Iceland expects decline in number of tourists from the US

Americans have long been the largest group of tourists in Iceland. About 620,000 out of 2,2 million tourists that arrived via Keflavik Airport in 2024 were Americans.

The Icelandic bank Landsbankinn now predicts a decline in tourism, primarily due to the uncertain political situation in the US, according to RÚV.

Tariffs and overall economic instability mean that Americans have less disposable income and are more likely to cancel travel plans, says Hjalti Óskarsson, an economist in Landsbankinn’s analysis department.

A possible decline in European travel to the US may also impact Icelandic tourism, as European tourists often make stopovers in Iceland on their way to the United States.

“In the longer term, if tourists decide not to travel to the US, they might opt for a longer stay here instead. Our recent forecast suggests that despite a projected decline this year, tourism is expected to pick up again in 2026 and 2027,” states Óskarsson.