New $18 Infrastructure Fee Sparks Cruise Cancellation Surge in Iceland
Major cruise shipping companies have begun canceling scheduled voyages to Iceland due to a newly implemented Infrastructure Fee. This fee, which came into effect on January 1, 2025, costs 2,500 ISK (approximately USD 18) per passenger. It replaces the previous Accommodation Tax but is five times higher than the prior charge.
As a consequence of this significant increase, Iceland has witnessed around 80 cruise cancellations just in January. Key ports are feeling the impact, with Akureyri anticipating 44 cancellations, the Westman Islands 10, and Grundarfjordur 7, along with more cancellations likely to follow.
The Icelandic government is steadfast in retaining this fee, which raises concerns that travelers may explore different ways to visit the country if the cruise options decline. Initially, the government expected an annual revenue boost of $10 million from this fee, but ongoing cancellations may compel a reassessment of these projections.
The rationale behind the cruise lines’ decisions stems from the cumulative effect of the new fee when multiplied across a large number of passengers and port visits. While the fee may seem insignificant for a single passenger, it can accumulate into substantial costs for cruise lines during the season.
Faced with this fee structure, cruise lines must decide whether to pass the costs onto travelers or absorb them internally—both options present challenges to their business models. Consequently, many operators are choosing to avoid Icelandic ports until a more favorable arrangement regarding the new fee can be negotiated.
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At CruiseShip.net, our editorial team is made up of passionate travelers, seasoned cruisers, and maritime industry enthusiasts who live and breathe life at sea. From the latest ship launches and destination spotlights to detailed reviews and onboard tips, we are dedicated to helping readers discover the joy of cruising. Our mission is to make every article both inspiring and useful, whether you are planning your first voyage or your fiftieth. We research, fact-check, and collaborate with cruise insiders around the world to bring you accurate, up-to-date, and exciting coverage of the global cruise industry. Join us as we chart new horizons, exploring one port, one ship, and one unforgettable experience at a time.
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