The importance of tourism for the recovery of Iceland's economy after the crisis

The diploma thesis deals with the recovery of Iceland's economic growth in the period after the global financial crisis of 2008, which resulted from the irresponsible management of three major domestic commercial banks in Iceland. Since 2010, economic growth can be seen to resume, which was particularly, to a large extent, affected by the explosive increase in demand of foreign visitors, the increase of which was equivalent to the growth within the previous 60 years. The main objective of this thesis is to examine the positive and negative impacts of inbound tourism on the post-crisis economic growth of Iceland and its selected components. The thesis addresses the impacts of inbound tourism on product size, which analyses by using the Icelandic tourism satellite account method, on employment, investment, public finances, external economic position and price level. At the same time, the work as a part of its goal deals with the problem of long-term sustainability of this growth that is driven by inbound tourism. Thus several issues concerning limits of growth due to overtourism are discussed, which in case of Iceland compromises its most important gem, which is untouched and unique natural beauty serving as a key attraction for tourism activities. However, the issue of sustainability is not only of an environmental nature, and therefore the work further addresses socio-cultural impacts and economic sustainability. The diploma thesis proves that inbound tourism had a significant impact on the economic growth of Iceland, especially after it became the most important export sector. However, in terms of the sustainability of growth, it urges, among other things, for the necessary gain of higher added value.