Iceland will Tighten the Rules for Acquiring Land by Foreigners

Chinese investors have an enormous desire to invest in tourism in Iceland. But the problem is that local residents are not at all friendly, Bloomberg writes.

Since the North Atlantic nation has fully reintegrated into the international community since the financial crisis, its center-right government now wants to tighten the rules and restrict foreign ownership.

This move comes amid the boom of foreign visitors and new attempts by an unidentified Chinese entrepreneur to acquire an area of ​​12 sq. Km and build a holiday resort in the so-called Golden Circle of the Island, the most popular tourist destination in Iceland. An even more ambitious Chinese offer was blocked in 2012, the news agency recalls.

Tourism is now the number one industry for Iceland, partly thanks to scenes from a James Bond movie, The Secret Life of Walter Mitty and the Game of Thrones TV series.

The foreign appetite for Icelandic land comes amid the prosperous property market. House prices are rising by 54.6% between December 2009 and July 2017, according to Iceland statistics, as well as the Arctic resources race.

Experts, however, expect China's interest in the country to continue to grow despite stumbling blocks.