The Arctic winter may be long and dark but one light still shines bright in the land of the midnight sun -- Iceland 's booming tourist trade . Foreign visitors increased by 15.9 % last year whilst travel now accounts for 5.9 % of GDP , according to the Icelandic tourist board . Given the financial catastrophe confronting the country as recently as 2008 -- when the IMF stepped in with a $ 2.1 billion loan after several major Icelandic banks collapsed -- this turbo-charged development is all the more remarkable . `` We 've had this extraordinary growth in tourism in the last few years , '' Iceland 's president , Olafur Ragnar Grimsson , told CNN 's Richard Quest . `` Because [ in ] the tourism structure of Iceland we have many small and medium-sized companies in the north , the east and the west , the economic benefits spread through the economy and all over the country in a way that no other sector actually does . '' Watch video : Richard Quest 's presidential tour of Iceland . Iceland 's economy is predicted to grow by 2.7 % this year and unemployment will fall to 5.7 % , according to Statistics Iceland -- thanks in part to the expansion of tourism . For President Grimsson , this is just the start of a back-to-basics economic approach that will focus less on risky financial services and more on industries such as clean energy tech , fishing and , of course , travel . Official figures show that Iceland currently attracts 600,000 visitors a year , but by 2020 Grimsson says he hopes this figure will be nearer two million , almost seven times the country 's population . Key to meeting these ambitious targets is the successful promotion of Iceland 's pristine natural beauty -- its rural hinterland is famed for its spectacular volcanoes and natural hot springs -- as well as its potential as a business and aviation hub . According to Oli Bjorn Hauksson , CEO of Keflavik , the country 's only international airport , Iceland 's geographic location makes it the perfect pit stop for long-distance flights . `` We are in the middle of the Atlantic Ocean between Europe and the North America , which is the best place for a hub ... airport to be , '' he says . That gives tourists traveling between the outer reaches of the two continents the option of breaking up their journey . See also : Discover Iceland 's fire and ice . So far , the tactics aimed at enticing travelers to Iceland appear to be working . Iceland 's tourist trade was even able to safely negotiate the ash-cloud chaos caused by the erupting Eyjafjallajokull volcano in mid-2010 . Close to 100,000 flights were cancelled and millions of passengers were left stranded in what was the biggest disruption to air travel since World War II . `` We were worried , if the handsome growth we had been experiencing year-on-year would be halted , '' says , Steingrimur J. Sigfusson , Iceland 's tourism minister . `` But fortunately that did not happen . '' He added : `` For the good or worse , the eruption proved to both Europe and America that Iceland is not so far away . At least we were close enough to cause all this trouble for the aviation industry . '' Despite an initial dip in visitor numbers , Iceland returned to double digit travel growth by late 2010 . Such resilience so soon after the financial crisis provides Sigfusson with a bullish outlook for the future . `` If things go on for a number of years , in addition with growth of 10 to 15 % , tourism will be Iceland 's industry number one , in terms of foreign currency earnings , '' he says . See also : Eat like a viking in Iceland . President Grimsson however cautions that such rapid development will require precise planning to ensure Iceland can cope . Some in Iceland already fear that the country is becoming overrun with tourists , but Grimsson is confident Iceland can cope . `` This is a country the size of England -- a big part of it is volcanic desert , glaciers , rivers , lakes -- so if we decide to do it we can control the traffic in such a way that we allow people to enjoy the beauty of the country without being overcrowded , '' he says . He adds : `` When this decade comes to an end we might have two million tourists coming to Iceland every year , and we have to plan for that . `` That is a debate I have encouraged the nation to engage in over the next few years . ''
Iceland has experienced rapid growth in its tourism sector since its economy collapsed in 2008 . The country is home to spectacular landscapes , volcanoes and hot springs . President Olafur Ragnar Grimsson hopes Iceland will be attracting 2 million visitors a year by 2020 .