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“Over-touristed” is debatable, and while that has been an issue in Reykjavik and the SW 5% corner of the island in July and August, outside those months and areas it is very empty of tourists.
Just got back from my fourth trip this year and have never seen Iceland or KEF so quiet.
Locals thought that this tourist boom would end as it begun, ie with a volcanic eruption but one not so photogenic or mild (at least in terms of its negative impact on Iceland) as Eyjafjallajokull in 2010.
If you haven’t visited Iceland before perhaps the post-Wow period might be your chance.
The only downside is that ticket prices have spiked and Capetonian has missed the fact that Iceland has been one of the more expensive places in the world to visit since about 2015. The new Retreat Hotel at the Blue Lagoon sells suites for £3k a night, a pint will cost you north of £9 and a half decent meal is easily £60-70 a head.
Apart from that it is a stunning place to explore and now with the added bonus of far fewer tourists. Back there again on Saturday….