Foreign Residents Now Outnumber Locals in South Iceland Village

2026-01-28 - 09:42

A small south Iceland municipality is experiencing rapid demographic change as tourism continues to expand year round. In Mýrdalshreppur, where the village of Vík í Mýrdal is located, residents of foreign origin now make up 67% of the population, compared with roughly 20% nationwide. As reported by RÚV, Mayor Einar Freyr Elínarson attributes the shift largely to steady visitor numbers and the growth of permanent jobs in tourism. What's the Story? 67% of residents in Mýrdalshreppur of foreign origin Around 20% nationwide proportion in Iceland Majority of children starting kindergarten in the municipality from multicultural backgrounds Icelandic language support prioritised in local early education High visitor numbers at Reynisfjara influencing daily life and business in Vík Reynisfjara. Photo: Golli. Tourism Drives Change “Tourism is a year-round industry for us and has completely changed the operating conditions of tourism companies, they can offer people permanent jobs,” he said, adding that workers arriving from abroad are increasingly settling long term. He believes the changes have brought clear benefits. “There are definitely more advantages to this. I remember well what it was like when I was growing up, there were opportunities for young people like me and others who have managed to build businesses here, there just weren’t many,” he said. “Living conditions here are constantly improving.” Local schools are also adapting as well. “This has been a challenge in the kindergarten, we have not yet started to see this become a reality with full force in primary school,” he said, noting efforts to strengthen Icelandic language learning for young children. Nearby Reynisfjara, one of Iceland’s most visited natural sites, draws hundreds of thousands of tourists annually, shaping daily life and business in the area.