Having completed two big trips, we reconciled ourselves to a final few days in Reykjavik. Almost half the population lives in the capital and on Friday and Saturday nights, we joined residents to drink coffee in mellow little shops, dance in all-night clubs where the joyous atmosphere felt like a high school dance, and dine on the national dish, which is a really terrific steamed hot dog served with two kinds of mustard, fried and raw onions, and remoulade. The best stand is Baejarins Bestu, which is near the harbor and easy to find as a line stretches here 24 hours a day. Five dollars: a dog and a Coke.
Other products worth eating are delicious salmon, cod, and lamb - the lamb is a single breed that came over with the Viking horses.
If it wasn't for the incredible cost of things, Iceland would be perfect. We failed to anticipate these prices.
A gallon of gas costs $7, groceries lasting us two days were $90, a six-pack of beer is $18, a movie ticket costs $12, a hotel room is about $300 per night, a meal in a typical restaurant has appetizers priced between $20-25 and entrees between $40-60. KFC? Four chicken sandwiches, drinks, and fries. Sixty bucks.
Next time we're bringing food from home. Icelanders told me restaurants are reserved for special occasions. People live frugally.
Living like an Icelander helped. The Blue Lagoon, a top tourist attraction, is a hot pool in the middle of a lava field. It's worth visiting, but it cost the four of us about $70 (plus the price of towels). We did it better by going to one of the many municipal pools and hot tubs - about $3 per person.
Maybe one day Iceland will be affordable. But now it's best to enjoy the 4 H's: hiking, hot springs, horses, and hot dogs.
When I got back home I tried to find out why it's so darn expensive. Here's what I discovered: Eighteen months ago, Iceland's banks were privatized - Landsbanki, the largest bank, is majority stockholder (33%) in the only airline which, in turn, owns major hotels and many restaurants, The Guardian, Financial Times and Iceland Review all raised the question this month: Is the Russian Mafia providing the money to those who bought the banks? And is there a connection between private banks having so much control over the tourism industry and high prices? I don't know. But I do know this: At $100 for a tank of gas, something's not right...
Editor's note: An article detailing Scott Haas' Icelandic vacation also appeared in the St.Petersburg Times - click here to read that account.