One year ago the Icelandic banking sector collapsed with all its dramatic consequences for the economy as a whole as well as the society. Shortly after the collapse in October 2008 the almost two year old government collapsed and new government was formed lead by Mrs. Jóhanna Sigurðardóttir who then became not only Iceland’s first female prime minister but the world’s first openly gay prime minister. And in snap elections in April this year Jóhanna lead its party (Social Democrat) to victory and is currently rated among the top 100 most influential women leaderes in the world today by Forbes.
So how bad is it?
Shortly after the collapse we received quite many emails from people asking if it was safe to travel to iceland, how things really were and how bad it was. Despite the economic fallout most Icelanders get by quite well but not denying the fact that things are not the same. Imported goods are more expensive and traveling has become much more expensive due to weak krona (the Icelandic currency), inflation way to high, loans in foreign currency has doubled and unemployment which was almost non existent is almost double figure now. But we’re still here and we’re not going anywhere. Icelanders will overcome the difficulties, so much we know.
Now is the time to visit!
Before the crash Iceland had the reputation of being one of the most expensive travel destinations in the world. With the collapse of the local currency visiting Iceland is a real option for more people as it has simply become cheaper. And tourists are taking advantage of the situation as more tourists are visiting Iceland this year compared to the year before. And the local business community is also very happy as shopping is taking off with the increased value of the pound, dollar and euro. Now is a good time to visit Iceland.