Hydropower and tourism in Iceland: Visitor and operator perspectives on preferred use of natural areas

Abstract

This paper examines visitor and tourism operator perspectives of a recreation destination in the face of competing land use from the potential industrial development of a hydroelectric power plant. Questionnaires and interviews were employed to discover (i) how and why the area is used for recreational activities by both Icelanders and foreigners, (ii) the satisfaction of two key stakeholder groups: visitors to the area and local tourism business operators and, (iii) the opinions held by these groups with regards to the potential impacts of the proposed development on tourism and recreation in the region.

Analysis of the questionnaire data revealed that the majority of visitors were extremely satisfied with their experience of nature in the area and, correspondingly, that construction of hydropower facilities would deter them from visiting. Opinions of interviewed tourism operators were more varied, based on their type of business and distance from the proposed development site. Some welcomed potential improved access to the areas, but most held concerns that the development of hydroelectricity could negatively affect the natural environment, and the visitor experience, resulting in negative impacts on tourism in the area.

These data were incorporated into a report prepared for the Icelandic government to assist their decision making in how best to manage this natural area in the future. The proposal for hydropower in the region was ultimately rejected and the area recommended for special protection status under Icelandic legislation.

Management implications From this research we learnt that visitors to natural areas value a perception of wilderness, sharing the opinion that the introduction of infrastructure for hydropower would detract from that value and thus negatively influence satisfaction with their experience of the area. Tourism operators are aware of this perception by visitors, and the strong drawcard of an area that is perceived as undeveloped.

For similar planning processes, both within Iceland and other countries, we recommend that:

• longitudinal monitoring of visitor and operator (host) satisfaction is undertaken to determine the potential effects of the introduction of hydropower infrastructure on recreational experience,

• visitors are included as stakeholders in decision making about the development of natural areas, and

• the opinions of all stakeholders are sought and considered when making decisions about land use options.