Iceland Might Still Be There But Is It a Bargain?

November 4, 2008

When Mr. Kjartan Sverrisson, the e-marketing manager at Icelandair, issued his press release that Iceland was still there, my ears perked up a little. I’ve been looking for a long-weekend getaway and wouldn’t mind paying Iceland a visit. Under normal circumstances, the place was always too expensive for cheapskates like me and it’s been ages since my last trip to the land of sheep and ice and the Blue Lagoon.

photo: wikipedia

Supposedly now after the financial crash, the country has become more affordable. But just how affordable? On that Mr. Sverrisson is oddly vague. He just says that “the favourable exchange rate means that your money will buy you a lot.” Which doesn’t really do me any good. I want to know what this “a lot” means. The favorable exchange rate in Moldova will buy me “a lot” too. And just how cheap those weekend getaways in Iceland are these days, anyway? If I’m going to go there in winter, they better be sufficiently “budget.” Alas, they’re not.

Three nights in Reykjavik, Icelandair flight from Stockholm included, will set me back about 3700SEK (about 370 euro), and 235 pounds from London (which does come out significantly cheaper – about 2900SEK).

Unfortunately, for the same amount of money I can go somewhere with much better weather and food. Mr. Sverrisson claims that “Reykjavik has become the cheapest capital city of the Nordic countries.” A quick check of restaurant prices confirms that he might be right. At today’s exchange rate, a large pizza will set you back about 7 euros, and a bowl of pasta at Caruso costs the equivalent of about 10 euro. Add to that a drink, appetizer and dessert, and you have your average Stockholm prices. Suddenly that bargain doesn’t look so good anymore.

While Iceland might be open for business and desperate for foreign tourists to bring with them and spend their hard-earned foreign cash, the Icelandic deal might not be as good as the bosses at Icelandair want to make you believe.

So, will I be going to Iceland for a weekend getaway? Nah. If for the same amount of money I can spend a whole week in Spain, why bother? Granted, it will be a mindless charter holiday, but at least the weather will be nice.

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