This week’s episode is an update that details how Iceland has successfully flattened the COVID-19 curve. On April 1st, I published a podcast episode that detailed the steps Iceland took after authorities found out about the virus in late December. I walked you through all of the restrictions put in place, but the timeline for those updates ended in mid-March. If you haven’t already, I recommend checking that out.
Keep Up With Icelandic News
This episode is a continuation of that timeline and will provide insight on what has been happening in the country up until present day. I am recording this on May 27th, so keep in mind that any major news regarding the virus that happened after that date will be shared on my Instagram account @allthingsiceland. In fact, I do a weekly round-up of the news each Sunday in my stories, so join me there to keep up on interesting news happening within the country. If you prefer Facebook, you can follow along there as well. Just look for All Things Iceland or click the link in my show notes to be taken directly to my page.
Not surprisingly, a lot has happened in Iceland from mid-March to May regarding COVID-19. I find it interesting to look back on it and share it with you. Hopefully, you find it interesting too.
I’ve set this up in chronological order, and will provide an overview starting from where I left off in my previous Coronavirus podcast episode. If you want to read any of the articles that I referenced as I did research for this episode, check out the show notes below.
Ok, let’s jump into it.
It was obvious that the cases of COVID-19 in Iceland were continuing to rise. Up until mid-March, travelers from all over were allowed to enter the country without going into quarantine. However, residents of Iceland coming from high risk countries, like China or Italy, were mandated to be in quarantine for 14-days. The argument behind this is that travelers don’t normally come into close contact with locals, so the risk of infection is low. I found that to be bizarre and didn’t agree with it because visitors would need to go to the same markets as residents, especially since restaurants had been shut down due to the ban on gatherings. Also, if a visitor were to fall ill, they would definitely come in contact with residents.
First COVID-19 Death in Iceland Was a Tourist
Well, on March 17th, an Australian man in his 30s (36 years old) died while visiting North Iceland. Even though his symptoms were not typical of a person with COVD-19, he tested positive for the virus and so did his wife. It was sad and unfortunate that this happened. One consequence was that twenty two people who worked at the Húsavík health clinic that came in contact with him, had to be put in quarantine. The clinic had to scale back its operations after this because of being short staffed. This was the first Coronavirus related death in the country. I think it is worth mentioning that the response from Icelanders was really sweet. A Facebook group was started to send condolences from Iceland to the widow of the Australian man.
Travel Ban to Iceland for Non-EEA & EFTA Citizens
Within a day or so, it was announced that the European Union (EU) was imposing a 30-day travel ban on non-essential travel on countries outside of its union and certain partner countries. This was done to control the spread of the virus. Even though Iceland is not a part of the EU, it is an EFTA country. EFTA stands for European Free Trade Association. EFTA citizens and residents of the UK were exempt from the non-essential travel ban. Initially, Iceland did not seem interested in taking part in the travel ban but they eventually took part in it.
What made the travel ban different in Iceland, as opposed to the EU’s ban, is that it included countries that were not part of EEA (European Economic Area) & EFTA. Basically, Iceland was still open to travelers from certain countries in Europe. On a personal note, I wasn’t a fan of this because those travelers did not have to go into quarantine. However, there had been an announcement that residents of Iceland entering the country, regardless if they had been in a high risk country or not, would have to go into quarantine for 14 days. It is worth mentioning that at this point in time Iceland had up to 250 confirmed cases of the COVID-19 virus and more than 2,000 people were in quarantine.
Infections in Iceland Increasing at an Alarming Rate
One fact that sent shockwaves through the country is that mid-March is when we started to see sharp increases in confirmed cases. From March 17th until the 31st, the average amount of confirmed cases a day was about 67. The highest number of confirmed cases was 106 on March 24th. It still stands as the highest number for one day. For a country of about 360,000 people, those are quite high numbers of COVID-19.
There are two main reasons for these numbers. One is that testing was being done vigorously at Landspitali National hospital and deCode Genetics was doing its best to help with testing too. 9,189 samples had been analyzed by March 20, 2020. The second is that according to an Iceland Monitor article is that, “A team of 16 health care workers and 22 police officers works every day on tracing the origin of new infections, so that people who need to be quarantined can be contacted.”
Being proactive with tracking down those that had been in contact with an infected person was a great strategy. On March 22nd, authorities stated that “Fifty percent of the new cases are people who already were quarantined.” One snag that the country ran into was shortage in testing swabs. They were awaiting a shipment due to come in the following week.
Also, more than 500 healthcare workers (nurses, doctors, and so on) signed up to work at Landspitali hospital to help with the fast growing amount of patients. The amount of people that stepped up to help is incredible and awe-inspiring.
Gathering Ban in Iceland Becomes Stricter
Later that evening, an announcement of a stricter ban on gatherings was announced. In my first update about a gathering ban, it was prohibited for more than 100 people to meet. That was now reduced to 20 people or less. Grocery stores and drug stores were still allowed to have 100 people or less. However, swimming pools, fitness centers, bars, museums and so on had to close. Of course, the 2 meter (6 foot) social distancing rule applied wherever you were.
I worked from home during this time but my work place didn’t close. Instead, it split the company up into three groups. Two groups would alternate coming into the office and one group would work from home the whole time. It was quite strange to do this. Anyone that wanted to work from home the whole time was allowed to. It surprised me the amount of people that wanted to come into the office. I know everyone’s circumstances are different but I preferred working at home because it is quiet and I don’t have to commute. However, I’m sure I would feel different about that if I had children.
Even though high schools and colleges were closed and kids were doing social distancing, pre-schools and elementary schools didn’t fully close. Kids would go to school for several hours a day. This was a reprieve for many parents that had to work from home.
The Icelandic Government’s First Economic Response to the Pandemic
There was no question that everyone in Iceland, and dare I say the world, has been pondering how much the COVID-19 pandemic will affect the economy for individual nations and on a global scale. I had mentioned in the previous episode that Parliament had pledged to help businesses and those in quarantine. However, not a ton of details were shared about how they exactly planned to do that until a week or two later. During the same weekend as the stricter bans on gathering were announced, a sweeping economic plan was rolled out to help soften the blow of the virus’ impact on the economy.
Parliament allocated ISK 230 billion (USD 1.6 billion; EUR 1.5 billion), which is about 8% of the country’s GDP, to stimulate the economy. They have three goals. The first is to protect the livelihoods of residents and businesses. The second is to protect the foundations of society and the third is to fuel a major investment initiative.
The List of Ways the Icelandic Parliament is Helping to Stimulate the Economy Because of COVID-19
The government will do that by:
- Taking on up to 75 percent of salaries
- This will keep employers from having to do mass layoffs and make the unemployment rate in the country sky rocket
- State-backed bridging loans for companies will be provided
- Deferral of tax payments
- Companies can postpone the payment of taxes until next year. This will improve liquidity in business operations. Also, hotel taxes will be abolished until the end of 2021.
- Financial support for the tourism sector
- One-off child benefit payment
- Access to third-pillar pension savings (private pension savings)
- Refund of VAT for construction projects
- VAT reimbursement for construction and maintenance work will increase from 60 percent to 100 percent.
- Public projects will be accelerated – investment in technical infrastructure
- increasing investment in transport, public construction and technology infrastructure. The government contributions to research and science will also be increased.
Predictions on When Iceland Will Reach the Peak of the COVID-19 Curve
One thing that caused me and others anxiety in Iceland, was not being sure when we will reach the height of the curve and eventually flatten it.
According to an article on Iceland Monitor,“The latest statistical forecast, available on covid.hi.is, now predicts that the disease will reach a peak in Iceland in mid-April. The model predicts that by the end of April, the total number of confirmed cases could be anywhere from 2,500 to 6,000. The number of people requiring hospitalization during the pandemic could total anywhere from 170 to 400. People hospitalized in mid-April could number 90-200.”
2,500 to 6,000 is a very large range. I was shocked to see it. Frankly, It made me feel a little worried that the virus was spreading like a wildfire. Was it inevitable that that many people I know would get it and that I would too?
Fortunately, this prediction changed dramatically within the same week. During a press conference, Thor Aspelund, a professor of epidemiology and biostatistics at the University of Iceland, presented data that showed lower numbers. He explained that due to health officials’ measures to contain the COVID-19 virus, they have managed to keep the amount of confirmed cases from growing exponentially. It was now predicted that about 1,200 infections could be expected at the peak of the virus. A range of 1,500 to 2,300 is the total number of infections that was forecasted in Iceland. While this is still a decent amount, it is way better than possibly 6,000!
The Travel & Tourism Industries in Iceland Grind to a Halt
The major stories in late March were about the immediate impact of the COVID-19 virus on travel and tourism companies. Granted, every industry slowed down because of the pandemic but not like the two I just mentioned. For instance, Icelandair stopped operating at 14% capacity and stopped all flight services. At that time, they laid off 240 employees. Any remaining employees had taken a pay cut and were on a reduced employment ratio.
One prediction is that the Icelandic travel industry will lose as much as ISK 260 Billion (USD 1.8 billion; EUR 1.7 billion). The calculations are based on this industry bringing in no income from foreign tourists from mid-March to the end of August. One thing I found fascinating, is that even though domestic travel in other Nordic countries accounts for about 50% of the travel industry, it is only about 10% in Iceland. Icelanders are always looking for a great deal, so they often travel to less expensive destinations throughout the year.
March 2020 COVID-19 Round-up in Iceland
On March 31st, the total number of confirmed infections was 1,086. 9,236 were in quarantine, 927 were in isolation, and 157 had recovered from the virus. Overall, 16,484 samples had been analyzed, which accounts for about 4.5% of the country. There were two confirmed deaths this month from the virus.
One positive piece of news is that 6,000 swabs were found at the medical microbiology and virology department of the Landspitali hospital. This was a huge relief because the shortage of swabs meant that testing was slowing down. It was expressed that Iceland had been expecting 10,000 swabs from the U.S. However, those swabs ended up going to the highest bidder, who is said to have paid in cash. We had at least 9,000 swabs available for testing. The hope is that those were enough until more swabs were received.
Unemployment in Iceland Soars in April
April was kicked off with the sad realization that the unemployment rate was going to soar. In March, the rate was between 7.5 to 8%. However, the prediction for April was a whopping 12 to 13%. This amounts to about 50,000 people being unemployed.
According to a news article, “The Directorate of Labor had received 25,000 applications yesterday for unemployment benefits as a result of a reduced employment ratio – a program offered by the government as an incentive to employers to not lay off their workers during the economic shutdown, caused by the COVID-19 pandemic. About half of the applications come from people who work in the travel industry and related operations, 17 percent come from people who work in retail and the shipping of goods, and 11 percent come from those who work in the industrial sector, construction, fisheries, or farming.”
The hardest hit region is the Reykjanes Peninsula, where the unemployment rate was predicted to reach 23.7%.
COVID-19 Spreads in a Nursing Home in the Westfjords
One of the worst fears that many had came to fruition when news broke that the COVID-19 virus was spreading in a nursing home in the Westfjords. One of the residents was found to have the virus. Unfortunately, he died and many of the staff and residents had to be put into quarantine or isolation. That status was based on whether they had tested positive for the virus. A reserve force of nurses were flown in to help take care of the residents. Bolungarvík, the small town of 931, where this happened in the Westfjords, banned gatherings of more than 5 people after this happened. This ban was stricter that the rest of the country, which banned more than 20 people gathering at any one time.
Trouble in Travel Paradise for Icelandair
The troubles in Iceland were not just isolated to those living in the country. Many passengers with Icelandair were worried about getting refunded or at least credit for flights that had to be cancelled. Iceland monitor received a lot of complaints about the airline during this trying time. Here are some of the things people wrote:
“Icelandair has been absent in helping us cancel or rebook our travel. Especially those with economy light tickets are asked to call their customer support number which has been unreachable for more than two weeks.”
Another of our readers writes, “Suspending their toll-free support line so that no customers can get through (I had to dial local Iceland office number to get through and incurred $125 phone bill), not allowing customers to cancel their flights online, via desktop or mobile app, only offering waived change fees … and simply not returning fares for trips people cannot take, regardless of what citizenship they have, or crediting customer accounts for future travel which, in many cases, equates to thousands and thousands of dollars lost.”
Icelandair’s Response to Customer Complaints
In response to complaints and requests on their Facebook page, Icelandair wrote the following:
“We’re sorry. The sheer number of messages requires us to refocus our efforts in order to reach you all. Until further notice, we will not be replying to social media messages or mentions.
They then provided links for where people can change their bookings on the website and their app.
Later on, I found out that Icelandair’s system couldn’t handle cancelling flights more than 48 hours in advance. They worked on updating the system to be able to do this. However, some people who had flights scheduled to leave less than 24 hours in April complained of not receiving cancellation notifications. I’m sure the airline was overwhelmed with all that was happening, but it seems that they dropped the ball in April.
As mentioned in March, it was expected that the travel industry wouldn’t make money for the next three months. However, Jóhannes Þór Skúlasson, managing director of SAF, the Icelandic Travel Industry Association, said that tourism companies might not make any income until 2021!
Drugs Arrive in Iceland to Help Fight Coronavirus
In early April, 50,000 packages of Chloroquine from India arrived in Iceland. These packages were a gift to the nation and were purchased by the pharmaceutical company Alvogen. I’m not sure if the drug was used to treat patients but Landspítali did say that they will decide to use it when necessary. The drug was developed to help fight malaria and has serious side effects, including death. For my listeners from the United States, you have probably heard this drug or at least Hydroxychloroquine being mentioned in the news. This drug should only be used when absolutely necessary and under the close supervision of a medical professional.
News also broke that Japan has gifted Iceland 12,200 tablets of Favipiravir (aka Avigan), an antiviral medication. The drug has been shown to inhibit the replication of the viral genome. There are clinical trials happening around the world and this drug is being used to treat seriously ill patients. When it arrives, it will be able to treat about 100 patients.
While it is great to have these drugs to help those with the COVID-19 virus, it still seems that a vaccine is possibly the only hope for eradicating this virus.
The 10 Year Anniversary of Eyjafjallajökull Volcano Erupting
In the midst of so much turmoil and uncertainty, there was a special anniversary that occurred. This month marked the 10 year anniversary of Eyjafjallajökull volcano erupting and changing Iceland into a major tourist destination. Because the eruption caused major disruption to flights around the world, about 400 foreign reporters flocked to the country to tell the story.
Their footage showed the awe-inspiring landscapes and just how fantastic it is to visit a country so deeply connected to nature. 488,000 foreign visitors ended up coming to the country by the end of 2010. The visitor numbers kept exploding for many years after that. As I talked about in my episode about the collapse of Wow Air, this volcanic eruption kicked off the boom of the tourism industry here. Many of the companies that made money hand over fist for the last decade might not make it through this current economic downturn.
Making Information About COVID-19 Available to Everyone in Iceland
Most of the information shared in Iceland about the virus was available in Icelandic and English. However, there are people that live here who don’t understand or speak either of those languages well. Not having access to important information regarding their safety or the safety of their families can cause distrust. Thankfully, a few things were done to tackle this problem.
The Covid.is website that shows all of the statistics about the virus and important announcements was translated into Icelandic, English, Polish, Spanish, Arabic, Farsi and a few more languages. C-19, the app that was developed to track people with the COVID-19 virus and alert those that had been in the same vicinity as an infected person, was also translated. The app was launched this month. It is amazing how quickly all of this was implemented.
The daily briefings by the Chief Epidemiologist, Director of Health, and Chief Superintendent, were only in Icelandic. However, awesome people in Facebook groups would translate those press briefings into English. It is amazing how much people came together to help each other to stay informed here.
Tourists Must Go Into 14-Day Quarantine When Arriving to Iceland
One thing that happened in April that surprised and confused me was when an announcement was made about any tourists to the country needing to go into quarantine for 14 days. My first thought was, “Why now?” It is not like tourists were flooding or even trickling into the country. Regardless, the mandatory quarantine was in effect from April 22nd until May 14th, 2020. The Chief Epidemiologist said in a press conference that, “Whether Iceland’s borders will be opened is not what makes or breaks the Icelandic tourism industry, since there is next to no tourism in the world now anyway”.
A few people on Instagram reached out to me because they were scheduled to arrive in Iceland during that time period and were sad to hear the news. I don’t think they would’ve made it anyway because flights were being cancelled right and left. However, I do think that any hope they had of visiting was now gone. Most visitors to Iceland can’t afford to spend two weeks in quarantine. Well, I think visitors to the majority of places can’t. It certainly doesn’t help that Iceland is so expensive.
Icelandic Government Rolls Out the 2nd & 3rd Economic Stimulus Packages
To further their efforts with reducing the impact of the virus on the economy here, the Icelandic government rolled out phase two and three of their stimulus plan.
In addition to the first economic stimulus plan, these phases will pump even more money into helping companies and residents, as well as funding innovation. Phase two is estimated to be ISK 60 Billion ($411 million and €378 million).
Here are some of the measures the second phase will support:
- Companies, forced to close operation for public health reasons, will receive subsidies of up to ISK 2.4 million each.
- Immediate low-interest support loans will be granted to small and medium-size businesses.
- Companies will be allowed to carry 2020 losses forward to offset income tax on 2019 profits.
- There will be a focus on mental health with remote medical services being strengthened, and a new campaign will be launched to combat domestic violence.
- Jobseekers and vulnerable groups will receive dedicated support.
- A bonus will be paid to healthcare workers, due to their heavy work load during the COVID-19 pandemic.
- Funds will be allocated to support summer school terms and the creation of over 3,000 summer jobs for students in Iceland.
- Study programs will be offered during the summer – work, study, and entrepreneurial projects.
- Financial support for artists will increase by 40 percent.
- Grants will be given to local authorities for local development objectives to be reached.
Iceland’s Third Economic Phase Increases Help for Failing Businesses
On April 28th, Parliament announced the third phase of the economic stimulus plan. This time it was specifically aimed at helping companies to keep their employees and to help companies that must resort to layoffs. The partial employment benefits that I mentioned earlier in this episode were set to end on May 31st. Part of this package included extending those benefits until the end of August. Until June 30th, the government will cover up to 75% of salaries for employees at companies that are struggling. Starting on July 1st, that will only cover 50% until the end of August.
The partial employment benefits do not apply to employees who received a notice of termination. However, there is now funding to help those companies to cover severance pay, which is three months of salary in Iceland. The overall goal is to help companies to avoid going bankrupt.
This should help travel & tourism companies, including Icelandair. It is my belief that since Icelandair is the country’s only airline that it is potentially too big to fail. However, it is a privately owned company. So, it is possible that it gets to a point where the government can not help it unless it becomes the property of the country. This is all speculation on my part, so just take it with a big grain of salt.
Overview of COVID-19 Statistics During April 2020 in Iceland
Sadly, April is when the most deaths happened in the country. Eight people lost their lives because of COVID-19. All of them were over the age of 70 and the majority had been in the hospital.
Some good news is that on April 23rd, Iceland had its first day with no new confirmed cases of the virus since the first one was announced in late February. On April 28th, the last patient in intensive care was discharged.
Also, less than 15% of the patients admitted to intensive care in the country died. This is much lower than what has been reported in other countries. For instance, Italy, China, and England have reported death rates of 50-90% of those that were admitted to intensive care. The number of those in intensive care in Iceland reached 13 at its peak. Close monitoring and providing appropriate care in a timely manner have been the main reasons why Iceland has been able to help about 90% of those infected to recover.
At the peak of the curve, which happened in early April, we had 1,096 active infections. On the last day of the month, we had 86 active infections. It is incredible to see the sharp drop in the number of active infections. You can see it for yourself because I have a photo of the curve in the show notes of this episode. We reached an overall number of 1,795 infections by the end of April.
May 2020 in Iceland Brings Less Infections & Less Restrictions
April was a tough month for the country. Because of the rapid decrease in active infections, May has brought many positive changes. On May 4th, the gathering ban was relaxed a bit. 50 people instead of just 20 were allowed to gather.
Most nonessential places started to open, just as long as they abided by the 50 people or less rule.
- Bank branches reopened
- Hair salons, libraries, movie theaters, massage parlors, beauty salons, museums and physical therapy places opened too
- People could take flight and driving lesions
- Elective surgeries and dental services were allowed again.
Swimming pools were still closed to the public in early May but school kids were allowed to have swimming lessons. Restaurants that serve alcohol had to close by 11:00 PM. Things were slowly getting back to some resemblance of normal before the pandemic.
Along with testing a lot of people for the virus, it was announced that blood samples would be collected for antibody tests of the virus. The tests will be done on blood samples of people that came in to have their blood tested for other reasons. It was stressed that the blood samples are not part of scientific research. Rather, they are being used to get an idea of how many people in the population have been infected with the virus.
Iceland Might Not See Tourists Until Late August Because of COVID-19
In early May, the managing director of the Icelandic Travel Industry Association, alluded to the fact that Iceland might see tourists in late August or fall. Because the cases of infections have been declining in many European countries, it is possible that an agreement among these countries will be made so people can travel. Of course, that all depends on if people want to travel. You will hear that a sharp turn regarding when tourists can come to Iceland happens later in the month.
A big issue that has arisen for travel companies is the need to refund travelers because of cancelled services. Well, a controversial bill was brought up in Parliament about this. If passed, it would allow travel agencies to refund cancelled tours by issuing a credit voucher instead of cash. Not surprisingly, this has caused a major debate. First off, is it even legal to do this? That is the big question that Althingi, Icelandic parliament, is trying to get answered.
The other issue is that Icelanders would be affected by this too. If they bought a tour package that could not happen because of the pandemic, their money, like other travelers, would be unavailable to them because it has been turned into a voucher. Yes, this change would possibly save tourism companies from going bankrupt but what other effects would it have on the economy?
One line in an article put it well by saying, “The Consumer Association of Iceland, the Icelandic Confederation of Labor, and BSRB – the Federation of State and Municipal Employees have all harshly criticized the bill, claiming that its goal is to shift the burden of travel company’s liquidity crisis to the shoulders of consumers.”
An Experimental Drug to Fight COVID-19 Arrives in Iceland
Even though things have been looking up for Iceland, regarding fighting off the virus, the country is still stockpiling drugs just in case they need to deal with seriously ill people. The drug Remdesivir was shipped to the country. It is said to shorten the recovery time of patients with COVID-19.
An article about the drug wrote,
“A study of 1,063 patients, some of whom received a placebo, in hospitals around the world showed that the drug shortened the recovery time by 31 percent – from 15 to 11 days, the BBC reports.
The experimental drug was originally developed by Gilead Sciences to treat Ebola, which it did not cure.
The Gilead website cautions that “Remdesivir is an experimental medicine that does not have established safety or efficacy for the treatment of any condition.”
A Streak of No New Confirmed COVID-19 Cases in Iceland
Along with having a decent amount of drugs to help those infected with the virus, Iceland was rejoicing at hitting a 5-day streak of no new confirmed COVID-19 cases in mid-May. On a personal note, this news resulted in people starting to act as if the virus was not a serious threat any longer. At the grocery store, most people weren’t wearing gloves or practicing social distancing consistently. It kept popping up in the back of my mind that we could see a spike in infections because of this.
At the same time, it was really nice to feel kind of normal again. It was as if the country was taking a collective sigh of relief. I am not saying that this feeling should come before keeping safe. On the other hand, I do understand everyone wanting to just go on about their lives without always thinking about COVID-19.
Another awesome piece of news around this time is that a woman that was 102 years old at the time, recovered from COVID-19. Her name is Helga Guðmundsdóttir and she lives in the Westfjords. Incredibly, this woman lived through the Spanish flu and beat tuberculosis twice. She lives in the nursing home that I mentioned earlier in the Westfjords where the virus spread to the staff and other residents. Helga turned 103 on May 17th.
Iceland Will Open Its Borders on June 15th, 2020
In the midst of celebrating a fast reduction of confirmed cases, less people being hospitalized and getting used to the fact that Iceland will not have tourists this summer, we were hit with an unexpected announcement. Katrín Jakobsdóttir, the Prime Minister of Iceland, held a press conference and said that the country will open its border to tourists starting on June 15th.
Katrín stated that visitors and Icelanders have three choices when they arrive to the country:
- tay in quarantine for 14 days
- Get tested for the coronavirus at Keflavík International Airport
- or present a certificate of recent negative test, which has to be approved by Icelandic health authorities
In addition to choosing one of those three options, everyone will be asked to download the Rakning C-19 app. It helps authorities to track the trace of transmission of COVID-19.
So Many Questions About Opening the Country in June
I’m pretty sure that my jaw dropped when I heard this. Even though Iceland has handled the crisis well and is being touted as a safe haven from the virus, people are still holding off from traveling this summer. The reasons range from being fearful, to the fact that their home country is still grappling with the virus, so it isn’t even possible for them to come.
While I think it is great and necessary for Iceland to have tourists, I think we need to be very careful about how we open up the country. If the virus spikes again because of visitors, it can backfire on Iceland. Questions about this decision started to pop up. What happens if a person arrives that tested positive for the virus? Will everyone on the plane be put into quarantine just as a precaution?
Also, if you get screened at the airport, you go to your accommodations to await the results. We are hoping that these people don’t violate rules and go out to the grocery store or a restaurant before they get their test results back. Lastly, it isn’t clear who will pay for the COVID-19 tests. It has been said that the government will do it for the first two weeks of this experiment. It is not clear if the visitors will pay and how much they will be expected to shell out.
Icelandair is gearing up for operating flights after June 15th.
Birna Ósk Einarsdóttir, chief sales and customer experience officer at Icelandair, said that “Icelandair would like to fly daily to destinations such as Copenhagen, Oslo, Frankfurt and Berlin after June 15, and to Amsterdam soon thereafter. There is more uncertainty regarding Stockholm and London… Several groups of people are ready to travel as soon as their borders open, while other groups are expected not to be able to afford traveling, as a result of the economic impact of the COVID-19 pandemic…In such a situation, planning is difficult,” she states. We can respond quickly and will do so when we sense there is a will to travel and interest from both directions in flying.”
I guess we just have to wait and see what happens.
Before I jump into the rest of the episode, I want to mention something travel related that is useful to anyone that is planning to visit Iceland in the future. If you are planning to travel to Iceland anytime in the future, make sure to get the FREE Ultimate Packing Checklist. It has all the essentials you need, and more, for any season in the country. I have also included some tips for what to pack if you plan to go to a restaurant or have a night out on the town.
COVID-19 Rules Relax Even More & Icelanders Flock to the Pools
Two of the biggest positive changes happened this month. One was that the pools in Iceland would be allowed to open on May 18th. The second is the gathering ban will now allow 200 people to get together starting on May 25th.
Many of you might not be aware of this but public swimming pools and hot tubs are a very important part of modern Icelandic society. Hanging out and chatting in a hot tub is like a national pastime here. A fun fact is that there are about 200 swimming pools in Iceland. Almost every town has one. When the pools opened back up on May 18th at midnight, there were lines to get in. The largest pool, Laugardalslaug, had a line of 300 people waiting to get in. To be fair, it was mostly younger people that went at that time of day. It was said to have felt like the opening of a new night club, which I find to be hilarious and sweet. The pools are normally not open at midnight, but this was a special occasion.
Economic Forecasts for Iceland 2020 – 2022
As a way to manage expectations, the Icelandic banks Landsbankinn and Íslandsbanki put out their economic forecasts. Íslandsbanki’s forecast was optimistic. They predict a deep but hopefully brief recession. Overall, they expect the GDP to contract by 9.2% in 2020. In 2021, the growth of the GDP is thought to be 4.7% and 4.5% in 2022. According to Íslandsbanki, unemployment will average 9.6% in 2020 but will fall to 5.8% in 2021 and 3.8% in 2022.
At first glance, the forecast from Landsbankinn was a bit more grim. They even named it “The Setback of the Century”. However, that predicted a similar contraction in the GDP this year, which is -8.7%. They also think that the GDP growth will be lower than what Íslandsbanki said for 2021 and 2022. The bank predicted a growth of 4.7% in 2021 and just 2.7% in 2022. Lastly, they think unemployment will be around 9% on average this year, 7% in 2021 and 6% in 2022.
The Upsides to Relaxing the Rules
As many of us anxiously await the country opening to tourists, it seems that the rules keep relaxing every day. On May 25th, the two meter social distancing rule became optional. On a personal note, my mother-in-law celebrated her 70th birthday on May 26th and it was the first time I have been able to hug her in months. We were all nervous to do it but it felt amazing to give her love. She lives alone and has been isolated in her apartment since March.
Now that you have an overview of how Iceland has been tackling the coronavirus, I am going to move onto the random fact of the episode.
Random fact of the episode
I plan to share two facts with you because it was hard to pick between the two. First, is during the height of the COVID-19 pandemic, the police in Suðurnes kindly asked people to cancel their criminal plans. It was pretty funny to hear and it seemed to have worked. Well, either that or people were just too afraid to go out.
The other fun fact is that Icelandic pop stars wrote and recorded a song called “Let’s travel indoors”. It was very sweet and I have the video embedded in the show notes of this episode. I highly recommend watching it because it will fill your heart with so much joy. Plus, the ending of the video is adorable!
Icelandic word of the episode
Sóttkví – quarantine
Sótt – illness
Kví – pen, like an enclosed area for animals
Kind of funny to use the word “pen” but I bet a lot of people that were in quarantine felt like they were caged in.
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Þakka þér kærlega fyrir að hlusta (og að lesa) og sjáumst fljótlega
Thank you kindly for listening (and reading) and see you soon!
