A new fee, imposed 1 January 2025, is causing cruise ships to cancel their stops in Iceland, as reported by Iceland’s national broadcaster, RÚV.
Beginning this year, international cruises have to pay 2500 ISK per passenger, each day they make port here. This equates to approximately 18 USD, or 18 EURO a head.
Harbour masters and port officials across the country are citing insufficient notice as the reason behind why so many ships have cancelled their stops in Iceland.
According to a letter directed to Akureyri Port officials from the MSC Cruises Port Operations Director, the new fee is five times the Accommodation Tax which was required at the start of the 2024 season.
In the letter, the director wrote; “This new proposed Infrastructure Fee is at a level where it could affect our assessment of the viability of Iceland in our future itineraries and plans,” making clear that Iceland might no longer be as frequented by cruises as it once was.”
It has long been the intention of the government to ensure that cruise companies act and contribute fairly during their time in the country. However, the implemented changes have not been without controversy here at home.
What is the impact of the new fee on cruise ships?
Chairman of Cruise Iceland, Sigurður Jökull Ólafsson, spoke to RÚV about the economic impact these changes would have on cruise lines;
“It’s reasonable for this industry to contribute. But it must be implemented with adequate notice,”
He added; “Take, for instance, a ship that makes 8 to 9 stops each at Reykjavik, Ísafjörður, and Akureyri during the summer; it will now face an additional operational cost of 440 million ISK in 2025.”
As it currently stands, Iceland is expecting 80 less cruise ships than was originally accounted for. This will require the government to revise early predictions that the new fee would generate upward of 1.5 billion ISK ($10 million) for the State Treasury.
Specifically, Akureyri will see 44 less ships docking there. The Westman Islands has already reported ten cancellations. Grundarfjörður has faced seven cancellations for 2025 so far, but an additional 14 cancellations are expected for next year.
Only time will tell as to what impact the new fee will have on Iceland’s cruise industry. As of now, the Icelandic government and cruise operators remain at odds on the issue, though the Cruise Iceland Chairman hopes the government will revisit the issue in due time.
