How did tourism become important to Iceland’s economy?

Tourism has become a vital component of Iceland’s economy, serving as a significant earner of foreign exchange. The country’s appeal as a major tourist destination is driven by its breathtaking natural landscape, which features volcanoes, geysers, and hot springs.1

The growth of the industry has been heavily supported by the development of international air travel. Specifically, the establishment of regular air service to North America and Europe in the late 1940s revolutionized the country's connectivity with the outside world. Furthermore, the operations of Icelandair, a major international air carrier, have been instrumental in making the tourist trade increasingly important to the national economy.21