It's actually super annoying that the same word "geothermal" is used for both. If I were emperor of the world, I'd ensure that the proper "ground-source heat pump" were used instead of the criminally misleading "geothermal."
Ground-source heat pumps are not energy sources, they consume energy.
What Iceland is doing is actually developing an energy source.
"If I were emperor of the world..."Reykjavík artificially adds sulfur to its hot water to reduce the corrosion of their hot water pipes.
I can't find a source for that in English but there's one in Icelandic, it's the "Vinnslutæknileg vandamál við vinnslu jarðhita" section.
1. http://web.archive.org/web/20160813045634/http://www.samorka...
Seems like Iceland could really use some sort of myth/fact information as they continue look to grow their tourism.
They have very little incentive to "correct" people
I also know some Iceland natives who actually like it, so I wouldn't completely dismiss it as a tourist trap.
https://energy.gov/energysaver/geothermal-heat-pumps
If you have an issue with how it's marketed, I'd suggest inquiring against it.