Iceland Joins Greece, Mexico, Bahamas, Barbados, and Scotland in Making Cruise Taxes the New Norm for Travel
Iceland has officially joined Mexico, the Bahamas, Barbados, and Scotland in making cruise travel taxes the new norm. With its newly introduced passenger tax, Iceland is following a growing global trend of regulating cruise tourism, funding local infrastructure, and managing overtourism. As more destinations adopt similar measures, the days of tax-free cruising are rapidly fading, reshaping the industry for travelers and cruise lines alike.
If you’re planning to set sail, it’s time to factor in these extra costs—because cruise taxes are fast becoming the new norm.
Iceland’s Cruise Tax Shakes Up the Industry
As of January 1, 2024, Iceland has implemented a 2,500 ISK (£14.35 or $18) per person, per 24-hour tax on cruise passengers—regardless of when the trip was booked. While the government insists the revenue will help maintain ports and infrastructure, the cruise industry isn’t happy.
The Cruise Lines International Association (CLIA) has called the tax a “cause for concern,” arguing that it unfairly burdens travelers. And they might have a point—some ports are already feeling the impact. Destinations like Grundarfjörður, Vestmannaeyjar, Akureyri, and Faxaflói are seeing cancellations, and bookings in certain locations have dropped by 17%.
