Iceland is experiencing a significant surge in tourism, setting new records for international visitors in 2025. The Nordic country, renowned for its unique landscapes, thus finds itself at a crucial point in managing its expanding tourism industry.
Iceland’s Rising Visitor Numbers
Statistics indicate that Iceland welcomed 1.792 million international tourists from January to September in 2025. This marks an increase from 1.743 million visitors in the same timeframe in 2024 and a noteworthy rise from 1.597 million in 2019.
- 2.2% increase in foreign visitors from 2023 to 2024.
- 3.5% increase in the past 12 months up to September 2025.
- Largest booking numbers for hotel rooms and B&Bs recorded in 2025.
These figures highlight a robust recovery despite challenges such as the recent closure of budget airline Play and the volcanic eruption at Sundhnúksgígar fissure.
Factors Driving Tourism in Iceland
According to Jóhann Viðar Ívarsson from the Icelandic Tourist Board, Iceland’s appeal lies in its “unspoilt nature and rural settings.” The country has become increasingly fashionable among higher-income travelers, further fueled by the influence of social media.
In anticipation of continued growth, Iceland is enhancing its KEF International Airport. Planned expansions include:
- New facilities for bikes, buses, and taxis.
- A circular junction to improve traffic flow.
- A four-star hotel and expanded terminal facilities.
Tourist Taxes in Iceland
Iceland reinstated accommodation taxes on January 1, 2024, to mitigate tourism’s environmental impact. Current rates are as follows:
- ISK 600 (approximately €4.24) per room for hotels and guesthouses.
- ISK 300 (approximately €2.12) for campsites and mobile homes.
- ISK 1,000 (€7.06) for cruise passengers docking at Icelandic ports.
While these taxes contribute to sustainability efforts, Ívarsson points out they do not significantly impact government revenue. The current government plans to propose higher tourism taxes soon.
Discovering Lesser-Known Areas
In light of the growing visitor numbers, the Icelandic Tourist Board is promoting destinations beyond traditional hotspots like Reykjavík. Ólafsson recommends exploring:
- The Westfjords, which offer stunning landscapes and small fishing villages.
- The northern region, accessible year-round, known for its midnight sun during summer.
Travelers are encouraged to seek these unique experiences to avoid the crowds while enjoying Iceland’s breathtaking beauty.
El-Balad has reached out to the Icelandic government for further comments regarding these developments.
