In recent decades Iceland has gone from being a remote place that few people knew about to being one of the most desired tourist destinations, and the cruise industry has not been immune to this.
Article from CruisesNews magazine no. 70 – September 2024
Social media has brought visibility to unique and spectacular landscapes, thanks to the excellent work of the Visit Iceland tourism department, which creates fresh and vibrant promotional videos.
We can probably place the big leap in 2010, with the unforgettable viral video where all sorts of Icelanders danced in the island's most beautiful locations to the catchy rhythm of the hit song "Jungle Drum." At the height of the Facebook and YouTube boom, it was one of the first global viral sensations, and it made us all want to go to Iceland.
Although tourism had been growing in the previous decade, from 2007 to 2010 Iceland stagnated at around half a million visitors annually. From 2010 onwards, growth skyrocketed, and just four years later, in 2014, it was approaching one million visitors, a figure that would double again just three years later, in 2017, reaching 2.2 million visitors.
From receiving around 100,000 cruise passengers in 2017, it has gone to 306,000 in 2023.
The pandemic slowed that growth, and the forecasts for this year are 2.3 million visitors, 2.4 million for 2025 and 2.5 million for 2026.
Regarding cruises, in Reykjavik, between 2012 and 2016, passenger numbers ranged from 90,000 to 100,000, but from 2017 onwards, a surge began, peaking in 2019 with 188,630 passengers and 180 port calls. After the pandemic, in 2022, 170,770 cruise passengers arrived on 184 port calls, and NCL launched the Norwegian Prima in Reykjavik, which has become a regular visitor to the Icelandic capital, even embarking passengers there.
This increase in port calls and embarkations boosted passenger numbers to 306,311 cruise passengers across 261 port calls in 2023. Similar figures are expected for 2024, with 308,584 passengers and 258 port calls.
These figures can be considered representative of how many unique cruise passengers Iceland receives, since all cruises pass through Reykjavik.
In Akureyri, Iceland's second most important port, the jump has been similar, from 146,016 passengers and 155 calls in 2019 to 247,698 passengers and 209 calls in 2023.
If we look at the overall figures for all of Iceland's ports, grouped under Cruise Iceland, and take into account that ships and passengers are counted two or three times if a ship calls at two, three or more ports on the island, in 2023 there was a real boom with 995,361 passenger visits and 1,193 port calls, almost doubling the previous year.
This has been due to a significant increase in turnaround operations, thanks to the good connections of Reykjavik airport with the US, and to increasingly larger ships, as ships now make stops at three or four Icelandic ports instead of the one or two stops that were made years ago.
Reykjavik
, the capital of Iceland, forms a metropolitan area with five other municipalities (Kópavogur, Hafnarfjörður, Garðabær, Mosfellsbær, and Seltjarnarnes) that reaches 245,000 inhabitants compared to a total population of the country of 398,000. Outside the capital, no municipality exceeds 20,000 inhabitants.
Reykjavik has an operational cruise line (OPS) for expedition cruises and will have a more robust connection for larger ships by 2027. A new cruise terminal for turnarounds is also under construction and is expected to be completed in 2026.
The city boasts architectural landmarks such as Hallgrímskirkja, the iconic peak-shaped Lutheran church designed by architect Guðjón Samúelsson, which is the tallest building in Iceland.
We can also visit the Harpa Concert Hall and Conference Centre, a modern glass building located in the harbor whose facade is inspired by basalt crystals and changes color depending on the daylight. Or the Perlan Museum, to learn about the island's geothermal activity, with its glass dome housing a revolving restaurant and an observation deck offering 360-degree views of Reykjavik and its surroundings.
Laugavegur is Reykjavik's most famous shopping street and is full of shops, cafes, and buildings of architectural interest, showing a mix of old and modern styles, not far from Höfði House, a historic wooden building famous for hosting the summit between Ronald Reagan and Mikhail Gorbachev in 1986, which marked the beginning of the end of the Cold War.
Reykjavik is building a new cruise terminal for turnarounds that will be ready in 2026.
But without a doubt, the most popular excursion in Reykjavik, and what most cruise passengers expect to see, is the Golden Circle.
This is a circular route that starts in Reykjavik and visits three major tourist attractions: Thingvellir National Park, the Geysir Geothermal Area, and Gullfoss Waterfall.
In Thingvellir National Park, a UNESCO World Heritage Site, you can take a long walk enjoying different points of interest and viewpoints, but on cruise excursions, there is only time to stop at the Almannagjá fault visitor center and walk through the canyon that separates the Eurasian tectonic plate from the North American plate, which is still quite an experience.
In the Gesyr geothermal area we can enjoy geyser eruptions, something that only occurs in half a dozen places in the world.
Finally, Gullfoss Waterfall is a true spectacle of nature where the earth opens up into the wide channel of the Hvítá River, forming two waterfalls of 11 and 21 meters over a narrow 70-meter cliff where the flow concentrates and emits a deafening roar. It is one of those places where you truly feel very small.
It's not part of the Golden Circle, but another very popular excursion in Reykjavik is to the Blue Lagoon, a huge spa with milky blue waters at 39º with great benefits for the skin, especially for psoriasis patients, although anyone can enjoy such a magical and special place as this.
Akureyri
is Iceland's fourth largest city, with just under 20,000 inhabitants, and is located on the western side of the Eyjafjörður fjord in northern Iceland. It is very close to the Arctic Circle, but enjoys a milder climate than the rest of the country thanks to the fjord's protection.
In Akureyri, cruise passengers can visit the Botanical Garden, the local museum, the geothermal pools, or go out to sea to watch whales, although cruise excursions usually offer a circuit that includes the impressive Godafoss waterfall, the geothermal area of Námaskard, where the hot ground “boils” in mud pools expelling sulfides, and Dimmuborgir, an area of extraordinarily shaped lava fields.
Ísafjörður
, in northwest Iceland, has only 3,946 inhabitants. It is a charming village that serves as a gateway to the Tungudalur Valley, the Westfjords, or the nearby island of Vígur.
Just a few minutes from Ísafjörður, the Tungudalur Valley is ideal for hiking, enjoying nature, and seeing Bæjarfoss waterfall. The Westfjords are one of Iceland's most scenic and least visited regions, full of winding roads that offer spectacular views of fjords, mountains, and secluded beaches. Whether explored by land or kayak, the views will not disappoint.
There is an increasingly positive feeling towards cruises in Iceland.
Vigur Island is known for its rich birdlife, including puffins, eiders, and Arctic terns. A tour of the island offers a unique experience of Icelandic nature and culture, with visits to old farmhouses and windmills.
Seydisfjordur
, in the East Fjords, is one of Iceland's most picturesque villages, and with only 659 inhabitants it is the country's fourth busiest cruise port with a record 95,000 passengers in 2023.
Seyðisfjörður is known for its old wooden buildings. The town has an interesting cultural scene, with an arts center and two museums. Concerts are held in the church, built in 1921, during the summer.
Cruise excursions also offer visits to the fishing village of Bakkagerdi and a traditional Icelandic lunch, before continuing to Álfaborg, a rocky hill, home to the fairy queen of Iceland. Nearby is Bakkagerdiskirkja, a charming 110-year-old church.
There are also excursions to the Skalanes Nature Reserve, and to the Hengifoss Waterfall; the latter requires physical effort to reach the waterfall from the parking lot, as it is a 45-minute walk and 2.8 km, plus the return.
Sigurdur Jökull Olafsson
President of Cruise Iceland and Marketing Director of Faxaflóahafnir (Associated Icelandic Ports))
Over the last decade, Iceland has experienced rapid tourism growth. What have been the most important factors behind this?
Iceland is a safe Arctic destination with good air connections to both the US and Europe.
Do you think Iceland has peaked in tourism?
Yes, I do. We have very high inflation and the Central Bank's interest rate is skyrocketing, and there's also a growing intolerance towards tourists in general, so it's very important that we ensure sustainable operations for our industry.
In fact, we've seen certain restrictions starting to be implemented, such as in the port of Ísafjörður, which has set a limit of 5,000 passengers per day. What is the general feeling regarding cruise tourism?
There's an increasingly positive sentiment towards cruises in Iceland, simply because we've faced the challenges and are working very hard to lead the way and do things right.
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