With unique views of the Northern Lights, dramatic landscapes, black sand beaches and geothermal spas, Iceland is a nature lover’s paradise.
But with news of another Icelandic airline folding, it appears tourists are no longer flocking to the Land of Fire and Ice.
Play, the airline, abruptly shut down at the end of September, becoming the second low-cost airline in Iceland to collapse in the last six years.
Iceland’s popularity boomed in the 2010s, partly thanks to the eruption of the Eyjafjallajökull volcano and the popularity of Game of Thrones.
This surge led to a massive increase in visitor numbers, from roughly 500,000 in 2010 to 2.2 million by 2018.
In recent years, tourism to Iceland has been in decline, with the country’s tourism bureau claiming international visitors have dropped six per cent in the last year.
Visitor numbers in 2023 were still lower than they were before the pandemic, according to The Telegraph.
This is likely due to the country’s high cost of living; Iceland is frequently named as one of the world’s most expensive destinations.
With unique views of the Northern Lights, dramatic landscapes, black sand beaches and geothermal spas, Iceland is a nature lover’s paradise
The chief executive of Icelandair – the national carrier of Iceland – said that advance bookings for US flights are lower than expected for the second half of this year.
It comes as data suggests that Europeans are being put off travelling to the US, in part due to the aggressive border enforcement that has seen some tourists detained.
Across the pond, more American travellers have shown interest in visiting Greenland, the world’s largest island.
The American airline United has opened a direct route between New York City and Greenland’s capital, Nuuk, which takes just over four hours, around 90 minutes less than the trip to Iceland’s capital.
But for travellers seeking an adventure holiday, Iceland is still a popular choice with a landscape that is hard to beat.
From tours of the Golden Circle to scenic drives along Iceland’s Ring Road, visitors can experience everything from glacier hiking to exploring ice caves and whale watching.
Some experts predict Iceland’s tourism numbers to bounce back in 2026, with some sources projecting visitor numbers to reach up to 2.5 million.
The New York Times claims the country is strategically using the lull in tourism to invest in infrastructure to handle future visitors more sustainably.
Iceland’s popularity boomed in the 2010s, partly thanks to the eruption of the Eyjafjallajökull volcano and the popularity of Game of Thrones
It seems that while Iceland has seen a dip in tourism in recent years, it could soon turn this around and once again be a popular destination for British travellers.
Iceland is one of the 29 countries using the new Entry/Exit System (EES) for visitors, as of October 12.
As part of Europe’s new biometric border checks, some travellers may be asked to demonstrate sufficient financial means in order to enter the Schengen area.
And each country is setting its own rules on what it deems as ‘sufficient’.
If travelling to Iceland, you will need to have €56 (£48.50) in your bank account if your funds are checked as you go in.