Iceland, world-renowned for its unspoilt nature, geothermal activity and spectacular aurora borealis, may soon be offering a increase in tourist tax. This measure is being considered in response to the massive influx of visitors, and aims to generate additional revenue dedicated to the development of sustainable tourism in the country. Since January 01, 2024, foreign visitors have been required to pay a tourist tax, the amount of which varies according to the type of accommodation or whether they call at an Icelandic port.
An attractive tourist destination
Recent data confirm that Iceland has been a destination of choice. According to Statistics Iceland, 1.792 million international passengers visited the country between January and September 2025. This number is up on the 1.743 million visitors recorded in 2024, and marks an even bigger leap when compared with 2019's 1.597 million. Although some recent events, such as the closure of low-cost airline Play and the eruption of the Sundhnúksgígar volcano, may have discouraged some potential tourists, the overall impact on travel plans has been limited.
Jóhann Viðar Ívarsson, an analyst with the Icelandic Tourist Board (Ferðamálastofa), attributes these positive figures in part to the growth in international cross-border tourism. The analyst also stresses that the country's nature and rural landscapes offer a unique appeal. He notes that influencers have played an important role in making Iceland a popular destination, particularly among a more affluent clientele.
However, increased passenger numbers require significant adjustments to the national infrastructure. Iceland's KEF International Airport is currently being expanded to ensure better connection to the country's overall transport network, and to facilitate internal travel. In addition, the addition of a new 4-star hotel near the airport is planned to make travel easier and more comfortable.
A tourist tax to support sustainable tourism
To cope with the pressure on the environmental impact of the tourism boom and to finance the necessary infrastructure adaptationsIceland reintroduced a tourist tax on January 1, 2024. This tax aims to reduce the environmental impact of the tourism boom.
The current rates are as follows:
- 600 ISK (€4.23) for stays in hotels and guest houses.
- Half this amount for campsites and mobile homes.
- 1,000 ISK (€7.04) for cruise passengers calling at Icelandic ports.
The Icelandic government plans to introduce a tourist tax "considerably higher".. The aim is to increase the revenue stream to better prepare Iceland for a future of sustainable tourism. The exact amount of this new tourism tax has not yet been specified.
Since October 12, 2025, the input/output system (EES) is launched. This new procedure makes it possible to register the data of third-country nationals traveling for a short stay, and at each border crossing in European countries that apply this system. Iceland applies this system.
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