Visit Iceland’s Winning Strategy
Introduction & Background
Many hotels and tourism facilities face a common and complex challenge: the difficulty of finding and retaining qualified staff. This issue results in high turnover, which negatively impacts service quality and the overall guest experience. The causes of this problem are manifold: often seasonal and unstable working conditions, wages that are not always competitive compared to other sectors, lack of opportunities for growth and training, and, in some cases, an uninspiring work environment.
Visit Iceland, the Icelandic tourism board, tackled this issue with an innovative approach that turned personnel management into a strategic asset for the destination’s success. Through inclusive leadership, continuous training programs, and targeted incentives, the organization succeeded in creating a work environment where employees feel valued and part of a larger mission. The result? A dramatic improvement in staff retention and, consequently, a high-quality tourism offering.
Strategy & Execution
Visit Iceland adopted an integrated strategy that combined marketing and personnel management, leveraging a model of participatory and motivational leadership.
One of the key elements of the strategy was the creation of a positive and motivating workplace culture. To achieve this, the organization introduced a series of initiatives aimed at fostering a dynamic and flexible working environment. Employees were given access to personalized benefits designed to improve their well-being and job satisfaction. In addition, corporate wellness programs with a strong focus on work-life balance were developed, including psychological support and team-building activities set in Icelandic nature.
Visit Iceland also adopted a participatory leadership approach, ensuring a direct channel between management and staff. This openness encouraged a steady flow of feedback and fostered the active involvement of employees in business decisions.
Training Programs
Another pillar of the strategy was the development of ongoing training programs to enhance employees’ soft and cross-functional skills. Specifically, the Academy of Icelandic Tourism was established—a training center dedicated to building essential expertise in customer experience, digital marketing, and sustainable management. This initiative enabled employees to gain specialized knowledge, improving the quality of service provided.
Language courses and local culture training were also implemented, essential for effective communication with international guests. To attract young talent and reduce the gap between supply and demand for skills, Visit Iceland also formed strategic partnerships with universities and vocational institutes.
To reduce turnover and encourage staff retention, the organization introduced well-structured professional growth plans. Each employee was given access to a clear career path, with opportunities for internal advancement. In addition, performance-based bonuses were introduced, rewarding top-performing employees based on KPIs such as customer satisfaction and retention rates. To ensure greater stability and operational continuity, long-term employment policies were adopted, thus reducing dependence on seasonal workers.
Team Building and Active Listening
Another key aspect was the enhancement of team contributions. Visit Iceland introduced monthly forums dedicated to dialogue between management and staff, where employees could share suggestions and ideas for improving the organization.
In addition, through the Employee Advocacy Program, incentives were introduced for staff who promoted Iceland through their personal social media channels. This helped strengthen the bond between employees and the national tourism brand identity, turning staff into true ambassadors of the destination.
On an operational level, digital internal communication tools were developed to improve coordination across teams and ensure greater efficiency.
Incentives
Visit Iceland heavily invested in an incentive system tied to goal achievement. The organization introduced an innovative experiential rewards program, offering top employees free trips or exclusive experiences within Iceland. For more strategic roles, stock option plans were also introduced, turning employees into direct stakeholders in the company’s success.
To support this strategy, measurable company objectives were implemented to encourage individual commitment and ensure the highest quality of service.
Results & Impact
The implementation of this strategy led to tangible results in terms of employee engagement and tourism performance:
The reduction in turnover had a significant impact on the stability of the Icelandic tourism sector. In particular, the sector’s attrition rate was more than halved, ensuring greater operational continuity and improved service quality.
Employee engagement increased exponentially: 60% of staff actively participated in marketing campaigns, contributing to the authentic promotion of Iceland as a tourist destination. Moreover, thanks to a more qualified and motivated workforce, positive reviews on major travel platforms increased by 12%, further strengthening Iceland’s reputation as a destination of excellence.
The Multidirectional Role of a Tourism Board: Strategy, Flexibility, and International Connections
Tourism boards have traditionally been viewed as promotional entities working to attract visitors through marketing campaigns, partnerships with tour operators, and digital strategies. However, the complexity of global tourism requires a more sophisticated approach—where a tourism board is not just a promotional body, but a key player capable of operating on multiple levels and in multiple directions to create value and drive development.
The Dual Role of a Tourism Board: Beyond External Promotion
An effective tourism board not only generates demand through targeted marketing actions but also works actively to ensure a high-quality tourism experience. This involves improving infrastructure, developing industry skills, creating cross-sector economic opportunities, and strengthening the cultural identity of the destination.
Some of the most effective initiatives in this direction include:
• Advanced training for tourism professionals to ensure top-level hospitality service
• Partnerships with local and global businesses to expand the tourism offering and reach new markets
• Support for innovative strategies, such as the integration of digital technologies, immersive experiences, and destination branding initiatives
• Creating connections with non-tourism sectors such as art, fashion, and gastronomy, to enrich the offer and differentiate the destination
A Comprehensive Approach
An effective example of this strategy is Visit Iceland, which has successfully combined external promotion with the strengthening of internal skills. By investing in operator training and improving the tourism offering, Iceland has positioned itself as a model of excellence.
