Cruise ship arrivals plummet in some areas

A new infrastructure tax on cruise ship passengers has led to a sharp decline in ship visits and significant revenue losses across many rural ports, according to a statement from Cruise Iceland submitted to the Parliamentary Committee on Economic Affairs and Trade.

The organization reports that bookings through 2027 have fallen by half or more in several ports. Local municipalities and harbor funds now expect losses amounting to billions of krónur.

“The situation is seriously bleak — especially for communities outside the capital,” said Sigurður Jökull Ólafsson, managing director of Cruise Iceland.

The passenger infrastructure tax introduced by the government is substantially higher than comparable charges in neighboring countries — and in some cases, where such fees are not levied at all.