With Iceland's economic meltdown sending its currency into freefall, tourists who saw this remote North Atlantic island as prohibitively expensive are now flocking to its dramatic volcanic scenery.
"Last year you got 60 kronur (Dh1.68) for one dollar, today you get 105 kronur," says Will Delaney, a 22-year-old student from Canada who, like thousands of others, has taken advantage of the current exchange rate to see this volcanic country.
More than 10,500 Canadians visited the country last year, a rise of 68 per cent from 2007, contributing to an overall total of 502,000 tourists in the nation of just 320,000, according to Iceland's tourism board.
"The collapse of the banks had an effect on the currency, which fell quite a lot," says tourism board director Oloef Yrr Atladottir.
In fact, the value of the Icelandic currency plummeted by 44 per cent in 2008.
The drop "was not negative for the tourism industry because before the crisis Iceland had become a very expensive destination. It has become a more affordable destination now," Atladottir says.
Delaney holds that it is now feasible to visit Iceland for just a couple hundred dollars, something unimaginable a year ago before the crisis hit.
"I'm staying two weeks, working and travelling," he says.
Iceland is known for its breathtaking scenery, including the Blue Lagoon hot springs, spouting geysers, plunging waterfalls, and glaciers and volcanoes, as well as the Thingvellir national park, a Unesco world heritage site.
Bathe in turquoise pools, stand behind a toppling cascade or walk across a glaring-white icecap to experience the full weirdness of Icelandic nature.
The country's nature features eruptions of lava, gushing geysers such as Geysir in The Golden Circle (the original after which all were named), hot springs, tearing fissures along with the slow and grinding glaciers, which are so cinematic that at times they seem unreal.
The landscape is infectious: Hidden energy and a desire to shape the world are Icelandic traits. And Iceland's creatures are larger-than-life too: There's no better place on earth to come eye-to-eye with sleek and spouting whales than in Húsavík. Fearless little puffins flutter and bill in their millions along the tops of towering sea-cliffs.
Advertisements for national carrier Icelandair have popped up in newspapers everywhere and special promotions are all over the internet.
Iceland's tourism sector, which employs around 8,200 people, has pulled out all the stops to avoid a collapse after the country's financial sector crashed late last year.
The country's three major banks, which had all aggressively invested abroad, were brought down in October by the global credit crunch, forcing the government to take control.
But Iceland's economy is now beginning to show signs of recovery, thanks to an international bailout.
"Some companies in the tourism industry are in difficulty... as all over the world. But we have not experienced any mass bankruptcies or closures in the past months," Atladottir says.
The clean and green capital of Reykjavík, must contain the world's highest concentration of dreamers, authors, poets and musicians; you'll meet them on the high-spirited runtur, the city's wheeling weekend pub crawl. "Tourists have replaced the local people in the bars of the capital," says Johann Mar Valdimarsson, a 26-year-old bartender.
"Earlier, the inhabitants spent their evenings here. Now they start drinking at home and come here later for a last drink," Valdimarsson says, adding: "Fortunately there are tourists."
He saw the number of tourists dip in October when the crisis erupted, but pick up again in November. And they have have kept on coming ever since.
The tourism board has observed the same trend. What draws tourists is the stunning and incredibly varied landscapes, sublime wilderness, an intriguing past and sociologically fascinating present. And it's not cold, or particularly icy, at least in summer, when there is light for 24 hours.
"If you look at our visitors in the past two months we have not experienced a big drop. And our visitors have spent more money in Iceland because it's more affordable," Atladottir says. "This summer looks quite good," she added.
The number of US visitors fell by 22 per cent last year, but they have started coming back. And the industry is now focusing on attracting Europeans to Iceland.
"I'm optimistic. When you have a recession, people look for shorter travels and we want to remind our customers and potential customers that Iceland is the perfect destination," Atladottir says.
Essential guide
Getting there
There are no direct flights from Dubai. Fly with KLM to Amsterdam and pick up a flight with Icelandair. Prices start at $1,212 (Dh4,451). See Qatar, Emirates and BA for details on flying to Reykjavík.
Where to stay
- Hotel Reykjavík
Centrium: Located centrally, five minutes to the port and near the main square. The National Museum is just up the street
- 101 Hotels: At the heart of the city and close to the Opera House, this modern and tasteful hotel is beautifully decorated and the restaurants are the trendiest in town
- Hótel Borg, Iceland's first luxury hotel, retains its spacious gentility today
Where to eat
- Restaurant Domo at the Centerhotel Thingholt specialises in Asian and French fusion
- Fish & Chips on the old harbour
- Ostabúoin for lunch
- For dessert and coffee, head to Mokka Kaffi
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