Transport and regional development: The social impact of the Héðinfjörður tunnel

Abstract

Transportation improvements can substantially impact regional development through denser community ties. Accordingly, public policy in Iceland emphasises the expansion of employment and service regions. The results of a seven year study on the impact of the Héðinsfjörður road tunnels show a greater than predicted increase in traffic. There is now substantial commuting between the towns of Ólafsfjörður and Siglufjörður and the vast majority of residents travel between towns for shopping, services, events or social activities. The regional economy is stronger and residents are more satisfied with prices and diversity of goods and services. Siglufjörður has become part of the Eyjafjörður tourism region and a tourist destination between Akureyri and the capital region. Overnight stays and trips around the peninsula have however not increased. Public services have been streamlined, partly because of the national economic collapse. Residents are more satisfied with educational opportunities but less satisfied with policing and health services. Relations between the towns do not appear more strained, despite a perceived lack of public services in Ólafsfjörður. The population has increased in Siglufjörður only, but there has been a general increase in the number of younger women, children and foreign citizens and young people are more likely to want to stay in Fjallabyggd. The long term effects of the Héðinsfjörður tunnels should be systematically monitored.