Economic Effects
“Blue Lagoon’s direct economic contribution amounted to 109% of its turnover last year.”
Blue Lagoon has a great economic impact both on the general Icelandic economy and on the local community. The company’s direct economic contribution amounted to just over its total turnover last year. The company employed 809 people at the end of the year, with a wage ratio of 42%.
Blue Lagoon places a strong emphasis on doing business with the local community, including buying most of its fresh products from local suppliers. At the same time, the company supports a wide range of projects related to sports, youth, cultural events, as well as health and environmental improvements for the local community.
Creating value
Blue Lagoon operations create great added value to the community. Overall, the company’s economic contribution amounted to 109% of its turnover last year. The wage ratio was 42%, of which taxes and fees amounted to 15%.
The company’s tax footprint increased by 34% between 2018 and 2019, for a total of ISK 5.8 billion last year.
| Direct economic value in million ISK* | 2019 |
|---|---|
| REVENUES | 17,142 |
| OPERATING COSTS** | 5,311 |
| WAGES AND SALARIES | 7,122 |
| DIVIDENDS TO SHAREHOLDERS | 4,119 |
| VAT PAYMENTS | 1,266 |
| INCOME TAX | 791 |
| TOTAL ECONOMIC CONTRIBUTION | 18,610 |
| ECONOMIC BENEFITS | -1,468 |
| PROPORTION OF ECONOMIC CONTRIBUTION | 109% |
* Average exchange rate EUR/ISK = 137.3
** Without depreciation
A stronger community
Blue Lagoon supports its community by providing funds for numerous projects related to sports and youth clubs, as well as cultural, health, and environmental affairs in general. For many years, the company has offered Icelandic residents medical skin treatments free of charge.
Among those supported by the Blue Lagoon last year, there was the Cancer Society, with the event “Pink October”; the Sports Association for the Disabled; the Sports Clubs in Reykjanes; Landsmót hestamanna; Hjólreiðafélag Reykjavíkur; Forskot; and the professional golfer Ólafía Þórunn Kristinsdóttir. Blue Lagoon also sponsored Sólheima, fire and rescue companies in Reykjanes, Reykjanes Geopark, and the Blue Army, to name a few.
In 2019, the Blue Lagoon provided about ISK 159 million in grants to the community, and of that amount, 23% went to the local community in Reykjanes.
Local Community= Reykjanesið: Grindavík, Reykjanesbær, Suðurnesjabær, Vogar
Community = All the others who live elsewhere than in Reykjanes
Adding value to our community
Blue Lagoon grows with the community and the community with the company.
The positive effects of the Blue Lagoon’s operations are widespread, but good operating results always add value to the society as a whole, and especially for the local community. Blue Lagoon traded goods and services from local suppliers for about ISK 4 billion last year. Twenty-two percent of these transactions took place within the local community and half of them were companies in Grindavík.
Reykjanes service center aims for sustainability
Following the signing of a cooperation agreement between Blue Lagoon and Reykjanes UNESCO Global Geopark, the organizations as well as the four municipalities within the Geopark, agreed for the Blue Lagoon initiated improvements of the facilities at the Reykjanesviti. This work will be conducted by a service center, majority-owned by Blue Lagoon, called Þjónustumiðstöðin Reykjanes ehf.
While contemplating permanent facilities for the service center, toilet facilities were installed in 2019 at the lighthouse which is managed by Hollvinasamtök Reykjanesvita. Reykjanesbær connected water to the house and the Icelandic Road and Coastal Administration undertook the repairs of the road to the lighthouse. A manager at Blue Lagoon also looks after environmental factors in the area and cooperates with the Geopark managers. This cooperation looks promising.
Work is now underway on the location of the proposed service building, with requirements being analyzed and basic drawings being submitted. Work is also being done on improving signs in the area in accordance with the cooperation agreement.
With this project, Blue Lagoon aims to increase sustainability to ensure that future value of the operation will be fully utilized to protect and maintain the Reykjanes environment. The goal is to work—according to best practices during reconstruction—in harmony with nature, add knowledge, gain better perspective, improve the conservation status of geological resources in the area, encourage innovation in nature-related projects, as well as highlight and maintain the cultural heritage of the region.
In 2019, a comprehensive audit was conducted by UNESCO for the continued approval of the Reykjanes UNESCO Global Geopark license and for the Geopark to carry its name under the UNESCO brand. Representatives of UNESCO met with representatives from Blue Lagoon, where the Blue Lagoon and Reykjanes UNESCO Global Geopark cooperation agreement was discussed. At the beginning of 2020, it was announced that Reykjanes UNESCO Global Geopark passed the audit with flying colors and therefore continues to bear its name proudly.