More Chinese interest in Icelandic tourism sector

It has been reported that Chinese interests want to finance the building of a health village in Flúðir, south Iceland to the tune of billions of krónur.

The Sunnlenska.is local news website reports that the company Heilsuþorp ehf. in Flúðir has been in negotiations with the Chinese company CSST International hoping to attract start-up funding. Now it is believed the Chinese company has agreed to invest ISK 6.5 to 7 billion (EUR 40.5 to 43.6 million) in the project.

It is likely that CSST would become a significant shareholder in Heilsuþorp.

Organisers hope the health resort will be built on land near Flúðir called Gröf. The plan is for the local municipality to allow the land (which it owns) to be used for free, in exchange for a chunk of shares in the new company.

Flúðir is in a geothermal area of south Iceland and is not short of natural hot water. It is also ideally located along the popular Golden Circle tourist trail.

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