Iceland was once a remote paradise for adventure seekers, a land of dramatic landscapes, waterfalls, and glaciers untouched by mass tourism. But in recent years, it has become one of the most Instagrammed and overcrowded destinations in the world.
So, is Iceland still worth visiting in 2025, or has it become another overhyped tourist trap? Let’s break down why Iceland may not live up to expectations—and where you should go instead.
Read here best Iceland sim card for tourists and 9 Day Iceland Itinerary
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Why Iceland Might Be Overrated
1. Sky-High Prices That Shock Tourists
Iceland is one of the most expensive countries in the world—expect to pay $20+ for a simple burger and over $400 per night for a basic hotel.
Gas, groceries, and even public transport are outrageously expensive, making budget travel nearly impossible.
The famous Blue Lagoon entry price has skyrocketed (starting at $60+ per person).
Better Alternative: Norway – Equally stunning fjords, waterfalls, and landscapes, but less touristy and with more affordable camping options.
2. Overcrowded Hotspots & Instagram-Driven Tourism
Popular attractions like Skogafoss, Gullfoss, and the Blue Lagoon are packed year-round—don’t expect solitude.
People line up just to take the same photos they saw on Instagram, making the experience feel artificial.
Many hidden gems are no longer hidden—they’re overrun by buses and influencers.
Better Alternative: Faroe Islands – Similar rugged landscapes, waterfalls, and dramatic cliffs, but without the insane crowds.
3. The Weather Is Brutal
Icelandic weather is unpredictable—it can go from sunshine to storm in minutes.
Heavy winds, rain, and freezing temperatures make outdoor activities challenging.
Even in summer, expect cold temperatures and constant overcast skies.
Better Alternative: Scotland’s Isle of Skye – Equally mystical landscapes with better chances of good weather in summer.
4. The Northern Lights Aren’t Guaranteed
Many tourists come to see the Northern Lights, but cloudy skies and bad conditions often ruin their chances.
The best months for Northern Lights (September-March) are also the coldest and darkest months, making travel less enjoyable.
Many people leave disappointed after booking expensive trips with no light sightings.
Better Alternative: Lapland, Finland – Better weather conditions for the Northern Lights and unique experiences like glass igloos & husky sledding.
5. Tourist Scams & Overpriced Experiences
Tour companies charge ridiculous prices for simple excursions ($200+ for Golden Circle tours).
Rental car companies charge high fees and often blame tourists for fake damage to get more money.
Food and drinks are shockingly expensive, even from grocery stores.
Better Alternative: Greenland – Wild landscapes, untouched nature, and more authentic experiences at a lower cost.
6. The Blue Lagoon Is Not As Magical As It Looks
The Blue Lagoon is NOT a natural hot spring—it’s actually runoff from a geothermal plant.
Massively overcrowded, with long waits just to get in.
Expensive entry fees ($60+) make it feel more like a tourist trap than a relaxing experience.
Better Alternative: Myvatn Nature Baths – A less crowded, cheaper, and more natural hot spring experience.
When Is Iceland Still Worth It?
Despite its flaws, Iceland can still be a great destination—if you do it right.
How to Avoid the Overrated Side of Iceland
Visit in the shoulder season (April-May or September-October) to avoid extreme prices and crowds.
Skip the Golden Circle & South Coast—explore the Westfjords or East Fjords instead.
Camp or rent a campervan to avoid expensive hotels.
Choose local hot springs (like Reykjadalur) instead of the Blue Lagoon.
Self-drive instead of booking expensive tours.
Final Verdict: Is Iceland Overrated?
YES, if you:
Expect a cheap, easy, and Instagram-perfect experience.
Don’t like dealing with unpredictable weather.
Want solitude but only visit popular spots.
NO, if you:
Avoid the tourist traps and explore off-the-beaten-path locations.
Are prepared for high costs and extreme weather.
Want epic landscapes and adventure, no matter the challenges.
About the Author: Ruben, co-founder of Gamintraveler.com since 2014, is a seasoned traveler from Spain who has explored over 100 countries since 2009. Known for his extensive travel adventures across South America, Europe, the US, Australia, New Zealand, Asia, and Africa, Ruben combines his passion for adventurous yet sustainable living with his love for cycling, highlighted by his remarkable 5-month bicycle journey from Spain to Norway. He currently resides in Spain, where he continues sharing his travel experiences with his partner, Rachel, and their son, Han.