Couples on cruise ships in Iceland now pay six times more in infrastructure fees than hotel guests pay for overnight stays. Each cruise passenger pays 2,500 ISK daily, while hotel rooms in Reykjavík cost 800 ISK per night regardless of occupancy. This means couples on cruise ships pay 5,000 ISK daily compared to 800 ISK for hotel accommodation.
For a typical five-day Iceland visit, cruise ship couples pay 25,000 ISK in infrastructure fees. The same stay in a hotel costs only 4,000 ISK in overnight taxes. The difference amounts to 21,000 ISK.
The infrastructure fee took effect this year following parliamentary approval last November. Thirty lawmakers from the Independence Party, Progressive Party, and Reform Party supported the measure. Twenty legislators abstained, and no one voted against it.
Finance Minister Sigurður Ingi Jóhannsson stated the fee aims to level competition between domestic and foreign tourism companies. He referenced Iceland's tourism strategy through 2030, approved unanimously by parliament last June with 57 votes.
The policy developed through years of tourism planning. Hotel owners strongly advocated for the fee, while cruise service providers opposed it without success.
Now politicians recognize the fee's serious consequences for rural areas. Harbor funds and businesses serving cruise tourists face significant harm. The overall national economy might suffer if reduced cruise arrivals cause greater revenue loss than the fee generates.
Urban hotel owners argued cruise ships damaged their interests. Their lobbying influence appears stronger than rural concerns.
The reality remains that cruise tourism complements rather than competes with Reykjavík hotels. It brings additional visitors who otherwise might not visit Iceland.
Parliament now faces the challenge of minimizing damage while supporting this growing tourism sector.