Podcast
All Things Iceland
Hosted by Jewells Chambers · EN
Discover Iceland’s language, history, culture, & nature
30episodes
Episodes
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Bríet Ísis Elfar – Interview with Iceland’s Fearless Pop Visionary
Feb 701:10:38Tap to summarizeBríet Ísis Elfar is not just one of Iceland’s biggest music stars. She’s an artist who embodies fearlessness, authenticity, and constant reinvention. Her breakout English-language single In Too Deep in 2018 introduced her sultry, soulful voice to the world, but it was her 2020 album Kveðja, Bríet that catapulted her to national stardom. She won “Album of the Year” and cemented herself as one of the country’s most influential female musicians. Big Conversations in the Coziest Setting with Center Hotels This interview is part of my In Bed With series, created in partnership with Center Hotels. Each conversation is recorded right in a bed at one of Center Hotels’ nine locations in downtown Reykjavík—keeping things cozy, relaxed, and a little unconventional. If you’re planning a stay in the city, you can use my code ATI25 to save 25% off at any Center Hotels location in Reykjavík. Bríet’s Artistic & Spiritual Upbringing Born in Reykjavík in 1999, Bríet grew up in a uniquely creative and spiritual household. Her father, Benedikt Elfar, taught her guitar and nurtured her love of jazz, while her mother, Ásrún Laila Awad, led sweat-lodge ceremonies infused with mantra chanting and deep emotional connection. Raised in this world of music, ritual, and radical openness, Bríet developed both resilience and a powerful sense of self. https://www.youtube.com/watch?v=zFeYJr4JdIk From Jazz Bars to Center Stage From singing jazz in Reykjavík restaurants for a hamburger and 5,000 krónur, to debuting her original work on the stage of Sónar Reykjavík, Bríet’s journey has been anything but ordinary. She’s unapologetically experimental, whether making plastic “glass” dresses with her longtime fashion collaborator, diving into collaborative projects like 1000 orð with rapper Birnir, or writing songs that transform heartbreak into catharsis. Bríet’s Radical Honesty as a Creative Force Known for her raw honesty, she has openly shared struggles with belonging, heartbreak, and personal growth. Yet through it all, her guiding philosophy remains simple: don’t take life too seriously, embrace failure, and always follow the intuition of the heart. At a Turning Point, Always Becoming Today, Bríet stands at a new turning point—after years of acclaim, collaborations with major Icelandic artists like Ásgeir Trausti and Friðrik Dór, and millions of streams worldwide, she continues to chase the unknown. Whether sitting next to global icons in Tokyo or returning to her roots in a sweat lodge in Iceland, Bríet carries a rare ability to turn both joy and pain into beauty. Share this with a Friend Facebook Threads Email Let’s Be Social Youtube Instagram Tiktok Facebook Thanks for listening. Þakka þér kærlega fyrir að hlusta og sjáumst fljótega.
Transcribe →5 Iceland Travel Myths – Winter Edition
Jan 2800:17:39Tap to summarizeThere’s a lot of advice about traveling to Iceland, and not all of it is helpful. In this podcast episode, I’m breaking down five common Iceland travel myths that end up quietly costing travelers time, money, and energy. From unrealistic expectations about weather to misunderstandings around driving and seasons, this episode will help you spot the assumptions that derail trips before they even begin. The 5 Iceland Travel Myths That Mislead Visitors Myth 1: “Iceland is always freezing cold” Iceland has a reputation for being brutally cold, but that’s not actually true year-round — or even most of the time. Thanks to the Gulf Stream, temperatures are often milder than people expect, especially along the coast. The bigger challenge for travelers is usually wind and changing weather, not extreme cold. When people assume “freezing,” they often overpack or misunderstand what conditions they’re really preparing for. Myth 2: “You need extreme winter clothing” Many travelers assume they need expedition-level gear just to survive Iceland, which leads to overpacking and overspending. In reality, what matters most is layering properly, not wearing the heaviest gear possible. Waterproof and windproof layers are far more important than bulky items. Dressing smartly, not excessively, makes travel easier, more comfortable, and more flexible. Myth 3: “Winter driving is too dangerous for tourists” Winter driving in Iceland isn’t automatically dangerous, but it does require preparation and realistic expectations. Many visitors drive safely every winter by choosing appropriate vehicles, monitoring weather forecasts, and adjusting their plans when needed. Conditions vary significantly by region and day, which is why flexibility and local awareness matter more than fear. The real risk comes from underestimating the conditions, not from driving itself. Myth 4: “It’s completely dark in Iceland during winter” While daylight hours are shorter in winter, Iceland is not in total darkness. Even around the winter solstice, there are several hours of daylight, including long twilight periods. Many travelers are surprised by how usable the day still feels — especially when plans are adjusted to match daylight windows. Understanding how daylight actually works makes winter travel far less intimidating. Myth 5: “You can only see the Northern Lights in winter” Winter is the most popular season for Northern Lights viewing, but it’s not the only time they appear. The aurora can be visible in late fall and early spring as well — whenever skies are dark enough and solar activity cooperates. The key factors are darkness, clear skies, and patience, not just the season itself. This myth often causes people to unnecessarily limit their travel options. The Real Issue: Assumptions, Not Bad Decisions Most Iceland travel mistakes aren’t about bad decisions, they’re about bad assumptions. When travelers rely on oversimplified advice or viral content, they often plan trips that don’t match reality. Once those assumptions are corrected, Iceland becomes far easier and more enjoyable to explore. Plan Iceland With Clarity, Not Guesswork If you’re planning a trip to Iceland and feeling overwhelmed by conflicting information, I want to invite you to my Live Iceland Trip Planning Workshop happening on January 31st, 2026. It’s the first workshop of the year and is especially helpful if you’re planning a trip for 2026 or beyond and want a strong head start. This is a live, interactive workshop where I walk you through how to plan your trip realistically — from driving distances and timing, to choosing the right season, and building an itinerary that actually works. You’ll also be able to ask me your questions in real time, which is honestly one of the most valuable parts. I also do a giveaway at the end of the workshop, including Iceland-related prizes. One of those prizes is a one-on-one video trip consultation with me, which is usually fully booked since I only open a few slots each year. If you want clarity, confidence, and a solid plan instead of stress, you can find all the details and sign up using the link in the show notes or here 👉🏾https://all-things-iceland.teachable.com/p/iceland-trip-planning-workshop Random Fact of the Episode Winter can be very dry in Iceland. I know that sounds strange since we often some sort of precipitation, like rain or snow, but the air is dry and that can wreak havoc on your skin. If you are prone to having dryness, make sure you double up on your moisturizer when you are here. Icelandic Word of the Episode Goðsögn – myth Share this with a friend Facebook Threads Email Let’s Be Social Youtube Tiktok Instagram <a ...
Transcribe →Iceland Is Small But Here’s Why That’s Misleading
Jan 1900:17:43Tap to summarizeIf you’ve ever looked at a map of Iceland and thought, “Oh wow, it’s tiny — we can totally see everything,” you are not alone. I hear this all the time. And honestly? It makes sense. Iceland looks small on a map, but traveling through it is a very different experience. I’m going to explain why Iceland being ‘small’ is actually misleading, and how that misunderstanding causes a lot of travelers to overpack their itineraries, underestimate drive times, and end up more stressed than they expected. https://youtu.be/H9-PBrpRFjA How Map Illusion Makes Iceland’s Size Confusing Yes, Iceland is about the size of Kentucky. But unlike many places, almost all travel happens on a single main road, and that road isn’t a straight highway from point A to point B. Driving in Iceland involves: Winding roads One-lane bridges Changing weather Sudden stops because… well… waterfalls, sheep, and stunning landscapes For example, Reykjavík to Vík doesn’t look far, but that drive alone can take 2.5 to 3 hours, and that’s without stopping. And no one ever drives Iceland without stopping. Now add: Limited daylight in winter Weather delays Gravel roads Fatigue from constant visual stimulation Suddenly, “just one more stop” becomes the thing that breaks your day. This is where travelers get tripped up — they plan based on distance, not time. I’ve seen itineraries that say: “Golden Circle in the morning, South Coast in the afternoon.” Technically? Possible. Realistically? Exhausting. I Learned the Hard Way Even after living in Iceland for years, I still plan conservatively. Not because I can’t do more, but because I’ve learned the hard way. There have been a few times when I stuffed my itinerary so much that I felt tired, stressed, and annoyed. Traveling felt more like a chore than an adventure. How to Realistically Plan a Trip to Iceland That is Personalized for You If you’re planning a trip to Iceland and feeling overwhelmed by all the information out there, I want to invite you to my Live Iceland Trip Planning Workshop happening on January 31st, 2026. It is the first one of this year and is extremely helpful for getting a head start on planning your trip in Iceland for 2026 and beyond. This is a live, interactive workshop where I help you understand how to plan your trip realistically, from driving distances and timing, to choosing the right season, and building an itinerary that actually works. You’ll also be able to ask me your questions in real time, which is honestly one of the most valuable parts. I also do a giveaway of Iceland related prizes at the end of the workshop. One prize is a one-one video consultation with me, which is normally all booked up because I have few slots open for that throughout the year. If you want clarity, confidence, and a solid plan instead of stress, here are is where you can secure your spot for the live workshop. Random Fact of the Episode The total length of the ring road or route 1 is 1,322 kilometres (821 mi), making it the longest ring road in Europe. It connects the majority of towns together in the most densely populated areas of the country. Icelandic Word of the Episode Tími (tee-mi) — Time A perfect reminder that in Iceland, planning by time, not distance, is what makes or breaks a trip. Share This With a Friend Facebook Threads Email Let’s Be Social Youtube Instagram Tiktok Facebook Þakka þér kærlega fyrir að hlusta og sjáumst fljótlega.
Transcribe →Christmas Gift Ideas for Your Iceland Obsessed Friend
Dec 7Tap to summarizeIf you’re searching for the perfect Christmas gift for that Iceland-obsessed friend in your life, I’ve got you covered. As someone who lives in Iceland and shares all things Icelandic year-round, I’ve rounded up a curated list of meaningful, cozy, and delicious gifts that will make any Iceland lover light up this holiday season. Here are some wonderful Iceland-inspired ideas (links included): 1. A Traditional Icelandic Sweater (Lopapeysa) Nothing says “I love Iceland” quite like a beautifully hand-knit lopapeysa. Made from Icelandic wool, it’s warm, breathable, and naturally water-resistant. Plus, each pattern carries a piece of Icelandic heritage—making it a functional and sentimental gift. 2. Jólaöl – Icelandic Christmas Ale This seasonal favorite ale is only available around the holidays and has a comforting malt-forward flavor that Icelanders adore. It’s a festive, fun, and very Icelandic way to toast the season. 3. Icelandic Chocolate Iceland’s chocolate makers craft incredibly smooth and flavorful treats, often using local ingredients. Whether it’s classic milk chocolate or artisanal small-batch bars, this gift never fails to impress sweet-toothed Iceland enthusiasts. 4. Iceland Christmas-Themed Mugs Perfect for cozy winter mornings, these mugs let your Iceland-loving friend enjoy their coffee or tea with a little nod to their favorite country. They’re great for holiday decorating too! 5. Icelandic Coffee Blends Coffee culture is strong in Iceland, and local roasters create rich, aromatic blends inspired by the island’s landscapes and traditions. It’s a thoughtful gift for anyone who starts their day with a warm cup in hand. 6. Icelandic Beer & Spirits From craft beers to unique Icelandic spirits like Brennivín, these beverages offer a fun taste of Iceland’s brewing and distilling traditions. It’s a great way to share a little Icelandic cheer from afar. 7. A Book by an Icelandic Author Iceland punches far above its weight in literature! Whether your friend loves mysteries, folklore, poetry, or Icelandic sagas, gifting a book from a local author is a beautiful way to connect them to Iceland’s storytelling roots. 8. Outerwear from an Icelandic Brand Icelanders know how to stay warm, dry, and stylish in unpredictable weather. Jackets, hats, and other outerwear from local brands, like 66 North, make incredible gifts—practical, high-quality, and authentically Icelandic. <img loading="lazy" decoding="async" w...
Transcribe →A Pioneering Icelandic Actress – Aldís Amah Hamilton
Sep 1301:11:48Tap to summarizeAldís Amah Hamilton is a trailblazing Icelandic actress, writer, and cultural icon. Born in Germany and raised in Reykjavík, she has starred in hit shows like The Valhalla Murders, Netflix’s Katla, and co-created the gripping series Black Sands. In 2019, she made history as the first woman of color to embody the Fjallkonan, Iceland’s national symbol on Independence Day in Reykjavík, which is the largest celebration and is televised around the country. Beyond the screen, Aldís lends her voice to video games like Senua’s Saga: Hellblade II and Echoes of the End, and leads as chair of the Vegan Association of Iceland—advocating for plant-based living while shaping Iceland’s cultural landscape. Save Big When You Stay in Reykjavík The “In bed with” series is sponsored by Center Hotels and the interviews are recording at one of their hotels while I chat with my guests in a bed. They have 9 hotels in the center of Reykjavik and each of them is unique. To save 25% on your stay with Center Hotels use my code ATI25. https://www.youtube.com/watch?v=xyWfVs_j36A The Previous Interview I did with Aldís Amah Years Ago I was very fortunate to interveiw Aldís Amah Hamilton years before her acting career took off. Learn more about her childhood in Iceland by checking out that interview here – https://allthingsiceland.com/aldis-amah-biracial-iceland-interview/ Some of the Topics Aldís Amah and I Spoke About During the Interview ✨ Breaking barriers in the Icelandic acting world✨ Making history as the Fjallkonan✨ Life as a vegan and her role in Iceland’s vegan community✨ What drives her authenticity on and off screen Live Iceland Trip Planning Workshop On Saturday, October 4th, 2025, I’m hosting a Live Iceland Trip Planning Workshop. Get local expertise to help cut through confusion and plan your trip with ease. Click Here Share this with a Friend Facebook Email Threads Let’s Be Social Youtube Instagram Tiktok Facebook Þakka þér kærlega fyrir að hlusta og sjáumst fljótlega.
Transcribe →3 Things I Wish I Knew Before Visiting Iceland for the First Time
Sep 700:13:03Tap to summarizeIf I could go back to my very first trip to Iceland in 2013, knowing what I know now after living here for over nine years and traveling extensively around the country, there are three major things I would do differently. And I think these are going to help you as you’re planning your own adventure here. 1. Understanding how Daylight Hours Impact Travel Plans in Iceland When I came here for the first time, I knew the days were shorter in winter, but I wasn’t prepared for how short they were. Imagine only having four hours of daylight in December, with the sun rising around 11 a.m. That completely changes how much you can see and do in a day. Had I planned with that in mind, I could’ve maximized my time so much better. 2. Take Driving Distances around Iceland in to Consideration While Planning This one surprised me the most. Iceland looks small on a map compared to other countries, but trust me, it’s not as quick to get around as you think. For example, the stunning Stuðlagil canyon in East Iceland? It’s about a seven-and-a-half-hour drive from Reykjavík. That’s just one of the hundreds of incredible places you might want to see. If you don’t account for drive times, you’ll either be rushed or miss out on places you were hoping to experience. 3. Building Flexibility into Your Plan Icelandic weather can change dramatically no matter the season. A severe windstorm or heavy snow could shut down access to an area, which means your plans may need to pivot. The good news is, with the right approach, you can build in alternatives, so your trip is still amazing even if the weather forces you to adjust. Expert Help for Your Planning Your Trip to Iceland Now, these are just a few of the things I’ll be diving into in my Iceland Trip Planning Workshop happening on October 4th. In this one-hour live, interactive session, I’ll walk you through a proven framework for creating your own 5-day itinerary in Iceland—without spending hours scrolling blogs and piecing together random tips from social media. In just one hour, you will:✅ Cut through the confusion and know exactly where to start✅ Learn a proven framework for planning any 5-day Iceland trip✅ Get insider tips from someone who actually lives in and travels around Iceland✅ Walk away with practical steps you can put into action immediately What’s included in the Live Iceland Trip Planning Workshop A one-hour live, interactive planning session with me Replay access for up to 16 days afterward Practical steps to build an itinerary that fits your personal travel style Fun giveaways of Iceland-related prizes during the live session Plus, a 15% discount code for My Iceland Map, which has over 300 of my personal recommendations of what to do and see around the country Use this link to save your seat at the workshop – https://all-things-iceland.teachable.com/p/iceland-trip-planning-workshop And because I love to reward action-takers, the first 50 people to register will get 15% off the workshop price with the code “Save15”. So if you’ve been dreaming of Iceland but feel overwhelmed with where to start, this workshop will save you time, stress, and confusion—and help you make the most out of your trip. Random Fact of the Episode I had no idea at the time in 2013 that I would for sure move to Iceland but I do know that the visit left such a profound impact on me that I was adamant about visiting again in June of 2014. Icelandic Word of the Episode Námskeið – course or in this case I am using it for workshop, such as the Iceland Trip Planning Workshop Share this with a friend Facebook Email Threads Let’s Be Social Youtube Instagram Tiktok Facebook Þakka þér kærlega fyrir að hlusta og sjáumst fljótlega.
Transcribe →More Than Music: Iceland’s Pop Icon Páll Óskar on Life, Love & Legacy
Aug 6, 202501:24:57Tap to summarizeSince bursting onto the scene in 1993, Páll Óskar—also known as Paul Oscar—has been turning heads, moving hips, and breaking boundaries. He’s not just a singer. He’s a performer, a provocateur, a fearless icon who has never shied away from being exactly who he is—openly gay, genre-bending, and unapologetically fabulous. And let me tell you, he’s not slowing down anytime soon. His music and style have evolved over the decades, but his bold spirit and commitment to authenticity have never wavered. Whether he’s belting it out with the Iceland Symphony Orchestra or dancing down Reykjavík’s Laugavegur during Pride on a sparkling unicorn float (yes, really!), Páll brings all the drama in the best way possible. https://youtu.be/Xvow55EE6ak Save Big When You Stay in Reykjavík, Iceland This episode is sponsored by Center Hotels, who is also a proud sponsor of Pride in Reykjavík. To save big when you stay in any of their 9 hotels, use code ATI25 for 25% off. Some of the Topics Páll Óskar and I Discussed during the Interview The attitude towards artists in Iceland His incredibly talented Family Why trends spreads so quickly in Iceland His family’s response after coming out in the 80s Reconciling with his father after not being accepted as Gay The change in Iceland toward the LGBTQ+ community Being an artist and an activist in a small society The pressure of having a famous older sibling Owing Donna Summer & African Americans his whole life Páll Óskar’s idea of the perfect Pride Parade The Grindr scandal Why representation matters in all forms Páll Óskar’s Controversial Eurovision Performance His advice for emerging artists Check out Páll Óskar’s Music If you want to dance to awesome Icelandic pop music spanning from the 90s until present day, check out Páll Óskar’s music here. Share this with a Friend Facebook Email Threads Let’s Be Social Youtube Instagram Tiktok Facebook Þakka þér kærlega fyrir að hlusta og sjáumst fljótlega.
Transcribe →Is This Iceland’s Best-Kept Secret Stay? – Harmony Lodge Tour
Jul 9, 202500:13:29Tap to summarizeI recently stayed at Harmony Lodge, and let me tell you… it blew me away. If the idea of relaxing in a private sauna and hot tub, surrounded by Icelandic nature — and away from the tourist crowds — sounds like a dream, then keep listening. I’ll also be sharing an exclusive discount you can use to save up to 25% on your own stay at Harmony Lodge. My Stay at Harmony Lodge: Nestled in the serene South Icelandic countryside, this incredible place is just 10 minutes from Seljalandsfoss, one of the most famous waterfalls in the country. Despite being so close to big attractions, it feels completely remote. You won’t hear cars. You won’t see crowds. You’re just surrounded by open land, mossy hills, and stunning views. Each lodge is built with floor-to-ceiling glass walls, giving you panoramic views of the landscape. From the moment I stepped inside, I felt like I had entered a warm, cozy bubble where I could completely unwind. The design is minimal yet luxurious — Scandinavian style with Icelandic charm. And get this — every lodge comes with its own private sauna and hot tub. I honestly don’t think I’ve ever felt so relaxed after a day of exploring. Sitting in the hot tub at sunset with the fresh Icelandic air around me and the quiet of nature all around… It’s the kind of peaceful you can’t describe — you have to experience it. Perfect Base for Exploring the South Coast: Another thing I loved is how Harmony Lodge strikes the perfect balance: peaceful seclusion, but super close to the major sites. From the lodge, you’re: 10 minutes from Seljalandsfoss 30 minutes from Skógafoss Just over an hour from Reynisfjara Black Sand Beach Close to Þórsmörk, Eyjafjallajökull, and many more iconic stops. You can easily explore during the day, then come back to complete privacy and calm — no busy hotels, no noisy hallways, no stress. Special Discount to save on Harmony Lodge for All Things Iceland Listeners: Now, here’s the exciting part — I have an exclusive discount for All Things Iceland listeners and followers! ✨ Use code JEWELLS10 at checkout to save 10% on your stay at Harmony Lodge. Even better — if you book two nights or more for a stay between now and August 31st, 2025, you can combine my 10% code with their current 15% discount. That’s 25% off total! 🗓️ The discount code is valid until July 31st, 2025, and you can book for any stay up until December 31st, 2025. Just go to: https://harmonyretreatlodge.comAnd enter JEWELLS10 at checkout. Why Harmony Lodge Might Be Right for You Whether you’re visiting Iceland for the first time, or you’ve been here before, staying at Harmony Lodge is such a special experience. It’s perfect for: Couples on a romantic getaway Travelers looking to unplug and relax Nature lovers and photographers And anyone who wants to experience Iceland in a deeper, more tranquil way And I think we all deserve a little luxury and stillness sometimes — especially in a country as beautiful as this. If you end up staying there, please let me know what you think! I’d love to hear about your experience. Random Fact of the Episode The ferry to the Westman Island is just a short drive from the lodge. On a clear day, you can even see the islands from Harmony lodge which is awesome. The 50-minute ferry ride to Vestmannaeyja is totally worth it, especially in the summer. Heimaey is such a fun and special place to visit. You can easily drive around the island and do different activities in just one day. I highly recommend adding this island to your itinerary. Icelandic Word of the Episode jafnvægi – harmony Share this with a Friend Facebook Email Threads Let’s Be Social Youtube Instagram Tiktok Facebook Þakka þér kærlega fyrir að hlusta og sjáumst fljótlega.
Transcribe →Why My Life in Iceland Will Never Be the Same
Jun 9, 202500:08:02Tap to summarizeI have some deeply personal and exciting news to share with you today… I’m pregnant! 🍼💫 My mind is still blown that there is a tiny human growing inside of me. It’s been such a surreal, emotional, and beautiful experience. And honestly, it’s made me fall in love with this country in a whole new way. This journey has already taught me so much — about Iceland’s healthcare system, the incredible prenatal care here, and yes, even the costs and cultural norms around pregnancy. So I’ll be sharing periodic pregnancy updates right here on the podcast, and also on YouTube, Instagram, and my other social channels. If you’re curious about what it’s like to be pregnant in Iceland — from ultrasounds to maternity leave to navigating it all as a foreigner — stay tuned. I just hit the 20-week mark, which means I’m officially halfway! How I am Celebrating Being 20 Weeks Pregnant To celebrate this life-changing milestone with you — my amazing community — I’m offering 25% off The Savvy Traveler’s Guide to Iceland for a limited time. Whether you’re planning your first trip or returning for another magical adventure, this guide is packed with tips to make your Iceland visit smoother, richer, and more meaningful. 🎉 Use the code june25 at checkout to get 25% off! Share this with a Friend Facebook Email Threads Let’s Be Social Youtube Instagram Tiktok Facebook Thank you for being part of this journey with me — and now with us. 💛 Þakka þér kærlega fyrir að hlusta og sjáumst fljótlega.
Transcribe →7 Reasons Iceland is Expensive & How to Make Your Trip More Affordable
Feb 19, 2025Tap to summarizeWhether you’ve visited Iceland before or you’re planning your dream trip, you’ve likely noticed that prices here are higher when compared to many other countries. From groceries and restaurants to accommodations and activities, Iceland’s cost of living and travel expenses can be a shock to the wallet. But why is that the case? I’ll break down the key reasons behind Iceland’s high prices, including geographic isolation, the dominance of a few large companies, high taxes and import duties, a small population, and the impact of tourism. Plus, I’ll be sharing details on my upcoming live webinar, “Iceland on a Budget: 30 Ways to Spend Less and Travel Smart,” where I’ll give you actionable tips to help you maximize your experience in Iceland without breaking the bank. Let’s get into it! 1. Geographic Isolation Iceland’s remote location in the North Atlantic significantly impacts its economy. With no land connections to other countries, all goods must be transported by air or sea. This means higher shipping costs, which are passed on to consumers. Everyday essentials like food, clothing, and electronics come at a premium because of the logistics involved in getting them to the island. For example, grocery stores like Bónus and Krónan import a large percentage of their products, leading to higher-than-average food prices compared to mainland Europe or the U.S. A simple item like a gallon of milk can cost around 900 ISK ($6.99 USD). The cost of fuel is also steep and can be as high as 330 ISK ($2.33 USD) per liter or about $8.85 a gallon, partly due to import costs and high taxes. This geographic isolation extends to supply chains for restaurants and retail, where prices reflect these transportation challenges. 2. High Taxes and Import Duties Iceland has some of the highest taxes in the world, and these contribute significantly to the high cost of goods and services. The standard Value Added Tax (VAT) rate is 24%, with a reduced rate of 11% on certain goods like food and books. However, even with the reduced VAT, prices remain high. Import duties on certain items, such as clothing and electronics, add even more costs. For example, a pair of Levi’s jeans that might cost $60 in the U.S. can easily be $120 in Iceland due to taxes and import fees. Cars are also heavily taxed, with import duties, VAT, and registration fees sometimes doubling the cost compared to other countries. This means that even everyday expenses like transportation, dining out, and shopping feel significantly more expensive. 3. Market Dominance by Few Companies Iceland’s small economy means that a handful of companies dominate key industries, limiting competition and keeping prices high. The food retail sector, for instance, is primarily controlled by Hagar, which owns Bónus, Hagkaup, and other supermarkets. This lack of competition can result in inflated grocery prices. Similarly, the telecommunications industry is led by Síminn, Nova, and Vodafone, all of which maintain relatively high service costs. The same goes for banking—Arion Bank, Íslandsbanki, and Landsbankinn dominate the financial sector, and their fees for everyday banking services can be steep compared to other countries. The lack of competition in these critical industries means that consumers have limited options, and businesses have little incentive to lower prices. Even in tourism, major players like Icelandair control air travel, which can keep flight prices elevated, especially during peak seasons. 30 Budget Saving Tips for Iceland: Travel Smart and Spend Less If you are not sure how to get the most bang for your buck in Iceland, I have something that will help you out. I’m hosting a free live webinar and you won’t want to miss it! This webinar is packed with practical, money-saving strategies to help you explore Iceland without spending a fortune. Click Here to Register 4. Small Population and Limited Market With a population of about 370,000 people, Iceland has a tiny consumer base. This makes it difficult for businesses to achieve economies of scale, which would normally help lower prices. In many industries, goods are produced or imported in small quantities, leading to higher per-unit costs. This issue affects everything from groceries to household goods. Additionally, because the market is small, international companies may find it unprofitable to operate here, further limiting competition. For example, while fast food chains like McDonald’s thrive in most countries, the franchise left Iceland in 2009 due to the high costs of operation after the economic crash in 2008. Many products that are considered everyday essentials in larger countries are treated as premium items in Iceland due to the cost of importing and distributing them. 5. High Wages and Inflation Iceland has some of the highest wages in Europe, with average salaries well above those in many neighboring countries. While this supports a high standard of living, it also drives up labor costs for businesses. Higher wages mean that everything from restaurant meals to hotel stays comes with a premium price tag. In addition, inflation has been a persistent issue, causing prices to rise even further. Iceland’s labor market is also influenced by strong unions, which negotiate higher wages and benefits, further contributing to increased costs for goods and services. Over time, these factors compound to make Iceland an expensive place to live and visit. 6. Tourism’s Impact on Housing and Services The boom in Icelandic tourism over the past decade has led to an increase in prices for housing, accommodations, and services. The rise of Airbnb rentals has had a significant impact, as many property owners choose to rent to tourists rather than long-term tenants. This has driven up housing prices and made it difficult for locals to find affordable accommodations. For example, the average rent for a one-bedroom apartment in downtown Reykjavik can be upwards of 250,000 ISK ($1,750 USD) per month. Beyond housing, the demand from tourists has also pushed up prices for restaurants, excursions, and even groceries, as businesses cater more to visitors than to locals. The cost of a simple meal at a casual restaurant can easily exceed 3,500 ISK ($25 USD), and a cup of coffee might be 800 ISK ($6 USD). While tourism has been a major economic driver, it has also contributed to inflation and the rising cost of living in Iceland. 7. Limited Domestic Production Iceland’s harsh climate and small land area limit agricultural and industrial production. As a result, the country relies heavily on imports for food and essential goods. This reliance increases costs, especially when global supply chain disruptions occur. Locally produced food, such as dairy and lamb, can be costly due to the high costs of farming in Iceland’s challenging environment. The need for imports means Icelandic consumers pay premium prices for even basic necessities. Iceland is undoubtedly an expensive place to live and visit, but understanding the reasons behind these high costs can help you plan better and make more informed decisions. If you want to learn how to experience Iceland without breaking the bank, don’t forget to sign up for my live webinar, Iceland on a Budget: 30 Ways to Spend Less and Travel Smart. Random Fact of the Episode For some good news, Iceland’s Central Bank lowered its key interest rate by 50 basis points to 8.0%, in line with market expectations, following a drop in inflation to 4.6% in January. Underlying inflation reached its lowest level in three years, and policymakers indicated that further disinflation is expected in the coming months. Fingers crossed that decreases continue to happen. Icelandic Word of the Episode Dýr – expensive Share this with a Friend Facebook Email Threads Let’s Be Social Youtube Tiktok Instagram Facebook Þakka þér kærlega fyrir að hlusta og sjáumst fljótlega.
Transcribe →