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Iceland: Tourism in a Country on the Verge of Economic Collapse
In 2008 the three largest banks in Iceland collapsed, the government raised interest rates to 18% and in doing so, devalued their currency by a third. The cherry on top of this unappetizing cake?
In early 2009, the coalition government collapsed under a tidal wave of public dissent. So, when the Eyjafjallajökull volcano erupted so spectacularly last week, it brought with it a welcome reminder of what Iceland is better known for; its harsh beauty. Craggy arctic mountains. Wild glacial splendour. A landscape so full of natural wonders it must surely be every geographer’s idea of heaven. Could it be then, that this spectacular natural phenomenon, the first since 1823, is the PR boost Iceland so desperately needs? Did the Icelandic tourist board find themselves silently thanking Surtr, the fire giant of Norse mythology for his immaculate timing? Can it bring the tourists back to Iceland, and, with them, a well-needed boost to an economy on the verge of collapse?
Prior to the economic collapse, tourism had been a thriving industry in Iceland, growing 11% each year, with over 500,000 people visiting Iceland in 2008. While it hasn’t dropped off completely, the world’s view of Iceland has changed. In any crisis, the tourism industry is usually one of the first affected, and, in a world of mini-breaks and long weekends, Iceland doesn’t normally spring to mind.
In fact, Iceland’s economic crisis has been a win for the tourists. A trip to Iceland today is by far cheaper than it would have been 3 years ago. Flights can be found from approx €250 (ex most major European capitals), there is a wide range of very high standard, good value 3- and 4-star hotels to choose from, and, at only 2.5 hours away from many of Europe’s capitals, Iceland provides its visitors with an unforgettable experience. In a long weekend, opt for the ‘Golden Circle’ (a day trip from Reykjavik encompassing Gulfoss waterfall, the geysers Strokkur and Geysir and the UNESCO listed Thingvellir national park), as well as the Blue Lagoon geothermal spa and spend a chilly night chasing the elusive Aurora Borealis, all of which leaves time to stroll Reykjavik town. There are many different tour operators for all these sights and more, or, for the off-the-beaten-track traveller, Iceland’s roads are plentiful and well marked (but be warned: the Ring Road covers the entire island and cannot be done in a day!).
Gulfoss Waterfall
Literally meaning ‘golden falls’, but in mid-February these falls are a crescent of piercing ice blue and startling white. They are best viewed from the viewing platform 50 metres above (and conveniently near the café) but for the brave, it’s worth a trip down the treacherous path to the side of the falls to be level with the drop – only a limply dangling rope separates you and the pummelling ice-water.
Geysir
When the van pulls over and the drive points you in the direction of…. well, nothing in particular, you’d be forgiven for thinking you were the butt of his joke. But, give it time and with absolutely no warning you could find yourself drenched. The astonishing suddenness of the geyser spewing forth will literally take your breath away. If you want a photo, you’ll have to hang around for the next burst because I can guarantee you’ll be too shocked the first time.
Continue down the path and it’s like walking on Mars. To either side of you the ground is bubbling and steaming away like an enormous industrial kitchen . A very surreal experience.
Thingvellir
Home to the first Icelandic parliament, Thrngvellir is a wide, barren landscape, bordered by Glaciers, waterfalls and volcanos. It is also home to the rift valley and is the meeting place of the tectonic plates of Eurasia and North America. A great place to just stop and breathe in the natural beauty.
Blue Lagoon geothermal spa
You’ll see the steam billowing up from the hot springs long before you arrive at the front door, but most likely you will have confused them with a geothermal power station. The outdoor spa is extraordinary and an unmissable part of any trip to Iceland. Hours can be whiled away floating around the spa trying to expose the bare minimum of flesh into the sub zero temperatures, while immersing the rest of you in the 40° spa. Basins of silica-mud are dotted around the spa for facemasks, or you can brave the freezing dash across the bridge to one of the saunas. Treatments are also available, and are done in the spa, but bookings are of course essential.
Reykjavik
Rejkjavik itself is a combination of cutting edge designer shops and restaurants, while retaining a small town feel that the Scandinavians do so well. A whole day can be spent scouring through the trendy boutiques or meandering along streets lined with brightly coloured wooden cottages. Overall, Iceland really should be bumped up a couple of notches on the ‘to do’ list; it is a place like no other.