The Reasons Why Iceland Is So Expensive

iStock.com/Leopatrizi
iStock.com/Leopatrizi

More Americans are taking vacations to Iceland, and many are returning home with sticker shock. According to Iceland Magazine, “consumer prices in Iceland are on average 66 percent higher than in Europe,” with costs in the land of fire and ice outpacing famously expensive countries such as Switzerland, Norway, and Denmark.

Just look at the prices for food in Iceland’s capital of Reykjavík: A pre-made sandwich at a grocery store can cost more than $10, while a single teabag (with “free” hot water) can run you $4. A meal for two at a casual restaurant regularly costs in the ballpark of $80 to $100 while a beer at a pub downtown goes for about $12 during regular hours. In other words: Visiting Iceland is sort of like being trapped in an airport ... except this airport has volcanoes.

As for what makes the country so expensive, there’s no single explanation. It’s a combination of politics, economics, and geography.

Let’s start with geography. Since Iceland nearly tickles the Arctic Circle, its climate is not conducive to farming. There are few native crops and the growing season is short. According to a report from the European Consortium for Political Research [PDF], Icelanders produced “64.9 percent of their own food and beverages in 2010.” The rest of that food was imported. The same goes for most other goods.

The cost of importing those products—usually from the UK, Germany, the U.S., and Norway—gets passed on to the consumer. In Iceland, imported sweets and alcohol are slapped with an extra cargo fee and all wheat products are subject to a relatively high tariff. So prepare to shell out for that bread.

The country’s currency also keeps costs high. In 2008, Iceland was plagued by a financial crisis that saw the country’s three banks fail and the value of the national currency, the króna, plummet. But the country has seen a miraculous recovery. Since 2009, the króna has strengthened by a whopping 40 percent against the euro. In 2017, it was deemed the world's best-performing currency. That has caused the purchasing power of the U.S. dollar to decrease.

Taxes also add to the cost. Like most countries, Iceland has a valued-added tax, or VAT. (In the United States, a close equivalent would be the state sales tax.) The VAT for goods in Iceland is 24 percent, while the VAT for foodstuffs is taxed at a discounted rate of 11 percent. For Americans, these tax rates are very high. Most states don’t even charge a sales tax on food at all.

(However, while taxes are a contributor, they are not the cause of high costs in Iceland. Many countries have similarly high VAT rates and are not as expensive. Germany, for example, has a 19 percent VAT—and a 7 percent VAT on foodstuffs—but is home to significantly cheaper groceries than those sold in the United States. It’s also important to know that, as an international visitor, you can get some of your VAT refunded.)

Rather, the biggest contributor to costs in Iceland is the country’s high standard of living. In Iceland, the average pre-tax income is about $60,000, with a median income of about $47,000. (In the U.S., the average income is about $48,150 with a median of around $31,000.)

In Iceland, approximately 92 percent of the country’s working population is part of a labor union. Consequently, people who work jobs that Americans might consider “low-wage”—especially jobs in the service industry—earn much higher wages and enjoy more benefits. In fact, the national monthly minimum wage for most industries is 300,000 ISK, or about $2500 per month. That’s equivalent to $15 an hour. But since employees earn more, customers generally pay more for goods.

And, of course, any tourist complaining about high prices should take a moment to point a finger at the mirror. Since 2010, Iceland has seen tourism multiply fivefold. With a growing number of people competing for a limited supply of goods, prices have continued to rise; the dastardly supply and demand curve strikes again!

10 Reusable Gifts for Your Eco-Friendliest Friend

Disposable tea bags can't compete with this pla-tea-pus and his friends.
Disposable tea bags can't compete with this pla-tea-pus and his friends.
DecorChic/Amazon

This article contains affiliate links to products selected by our editors. Mental Floss may receive a commission for purchases made through these links.

By this point, your eco-friendly pal probably has a reusable water bottle that accompanies them everywhere and some sturdy grocery totes that keep their plastic-bag count below par. Here are 10 other sustainable gift ideas that’ll help them in their conservation efforts.

1. Reusable Produce Bags; $13

No more staticky plastic bags.Naturally Sensible/Amazon

The complimentary plastic produce bags in grocery stores aren’t great, but neither is having all your spherical fruits and vegetables roll pell-mell down the checkout conveyor belt. Enter the perfect alternative: mesh bags that are nylon, lightweight, and even machine-washable.

Buy it: Amazon

2. Animal Tea Infusers; $16

Nothing like afternoon tea with your tiny animal friends.DecorChic/Amazon

Saying goodbye to disposable tea bags calls for a quality tea diffuser, and there’s really no reason why it shouldn’t be shaped like an adorable animal. This “ParTEA Pack” includes a hippo, platypus, otter, cat, and owl, which can all hang over the edge of a glass or mug. (In other words, you won’t have to fish them out with your fingers or dirty a spoon when your loose leaf is done steeping.)

Buy it: Amazon

3. Rocketbook Smart Notebook; $25

Typing your notes on a tablet or laptop might save trees, but it doesn’t quite capture the feeling of writing on paper with a regular pen. The Rocketbook, on the other hand, does. After you’re finished filling a page with sketches, musings, or whatever else, you scan it into the Rocketbook app with your smartphone, wipe it clean with the microfiber cloth, and start again. This one also comes with a compatible pen, but any PILOT FriXion pens will do.

Buy it: Amazon

4. Food Huggers; $13

"I'm a hugger!"Food Huggers/Amazon

It’s hard to compete with the convenience of plastic wrap or tin foil when it comes to covering the exposed end of a piece of produce or an open tin can—and keeping those leftovers in food storage containers can take up valuable space in the fridge. This set of five silicone Food Huggers stretch to fit over a wide range of circular goods, from a lidless jar to half a lemon.

Buy it: Amazon

5. Swiffer Mop Pads; $15

For floors that'll shine like the top of the Chrysler Building.Turbo Microfiber/Amazon

Swiffers may be much less unwieldy than regular mops, but the disposable pads present a problem to anyone who likes to keep their trash output to a minimum. These machine-washable pads fasten to the bottom of any Swiffer WetJet, and the thick microfiber will trap dirt and dust instead of pushing it into corners. Each pad lasts for at least 100 uses, so you’d be saving your eco-friendly friend quite a bit of money, too.

Buy it: Amazon

6. SodaStream for Sparkling Water; $69

A fondness for fizzy over flat water doesn’t have to mean buying it bottled. Not only does the SodaStream let you make seltzer at home, but it’s also small enough that it won’t take up too much precious counter space. SodaStream also sells flavor drops to give your home-brewed beverage even more flair—this pack from Amazon ($25) includes mango, orange, raspberry, lemon, and lime.

Buy it: Amazon

7. Washable Lint Roller; $13

Roller dirty.iLifeTech/Amazon

There’s a good chance that anyone with a pet (or just an intense dislike for lint) has lint-rolled their way through countless sticky sheets. iLifeTech’s reusable roller boasts “the power of glue,” which doesn’t wear off even after you’ve washed it. Each one also comes with a 3-inch travel-sized version, so you can stay fuzz-free on the go.

Buy it: Amazon

8. Countertop Compost Bin; $23

Like a tiny Tin Man for your table.Epica/Amazon

Even if you keep a compost pile in your own backyard, it doesn’t make sense to dash outside every time you need to dump a food scrap. A countertop compost bin can come in handy, especially if it kills odors and blends in with your decor. This 1.3-gallon pail does both. It’s made of stainless steel—which matches just about everything—and contains an activated-charcoal filter that prevents rancid peels and juices from stinking up your kitchen.

Buy it: Amazon

9. Fabric-Softening Dryer Balls; $17

Also great for learning how to juggle without breaking anything.Smart Sheep

Nobody likes starchy, scratchy clothes, but some people might like blowing through bottles of fabric softener and boxes of dryer sheets even less. Smart Sheep is here to offer a solution: wool dryer balls. Not only do they last for more than 1000 loads, they also dry your laundry faster. And since they don’t contain any chemicals, fragrances, or synthetic materials, they’re a doubly great option for people with allergies and/or sensitive skin.

Buy it: Amazon

10. Rechargeable Batteries; $40

Say goodbye to loose batteries in your junk drawer.eneloop/Amazon

While plenty of devices are rechargeable themselves, others still require batteries to buzz, whir, and change the TV channel—so it’s good to have some rechargeable batteries on hand. In addition to AA batteries, AAA batteries, and a charger, this case from Panasonic comes with tiny canisters that function as C and D batteries when you slip the smaller batteries into them.

Buy it: Amazon

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The Trailblazing Story of Alexandrine Tinné, the Victorian Explorer Who Attempted to Cross the Sahara Desert

Alexandrine Tinné was an avid explorer.
Alexandrine Tinné was an avid explorer.
Haags Historisch Museum, Wikimedia Commons // Public Domain

A well-chaperoned Grand Tour of Europe offered wealthy Victorian women a way to safely admire civilization’s wonders, but such travel held little interest for Dutch heiress Alexine Tinné. Having studied books on geography, archaeology, and botany at the Royal Library in the Hague, Tinné longed to explore uncharted regions. Her travels would bring her along the White Nile and later, deep within the Sahara Desert.

An Escape From Victorian Life

Alexandrine Tinné, circa 1855–1860.Robert Jefferson Bingham, Wikimedia Commons // Public Domain

In the mid-19th century, exploration was considered a gentleman’s pursuit. The Royal Geographic Society had never financed an expedition led by a woman (and wouldn't until 1904). But Tinné didn't need anyone to authorize or fund her trip, having inherited a fortune when she was 9 years old after the death of her father, Philip Frederik Tinné, a wealthy Anglo-Dutch sugar merchant and shipbuilder [PDF]. She could afford to travel in luxury with her mother, Baroness Henriette van Capellen, a former lady-in-waiting to Queen Sophie of Württemberg. When Tinné was 19, she and her mother traveled Europe and Scandinavia before heading to Egypt to enjoy pleasure cruises on the Nile.

According to Mylinka Kilgore Cardona, a history professor at Texas A&M University who is reworking her dissertation The Six Lives Of Alexine Tinné [PDF] into a book, Tinné’s travels offered a chance to escape the narrow confines of Victorian life. “She got to be her authentic self when she was outside of Europe,” Cardona tells Mental Floss. “She got rid of the corsetry and the crinolines and dressed like a local, albeit a wealthy local. Had she gone back to Europe she would have most likely been forced back into those expectations and highly encouraged to marry.”

Eventful Expeditions

Tinné was so intrigued by Africa, she launched an 1863 expedition to what is now Sudan to discover the source of the Nile, something European explorers had sought since Roman times. Ornithologist Theodor von Heugelin and botanist Hermann Steudner joined Tinné’s 1863 expedition, which required a flotilla of boats to ferry her entourage of soldiers, maids, porters, and clerks, as well as the required camels and donkeys. Tinné’s five dogs, carried in panniers by porters, also accompanied the group.

Though she didn't find the source of the Nile, her adventures were still fruitful. Tinné documented her travels along the region’s waterways and settlements, compiling photographs and drawings now housed in museums. The plants she collected and pressed became the basis for Plantae Tinneanae, a book on the botany of Bahr el-Ghazal, and her letters, sent home by dispatch, described experiences that included traders promising to proclaim her Queen of the Sudan and receiving a marriage proposal from a sultan. 

To a niece, Tinné wrote of her intention to travel beyond Bahr el Ghazal in South Sudan. “When you look at the map you will see there is at the SouthWest of the Equator, a large space empty of names, it’s there we want to go to.”

Accounts of her travels not only thrilled newspaper readers of the day, but also were presented at The Royal Geographic Society. Yet some critics called Tinné a dilettante and claimed women were ill-suited to risky endeavors. “Exploration was this very macho masculine thing in the 19th century,” Cardona says. “To be out exploring and facing your fears. Then you have this 20-something-year-old woman doing it. How manly can it be if she is doing it too?”

Troubled Travels

Alexandrine Tinné's travels were far from solitary.Die Gartenlaube, 1869, Wikimedia Commons // Public Domain

Tinné’s excursions were far from a leisurely holiday. Her entourage grew as she traveled, straining their resources. When food supplies ran low, her soldiers threatened to mutiny. In self-taught Arabic, the heiress persuaded them to continue, but she soon had to reverse course: While in Bahr el Ghazal, several members of her expedition became severely ill. Tinné and von Heugelin survived, but her mother, Steudner, and two maids died.

Tinné returned to Khartoum, where Adriana van Cappellen, an aunt who had previously left the expedition, had remained. Only weeks after Tinné arrived in Khartoum, Van Cappellen died unexpectedly. Despite suffering yet another devastating loss, the young explorer chose not to return to the Hague. “And now you will probably ask yourself what I am going to do,” she wrote to her niece. “And I don’t think you will be very astonished when I tell you I am going to stay in the East.”

For the next four years, Tinné lived in Alexandria, Tunis, and Tripoli, sailing the Mediterranean, but still longing to explore uncharted regions. In late 1868, she launched another expedition, aiming to be the first European woman to cross the Sahara. It would be her last.

The expedition began in Tripoli, but ended before ever leaving the country. In August 1869, at the age of 33, Tinné was killed during a fight between her camel drivers and guides while traveling between Murzuq and Ghat [PDF]. She knew the dangers inherent in exploration, at one point expressing her preference for an interesting life: “If you hear today or tomorrow that I have been sent to the other world, then don’t think my last moments were lived in bitterness.”