Iceland Ship traffic

Cruise ships drop Iceland from their itineraries

1 min read

Jan 28, 2025 3:26:17 PM

Iceland introduces new fee – Impact on the cruise industry already visible

The introduction of a new tourism fee in Iceland has led to a wave of cancellations from cruise lines. Dozens of ships have removed Iceland from their schedules for 2025, presenting new challenges for the country’s tourism sector.

New fee for cruise ships

As of January 2025, Iceland has implemented an additional tourism fee charged per passenger. The fee aims to address the rising number of visitors and provide funding for environmental conservation and infrastructure development. However, this decision has faced significant criticism from cruise operators that regularly include Iceland in their itineraries.

Since the fee was announced, several cruise lines have decided to drop Iceland from their routes. The additional costs for passengers and associated economic considerations have been cited as the main reasons for these cancellations. Dozens of planned port calls have already been canceled for 2025, which could have significant impacts on local ports and tourism businesses.

Balancing environmental protection and tourism

The new fee is part of Iceland's efforts to promote sustainable tourism and protect the country’s fragile environment. The government faces the challenge of balancing the economic benefits of tourism with the preservation of Iceland’s unique landscapes.

The decline in cruise ship visits could negatively affect local businesses and service providers that rely heavily on cruise tourism. Restaurants, souvenir shops, and tour operators in popular port towns may need to adapt to this shift in visitor numbers.

With the introduction of this fee, Iceland sends a clear message that sustainable tourism is a top priority. While this poses short-term challenges, the measures are expected to contribute to the long-term preservation of Iceland's natural beauty and position the country as a leading environmentally conscious destination. The coming months will reveal how the cruise industry and Iceland’s tourism sector adapt to these new developments.