Periodic penalties

Periodic penalties are among the sanctions the Icelandic Tourist Board is authorised to impose according to the Act on the Icelandic Tourist Board no. 96/2018, and the Act on package travel and linked travel arrangements.

The Icelandic Tourist Board can impose periodic penalties on parties who do not comply with decisions based on the Act on the Icelandic Tourist Board until they comply with the board’s decision.

The Icelandic Tourist Board supervises the provisions of chapter VII of the Act on package travel and linked travel arrangements, i.e. the provisions relating to compulsory package travel insurance and the Travel Insurance Fund. The Icelandic Tourist Board can impose penalties on travel agencies that do not comply with the provisions of chapter VII of the Act, or the decisions or directions of the board, until they do so.

Periodic penalties can range from ISK 50 thousand to ISK 500 thousand per day.

A decision to impose periodic penalties may be appealed to the Minister of Culture and Business Affairs within fourteen days of notification to the person subject to the decision. Periodic penalties shall not begin to accrue until this period has passed. Periodic penalties are legally enforceable after expiry of the time limit for appeals, but an appeal to the Minister will delay enforcement until a final decision has been rendered. Action brought before the courts will not delay enforcement.