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Cruise lines cut Iceland over fee hike

10 Feb 2025
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Iceland could lose over 80 cruise ship port calls in 2025 following a sharp increase in cruise passenger fees introduced in January.

On January 1, Icelandic authorities raised the infrastructure fee for cruise passengers at the country’s ports to ISK2 500 (R330) per passenger per day, nearly five times the 2024 rate. This fee applies retroactively, regardless of when the cruise was originally booked, reports independent.co.uk.

While the Icelandic Ministry of Finance and Economic Affairs downplayed the impact of the fee, industry experts disagree. Sigurður Jökull Ólafsson, the Chairman of Cruise Iceland, reported a 17% drop in cruise ship call bookings at popular cruise ports for 2025 compared with 2024. He warned that the rushed implementation of the fee was causing disruption for cruise operators, ports and local businesses.

MSC Cruises Port Operations Director, Francesco de Curtis, wrote to Akureyri Port, saying that the fee might impact MSC’s future itineraries and calls in Iceland. The Cruise Lines International Association (CLIA) also said the infrastructure fee was a “cause for concern”.

“This fee is disproportionate compared to similar charges in the travel and tourism sector. We are calling on the new government to address these concerns and ensure that decisions regarding port fees enhance the experience for travellers while directly benefiting local communities and supporting sustainable growth,” said CLIA.

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