To find the true initial catalyst for the increase in tourism in Iceland, one has to travel a little further back to 2008, where the default of all three of its privately-owned commercial banks caused Iceland to enter a severe economic depression for the next several years, from which it is still recovering.  According to The Economist, relative to the size of its economy, Iceland’s systemic banking collapse was the largest experienced by any country in economic history.  Like any economic crisis, the price of goods plummeted, causing the country’s initial uptick in tourism, as it became much more affordable than it had been previously.