Show summary Hide summary
Summary:
- Why Iceland is increasing its tourist tax in 2025.
- How much travelers may pay depending on their stay.
- The most pressured areas affected by overtourism.
- Practical ways to reduce your impact on site.
- A quieter region worth exploring away from the crowds.
Iceland continues to attract more visitors every year. Between January and August, about 1.8 million travelers reached the island, more than before the pandemic. Reykjavík, the southern waterfalls and the black-sand beaches near Vík often see large crowds at the same time. This popularity supports the economy, but it also puts pressure on roads and natural landmarks.
To respond to this growing strain, the government plans to increase the tourist tax reinstated in early 2024. The goal is to secure funds to maintain heavily visited sites and encourage visitors to explore the country more evenly. Here is how this could influence your travel plans.
Iceland’s south coast: a fresh way to explore fire, ice and quiet wild lands
How to travel responsibly after a climate disaster
Why Iceland is raising its tourist tax
Tourism is a major economic driver in Iceland. Its impact, however, is visible on the ground: worn trails, damaged road sections and more waste around popular viewpoints. After years of rapid growth, some locations are struggling to cope.
At the moment, travelers pay 600 ISK per hotel night (around €4.24), half that amount in campsites, and €7 for cruise passengers. These fees no longer cover the costs of maintaining crowded sites. This explains why authorities have announced a significant increase, although exact figures are not yet confirmed.
What could change
Below is a clear overview of the current fees and the possible 2025 ranges being discussed (these numbers are not official).
| Travel type | Current tax | Possible 2025 range (unconfirmed) |
| Hotel nights | 600 ISK | 1,000 to 1,500 ISK |
| Camping | 300 ISK | 500 to 800 ISK |
| Cruise passengers | €7 | €10 to €15 |
The aim is to secure funding to maintain areas visited by thousands of people each day.
Where tourism pressure is strongest
Most visitors follow the same classic itinerary, which places heavy pressure on a handful of sites. The Golden Circle and the south coast often receive constant flows of tourists.
Sites most affected
- Geysir and Strokkur, with paths widened by heavy foot traffic.
- Seljalandsfoss and Skógafoss, where soil erosion is visible near the waterfalls.
- Reynisfjara near Vík, known for crowded parking areas and continuous visitor flow.
- Þingvellir National Park, where fragile ground suffers from repeated passage.
Some of these areas require temporary closures to recover.
What this means for travelers
- Occasional restrictions on popular sites.
- Stricter local rules to protect sensitive zones.
- A slightly higher overall trip budget.
How to explore without adding pressure
A higher tax alone will not solve overtourism. The way travelers move around the country can make a real difference. A few simple choices can make your trip more respectful of the environment.
Practical tips
- Stay on marked trails since vegetation takes a long time to recover.
- Avoid off-road driving unless specifically allowed to protect delicate terrain.
- Choose accommodations with responsible waste management.
- Visit major sites early in the morning or late in the afternoon.
- Consider a longer stay instead of several short trips.
Local tip
Locals often share great alternatives if you ask. A brief chat with a barista or shop owner can lead to quiet, lesser-known spots that offer a more authentic experience.
The Westfjords: Iceland’s quiet, wild alternative
Life inside Italy’s €1 villages: what Mussomeli really feels like
Germany is opening its first Astérix park and here is what to expect
If you want to enjoy Iceland beyond the crowds, the Westfjords are one of the best options. The region is remote, sparsely populated and filled with dramatic scenery.
Why the Westfjords stand out
- Around 7,000 residents across a vast area.
- Narrow fjords, steep mountains and peaceful fishing villages.
- A strong sense of space and calm compared with the south.
- Plenty of activities including kayaking, hiking, cycling and birdwatching.
Ideas for exploring the Westfjords
| Activity | Difficulty | Why it’s worth it |
| Hiking in Hornstrandir | High | A remote reserve with no roads and untouched nature |
| Kayaking in Ísafjörður | Easy | Calm waters with scenic mountain views |
| Visiting Dynjandi | Easy | One of Iceland’s most impressive multi-tiered waterfalls |
| Scenic drive to Patreksfjörður | Medium | Quiet coastal landscapes and charming villages |
Exploring this region offers a slower, quieter and more immersive experience of Iceland.Iceland’s plan to raise its tourist tax reflects the need to protect its most visited places. For travelers, this means planning for a slightly higher budget and adopting a more thoughtful approach. By choosing less crowded regions and respecting fragile landscapes, you help preserve the Iceland you came to see.
