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Aid to Tourism Industry for Volcano Crisis Offered in Iceland

by Rajshri on May 02, 2010 at 10:07 AM Lifestyle News

Around 300 million kronur (1.8 million euros, 2.3 million dollars) in aid to the country's tourism industry will be provided by Iceland's government. The tourism industry is bracing for mass cancellations due to an ongoing volcano eruption.

Aid to Tourism Industry for Volcano Crisis Offered in Iceland

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"The government has decided to provide up to 300 million kronur to assist the tourism industry in Iceland after the volcanic eruption in Eyjafjallajokull," finance ministry spokesman Huginn Thorsteinsson told AFP.

"Now the people in the tourism industry are deciding in what way the money should be channeled and if the tourism industry itself needs to put up money to help the recovery process after the eruption," he added.

Still struggling to overcome the deep crisis that set in when its major banks collapsed in late 2008, Iceland had until recently put virtually all its hope for future prosperity in its booming tourism sector, as a growing number of visitors flocked to see its myth-like volcanic landscapes and geysers.

A first eruption at the Eyjafjoell volcano last month, with its magnificent and largely harmless lava falls, even helped pad the tourism industry's coffers further, turning a previously deserted part of the North Atlantic island into a major attraction.

But when another part of the volcano began erupting on April 14, just hours after the first eruption ended, it covered much of southern Iceland, and large swaths of Europe in a massive cloud of flight-halting ash.

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Aid to Tourism Industry for Volcano Crisis Offered in Iceland

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