Your money’s better there than ever
The world economic crisis has cut its path of woe everywhere. However, some countries have been effected more than others. Take Iceland as an example. Their recent economic meltdown, reports AFP (for the report see http://www.google.com/hostednews/afp/article/ALeqM5h1qx55QdmnwpD7xx1PCWYX-blgYQ) (for AFP see http://www.afp.com/afpcom/en), has sent their currency into a free fall. Payday cash advance loans and debt consolidation may not be able to put Humpty Dumpty back together again, but there is perhaps a silver lining to their dark cloud.
As the currency value of the kronur has decreased, the exchange rate for foreign monies has become more favorable to foreigners. This means that tourists who once considered Iceland to be prohibitively expensive to visit are now coming to visit the North Atlantic island homeland of Bjork.
How good is the exchange rate now?
“Last year you got 60 kronur for one dollar, today you get 105 kronur,” says Will Delaney, a 22-year-old student from Canada.
According to Iceland’s tourism board, the nation drew a total of 502,000 tourists in 2008, which is significant for a country of just 320,000. The current state of the economy, while staggeringly difficult for residents, is a boon to tourism numbers. For the entire year, the kronur’s value declined by 44 percent in 2008.
Iceland is known for its breathtaking scenery, including hot springs, geysers, waterfalls, glaciers and volcanoes. It boasts one of the most varied landscapes on Earth.
How much do tourists save?
Delaney claims that it is now possible to go to Iceland for only 200 euros (about $258.64 American; not counting plane fare). Before the crisis hit, that would have been impossible. Even the airlines are getting in on the savings. National carrier Icelandair has tried to fire demand with special promotions of their own.
Perhaps as a result of the tourism boom, Iceland’s economy is beginning its slow recovery. A $2.5 billion bailout from other Nordic nations certainly got things rolling. On April 25, citizens will go to the polls for a general election, so perhaps a new government will help keep the economy on the proper course.
The effects are showing
Despite a first quarter where unemployment “more than tripled” (rising from 2.3 to 7.1 percent), mass bankruptcies have not littered the financial landscape as it was expected they would.
Tourism Board Director Oloef Yrr Atladottir sees how tourism has boosted the overall economy, and he remains hopeful:
I’m fairly optimistic. When you have a recession like this people look for shorter travels and we want to remind our customers and potential customers that Iceland is the perfect destination for that kind of travel.
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Iceland’s banks were amongst the first casualties when the credit collapse began. It’s good they have a large tourist trade to fall back on, as the previously huge Icelandic industry was cod fishing, and the Atlantic cod is nearly gone, but making a comeback.