Iceland, often called the ‘Land of Fire and Ice,’ is a land of stunning contrasts and fascinating history. It’s one of the youngest landmasses on Earth and was the last place humans settled, discovered accidentally by Norwegian Vikings over 1,100 years ago.
This unique island is home to nearly 300 glaciers and many of these icy giants sit atop active volcanoes. Beneath the frozen landscape flows some of the planet's hottest magma, shaping Iceland’s dramatic scenery with lava fields, ash plumes and geysers.
It’s a place where nature’s extremes come together in breathtaking harmony. It’s also a great tourist destination!
Keep reading for some Iceland tourism statistics and tourism in Iceland facts!
Overview of Iceland's Tourism Industry: Key Insights
So, this is how many tourists visit Iceland annually. Like all countries, the pandemic hit Iceland, with numbers quartering in 2020 compared to 2019. However, tourism has recovered strongly since 2022.
According to the Icelandic Tourist Board, visitor numbers increased by 146% in 2022 compared to 2021. The recovery continued as tourism surpassed pre-pandemic levels in 2023, with a 31% increase from 2022's figures.
The breakdown of visitor nationalities to Iceland shows clear patterns. The United States leads as the top source of visitors to Iceland, followed by:
- USA: 629,015 (28.3%)
- UK: 279,059 (12.5%)
- Germany: 136,490 (6.1%)
- Poland: 134,427 (6%)
- France: 99,208 (4.5%)
So, does Iceland get a lot of tourism? Compared to other countries, not necessarily, but the majority of people visit Iceland for holiday reasons, followed by:
- Holiday: 92%
- Visit family/relatives: 2.3%
- Business: 2.9%
- Health-related, educational, etc.: 1.6%
- Visit without an overnight stay: 1.1%
Travelers tend to stay in Iceland the longest during the summer months, with June (7.5 nights), July (8.2 nights), August (8.4 nights) and September (7.5 months), the popular periods.
So, where are tourists in Iceland going and what is the most visited city in Iceland? Foreign guests traveled all over Iceland, with the most popular regions being:
- Höfuðborgarsvæðið (Capital Region): 89%
- Suðurland (Southern Region): 79%
- Suðurnes (Southern Peninsula): 65%
- Vesturland (Western Region): 46%
- Norðurland Vestra/Norðurland Eystra (Northwestern Region/Northeastern Region): 32%
- Austurland (Eastern Region): 28%
- Vestfirðir (Westfjords): 13%
What percentage of Iceland’s economy is tourism? Tourism is quite important to Iceland and its economy, with tourism in Iceland generating 8.5% of Iceland’s GDP.
But why do tourists visit Iceland? Let’s learn why!
Iceland's Most Visited Attractions and Regions
Iceland’s stunning landscapes and unique attractions make it a dream destination. Whether you’re into breathtaking nature, fascinating history or charming towns, Iceland has something for everyone. Here’s a quick guide to some Iceland tourist attractions to add to your itinerary:
- Reykjavík: Start in the vibrant capital with its iconic Hallgrímskirkja church, Harpa Concert Hall and fascinating museums. It’s a great mix of culture, history and fun!
- Blue Lagoon: Relax in the famous geothermal spa with its warm, milky-blue waters, surrounded by black lava fields — a perfect start or end to your trip.
- Golden Circle: See Iceland’s history and natural wonders, including Thingvellir National Park, the geysers at Strokkur and the stunning Gullfoss waterfall.
- Jökulsárlón Glacier Lagoon: Marvel at glittering icebergs and visit nearby Diamond Beach for unforgettable views.
- Seljalandsfoss: Walk behind this stunning waterfall and explore nearby hidden gems like Gljúfrabúi and Skógafoss.
- Lake Mývatn: Discover volcanic landscapes, relax in the Nature Baths and explore dramatic sites like Krafla Caldera.
- Vík: Admire the black sand beaches, volcanic sea stacks and cliffs teeming with puffins. A great spot for northern lights in winter!
- Snæfellsnes Peninsula: Known as ‘Iceland in miniature,’ this area offers lava fields, waterfalls, fishing villages and the majestic Snæfellsjökull glacier.
- Vatnajökull National Park: Explore Europe’s largest glacier, volcanic landscapes and jaw-dropping waterfalls like Svartifoss.
Cultural Experiences in Iceland
Iceland is full of life and its festivals are a great way to experience the culture. Whether it's the long summer days or the crisp winter nights, Icelanders know how to celebrate. From Viking battles and national pride to stunning lights and fresh seafood, there’s always something exciting happening. Here are some of the must-see festivals in Iceland:
- Winter Lights Festival (February): Reykjavík lights up with glowing art displays, cultural activities and free access to museums and pools. It’s a magical way to enjoy winter and welcome longer days.
- Viking Festival (June): Travel back in time in Hafnarfjörður, where modern-day Vikings in costume host battles, markets, storytelling and archery.
- National Day (June 17): Iceland celebrates its independence with parades, music and festivities across the country. In Reykjavík, the symbolic Lady of the Mountain appears in traditional dress to read a special poem.
- The Great Fish Day (August): Head to Dalvík for free seafood tastings, grilled fish and fun along the harbor. It’s a delicious way to celebrate Iceland’s fishing heritage.
What to Eat in Iceland: Food to Keep an Eye Out For
Iceland’s food is a blend of tradition and innovation, shaped by its rugged climate and deep-rooted history. From hearty lamb and fresh seafood to ancient preservation methods like drying and fermenting, whether dining at a local café or a fine-dining restaurant, there’s something for everyone.
Here’s a quick guide to some must-try Icelandic foods:
- Icelandic Hot Dogs: A budget-friendly favorite made from lamb, pork and beef, topped with toppings like onions, mustard and remoulade.
- Fish and Chips: Fresh, crispy and found across the country.
- Kjötsúpa (Lamb Soup): A comforting stew with tender lamb and root veggies.
- Harðfiskur (Dried Fish): Protein-packed and perfect with butter.
- Plokkfiskur (Fish Stew): A creamy dish of fish, potatoes and onions.
- Rúgbrauð (Rye Bread): Sweet, dense bread baked using geothermal heat.
- Skyr: A creamy, yogurt-like dairy treat.
- Hangikjöt (Smoked Lamb): Uniquely smoked over birch or sheep dung for a bold flavor.
- Kleina: Iceland’s take on doughnuts — lightly fried and sugary.
- Pönnukökur (Icelandic Pancakes): Thin crepes filled with jam or sugar.
From street snacks to gourmet plates, Iceland’s food offers a delicious way to connect with its culture. Don't forget to bring your appetite and an open mind!
Best Time to Visit Iceland: Seasons and Highlights
Iceland's weather is famously unpredictable, but that’s part of its charm! Thanks to the Gulf Stream, the climate is cooler yet milder than you might expect for its northern location. Locals say, “There’s no such thing as bad weather, only bad clothing,” and that’s a handy tip for visitors.
Whatever the season, pack windproof and waterproof outerwear along with some cozy thermal layers to stay comfortable on your adventures. While Iceland isn’t buried in snow as its name suggests, winter brings occasional snowfall that often melts within days, except in higher altitudes or North Iceland. Rain is more common — especially in October, the wettest month — and strong northern winds can bite. For winter visits, a warm insulated jacket is a must!
Here's a bit about Iceland's weather in a nutshell:
- Summer Weather: Iceland is surprisingly mild in summer, with temperatures ranging from 5°C (41°F) at night to 25°C (77°F) on warm days. Reykjavik sees nearly 24 hours of daylight and the northern parts experience the Midnight Sun.
- Winter Weather: Winters are chilly but not extreme. Average temps in January hover around -0.5°C (31°F) in Reykjavik and dip to -10°C (14°F) in the highlands. The record low was -39.7°C (-39.5°F) in 1971. Expect long nights with only a few daylight hours from November to January.
- Northern Lights: Best seen from late autumn to early winter, Iceland offers incredible views of the Aurora Borealis.
- Rain, Snow & Wind: The south is wet and windy but rarely sees snow, while strong winds can reach 80.5km/h (50mph). Iceland's weather can change rapidly — sometimes all four seasons in a single day.
- Ocean Influence: The Gulf Stream keeps Iceland warmer than expected for its latitude. Sea temperatures range from 2°C (36°F) in winter to 10°C+ (50°F) in summer, slightly cooler in the north and east.
- Thunderstorms: Rare, with fewer than five per year, mostly in late summer. Thunderstorms are occasionally linked to volcanic eruptions.
Prepare for varied weather, stunning natural light shows, and mild summer days—perfect for exploring!
How to Get Around Iceland: Travel Tips for Visitors
Exploring Iceland is an adventure and getting around can be as straightforward or flexible as you prefer. While you’ll likely be getting around by car and using the Ring Road, there are other options you should also know about. Whether you’re driving, flying or hopping on a bus, Iceland’s stunning landscapes make traveling around the country worthwhile.
Here’s a breakdown of your transportation options when in Iceland:
By Car
- Best Option: Renting a car is ideal for flexibility, especially for the famous Ring Road (Route 1) that loops around Iceland’s stunning coastlines.
- Seasonal Considerations: In summer, most areas are accessible with a regular car. In winter, 4x4s are better for icy or snowy roads.
- Tips: Watch for gravel roads and single-lane bridges. Fuel up in advance, as gas stations can be sparse.
- Camper Vans: Great for saving on accommodation but pricier than cars.
By Bus
- Public Buses (Strætó): Operates within Reykjavík and to major towns, but services are limited in winter.
- Tour Buses: Many companies offer day trips to major attractions and seasonal highland routes in summer.
- Cost: Buses can be expensive compared to car rentals, especially for groups.
By Air
- Fast & Scenic: Domestic flights are quick and affordable for longer distances.
- Main Airline: Air Iceland Connect offers routes to major towns and scenic spots.
- Winter Travel: A good option when road conditions are challenging.
Other Options
- Cycling: Budget-friendly in summer, but tough due to unpredictable weather and gravel roads.
- Taxis & Private Drivers: Convenient but very expensive. There are also no ride-share apps like Uber or Lyft.
- Ferries: Travel to islands like the Westman Islands or Grímsey during the summer months.
Seasonal Tips
- Summer (June–September): Most roads and buses operate; perfect for exploring highlands and remote areas.
- Winter (October–May): Road conditions can be tricky, with fewer transport options. Consider flights or guided tours.
Top Travel Mistakes to Avoid When Visiting Iceland
Iceland, the land of fire and ice, is a dream destination for many travelers, but Iceland’s wild beauty comes with unique challenges. Unpredictable weather, remote wilderness and delicate ecosystems require visitors to tread carefully.
To make sure you have a safe and unforgettable experience, here are some key dos and don’ts to keep in mind when traveling to Iceland.
Dos:
- Check Weather Forecasts Religiously: Icelandic weather can change in an instant. A sunny morning may turn into a windy snowstorm by noon. Always check the Safe Travel website or app for real-time weather updates and alerts.
- Dress for the Elements: Layer up with warm, waterproof clothing and invest in proper hiking boots. Whether it’s winter or summer, Iceland’s outdoor adventures demand gear that can handle cold winds, rain and rugged terrain.
- Stick to Designated Roads: If you're renting a car, know the limits of your vehicle. F-roads (mountain roads) require 4WD vehicles and river crossings can be treacherous. Never drive off-road — it’s illegal and damages Iceland’s fragile landscape.
- Respect the Pool Culture: Shower before entering public pools and then enter naked — it’s a standard hygiene practice in Iceland and no one will judge you for it. Public geothermal pools are a must-visit, so follow the rules and enjoy!
Don’ts:
- Don’t Ignore Safety Warnings: Danger signs exist for a reason. For example, powerful ‘sneaker waves’ at beaches like Reynisfjara can sweep people into the ocean. Always heed warnings and stay a safe distance from hazards.
- Don’t Fear Speaking Icelandic: While most Icelanders speak fluent English, trying simple Icelandic phrases like góðan daginn (good day) or takk (thank you) is appreciated.
- Don’t Book at the Last Minute: Iceland’s high season (summer) sees accommodations filling up fast. Book early to secure better prices and options for hotels, tours and rental cars.
- Don’t Buy Bottled Water: Icelandic tap water is among the purest in the world. Bring a reusable bottle and refill it at taps for free!
Post-Pandemic Recovery: How Tourism Rebounded in Iceland
Iceland is facing tourism problems with over tourism in popular spots like Geysir hot springs, where heavy foot traffic threatens the environment. With a population of only 383,000, the country nearly reached its expected 2.3 million visitors in 2023, nearly 6 times its population.
Tourism accounts for 8.5% of Iceland's GDP, up from 7.5% in 2022. While it’s a major economic driver, the Iceland Tourism Strategy uses tools like a ‘sustainability balance check’ to monitor environmental and social impacts. Indicators signal if nature or society is under strain (green, yellow, red). If damage is detected, stricter controls are introduced to protect key attractions.
To manage these impacts of tourism in Iceland, the country reinstated a tourism tax of 600 ISK ($4.34) per hotel stay and applied similar fees to campsites, mobile homes and cruise ships. This tax funds sustainability efforts and helps regulate tourist flow. The government also plans to adjust fees based on seasonal demand to ease pressure on natural sites.
Conclusion
This diverse terrain makes for stunning scenery but being so isolated, it can be hard to plan a trip. You might find it easier to book a private Iceland tour guide who can tailor a tour to your interests and help you get around, fitting in everything you want to see. You can also book a pre-organized private tour!
