Cruise ships are reportedly being pushed away from Icelandic destinations due to a new infrastructure tax that was introduced in 2025.

The Iceland Monitor reported that the effects of the new fee are being felt especially in rural communities, which are said to be facing economic setbacks because of it.

Mentioning data from Cruise Iceland, the local news source noted that cruise ship calls dropped sharply, with advance bookings through 2027 falling by over 50 percent in some ports.

The organization submitted the data to Iceland’s Parliamentary Committee on Economic Affairs and Trade.

According to the Iceland Monitor, the country’s new tax is substantially higher than comparable charges in neighboring countries.

“The situation is seriously bleak, especially for communities outside the capital,” said Sigurður Jökull Ólafsson, managing director of Cruise Iceland.

As previously reported by Cruise Industry News, Iceland announced plans to introduce a new infrastructure tax in late 2024.

The fee took effect on Jan. 1, 2025, and requires cruise passengers to pay a daily fee of 2,500 ISK (roughly $18) while visiting a port in the country.

At the time, local government officials estimated that the new tax could generate over $10 million for the state.

In early 2025, industry leaders voiced concern over the fee, with Cruise Iceland warning of potential impacts of the measure.

In a statement published at the time, MSC Cruises’ Port Operations Director, Francesco de Curtis, expressed surprise over the new law.

“This new proposed Infrastructure Fee is at a level where it could affect our assessment of the viability of Iceland in our future itineraries and plans,” he said in the message directed to Akureyri Port officials.

Iceland traditionally has hosted a significant number of mainstream cruise ships, in addition to serving as a major destination for expedition vessels in the Arctic region.