The International Air Transport Association (IATA) has urged the Icelandic government to cancel plans to introduce a tax on air passengers.
Under the proposals, each passenger flying out of Iceland would be charged €1.53.
IATA’s CEO Giovanni Bisignani said the proposed tax makes no sense.
The Icelandic economy is struggling to recover from the impact of the global financial crisis, he said.
“Don’t kill the goose that lays the golden eggs,” urged Bisignani. “At 15%, the tourism sector’s relative contribution to the Icelandic economy is the biggest among Western European countries.”
The eruption of the Icelandic volcano last year seems to have played a part in raising the profile of the country, with an 18.5% year-on-year increase in visitors.
According to official airport figures, January saw the highest ever number of foreign visitors to Iceland in a one month period - approximately 22,000 visitors in total.
www.iata.org