Ice Age in Iceland

What a mess. Iceland's banks have f*cked up their country big time. A country of 300,000 people face a troubled future.

From #1 place to live in Europe, they are facing financial meltdown where the value of the Krona has nosedived. It has halved against the dollar due to bankers gone wild. From the Dallas News Article who got it from Washington post:

"Our Loss – Your Gain ... Devaluation Is Silver Lining for Americans," entreated a page on the official Iceland tourism Web site (www.icelandtouristboard.com). They aren't kidding.

The financial crisis may be worldwide, but nowhere have things turned so serious so fast as in this once-expensive island nation of 304,000. With Iceland facing national
bankruptcy, as its prime minister recently said, the entire country is on sale.

Three-course meals at Reykjavik's Lobster House (www.humarhusid.is) are going for $26, the four-star Hilton Nordica is offering $114 rooms on Expedia.com, and a relaxing dip at the Blue Lagoon geothermal spa costs just $20 (http://www.bluelagoon.com/).

It's a beleaguered American tourist's dream, right? Especially with flights on Icelandair running as low as $476 round rip from New York, taxes included.

And so, "it's business as usual in Reykjavik," according to the city's tourism board (http://www.visitreykjavik.com/).

Take plenty of cash. With the Icelandic krona in free fall, most businesses are accepting foreign currencies. Moreover, tourists have reported trouble when trying to withdraw money from ATMs.

I've always wanted to visit Iceland and have toyed with idea of going there as a few days stopover to London.

However, I can't say a winter visit temps me even at these so called bargain basements. My guess is that prices were already sky high so halving it is relative.

With so little hours per day, you wouldn't see much scenery in the winter. I guess if you wanted to hang out in the thermally heated swimming pools it would be good but as for attraction of shipping, it isn't for me. So what if those Gucci bags are cheap here.

As their crisis deepens, I don't see this needing such a rush to visit. I may wait until more light.

On the otherhand, I've always wanted to see the Northern Lights but since I'd have to do a complex flight pattern to get there from Houston to London via Iceland, I think I'll skip it this time.

Sorry Reykjavik. I know you need some hard currency and support from the outside world at the moment. I just hope IcelandAir stays in business.

Phil Fogg

Houston, Texas

9th Nov 08.