Shared Value
“The positive economic impact of the Blue Lagoon on society as a whole is immense.”
Economic impact
Despite the uncertainty that has accompanied COVID-19, closures from October 2020 until mid-2021, and restrictions imposed on the company’s operations as a result, the Blue Lagoon has managed to adjust its activities and strengthen its foundations so that the positive impact of operations on the community was immense in 2021, just like previous years.
The company’s tax footprint amounted to ISK 1.8 billion in 2021. At the same time, the Blue Lagoon managed to maintain employment agreements with an average of 396 employees during the year, despite closures in the first half of the year.
The Blue Lagoon focuses on doing business that creates shared value among stakeholders, especially the local community. This is a sensible approach. By buying almost all fresh produce from nearby suppliers, the quality is guaranteed at the same time as promoting local development and safer access to products.
Shared value
The Blue Lagoon creates tremendous shared value for society, since it has such a great economic impact on both the national economy as a whole and the local community in particular. Last year, the company’s economic contribution amounted 104% of its turnover, i.e. ISK 7.5 billion.
| DIRECT ECONOMIC VALUE IN MILLION ISK* | 2021 | 2020 | % growth 2020-2021 |
|---|---|---|---|
| REVENUE | 7.224 | 5.074 | 42% |
| OPERATING COSTS** | 3.171 | 2.872 | 10% |
| WAGES AND SALARIES | 3.731 | 4.146 | – 10% |
| DIVIDENDS TO SHAREHOLDERS | 0 | 0 | 0% |
| VAT PAYMENTS | 421 | 168 | – 151% |
| PROPERTY TAX | 129 | 116 | 11% |
| INCOME TAX | 0 | 0 | 0% |
| COMMUNITY GRANTS | 48 | 72 | – 33% |
| TOTAL ECONOMIC CONTRIBUTION | 7.512 | 7.374 | 2% |
| ECONOMIC BENEFITS | – 288 | – 2.300 | -87% |
| PROPORTION OF ECONOMIC CONTRIBUTION | 104% | 145% | -28% |
* Average exchange rate EUR/ISK = 150,19
** Without depreciation
Local procurement
The positive effects of the operations of the Blue Lagoon are great, whether one looks at society as a whole or the local community in particular. Last year, for example, the Blue Lagoon traded goods and services from suppliers for a value of about ISK 3 billion. Of these, 19% of the transactions took place within the local community, which is Reykjanes: Grindavík, Reykjanesbær, Vogar, Sandgerði, Garður and Keflavík Airport.
The Blue Lagoon annually analyzes the distribution of its suppliers and contractors to monitor their distribution. The following map shows the distribution of suppliers and contractors for 2021.
Location of the Blue Lagoon’s main suppliers:
