Cruise Ship Visits Collapse in East Iceland Ports
East Iceland faces economic crisis as cruise ships abandon ports due to new passenger fees. Municipalities project billion-króna losses as ship visits plummet. Remote coastal towns struggle to replace disappearing tourism revenue.
Cruise companies are shortening Iceland visits due to new passenger fees. Smaller Icelandic ports face devastating economic losses. Borgarfjörður port in East Iceland expects near-total disappearance of cruise ships within two years. Djúpivogur will lose half its cruise traffic.
The Múlaþing municipality projects revenue losses exceeding one billion Icelandic króna. That equals roughly $7.2 million USD. Cruise ship numbers at Borgarfjörður drop from 22 this year to just 1 by 2027. Djúpivogur declines from 59 ships this year to 31 within two years.
Seyðisfjörður also faces reductions from 92 to 71 ships. Overall, Múlaþing municipality drops from 173 to 103 cruise visits. Last year recorded 181 ship visits to these eastern fjords.
Why are cruise lines abandoning Iceland? New government fees make visits more expensive. Each passenger now pays 2,500 ISK daily while ships remain in Icelandic waters. That applies to larger international vessels.
Smaller expedition ships also lose tax-free status. Many may bypass Iceland entirely by sailing to Greenland and Faroe Islands instead. This shift particularly hurts remote eastern fjords that depend on tourism revenue.
Local officials described the situation as catastrophic for coastal communities. The rapid decline leaves little time for towns to develop alternative income sources. These fee changes demonstrate how national policies can disproportionately impact rural regions.