Keflavík Airport Sees Slight Dip in International Arrivals for 2025 Amid Marketing Concerns

2025 International Arrivals at Keflavík International Airport

Keflavík International Airport (KEF), Iceland's primary international gateway, registered 2.253 million international arrivals in 2025. This figure represents a 0.4% decrease compared to the 2.261 million arrivals recorded in 2024. The airport handles approximately 99% of all international flights to Iceland, making its performance a key indicator for the nation's tourism sector.

Analysis of the inbound markets revealed shifts in visitor demographics. The United States remained the largest source country, contributing 0.65 million arrivals, followed by the United Kingdom with 0.45 million. Other significant markets included Germany (0.15 million), China (0.12 million), and France (0.10 million). These top five markets collectively accounted for 54% of all inbound arrivals. Notably, China showed the fastest growth, with a 29.2% increase year-on-year, alongside growth from Switzerland (+20.9%) and Sweden (+17.7%). Conversely, the largest declines were observed from Poland, which saw a 28% decrease, and the Baltic States, with a 25% drop in arrivals.

Concerns Over National Tourism Marketing

The marginal decrease in international arrivals has intensified discussions among Icelandic tourism leaders and experts regarding the country's national marketing strategy. Concerns have been raised that reduced national marketing efforts may be impacting demand, particularly outside the peak summer months. Industry representatives have advocated for renewed investment in Iceland's international promotion, emphasizing the importance of supporting travel during the autumn, winter, and spring shoulder seasons.

Experts noted that while private companies continued to promote Iceland abroad, the government had scaled back its global tourism campaigns. Senior figures in the industry have pointed out that competing countries have intensified their branding efforts, suggesting that Iceland risks falling behind due to its diminished promotional activities. Pétur Þ. Óskarsson, managing director of the Icelandic Tourism Board, highlighted that 'recent booking trends are troubling, especially outside the peak summer season,' and noted that Iceland had previously benefited from sustained consumer marketing between 2010 and 2022.

Other Factors and Infrastructure Developments

Beyond marketing, other factors influenced Iceland's tourism landscape in 2025. The bankruptcy of the low-cost airline Play during the year created a significant gap in the market, particularly affecting budget-conscious travelers. Additionally, Iceland reintroduced a tourist tax on January 1, 2024, aimed at funding sustainable tourism development and infrastructure improvements.

Keflavík Airport itself continued its expansion efforts, with a major expansion of the new east wing opening in 2025. This development increased the terminal's total area by 30%, including an expanded arrivals hall and new baggage reclaim facilities, designed to enhance the passenger experience and accommodate future growth.

Outlook for Icelandic Tourism

The 2025 figures underscore a critical juncture for Iceland's tourism industry. While the country remains a popular destination, the slight decline in arrivals and the ongoing discussions about marketing strategies highlight the need for a cohesive and sustained approach to maintain its competitive edge in the global travel market. The call for consistent, long-term marketing efforts, rather than crisis-driven campaigns, reflects a broader understanding within the industry that strategic promotion is vital for Iceland's continued success as a premier tourist destination.