Trip to Iceland during economic crisis

October 6, 2008 1:24 PM

I was planning to take a short, last minute vacation to Iceland next week. Now the economy is collapsing (worse than ours).

Apparently people are hoarding food because local groceries aren't getting much in. But I don't much else about what is happening on the ground. I hear about banks and governments, but that doesn't help me judge. Should I still go? Will it be cheaper? More expensive?

posted by kingfisher, his musclebound cat to travel & transportation (13 comments total)

Iceland was wildly expensive when I was there two years ago ($15 for a fast food meal). So I would be a little nervous about going now.
posted by kimdog at 1:41 PM on October 6, 2008

Wow, I was there in August and it was totally fine. It's expensive, but not completely outrageous (then again, I'm from NY. But we spent about $150-$175 per night for a hotel room that would be $200+ in Manhattan, ie, basic mid-range hotel).

I imagine that that's going on in the countryside, not in Reykjavik-- those stores didn't seem to be especially well-stocked in the first place and there's like, one per town.

There are 300,000 people in the country-- and 200,000 live in or near Reykjavik, so the countryside is pretty sparse.
posted by Maias at 2:02 PM on October 6, 2008

I read in an article yesterday that "Yesterday people were buying up supplies of olive oil and pasta after a supermarket spokesman announced on Friday night that they had no means of paying the foreign currency advances needed to import more foodstuffs."

On the other hand the same article mentions people opening restaurants so maybe things aren't as dramatic as that makes it sound.
posted by Mike1024 at 2:16 PM on October 6, 2008

Assuming you don't know anyone over there well enough to call and ask them, you could ask the hotel staff when you are calling around for prices/reservations. Granted that no one can see the future, they'd still be able to give you a better idea of what's happening where you'll be staying.
posted by philomathoholic at 2:39 PM on October 6, 2008

On the other hand the same article mentions people opening restaurants so maybe things aren't as dramatic as that makes it sound.

True, but it's possible the financing was lined up many months ago.
posted by crapmatic at 2:56 PM on October 6, 2008

Go! Enjoy!

It's an expensive place to travel, but you knew that already, right? Some things may be slightly more expensive in Krona terms now. But if you look at exchange rates recently, the Krona has dropped significantly against the dollar, so you'll get more for your dollar, which should balance it out (if not make travelling there cheaper).

Iceland Exchange Rate History

Also, Mike1024's article refers to people buying up olive oil and pasta - not exactly shortages of the sort of basic foodstuffs that should make you worry about travelling there.

And yeah, Iceland is finally feeling the credit crunch, but it's not exactly Zimbabwe... The economy may be collapsing but society isn't.

(And - applicable regardless of the economic problems - if you plan on drinking, buy duty free at the airport!)
posted by finding.perdita at 3:01 PM on October 6, 2008

Just go. The economic situation will ebb and flow but your travel will be with you always. There is ALWAYS a reason NOT to travel. Buy food from the supermarket or convenience store to minimize eating out (cheese, crackers). Iceland is amazing. Don't miss the history museum or the Blue Lagoon (but use conditioner in your hair before entering, trust me).
posted by Morrigan at 5:44 PM on October 6, 2008

You'll be fine. Iceland is still a 21st Century society. People will be happy for your custom. If you're going to Iceland Airwaves enjoy the music and don't forget to check out the MeFi meetup.
posted by Kattullus at 9:16 PM on October 6, 2008

I know someone who just arrived there a few days ago. He seems to be enjoying himself and hasn't mentioned any difficulties in his messages home.
posted by cali at 10:25 PM on October 6, 2008

When you get back, please send me a post describing what you've seen. Much of Iceland's food is imported (yes, even the basics -- it's hard to grow anything when the climate is so bad and there's no topsoil) so when I read about the economic collapse, my first fear was that people would go hungry.

Thank you for bringing your money to Iceland, and have a wonderful trip. It's an astounding country. Be prepared to be amazed.
posted by Capri at 11:20 PM on October 6, 2008

We're well stocked. And, at the moment, super cheap. Don't worry. Enjoy your trip.
posted by svenni at 6:00 AM on October 10, 2008

Oh, and an almost bankrupt grocery chain, owned by the same guys as one of the collapsing banks, made a statement that people should hoard groceries. Most of us think it was a trick to save that company.
posted by svenni at 6:03 AM on October 10, 2008

Just an addendum, but I looked at this question when it was posted and decided to go. Things are affordable (certainly more so than my current base, Norway) and there are few signs of the crisis. ATMs work, stores are open, and tourist attractions are open despite the winter weather. I stayed at a nice hotel in the city center for $60 a night ($30 since I went with a friend), climbed a glacier ($80), went horseback riding with a private guide ($80), bought my dad a hand knit sweater ($80), and ate the tasting menu a nice restaurant ($50). Prices are being raised by the week though, so go soon if you are the kind of traveler that can brave rain if it means a discount! It's probably the cheapest nice Nordic place to visit now.
posted by melissam at 8:14 AM on November 10, 2008