Travel interest in Iceland plummets as agency reports unprecedented booking declines due to volcanic activity near Grindavík

Interest in travel to Iceland has plummeted, with a British travel agency owner characterizing the situation as “absolute collapse.” Clive Stacey, who has been selling trips to Iceland for decades through Discover the World, reported unprecedented declines in bookings since November 2023, attributing this downturn to volcanic activity near Grindavík. He noted, “We have never seen anything like this in my 50 years in the industry; it is extraordinary.”

Initially, seismic activity on the Reykjanes Peninsula was seen as a positive development, but the eruption of the Sundhnúkur craters in December drastically changed perceptions. Major news outlets, including reputable ones, amplified the risks associated with Iceland, leading to widespread misconceptions that the entire country is hazardous. Stacey’s agency has attempted to counteract this misinformation through education and accurate reporting, yet interest in Icelandic travel has waned significantly. For now, school trips for children and teens are witnessing increased demand, as teachers can better explain the situation to parents.

In a striking shift, for the first time in 40 years, Discover the World is selling more trips to Norway than to Iceland. The agency usually sells between 5,000 to 6,000 trips to Iceland annually but anticipates fewer than 1,000 for this year. Stacey emphasized that while Norway offers similar natural beauty, it lacks the volcanic activity that currently deters travelers from choosing Iceland.

Stacey called on Icelandic authorities to launch a robust marketing campaign, akin to the efforts following the 2010 Eyjafjallajökull eruption, to dispel ongoing uncertainty and promote Iceland as a safe travel destination.