Faroe Islands tourism revenue hits 1.4 billion krona in 2025 despite slowing visitor growth

Tourism generated 1.4 billion krona (approx. €185 million) for the Faroe Islands in 2025, though visitor numbers appear to have stagnated, according to an annual report by VisitFaroeIslands cited by Faroese broadcaster Kringvarp Føroya.

Around 130,000 international tourists visited the islands last year—the same figure as 2024—yet average spending per visitor rose to 9,700 krona (€1,300), an 800-krona increase from the previous year’s 8,900 krona. The total revenue matched the entire 2025 budget of Tórshavn Municipality, the capital.

Short-term rentals, regulated for the first time in 2025, contributed 160 million krona (€21.3 million) to the economy. Some 1,200 properties—including apartments, cottages, and camper vans—were listed on platforms like Airbnb and Booking.com, with an average nightly rate of 1,200 krona (€160). These rentals accounted for roughly 132,000 booked nights over the year.

The sector employed 600 people in 2025, a slight increase from 580 in 2024, with women making up 70% of the workforce. Tourism now represents 7.6% of the Faroe Islands’ total export value.