Full Year Analysis
The year in context
With 2,267,638 foreign passengers through Keflavík Airport, 2025 ranks 2nd of the 23 complete years on record, 98% of the record set in 2018. Against 2019, the last full year before the pandemic, arrivals were up 14.2%. Compared with the average of the five preceding years (excluding 2020 and 2021), 2025 came in ahead by 8.2%. It was also the record year for foreign hotel nights.
Overall Performance
2025 marked continued recovery and growth for Iceland's tourism sector. Foreign visitors recorded 4,865,594 overnight stays in hotels throughout the year, an increase of 8.9% compared to 2024's 4,469,599 nights.
Spending Trends
Tourist card spending totaled 361 billion ISK in 2025, up 2.5% from 2024. On a per-night basis, spending averaged 74k ISK, a decrease of 5.8% year-over-year. Spending growth lagged behind volume growth, indicating some pressure on per-visitor expenditure.
Seasonal Patterns
Aug was the busiest month with 618,454 foreign overnight stays, while Jan recorded the lowest volume at 256,429 nights. Average hotel occupancy ranged from winter lows to summer peaks, with a full-year average of 67.2%.
Source Markets
United States of America remained Iceland's largest source market, accounting for 31.4% of foreign overnight stays. United Kingdom (12.3%) and Germany (8.4%) rounded out the top three. Notable growth came from China, Other Asian countries, Spain.
Data Sources
- Overnight Stays: Statistics Iceland (Hagstofa Íslands)
- Occupancy Rates: Statistics Iceland
- Card Spending: Central Bank of Iceland (Seðlabanki Íslands)