Load o' tosh, Bob
I went to Iceland in 2013 and learned of the many folklore manifestations involving many types of mythical beings such as the Yule Lads and Trolls. The 'hidden folk' tradition is very common and thought to arise from folk memory of very real events such as runaway elopements and fugitives from justice in previous centuries who lived as hermits or travellers and were sometimes spotted in the wilderness.
I dare say some hidden, secret, mystery folklore photoshop activity might be detected on the photo if we could be bothered to look.
John