The majority of the Economic and Trade Committee of Alþingi now proposes a significant reduction to the planned infrastructure fee for cruise ship passengers, and that the removal of duty-free status for cruise ships operating domestic routes be abandoned. The changes appear in the committee’s opinion on the Minister of Finance’s bill connected to next year’s national budget.
Originally, the fee was set to be 2,500 ISK per passenger per day, but the new proposal lowers it to 1,600 ISK. Ports across the country have, in recent months, expressed serious concerns about the government’s plans. Numerous ports — including the Ports of Norðurþing — have already seen signs of substantial downturn effects, as cruise lines reevaluate port calls and even cancel visits due to the accumulation of new charges. The Association of Icelandic Municipalities and Cruise Iceland have strongly opposed the measures, warning of their impact on local economies, tourism, and regional sustainability.
Although the government is now scaling back part of the proposed increases, it is clear that the announced changes have already had a significant effect on the number of cruise ship calls scheduled for 2026, based on booking figures.
