Keflavík Airport Hotel Plan Criticized as Misaligned with Regional Tourism

Plans by Isavia, the operator of Keflavík Airport, to construct a 200 to 400-room hotel have drawn sharp criticism, with local stakeholders arguing it deviates from the region's tourism strategy and potentially exceeds the airport authority's scope.

Steinþór Jónsson, owner of Hotel Keflavík, expressed his view that the proposed hotel does not fit the future vision for tourism on the Reykjanes Peninsula. He believes the focus should be on attracting tourists to surrounding communities like the Blue Lagoon area and other towns on the peninsula, rather than concentrating more accommodation at the airport itself.

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This is not something that suits the future vision of tourism on Reykjanes, where we are trying to attract tourists to our communities around the Blue Lagoon and Reykjanesbær as well as other towns on Reykjanes.

Jónsson also pointed out that numerous other services are lacking at the airport, suggesting these should be prioritized. "There are many other things missing in the service at the airport, just look at the access to the airport for departing passengers and regarding car rentals and more," he told mbl.is, questioning the feasibility and necessity of the hotel project.

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There are many other things missing in the service at the airport, just look at the access to the airport for departing passengers and regarding car rentals and more. I don't see them being able to go through with this.

Officials from Reykjanesbæjar (Keflavík municipality) have also voiced concerns. Halldór K. Hermannsson, department head for business and harbors, questioned at a recent meeting whether Isavia was overstepping its operational boundaries with the hotel development. Jónsson welcomed the municipality's response, stating, "I agree with that, and it's good to know that we live in a municipality that cares about the businesses already present in the municipality. I can't help but welcome that the interests of the townspeople and those who have built up tourism are being considered."

Jónsson, who has owned Hotel Keflavík since 1986, noted that the region already has a sufficient number of hotels to meet current demand. He feels Isavia's plan for a large hotel is therefore ill-timed and unnecessary, especially given the existing capacity and the need to promote tourism across the wider Reykjanes area.

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I agree with that and it's good to know that we live in a municipality that cares about the businesses already present in the municipality. I can't help but welcome that the interests of the townspeople and those who have built up tourism are being considered.