Does Iceland tourism rebound provide hope for Dubai?

Iceland is currently demonstrating the pent-up demand for tourism. (Shutterstock)
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Updated 22 June 2021
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Does Iceland tourism rebound provide hope for Dubai?

  • Dubai is traditionally a popular destination for British holidaymakers
  • Britain is working on easing travel restrictions for fully vaccinated people to allow them to take a summer holiday

DUBAI: Iceland’s fourteen-fold increase in tourist arrivals in May compared to a year earlier highlights the extent of pent up demand for travel and could provide lessons for other emerging economies, according to research group Tellimer.

Similar to Dubai around the turn of the year, Iceland is currently demonstrating the pent-up demand for tourism, Tellimer said in a strategy note on Tuesday.
“I can attest to the unpleasant experience of spending 11 nights in a UK government quarantine hotel. I traveled from the UAE, which is a “red list” country despite doing a much better job of managing Covid than many on the UK’s “amber list,” and despite being personally very fortunate, by global standards, to have two doses of the Pfizer vaccine by virtue of being a Dubai resident,” said report author Hasnain Mailk. “If I had more time the route I might have taken would have been to spend ten days in Iceland, which is on the UK’s ‘green list.’”
Proof of vaccine means tourists can enter Iceland, take a free PCR test on arrival, and start their holiday with minimum fuss.
“Iceland, like other tourism destinations, is doing whatever it takes to re-open, but, of course, the resumption of tourism also requires a cooperative, competent, and unbiased policy from the country of a visitor’s origin or ultimate destination,” said Malik. “In the last two months, Iceland is providing an example of how vast the pent-up demand is for international tourism. It follows a similar experience in Dubai around the turn of the year. It remains to be seen whether there is a similar spike in infections as seen in Dubai (which subsequently moderated).”
Dubai, which has been urging UK authorities to ease travel restrictions to the emirate, is traditionally a popular destination for British holidaymakers.
Britain is working on easing travel restrictions for fully vaccinated people to allow them to take a summer holiday, UK Health Secretary Matt Hancock said on Tuesday. However the plans are not yet finalized.


Silver crosses $77 mark while gold, platinum stretch record highs

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Silver crosses $77 mark while gold, platinum stretch record highs

  • Spot silver touched an all-time high of $77.40 earlier today, marking a 167% year-to-date surge driven by supply deficits
  • Spot platinum rose 9.8% to $2,437.72 per ounce, while palladium surged 14 percent to $1,927.81, its highest level in over 3 years

Silver breached the $77 mark for the first time on Friday, while gold and platinum hit record highs, buoyed by expectations of US Federal Reserve rate cuts and geopolitical tensions that fueled safe-haven demand.

Spot silver jumped 7.5% to $77.30 per ounce, as of 1:53 p.m. ET (1853 GMT), after touching an all-time high of $77.40 earlier today, marking a 167% year-to-date surge driven by supply deficits, its designation ‌as a US ‌critical mineral, and strong investment inflows.

Spot gold ‌was ⁠up ​1.2% at $4,531.41 ‌per ounce, after hitting a record $4,549.71 earlier. US gold futures for February delivery settled 1.1% higher at $4,552.70.

“Expectations for further Fed easing in 2026, a weak dollar and heightened geopolitical tensions are driving volatility in thin markets. While there is some risk of profit-taking before the year-end, the trend remains strong,” said Peter Grant, vice president and senior metals strategist ⁠at Zaner Metals.

Markets are anticipating two rate cuts in 2026, with the first likely ‌around mid-year amid speculation that US President Donald ‍Trump could name a dovish ‍Fed chair, reinforcing expectations for a more accommodative monetary stance.

The US ‍dollar index was on track for a weekly decline, enhancing the appeal of dollar-priced gold for overseas buyers.

On the geopolitical front, the US carried out airstrikes against Daesh militants in northwest Nigeria, Trump said on Thursday.

“$80 in ​silver is within reach by year-end. For gold, the next objective is $4,686.61, with $5,000 likely in the first half of next ⁠year,” Grant added.

Gold remains poised for its strongest annual gain since 1979, underpinned by Fed policy easing, central bank purchases, ETF inflows, and ongoing de-dollarization trends.

On the physical demand side, gold discounts in India widened to their highest in more than six months this week as a relentless price rally curbed retail buying, while discounts in China narrowed sharply from last week’s five-year highs.

Elsewhere, spot platinum rose 9.8% to $2,437.72 per ounce, having earlier hit a record high of $2,454.12 while palladium surged 14% to $1,927.81, its highest level in more than three years.

All precious ‌metals logged weekly gains, with platinum recording its strongest weekly rise on record.