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Iceland's economy turns away from finance to ---- tourism!

by Grant Martin on Oct 9th 2008 at 5:00PM

With the financial sector steadily imploding, Iceland is in a bit of trouble. As Aaron wrote about earlier this week, much of the Atlantic island's economy was built upon credit and finance, and now that those industries are failing, the country needs extra income to keep up its highbrow status.

And where else can you quickly reap foreign investment but in tourism? Iceland Air, long one of the premium transatlantic carriers (if you want to stop in Reykjavik) is leading the charge to get American dollars by offering some killer fares to the North Atlantic this winter. Book by October 21st and you can get cheap round trip tickets from New York or Boston to the Icelandic capital for only $400 plus tax.

Add the fact that the dollar is suddenly making a killing in Iceland (as of this morning, 222 Krona to 1 dollar, from 80Krona a couple of weeks ago), and you could have a pretty nice inexpensive vacation on your hands.

Check out Icelandair's website for further details on the deal, and while you're in town make sure to check out the ice ring road, blue lagoon (pictured) and drink with some vikings.

Filed under: Iceland, Airlines, Budget Travel, Travel Deals

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Reader Comments (Page 1 of 1)

sara.greenhamann Oct 9th 2008 7:23PM

I almost went to Iceland last year but ended up going to South Africa (odd change huh!). South Africa, college and a bathroom remodel definately sucked up my travel budget, but I am now looking at going to Iceland in March during spring break. Hoping the dollar holds out!

Jeremiah Oct 9th 2008 7:42PM

may still be a good deal & i want to go, but 222/1 dollar it seems a bit high

economist.com
The rates for Thursday, 9th October 2008

1 USD = 110.333 ISK : One ISK = 0.0093 USD

Median bid 107.333
Median ask 110.333
Min. bid 94.4400
Min. ask 97.4400
Max. bid 125.040
Max. ask 128.040

nzm Oct 10th 2008 10:04AM

Yes - the ISK is only about 110 to the USD, not double as quoted by Grant.

Just be aware that prices are very high in Iceland irrespective of the currency exchange. It's still going to cost you a lot to eat and drink - if you can get anything. Apparently supermarkets in Iceland are currently experiencing difficulties in receiving exported supplies because of the financial meltdown.

I wish the Icelandic people well. We were there in August and loved the country and its people - even though our credit cards are still reeling from the shock of the vacation expenses!

Pveike Oct 19th 2008 2:35AM

Come to Iceland everyone..... We love everyone!

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