South Iceland continues to evolve as a year-round destination, with new tourism services, accommodation, visitor facilities, and infrastructure improvements emerging across the region. Because the region is large and diverse, developments range from new lagoons and restaurants to upgraded attractions, new activity providers, and better on-site visitor management at key natural sites.
03.03.2026
Laugarás Lagoon.
This overview is designed for travel trade partners and industry stakeholders. It provides a quick, practical snapshot of what is new, what has recently opened, and what is currently under development or in the planning phase, so you can keep itineraries, recommendations, and product planning up to date.
Highlights and updates in South Iceland
New services and businesses that opened last summer and autumn
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Laugarás Lagoon and Ylja restaurant: New lagoon experience with on-site dining option, adding a fresh wellness stop in the region.
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Hótel Lóa, Hvolsvöllur: New hotel accommodation in a strategic South Coast location, suitable for touring and group travel.
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Hótel in Efstadalur: New accommodation development in Efstadalur, strengthening options near key Golden Circle and countryside routes.
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Stracta Hotel Mosfell and Rót restaurant: New hotel offering with an on-site restaurant, adding dining and accommodation capacity.
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Gamlabúð cultural and information centre at Höfn: New cultural and visitor information hub, supporting local storytelling and guest services.
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Skaftafell Adventures: Quad bike tours near Skaftafell, expanding activity options in the Vatnajökull area.
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Glacier World: New bathing facility, increasing wellness and relaxation choices for visitors.
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Arctic Trailblazers: Snowbike experiences and motorbike tours, offering a distinctive adventure product with strong international appeal.
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Lava Show, Vík: Expanded venue with increased seating capacity, improving availability for groups and peak travel periods.
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Skógafoss visitor facilities update: New parking, toilets, and minor access adjustments to improve the overall visitor experience and flow.
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New golf course in Landbrot (Kyrkjubæjarklaustur): A new golf offering, adding niche activity options and local leisure infrastructure.
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Sörla Camp: New high-end camping accommodation option, increasing variety for travellers seeking alternative stays.
Projects in progress and planned developments
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Black Sand Hotel: Opening soon, adding new accommodation capacity and an upgraded stay option in the region.
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Hotel Geirland expansion: Expansion project in progress to increase capacity and services.
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Reykjaböð Hot springs: Construction has started on a new lagoon development in the Reykjadalur area. Opening in spring 2026.
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Fjallaböðin in Þjórsárdalur: Planned mountain baths project, strengthening wellness and nature-based experiences inland.
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Accommodation development at Skaftafell: Ongoing plans and development to expand lodging options near a key nature hub.
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Selfoss town centre next phases: Continued development in upcoming phases, enhancing the visitor offering, services, and town experience.
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Hotel construction near Seljaland under Eyjafjöll: Accommodation development in progress near a major attraction corridor.
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Northern lights facilities at Litla Kaffistofan (Icelandia): Dedicated aurora-visit facilities in development to improve comfort and usability for winter viewing.
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Háifoss: infrastructure improvements in preparation: Preparations are underway for infrastructure improvements at Háifoss to support the visitor experience and site management.
