Iceland is a popular hotspot for tourists and expats and it is filled with a wide range of activities that you can try out. One of the things that will come to mind when planning your trip to the country is the cost of living in Iceland.
The cost of living in the country is high and its economy has soared higher due to the tourism sector while the unemployment rates are as low as 1%. The country is also a safe place to live in as the crime rates and drug use is very low when compared with most European countries.
Reasons for the high cost of living.
The reason for high Iceland cost of living is partly because of its locations. The country is geographically isolated and it is quite expensive to import products which leads to the high price of goods.
The country is also small and they cannot manufacture much of their own products when compared to larger countries, the cold climate also affects the kinds of products that can be produced in the country.
The taxes are also relatively high in the country which also increase the price of products and food. There is also high-income tax which in turn leads to a high cost of labor and this also causes a hike in prices in lots of situations.
Cost of travel to Iceland
Reykjavik is the capital city of Iceland and it is quite compact which makes it easier to walk from one place to another. If you are planning to travel with public transport, it is best to estimate Iceland travel cost in around the city. The major public transport system in Iceland is buses and they are very reliable and efficient.
A journey can cost you 460 ISK or about $3.75. If you are going to travel by bus on a regular basis, you can save money by buying the month pass which cost about $88.22 – 99.25. You can also use a taxi to get around the city and the basic tariff starts at 690 ISK and can go up by 300 ISK per km.
Cost of living in Iceland for a month (01 person without rent)
If you are living out of the city or you want to explore the incredible sights in the country, it is best to have a car or rent one. A litre of gas can cost you about 220 ISK or about $1.76. The best car to navigate around the country is the 4×4 drive because Iceland has a wide and rocky terrain. You can also travel around the country by domestic air and you can choose from the numerous domestic flights.
One of the expense that you will also have to put into consideration for travel budget in Iceland is the price of food. Iceland prices for food are expensive especially if you are going to eat in the restaurant.
The average cost of a meal at budget-friendly restaurants can be between $25-30 per person. One of the best ways to save money in Iceland is by cooking your own meals.
It is quite cheaper to buy groceries for cooking at home. It is best if you can buy numerous non-perishable items that you will need during your trip while in Reykjavik.
You will also be surprised that the grocery prices in the capital city are about 10-15% lesser than those at the supermarkets in smaller towns. If you cook from home during your trip to the country, you are going to spend about $25 per day instead of just spending $25 for meals.
Iceland hotel cost
The price of accommodation in the country mainly depends on the region and the time you are planning to visit. For instance, you can spend a night in a double room at a nice hotel for about $180 in November and the same room can cost about $360 in July.
The hotel price does not include the breakfast but you can save on breakfast if you book in advance. Some hotels in the country offer free breakfast if you book for a room in advance.