Hotel and restaurant prices in Iceland have in the past few years increased disproportionately to the prices of other services and products, according to a recent report from Eurostat.
The pricing for hotel and restaurant services in Iceland is on average 23 percent higher than the average for European Union affiliated countries, up from 5 percent in 2008. Meanwhile the price disparity for other services and consumer items increased from 4 percent to 12 percent.
Between 2004 and 2006, however, prior to the 2008 economic collapse, the disparity for hotel and restaurant services in Iceland and EU countries was 80 percent. Taking that into consideration, Iceland has generally become a more affordable travel destination in recent years, compared to the previous decade.
The Eurostat report lists Iceland as the seventh most expensive country in regards to hotel and restaurant pricing. Meanwhile, the top three spots on the list are filled by fellow Nordic countries, Sweden, Norway and Denmark, with Finland placing fifth.
The report was mentioned in Íslandsbanki’s online column Morgunkorn, the title of which can be translated as ‘breakfast cereal’ or ‘morning tidbit.’