Iceland's Blue Lagoon goes with the flow

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Blue Lagoon is making changes to elevate its geothermal spa experience, including a new sauna (rendering on the right).
Blue Lagoon is making changes to elevate its geothermal spa experience, including a new sauna (rendering on the right). Photo Credit: Basalt Architects/Blue Lagoon Iceland

Even under the best conditions, managing a top tourist destination that attracts hundreds of thousands of visitors annually is hard work.

Throw in the constant threat of a volcanic eruption, and it seems near impossible.

And yet the Blue Lagoon in Iceland has not only adapted to this threat but is pushing forward with ambitious plans to enhance its flagship geothermal spa attraction and expand its hospitality footprint.

"We hope this new normal will normalize even more, as [dealing with] ongoing eruptions is a strange normal," said Sigurdur Thorsteinsson, Blue Lagoon's head of business development, design and construction. "But the Blue Lagoon is here to stay, and we've decided to move ahead with changes that we think are necessary to enhance the experience."

Since late last year, the Blue Lagoon has grappled with several evacuations and temporary closures due to heightened volcanic activity in the region, beginning after earthquakes shook the western part of the Reykjanes Peninsula in November. It's unclear how long these intermittent eruptions will pose a risk.

Consequently, one of the biggest updates currently being made to the Blue Lagoon is the construction of a government-mandated protective wall, designed to surround the site and defend it against lava flows. The wall enhances existing safety measures, which include an extensive network of gas meters that detect eruption-related air pollution as well as an evacuation system that can get around 800 to 1,000 people to safety in under an hour.

A rendering of the welcome house that is in development at the Blue Lagoon.
A rendering of the welcome house that is in development at the Blue Lagoon. Photo Credit: Basalt Architects

To better integrate the massive wall with the Blue Lagoon's existing infrastructure, the attraction is building a new "welcome house," which will be home to check-in and retail areas.

"We decided to think outside of the box, creating a welcome house that will be built halfway inside of these protective walls," said Thorsteinsson, adding that this tunnel-like arrival area will be located approximately 328 yards from the main Blue Lagoon facilities, connected via a pathway.

A new main access road is also in the works, after the previous route was damaged by lava flows.

Other changes are intended to elevate the Blue Lagoon's signature geothermal spa experience. The attraction's changing rooms will receive a refresh, including the 50-plus new showers and tech-enabled lockers that can be opened by using a wristband. The outdoor lagoon area will get a new sauna, steam cave and cold plunge as well as two new massage waterfalls, with all of these updates expected to be finished by the end of this year.

The Blue Lagoon's Silica Hotel is also getting a face-lift, with its 35 rooms set to undergo renovation this fall.

"When we last made big updates to the Blue Lagoon, we didn't really foresee that it would become even more popular, so we're adapting to that," said Thorsteinsson. "And the experience will be much nicer. And so whatever was a negative [about our current situation], I think we've managed to turn into a positive."

Expansion throughout Iceland

The Blue Lagoon's growth strategy, however, is two-pronged, with expansion into other Icelandic destinations also a focus for the brand. 

"We knew that the Blue Lagoon is in a risky area, so about six years ago, we began looking at [building] other properties and decided to move forward with two projects," Thorsteinsson said.

One of those projects is Highland Base, which debuted last summer as an adventure-focused hospitality concept located in a remote area of Iceland's central highlands known as Kerlingarfjoll. From Reykjavik, the trip to Highland Base takes approximately three and a half hours via car or bus. Part of the route is unpaved, with that segment of the journey requiring a specialized Super Jeep vehicle in the winter months. 

The property, which offers access to activities like hiking and off-piste skiing, comprises a mix of hotel, lodge, hostel, hut and campsite accommodations as well as three new geothermal baths. In contrast to the Blue Lagoon, water here takes on a greenish or reddish tint, thanks to its different mineral make-up.

The Mountain Retreat will be located in the Thjorsardalur Valley, in the southern highlands of Iceland.
The Mountain Retreat will be located in the Thjorsardalur Valley, in the southern highlands of Iceland. Photo Credit: Basalt Architects

For its third project, the Blue Lagoon will extend its luxury Retreat hotel flag with the debut of its Mountain Retreat and Mountain Bath. The property will also be situated within the Thjorsardalur Valley, located roughly up to two hours from the Blue Lagoon.

Slated to open by 2027, the property will feature a 41-room luxury hotel as well as nearby campsite and hut-style accommodations. The Mountain Bath geothermal site will offer a variety of lagoons, a steam bath and a Kneipp walk hydrotherapy circuit.

Planning has also begun for a fourth project: the Glacier Retreat. Expected to open within the decade, the Glacier Retreat will be located in southeast Iceland near the Vatnajokull glacier, approximately a seven- to eight-hour drive from the Blue Lagoon. Like the Mountain Retreat, the Glacier Retreat will feature different accommodation categories, including luxury hotel rooms, as well as a geothermal bath attraction.

"These are all very beautiful, natural places, and we don't want to [limit] access to these areas," said Thorsteinsson. "It's very important that everyone is able to enjoy them, whether they spend a lot or spend less money. And if you want extreme winter activity, there's Highland Base; if you want something a bit less extreme, there's Mountain Retreat; and in the summer, you can do a combination. The idea is really to increase our offerings."

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