address these issues and reassure potential visitors. The shift towards more individual bookings at Blue Lagoon has been viewed positively, and the industry remains hopeful for a return to normalcy and increased bookings in the future.
