Cruise ships are reportedly steering clear of Icelandic ports following the introduction of a new infrastructure tax in 2025.
According to the Iceland Monitor, the impact of this tax is being felt most strongly in rural areas, where local economies are experiencing noticeable declines.
Citing figures from Cruise Iceland, the outlet reported that cruise ship visits have fallen sharply, with advance bookings through 2027 down by more than 50 percent in some ports.
Cruise Iceland presented this data to the Icelandic Parliamentary Committee on Economic Affairs and Trade.
The Iceland Monitor also noted that the new levy is significantly higher than similar fees imposed by nearby countries.
“The situation is seriously bleak, especially for communities outside the capital,” said Sigurður Jökull Ólafsson, managing director of Cruise Iceland.
Plans for the new infrastructure tax were first announced in late 2024 and the fee took effect on January 1, 2025, requiring cruise passengers to pay 2,500 ISK (approximately $18 USD) per day while docked at Icelandic ports.
At the time, government officials projected that the tax could generate more than $10 million in annual revenue for the state.
However, early in 2025, industry representatives raised alarms over the potential fallout of the policy. Cruise Iceland warned that the charge could harm the country’s tourism and maritime sectors.
In a message sent to Akureyri Port officials, MSC Cruises’ Port Operations Director, Francesco de Curtis, said: “This new proposed Infrastructure Fee is at a level where it could affect our assessment of the viability of Iceland in our future itineraries and plans.”
Historically, Iceland has welcomed a large number of mainstream cruise liners as well as expedition vessels traveling through Arctic waters.
