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Iceland's New Tourist Tax: A Sustainable Approach to Tourism

Iceland, a country known for its breathtaking landscapes and geothermal wonders, has recently announced a new initiative aimed at promoting sustainable tourism. With the surge in global travelers flocking to its shores, the Icelandic government has decided to introduce a tourist tax. But what does this mean for travelers, and how will it impact the future of tourism in Iceland?

Why the New Tax?

Over the past decade, tourism in Iceland has witnessed exponential growth. This boom, while beneficial for the economy, has raised concerns about its impact on the environment. The new tax, as confirmed by Prime Minister Katrín Jakobsdóttir, is a step towards achieving sustainability goals. The Prime Minister emphasized that the rapid growth in tourism has had significant effects on the climate. The tax is designed to mitigate these effects and support climate initiatives.

What to Expect?

While the exact cost of the tax is yet to be confirmed, it is expected to be reasonable. Jakobsdóttir mentioned that the government is focusing on "city taxes" for those staying in the country. Tourists planning a trip to Iceland should factor in this additional charge when budgeting for their vacation.

Interestingly, the Prime Minister has previously advocated for tourists to visit Iceland less frequently but to extend their stay. This approach aims to reduce the environmental impact caused by the continuous influx of travelers.

A Surge in Tourism

Between 2010 and 2018, Iceland witnessed a staggering 400% increase in tourist arrivals. This surge translated to approximately 2.3 million visitors annually. Although the pandemic momentarily halted this growth, the numbers rebounded impressively to 1.7 million by 2022. Furthermore, Iceland's recent accolades as the safest and overall best country globally have only amplified its allure.

A Global Trend

Iceland is not the pioneer in introducing tourist taxes. Other popular tourist destinations, like Venice, have also proposed similar taxes for visitors. Such measures reflect a global shift towards responsible and sustainable tourism.

Iceland's Green Vision

Central to Iceland's tourist tax proposal is its commitment to environmental protection. The country has set an ambitious goal to achieve net-zero emissions by 2040. The tourism sector is also aligning with this vision, with many companies transitioning to eco-friendly practices, such as adopting electric vehicles.

In Conclusion

Iceland's new tourist tax is a testament to the country's commitment to preserving its natural beauty and combating climate change. While it may add a slight increase to travel expenses, the benefits of a sustainable travel future are priceless.



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