Iceland Turns Up Heat For Visitors With Return Of Tourism Taxes
Reykjavík – Iceland’s otherworldly landscapes – the country is reinstating tourist lodging taxes in 2024 after a suspension during the pandemic crunch. Starting January 1st, overnight visitors face renewed fees per room on all hotel stays, campsites, rental units and even docking cruise ships as Iceland seeks to replenish public coffers.
The daily levies rack up quickly: $4.36 per hotel room, $2.18 for campsites/RV rentals and $7.26 per cruise passenger. A week-long circumnavigation could add hundreds for families or groups.The taxes aim to generate revenues supporting infrastructure, natural preservation and community services, though some argue it exploits tourism reliance excessively. The charges were temporarily axed in 2019 to boost arrivals as visitor numbers cratered.
While exemptions exist for young children, the broad revival closing tax loopholes means most travelers will chip in each day of Icelandic adventures from glacial hikes to Blue Lagoon dips. The considerable sums charged far exceed comparable hotel taxes in cities like New York or Paris. However, Iceland’s reliance on tourism for 8.5% of GDP provides leverage to extract more from its awe-inspiring but environmentally fragile offerings.
“We must protect our country’s nature and resources,” said Tourism Minister Ragnheiður Elín Árnadóttir on reinstating the taxes visitors love to hate but Iceland can’t live without.
