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Mon Jun 24, 2019, 12:00 AM

Icelanders in shock as tourism collapse halts economic miracle

https://www.sfgate.com/news/article/Icelanders-in-shock-as-tourism-collapse-halts-14031259.php

Gudrun Asta Gunnarsdottir found herself at ground zero of Iceland's latest crisis. Four months into her second pregnancy, the 33-year-old check-in desk operator was told she was one of 315 workers being laid off at Reykjavik's international airport.

The news came as "a shock" and "caused a lot of sadness for everyone, especially because a lot of people are now looking for work at the same time," said Gunnarsdottir, who was able to return part-time to her airport job.


The collapse in March of Wow Air is sending ripples through the tiny north Atlantic island, whose spectacular recovery from financial collapse a decade ago was built to a large extent on attracting


Atlantic island, whose spectacular recovery from financial collapse a decade ago was built to a large extent on attracting foreign visitors, thanks in part to its location for the filming of popular television series like "Game of Thrones."

The sudden cut in supply caused by Wow Air's bankruptcy, coupled with high prices and a general drop in demand as a result of a global slowdown, mean the latest numbers look dire. Visitors plunged 24 percent in May from the same period last year and the all-important summer season is looking shaky. The central bank last month pulled the emergency lever to cushion the blow and delivered a half a point rate cut, while the government has pledged to boost stimulus if needed.

"We are prepared for the possibility of a deeper recession, and the numbers we are getting on tourist arrivals seem to indicate that that may happen," central bank Governor Mar Gudmundsson said in an interview in Dubrovnik.

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Arrow 14 replies Author Time Post
Reply Icelanders in shock as tourism collapse halts economic miracle (Original post)
Demovictory9 Jun 24 OP
GulfCoast66 Jun 24 #1
Demovictory9 Jun 24 #5
GulfCoast66 Jun 24 #6
druidity33 Jun 24 #11
Botany Jun 24 #12
GulfCoast66 Jun 24 #14
brooklynite Jun 24 #13
The Velveteen Ocelot Jun 24 #2
Thekaspervote Jun 24 #3
emmaverybo Jun 24 #4
GulfCoast66 Jun 24 #7
emmaverybo Jun 24 #8
JI7 Jun 24 #9
uponit7771 Jun 24 #10

Response to Demovictory9 (Original post)

Mon Jun 24, 2019, 12:32 AM

1. I was just there last month.

If you can, you should go. It was amazing.

Their history is the most pragmatic of any nation I have visited.

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Response to GulfCoast66 (Reply #1)

Mon Jun 24, 2019, 01:01 AM

5. it seems like it would be amazing to visit

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Response to Demovictory9 (Reply #5)

Mon Jun 24, 2019, 01:06 AM

6. In May getting there and staying there were affordable. But food prices?

Believe what you read. Off the charts expensive. But we had an Air BnB so cooked at home enough to offset that cost. Grocery Store prices weren’t bad.

I’m pretty well traveled and it was amazing.

Do you research and you can do it in an affordable manner.

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Response to GulfCoast66 (Reply #1)

Mon Jun 24, 2019, 06:07 AM

11. I would love to go there...

i have a severe aversion to seafood though. What was the food there like?

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Response to GulfCoast66 (Reply #1)

Mon Jun 24, 2019, 07:39 AM

12. About how much was airfare?

And what would it cost for 10 days to 2 weeks in country?


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Response to Botany (Reply #12)

Mon Jun 24, 2019, 11:15 AM

14. Air was around $500 a person. Flat was $120 per night.

I live close enough to Orlando to fly direct on Ice Land air.

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Response to GulfCoast66 (Reply #1)

Mon Jun 24, 2019, 07:46 AM

13. On the other hand, they re-route roads to avoid the elves...

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Response to Demovictory9 (Original post)

Mon Jun 24, 2019, 12:38 AM

2. That's one of the places I really want to visit.

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Response to Demovictory9 (Original post)

Mon Jun 24, 2019, 12:48 AM

3. I just read it's one of the worlds most over visited spots and people are catching on

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Response to Thekaspervote (Reply #3)

Mon Jun 24, 2019, 12:52 AM

4. WOW airlines offered very discounted flights. People took WOW to get to get to Europe as

a much cheaper way. Iceland might be catching on as a desirable spot to visit, but WOW’s demise and some other factors are taking an economic toll.

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Response to emmaverybo (Reply #4)

Mon Jun 24, 2019, 01:12 AM

7. We flew there last month on Iceland Air.

It was great. WOW had a poor business model trying to be a low cost transatlantic airline.

Iceland Air’s model is much more sustainable. And a decent if no frills airline for serving such a small airport. I normally fly Delta to Europe and Iceland Air is not in their category. But they don’t suck.

But I agree, WOW’s demise is going to hurt.

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Response to GulfCoast66 (Reply #7)

Mon Jun 24, 2019, 01:33 AM

8. Iceland Air. Going to look into that. NT

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Response to Demovictory9 (Original post)

Mon Jun 24, 2019, 01:45 AM

9. collapse ?

everything i have been recently reading was talking about how they need to deal with rise in tourists.

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Response to Demovictory9 (Original post)

Mon Jun 24, 2019, 01:46 AM

10. End of GoT is a big factor

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