Icelandic tourism operators express concerns over new infrastructure fee impacting cruise visits to Djúpavogur

Tourism operators serving cruise passengers in Iceland are raising concerns about a newly introduced infrastructure fee, asserting that it could lead to more cruise cancellations. With three cruise lines having already cancelled their visits to Djúpavogur for next summer, local businesses fear the financial repercussions.

Páll Guðbrandsson, who operates bus services in Hornafjörður and Djúpavogur, expressed that the abrupt decision to implement this fee—effective at the start of the new year—targets cruise passengers directly, charging 2,500 Icelandic króna per passenger per night. This new levy significantly contrasts with the existing accommodation tax, which amounts to 600 króna per room. With a majority of cruise passengers being couples, this means the fee translates to a tenfold increase in the cost to visitors.

The cruise season ended in September, leading bus companies that transport tourists to stunning destinations, such as Jökulsárlón and Fjallsárlón, to brace for a quieter summer. Before this decision, approximately 60 cruise ships docked in Djúpavogur each summer, representing vital traffic for local tour providers.

Despite concerns about the fee impacting the tourism sector, cruise operators argue that their services provide competitive advantages, contributing positively to the industry. If the fee remains unchanged, shipping companies may be forced to absorb the cost, prompting a reassessment of their operations.

This infrastructure fee is viewed critically by local business leaders, who argue it could diminish tourism revenue in rural ports like Djúpivogur, Húsavík, Seyðisfjörður, Grundarfjörður, and Ísafjörður, hampering economic growth in Iceland’s less populated areas.