Iceland have finally relaxed their capital controls put in place after the financial crash. However, the ISK lost 3% of its value in minutes. What does this mean for Tourism this year and for Iceland going forward?
Most Europeans remember the crisis that hit the nation in 2008. Three major Icelandic banks failed to meet legalities and ended up crashing. This caused economic depression for several years and political instability for half a decade in the aftermath.
The Krona has always been a currency that has been controlled by the central bank rather than diplomatic counterparts in the European Union. The lack of strength means it has always been a low volume currency.
And while the financial recovery over the last couple of years has helped to improve the economy dramatically, it can only be a good thing for tourists that want to travel to Iceland.
According to The Telegraph, Iceland is due to have nearly 2.3 million visitors to the country by the end of this year. These figures are considerably higher for a nation that has just 330,000 people.
Iceland always has appealed to tourists across the world for its escapism feel, picturesque landscapes and the wildlife explorations that are on offer.
With the Krona losing its value will only be a positive for people wanting to visit the country. Iceland is one of the most expensive nations to visit/stay in the world, a drop in the currency will mean it’ll be cheaper than ever before to visit the smallest Nordic nation.