Cruise Cancellations in Iceland Sparked by Controversial New $18 Infrastructure Fee

Major cruise shipping companies are canceling voyages to Iceland after the government introduced an Infrastructure Fee of 2,500 ISK (~USD 18) per passenger, effective January 1st, 2025. This fee is a significant increase, being five times higher than the previous Accommodation Tax.

As a result, the anticipated surge in cruise visitors has not occurred, leading to approximately 80 cancellations in January alone. Specific ports are facing severe impacts: Akureyri expects 44 cancellations, Westman Islands 10, and Grundarfjordur 7, with further cancellations likely.

Despite these challenges, the Icelandic government remains steadfast in maintaining the fee. This decision may push travelers to consider alternative options for visiting Iceland. While the government projected an annual revenue increase of US$10 million from the new fee, the persistent cancellations could prompt a reassessment of these financial expectations.

The cruise lines’ withdrawal can be traced to the cumulative effect of the fee on large numbers of passengers across multiple port visits. Although the charge seems minimal for an individual passenger, it can lead to substantial costs for operators when scaled up over the cruise season.

Consequently, cruise lines have a tough decision: either pass the new costs onto travelers or absorb them, both of which negatively impact their financial sustainability. Many operators are now opting to skip Icelandic ports until a more favorable agreement regarding the new fee structure is established.

For further details, you can visit the story about the Infrastructure Fee’s impact on cruise cancellations in Iceland.


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