U.S. border crackdown and unpopular policies weigh on Icelandic tourism outlook
A surge of negative news from the U.S.—including stricter border controls and Donald Trump’s growing unpopularity in Europe—is casting a shadow over Iceland’s tourism sector in 2025, according to a new report from Landsbankinn. The outlook is further clouded by broader global turbulence. Analysts suggest these developments are already dampening international travel demand and may help explain the year-on-year drop in tourist arrivals recorded in March.
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