Are New Lagoons Muddying the Waters for Our Traditional Swimming Pools?
If a dip in the thermal waters of northern Iceland is on your radar, the town of Akureyri gives you two very different ways to do it.
The first is Sundlaug Akureyrar, a genuine institution. The municipal pool traces its roots to 1897, when locals dammed a nearby stream to create a bathing spot, later piping in geothermally heated spring water to make the whole experience a good deal more pleasant.
Today, Sundlaug Akureyrar has grown into something worth the trip on its own terms: four hot tubs, three swimming pools, two wading pools, a cold tub for anyone brave enough to follow the steam bath with a plunge, and a pair of water slides that keep families entertained for hours. It’s noisy, lively, and completely unpretentious.
Sundlaug Akureyrar is exactly the kind of place UNESCO had in mind last December when it added Icelandic swimming pool culture to its Representative List of the Intangible Cultural Heritage of Humanity. The pool is more than a place to swim — it’s where parents teach their kids the basics, where seniors catch up with old friends, and where neighbours settle into the hot pots and talk through whatever is bothering the community that week.
Then there’s Forest Lagoon, which arrived in a rather unexpected way. Workers digging a road tunnel through the Vaðlaheiði mountain hit hot spring water, and a few enterprising minds quickly worked out what to do with it. The result is a polished bathing retreat on a wooded mountainside, with the fjord spread out below you and a swim-up bar within easy reach.
Since opening in 2022, Forest Lagoon has built a loyal following on the back of warm mineral water, cold beers, and a bistro that gives you a decent reason to linger after the soak. It sits squarely in the same upscale category as Laugarás Lagoon, which opened last October in southern Iceland, and Earth Lagoon in the north, which recently went through a substantial renovation.
Friends, Foes, or a Bit of Both?
So are Sundlaug Akureyrar and Forest Lagoon actually competing, or are they simply serving two different kinds of bather — the local on a tight schedule versus the tourist with a credit card and an evening to fill? Pálína Dagný Guðnadóttir, who runs operations at Sundlaug Akureyrar, has clearly thought about this.
“We do view them as competitors,” she admits, speaking of Forest Lagoon. “Yet in another light, they are also partners.”
The partnership isn’t written down anywhere, but the logic behind it is straightforward enough that Pálína doesn’t need to spell it out at length.
“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.”
Affordable is putting it mildly. Adult admission at Sundlaug Akureyrar is 1,400 ISK — less than a fifth of what Forest Lagoon charges. That said, Pálína is quick to point out that Sundlaug Akureyrar is not trying to turn a profit. It functions as a civic service, and the Akureyri council covers a meaningful share of what it costs to run the place.
Photo by John Pearson
Bullish Business
Tomas Popelka handles marketing for Forest Lagoon, and he sees the relationship between his venue and Sundlaug Akureyrar across the fjord rather differently.
“Even though it’s fundamentally the same concept — soaking in hot water — it’s an entirely different product,” Tomas says. “I don’t see them as competitors; I believe the sundlaug isn’t losing any business to us, nor are we taking from them.”
Forest Lagoon has had little reason to complain lately. Around 180,000 visitors came through last year, revenue climbed from 1 billion ISK in 2024 to 1.2 billion in 2025, and the business is moving fast on the back of that momentum. Last September they expanded the lagoon to handle more guests, and a bigger project is now underway — a spa and a four-star hotel, both with private access to an additional lagoon extension.
Ice Bath Challenge
Sundlaug Akureyrar is in a different position. The numbers are hardly a cause for alarm — 435,000 visitors in 2025, which works out to nearly 22 times the town’s population — but Pálína acknowledges that serious long-term planning is complicated by the politics of public funding.
Some regulars are pushing for Finnish-style saunas and ice baths, the kinds of features that have become standard at the upscale lagoons. There’s even been talk of selling alcohol. Pálína isn’t convinced. “I don’t envision that ever happening,” she says, pointing to the health-focused values that have always underpinned sundlaug culture. One imagines UNESCO might have something to say about it too.
For now, the Akureyri model — two very different bathing options coexisting without much friction — looks like a reasonable template for the rest of Iceland to consider. The lagoons and the classic sundlaug facilities don’t have to fight over the same towel peg.
John Pearson is an Akureyri-based writer and photographer. You can follow his work at johnpearson.co.
