Are New Lagoons Muddying the Waters for Our Traditional Swimming Pools?
If a dip in the thermal waters of northern Iceland tempts you, the charming town of Akureyri offers two distinctly different options.
First up is Sundlaug Akureyrar, a beloved staple of Icelandic swimming culture. This municipal facility dates back to 1897, when townsfolk first dammed a stream to create a bathing spot, later enhancing it with geothermally heated spring water for a more pleasant experience.
Today, Sundlaug boasts an impressive array of amenities: four hot tubs, three swimming pools, two wading pools, and even a cold tub for the brave souls seeking a refreshing plunge after luxuriating in the steam bath. Add to that a pair of massive water slides, and you have a lively family destination that embodies splashy geothermal fun.
Sundlaug Akureyrar perfectly exemplifies the tradition UNESCO recognized last December when they added Icelandic swimming pool culture to their Representative List of the Intangible Cultural Heritage of Humanity. It’s more than just a recreational area; it serves as a social hub where parents teach their children to swim, seniors maintain connections, and locals convene in the hot pots to discuss community issues.
Then there’s Forest Lagoon, the fresh contender in the bathing arena. This luxurious facility emerged unexpectedly when workers stumbled upon hot spring water while excavating a road tunnel through the Vaðlaheiði mountain. Entrepreneurs swiftly seized the opportunity, transforming a serene mountainside into a sophisticated bathing retreat nestled among the trees, offering stunning views of the fjord.
Since its opening in 2022, Forest Lagoon has attracted visitors with its warm waters, swim-up bars serving cold beers, and a stylish bistro for a satisfying post-soak bite. It symbolizes the current trend of upscale geothermal baths, akin to Laugarás Lagoon, which debuted last October in southern Iceland, and Earth Lagoon in the north, which recently underwent significant renovations.
Friends, Foes, or a Bit of Both?
The question arises: Are Sundlaug Akureyrar and Forest Lagoon vying for the same visitors, or do they cater to two distinct markets—budget bathing versus luxury lagooning? Pálína Dagný Guðnadóttir, who oversees operations at Sundlaug Akureyrar, sees this duality with clarity.
“We do view them as competitors,” she admits, referring to Forest Lagoon. “Yet in another light, they are also partners.”
Though this partnership may not be explicitly defined, Pálína understands the logic that a rising tide lifts all boats.
“People come to Iceland to see the northern lights and enjoy the lagoons,” she explains. “These swimming pools may not do much marketing, but the lagoons are effectively promoting themselves. This awareness is prompting visitors to discover the more affordable options available.”
Affordability is a strong point; the adult admission fee of 1,400 ISK at Sundlaug Akureyrar is less than a fifth of the entry price for Forest Lagoon. Pálína notes, however, that Sundlaug operates as a civic service aimed at fostering a healthy community rather than maximizing profit. In fact, a significant portion of its operating costs is covered by the Akureyri council.
Photo by John Pearson
Bullish Business
Tomas Popelka, who manages marketing for Forest Lagoon, offers a different perspective on the dynamic between his upscale facility and Sundlaug across the fjord.
“Even though it’s fundamentally the same concept—soaking in hot water— it’s an entirely different product,” Tomas remarks. “I don’t see them as competitors; I believe the sundlaug isn’t losing any business to us, nor are we taking from them.”
For Forest Lagoon, recent years have ushered in a wave of success. With approximately 180,000 visitors last year alone, revenue surged from 1 billion ISK in 2024 to 1.2 billion in 2025, encouraging a robust expansion. Last September, they expanded the lagoon to increase capacity and are now embarking on a significant building project that will include a spa and a four-star hotel, both featuring private access to an additional lagoon extension.
Ice Bath Challenge
Conversely, Sundlaug Akureyrar finds itself in a more cautious position regarding future developments. With user numbers robust—435,000 in 2025, nearly 22 times the town’s population—Pálína notes that long-term planning is somewhat stymied by political considerations related to public funding.
Some Sundlaug patrons are advocating for upgrades like Finnish-style saunas and ice baths—amenities more commonly associated with the upscale lagoons. Even the idea of serving alcohol has surfaced; however, Pálína is skeptical. “I don’t envision that ever happening,” she says, acknowledging the health-focused ethos that underpins sundlaug culture. One wonders how UNESCO would react to any hint of indulgence in these cherished community spaces.
In the end, it may be best for Iceland’s lagoons and classic sundlaug facilities to take a page from the Akureyri playbook, respecting each other’s cultural significance while peacefully coexisting in their distinct roles.
John Pearson is an Akureyri-based writer and photographer. You can follow his work at johnpearson.co.
