Periodic Penalties

Periodic penalties are, According to Act no. 96/2018 on the Icelandic Tourist Board and Act no 95/2018 on Package Travel and Linked Travel Arrangements, among the sanctions that the Icelandic Tourist Board may impose on those who do not comply with the decisions of the Board.

The Icelandic Tourist Board monitors compliance with Chapter VII of the Act on Package Travel and Linked Travel Arrangements, i.e. provisions regarding compulsory insolvency protection of travel agencies and the Travel Insurance Fund. If a travel agency fails to comply with the provisions of the Act, the decisions or directions of the Icelandic Tourist Board, the Board may impose periodic penalties on the agency until appropriate amendments have been made. The Icelandic Tourist Board may also impose periodic penalties on those who conduct licence bound operations without a proper licence . Periodic penalties can range from ISK 50 thousand to ISK 500 thousand per day.

Decisions on periodic penalties can be appealed to the Minister within 14 days of notification to the party subject to the decision, that is publication in the party’s digital mailbox Periodic penalties do not begin to accrue until this time has passed. Periodic penalties are legally enforceable after the time limit for appeals has passed 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.

Decisions on periodic penalties imposed by the Icelandic Tourist Board are published on the Board’s web. A list of decisions (in Icelandic) can be found here.