Icelandic authorities have introduced a new fee for cruise passengers of around £14 a day in aid of levelling out competition amongst tourism companies and to generate revenue for the government.
The law, approved in June last year, would see an “infrastructure fee” paid by each passenger on board an international cruise ship while the ship is anchored in a port in the country or customs territory.
The fee is around 2,500 ISK (£14.35) for each passenger per 24 hours and came into effect on 1 January 2025.
A spokesperson for the Icelandic Ministry of Finance and Economic Affairs told The Independent: “Operators of cruise ships in international navigation will be required to pay an infrastructure tax for each passenger entering the country’s customs territory, starting 1 January 2025.
“This obligation to pay the infrastructure tax applies regardless of when the trip was sold.”
The ministry also added that feedback regarding the infrastructure tax on cruise ships in international navigation was addressed during the drafting of the bill in Parliament.
In the ministry’s view, the collection of the infrastructure tax will not lead to an increased administrative burden for the operators of the ships, as operators already pay an accommodation tax, and the procedure for the infrastructure tax will be similar, except that operators will be given more time to pay the infrastructure tax.
The due date for the infrastructure tax will be seven days after the ship leaves the country’s customs territory, while the accommodation tax is taken on the same day the ship departs.
The ministry said that the number of cruise ships on international voyages visiting Iceland has increased significantly in recent years, which it said has put domestic tourism companies at a competitive disadvantage, especially as cruise ships only pay “limited taxes” at the moment, such as port and lighthouse fees.
“The goal of the tax is to level the playing field between domestic and foreign tourism companies,” it said.
It added that according to customs authorities, cruise ships on international navigation cruises typically spend just under two days in Icelandic waters per trip, meaning each passenger would pay an infrastructure tax amounting to ISK 5,000 (£28.75).
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