Iceland is very popular because of it majestic landscape and how easily accessible all the main tourist places are from Road 1 (The ring road around Iceland).
But be brave and think forward.
2018 2.3 million visitor visited Iceland and about 65% of the them are self driving, that means there have never been more cars on Icelandic roads.
Because of that there is planned massive input of public money to improve the roads. That means there is now opportunity to put bicycle road next to Road 1. The roads could be planned 1,5-2,0 meters wider and that part could be bicycle only.
By doing that now it would save a lot of money compare trying to do this later.
I am sure hundreds of thousands of bikers would visit Iceland each year to try out Bicycle Road 1, the nature safari around Iceland. This would mean a lot of new environmentally friendly type of visitors that would create a lot of new money, opportunity and jobs.
What do you think, would it be worth doing? I think so.