Title: Case study: Iceland
Course: Archive > Section: Eco-tourism

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How tourism has turned Iceland's economy around

A sparsely-populated North Atlantic island, Iceland is famous for its hot springs, geysers and active volcanoes. Lava fields cover much of the land and hot water is pumped from under the ground to supply much of the country's heating.

In recent years Iceland enjoyed a standard of living that was among the highest in the world. Its banks expanded dramatically overseas and foreign money poured into the country, fuelling exceptional growth. The global financial crisis of 2008 exposed the Icelandic economy's dependence on the banking sector, leaving it particularly vulnerable to collapse.

In the long term, Iceland's well educated workforce and its natural resources are likely to provide the key to its recovery from the economic crisis.