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ETHICAL

Natural Disasters: Real Force Majeure for Tourism

Natural disasters – floods,


rains, earthquakes, volcano
eruptions – impact immensely
the tourism industry of the
affected destinations. Learn
about the Valtellina Flood, tsu-
nami, Machu Picchu’s troubles
with rain as well as the volca-
noes in Iceland.
eTHICAL Natural Dis a s t e r s : R e a l F o r c e M a j e u r e f o r To u r i s m

The Valtellina Flood: Destroying


Roads, Rails and Tourism
Valtellina is the common name used for the
Alpine province of Sondrio, in Northern Italy.
This long valley became very famous in the
summer of 1987, when a huge flood hit the
whole area. An incredibly warm summer
caused the glaciers to release a great quantity
of water, which summed up to exceptionally
heavy storms (the rainfall of two months fell in
just three days).
As a result, the rivers broke the banks, sub-
merging villages and destroying roads and
rails. There were fifty-three casualties and
damages for an estimated 2 billion euro. Some
landslides occurred too – the biggest one bur-
ied Sant'Antonio Morignone and three other
villages just south from Bormio under forty-
million cubic metres (more than 1.4 billion
cubic feet) of rocks and earth, virtually cutting
off the upper part of the valley.

Not All Publicity Is Good Publicity...


Needless to say, this disaster attracted the
attention of media. The coverage didn't repre-
sent very good advertising though. Of course,
the zone wasn't in a “business-as-usual” situ-
ation, but virtually all the tourist areas were
intact, albeit more difficult to reach. This was
the case of resorts like Madesimo and Val-
malenco, whereas Bormio and Livigno and the
whole Upper Valtellina, albeit unharmed, were

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ated, with, among other things, a 50% reim-


bursement of the weekly lift pass in the most
affected towns (30% for the other ones).

Convincing Tourists and Skeptics


A8-page insert was included in the most
important magazines (no less than 6 million
copies over 4 weeks). Heavy discounts on nor-
mal advertising fees were obtained, mainly
through personal contacts. Therefore an invest-
ment of 2 million euro created a campaign
with a much higher value (7-9 million euro,
say some estimates). Attention by the political
world was strong, with many authorities visit-
ing the area and some of them actually making
last minute decisions to spend their summer
holidays in Upper Valtellina just after the flood.
isolated from the rest of Italy (but could be area ravaged by the landslide, which opened Support also came from Standa, a famous
reached through Switzerland). Many reports on 21st December that year), whereas the chain of department stores which organized
on this disaster were 'spiced up' and impre- local tourist bodies decided to launch a heavy special contests among its customers.
cise, to say the least – risking to ruin the good advertising campaign on newspapers and TV Not everybody, though, believed in the suc-
publicity linked to the 1985 Fis Ski World Cup channels – mostly in Italy and Germany – with cess of these measures – for example, the
hosted in Bormio. the agreement of the regional and national lift owner in Bormio didn't want to open that
authorities. winter. He was convinced through bank guar-
Good Prices against Prejudice antees signed by local operators who agreed
“Forza Valtellina” (“Go Valtellina”) was the to cover any loss which might occur. Luckily for
The local tourist office reacted quickly. After campaign's slogan. It was one of the first exam- them, they didn't have to pay anything, as the
a very short time, two information points were ples of an image rescue campaign for a resort, season went so well, with an actual increase in
set up on the road leading to the valley, in funded by an emergency measure just weeks the lift passes sold!
order to try and save the summer season by after the disaster occurred. The authorities seized all possible occasions
giving honest, up-to-date information on the The main lever used to save tourism was rep- to promote the province, even in the following
current situation and on alternative routes. A resented by discounts on services (lift pass, years. Among the many initiatives, a 1,000 sq.
second wave of bad weather, though, compro- thermal spas and shops). Accommodation m. pavilion during the 1988 trade fair in Milan
mised this objective, and put the winter sea- prices were left untouched, as it was believed was open. Another way to have positive media
son in danger. that lowering them would decrease the per- coverage came from sport events, such as the
Works started for the number-one priority (a ceived value of the resorts, with a long-term Fis Ski World Cup races or the Giro d'Italia bicy-
road link with the Upper Valtellina through the negative effect. The “Valtellina Card” was cre- cle competition.

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The Legacy after 23 Years
Nearly all traces of the flood have now dis-
appeared – except for the scar left by the big
landslide, which is still visible. The road sys-
tem is now more comfortable, thanks also to
big investments by the central government
through a special act of law, the 1990 “Legge
Valtellina”. More than 1.2 billion euro financed
roads, infrastructure and other projects.
All in all, the name of Valtellina is now bet-
ter known than it used to be before, whereas
the 1987 disaster is almost forgotten – and the
sense of unity among tourist operators which
characterized the months after the flood has
also somewhat faded.

The author wishes to thank Gianni Confortola,


Mario Cotelli and Credito Valtellinese for the pre-
cious information provided.
By Adriano Pedrana
Adriano Pedrana is, among other things, journalist and
promoter for Livigno and Valtellina.
http://www.pedrana.it

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Tsunami’s Effects on Tourism

Tourism companies sell Asian nature and cul- of Sumatra caused a tsunami along the coast tourists have been frightened about traveling
tural landscapes to their customers. Asia is a on December 26, 2004. to this part of the world since the tsunami hit.
land rich in different cultures, which is what Asian governments were urging Western Over 7,000 tourists are said to have died from
makes traveling there so appealing. South and tourists not to change their travel plans. Tour- the disaster, and nearly 500 are missing. More
Southeast Asia sits along the Indian Ocean, a ism plays an important economic role in these than half of the death toll came from the coun-
warm, inviting, and relaxing place to be. This countries, and in some cases accounts for try of Sweden, which lost 3,559 citizens to the
was the case until the earthquake off the coast more than half of the country's income. Many tsunami.

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Imagine sitting on the beach without a worry


in the world, when suddenly the ocean's water
drains outward at an incredible rate. Would
you be intrigued to find out what happened,
and venture into the area where fish are now
flopping around, or where there are many sea
shells and other sea creatures suddenly vis-
ible? That is what many tourists did, and that
is how many of their lives were taken. Curiosity
got the best of them, while some indigenous
peoples knew better and sought refuge in the
mountains.
Indian Ocean resorts had been experienc-
ing a good tourist season. Most tourists
come from European countries and Austra-
lia. The area had been avoided for sometime
after the Bali bombings, Iraq invasion, and
the threat of SARS. After these problems
had begun to lessen, the tsunami suddenly
brought more worry to the tourism indus-
tries of the region.

Indonesia
Indonesia was hit badly by the disaster, but
hardest hit was northern Sumatra. This region
is not a viable tourist hot spot, like other islands
in the country (such as Bali and Lombok), due
to an on-going civil war. The country hoped
to actually increase its tourist count because
most of its land was unharmed by the disaster,
but tourist counts fell by 16% from the month
of December to January. The previous year,
tourist counts were down just 2% between the
two months.
Indonesia depends on its tourism industry for
about U.S. $5 billion per year and Bali accounts

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for about 60% of that income. Bali's tour-


ism had suffered from previous years mostly
because of terrorist bombings and the threat
of SARS. Bali was not affected physically by the
tsunami, but has been affected economically.

Thailand
Hotels, restaurants, and other travel busi-
nesses claim that the tsunami and aftershock
had no long term impacts on Phuket's booking
and arrivals, but one source states that there
was a 27% drop in tourism.
"It's 99 percent operational now," Simon J.
Hand, a Phuket resident who is associate edi-
tor of Asia-Pacific Tropical Homes magazine,
said in late March. "At its worst, it was 90 per-
cent operational. Patong Beach is the main
tourist trap, and the wave hit everything along
the shorefront road. But 150 yards farther up,
even the next day, you wouldn't have known
anything happened."
The Bangkok Phuket Hospital is working to
Sri Lanka island, but the strategy has had only limited
bring tourism back to the country. It claims
success. Many areas remain in such bad shape
that now is the time to visit Thailand, since Sri Lanka was hardest hit in the southern that they offend the sensibilities of visitors
there are many special deals at hotels and regions. At first, workers in the tourism indus- who come in search of poolside relaxation."
restaurants. Now, during the high season, the try were upset at what appeared to be a lack
beaches are not over-crowded. The beaches of sympathy from tourists. Seeing tourists About 800,000 people depend on the tour-
are now cleaner than they have ever been due laughing and enjoying themselves was tough, ist industry either directly or indirectly in Sri
to cleanup efforts after the tsunami. Tourism considering many of the workers had lost their Lanka. "Hotels across the country are running
websites assert that the best way to help the homes, families, and possessions to the tsu- an average at 20% capacity, even thought 80%
area recover is to simply visit it! They also try nami. Tourism is the fourth largest industry in of them were untouched by the disaster"
to lure some people in with saying Sri Lanka, so when the industry started to slide,
feelings were pushed aside to and more efforts India
"We are ready for tourists that want to use
our service like plastic surgery, dental treat- were made to bring more people to the island. It seems that India's tourism industry was
ments, or eye LASIK at TRSC at a fraction of the "The Tourism Ministry has begun a $6 million not as badly hit as other countries. Most tour-
price in most western countries." marketing campaign to lure visitors back to the ist areas are along the Arabian Sea, while the

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Bay of Bengal supports local fisheries. There Let's Bring the Tourists Back!
is one large commercial destination, Chennai
The Association of Southeast Asian Nations
(formerly Madras), on the eastern coast of
(ASEAN) is working to find a solution in bring-
India that was hit hard. About 650,000 peo-
ing tourists back to the area. ASEAN is a group
ple were displaced in this area. Areas worst of 10 member countries in Southeast Asia.
affected were the islands that are closest to Members are working together to lure tourists
the epicenter, which lie on the tip of India. into not only their own countries, but to South-
"Indira Point, which was India's southern- east Asia as a whole. They have been invit-
most tip and a 100-sq km island, has just dis- ing international travel writers and sending
appeared into the ocean... Although there promotional video clips to potential tourists.
were some tourists and Andaman & Nicobar ASEAN is also working to create more tourism
Islands were being positioned to become the amongst its own citizens to offset the loss from
next Maldives, these plans will now need to be foreign travelers.
shelved, as there has been huge loss of coral Governments maintain that their countries are
and other marine life. Loss along India’s main safe for travelers and if anyone truly wants to
coastline was concentrated on some regions help, they can start by reviving their tourist econ-
and recovery and re-habilitation work is cur- omies. ASEAN is also working to make beaches
rently ongoing." safer, for example, there have been talks of set-
The tourism outlook for India remains strong ting up a tsunami early-warning system.
as its hotspots were not severely damaged, The countries understand that there is a psy-
except for the Andaman and Nicobar islands. chological reason that tourists have not chosen
They also hope to bring in more tourists that them as destinations in recent months, but are
would have otherwise gone to Thailand and optimistic that the effects of the tsunami will
Malaysia. not be long-term and tourists will return soon.
(Text shortened)

Sources
Forbes.com: http://www.forbes.com/business/commerce/feeds/ap/2005/03/02/ap1857187.html
Taipei Times : http://www.taipeitimes.com/News/world/archives/2005/01/25/2003220882
Bertand's Weblog: http://www.codeconsult.ch/bertrand/archives/2005_01.html
7,000 foreign tourists killed in tsunami: Hindustand Times.com:
   http://www.hindustantimes.com/news/181_1178745,001301540000.htm
Tsunami Recovery: Tourism in Asia Starts Back: http://goasia.about.com/od/thailand/a/tsunamirecovery.htm
Tsunami Wave-an Economic Tourist Disaster-Saturday, 8th January 2005 at 4 Hoteliers:
   http://www.4hoteliers.com/4hots_fshw.php?mwi=51

By Jennifer De Vries (devriejj@uwec.edu)


http://academic.evergreen.edu

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Emergency: Tourism is often described as a fragile industry


in that demand for travel is highly susceptible
to numerous factors. Nevertheless, for many

Machu Picchu Closed


countries the tourism sector is an important
contributor to the economy. Especially in some
less economically developed countries the
local economy is dependent upon and greatly
relies upon the tourism industry. One of the
most unforeseeable forces affecting tourism
are natural disasters. Natural disasters can
have a tremendous impact on tourism as they
usually destroy the natural environment and
infrastructure and thus tourism is significantly
disrupted. Additionally, natural disasters more
often than not cause an increase in tourists’
concerns about security and safety.
In late January 2010 Peru’s south-eastern
region, the Cusco area, experienced heavy
torrential rains which forced a two month clo-
sure of Peru’s top tourist attraction, the Inca
Citadel of Machu Picchu. The Urubamba River,
which runs down past the Inca ruins on Machu
Picchu, swelled to an unexpected volume
of water and up to 20,000 people had their
homes destroyed by the floods. According to
The Economist, officials predicted a damage of
$240m to infrastructure and farming.
Machu Picchu with the pre-Columbian Inca
site is one of the most popular tourist desti-
nations in South America and normally some
68,000 people a month come to visit the ruins.
Locals depend on those tourists, who reach
the site either by walking along the Inca Trail,
or via train.
The Machu Picchu railway, which carried
about 2,200 tourists a day was destroyed by
the floods and the Inca ruins of Machu Picchu

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half-price flights and hotel rooms to visit Cusco,


the city nearest the world-famous Machu Pic-
chu.
According to the World Travel and Tourism
Council, the tourism revenues represent a
highly significant 7.4 percent of the country’s
Gross Domestic Product (GDP) and therefore
great losses in this sector would affect thou-
sands of jobs. The Peruvians seemed to have
recognized the problem that was highlighted
by the crisis – Peru’s over-dependence on
Machu Picchu for the tourism sector.
BBC Online anticipated that “the number of
holidays cancelled by European, Japanese and
US tourists is clear evidence that for almost
all first-time travellers to Peru, it's Machu Pic-
chu or bust”. Thus, the country decided to
seize the opportunity and to diversify its tour-
were cut of from the lower sites. The heavy Nevertheless, Peru seems to be back on
ism sector in both the short and long term.
rains forced the evacuation of thousands of track. Shortly after the floods the govern-
Officials tried to encourage visitors to explore
tourists from Machu Picchu. As the Cusco ment estimated that despite the difficulties,
region accounts for a high percentage of the different parts of Peru such as the Nazca lines about 2.2 million tourists would travel to Peru
country’s tourism revenue, Peru was facing and the Colca canyon. Other attractions in in 2010. With its main attraction, the Machu
fears of a tourism decline resulting from the the Cusco region that have been promoted to Picchu, and the initiative to diversify and also
natural disaster. In fact, thousands of foreign keep people coming to Peru were Sacsayhua- promote other attractions Peru is likely to hold
tourists cancelled their holidays to Peru. The mán fortress, the Coricancha sun temple or and maybe even improve its position as one of
inaccessibility of Machu Picchu caused a loss the town of Pisac. the top South American travel destinations.
of at least a million dollars a day for the Peru- The re-opening of Machu Picchu at the In the end it clearly shows how important
vian tourism industry. beginning of April 2010 was of symbolic and crisis management is in tourism, especially if
Bartolome Campana, director of the National economic importance to Peru. Peru's Tour- tourism is such an essential part of the coun-
Chamber of Tourism, highlighted the impor- ism Minister Martin Perez estimated a loss of try’s economy. But it also demonstrates that
tance of the tourism sector for Peru when he $185m (£122m) for the time the Machu Picchu relying on a single attraction that acts as a pil-
admitted that the country is dependent on was closed. And according to Richard Leon, lar of a whole industry can have tremendous
tourism. The government reacted quickly and Director of the travel company Peru For Less, impacts in times of global warming and an
launched a campaign to deal with the destruc- the natural disaster has been more disruptive increase in natural disasters.
tion. To help the tourism industry, government to Peru’s tourism industry than the financial
cut off prices. Domestic tourists were offered crisis and the swine flu combined. By Wiebke Wohlfahrt

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Crisis Management:
Eyjafjallajokull Eruption
Mt. Eyjafjallajokull eruption in Iceland It is a bit ironic that at the same time as for-
wreaked havoc on Europe’s air transport sys- eign visitors cancelled their trip to Iceland many
tem and threatened to turn off the steady locals and some brave foreign visitors flocked
number of foreign tourists expected to visit to the eruption to see it in action at close quar-
Iceland in 2010. Tourism stakeholders in Ice- ters. It was a great spectacle to see the red
land, alarmed by twenty percent drop in visi- hot lava with a yellow glow spout from one,
tor numbers in April and May compared to the and sometimes two, fissures before it flowed
previous year, got together and pooled their slowly down the hill in a northerly direction.
efforts in a joint marketing campaign named In one place the lava poured over the edge
Inspired by Iceland. of a deep gorge and spread half way down like
The eruption claimed no lives and no homes the ribs of a fan turned upside down. People
were destroyed. A column of extremely fine watched this phenomenon in awe from a natu-
grain ash rose high up in the sky where wind ral viewing platform on the opposite site, lis-
picked it up and blew it out to sea. Eventually tening to the crumbling sound of the molten
the ash reached Britain and Ireland, mainland lava crushing down and felt its heat on their
Europe and Scandinavia and airports in those face and body.
areas were temporarily shut for passenger area for a while prior to the eruption there had
been no clear indication of an imminent erup- As many as 5.000 people visited the eruption
safety reasons. in a single day using various modes of trans-
tion.
A distinction must be made between two port to get there. Although most used modi-
separate eruptions in and around Mt. Eyjafjal- Standard precautionary acts included the fied SUVs some actually walked while others
lajokull in 2010. The first one took place on the immediate closure of airports. Some 800 peo- used a snowmobile, a mountain bike or a heli-
Fimmvorduhals Pass and the second one which ple living in the vicinity of the mountain were copter to experience the sight.
produced the ash took place under the icecap summoned to leave their homes for the night
near the top of Mt. Eyjafjallajokull. for safety reasons. In hindsight those pre- Mt. Eyjafjallajokull Eruption
cautionary measures were unnecessary but
Fimmvorduhals Pass Eruption made it into the news worldwide thus rais- A second eruption started on 14 April below
ing an alarm amongst individuals and school the icecap of Mt. Eyjafjallajokull and ended
On 20 March 2010 a volcanic fissure opened groups about to visit the country. As a result rather unceremoniously around the middle of
on Fimmvorduhals Pass (1,100 m) between many postponed their visit to Iceland until fall May. This eruption was triggered by the first
Eyjafjallajokull and Myrdalsjokull glaciers. while others gave up on the idea of visiting all eruption and was the one that proved cata-
Although geologists had been monitoring the together. strophic for aviation in Europe and tourism at

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no effect or little effect on air travel between countries as well as best crisis management
Iceland and the Americas. campaign categories.
Icelanders were encouraged to take part in
Inspired by Iceland Marketing the campaign by sending a message to foreign
Campaign friends abroad and contribute videos. Perhaps
The Ministry of Tourism, Industry and Energy more important than the concrete success or
in co-operation with Icelandair and Iceland failure of the campaign is the new found col-
Express airlines, Reykjavik city, the Export lectiveness of diverse groups of stakeholders in
Council and the Iceland Tour Operators’ tourism – ranging from the general public to
Association launched an ambitious market- the government, local authority, travel agents,
ing campaign named Inspired by Iceland. The tour operators, restaurants and transport com-
campaign which cost US$ 6 million ran from panies.
mid-May through mid-July 2010 and was sup-
posed to convey the message that it was safe Lessons Learnt
to travel to Iceland. The campaign included A memorandum from stakeholder’s close-
large. The composition of the magma in the a fresh internet approach using community up meeting reiterates positive aspects gained
second eruption was much more explosive based websites such as Facebook and Twitter from the campaign. Tourism stakeholders
than in the first eruption. Further, meltwater and reached about 2 million people, press trips worked together united with the one goal in
from the glacier came into contact with the for travel journalists, website advertising ban- mind to minimize the negative economic effect
magma and caused even more violent explo- ners in several countries etc. of the two eruptions by attracting more tour-
sions. This combination produced 10 km high Although it is quite difficult to assess the ists. Locally the campaign brought attention to
column of very fine ash above the mountain. campaign’s actual success it is a fact that in the the importance of the tourism industry which
People’s perception of the magnitude of the period January to November there was only until now has been seen as a marginal industry
eruption and its effect on Iceland and its people 1.5 percent decline in the number of visitors by the public and policy makers.
was greatly exaggerated by the media. Indeed, in 2010 compared to the same period in the
if it had not been for the media, people in previous year. A much less drop then feared.
Reykjavik, just over an hour’s drive away from Those responsible for the campaign are happy By Stefan Helgi Valsson
the mountain, would have remained oblivious with its success. It was even nominated in two Stefan Helgi Valsson is a freelance journalist and lec-
to its existence. All four international airports categories for the European Excellence Award turer in tourism geography at the University of Iceland.
remained operational throughout the eruption 2010 – an award for best corporate commu- He is a professional tourist guide in Iceland, tourist
with the exception that two had to be closed nication and public relations in Europe. It was guide trainer and founder of Reykjavik Bike Tours.
for about five days in total. The eruption had nominated in the best campaign in the Nordic http://www.reykjavikbiketours.is

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Joining Forces: Inspired sectors of the economy. Yet the way in which
the Eyjafjallajökull eruption was tackled by the
small nation’s tourism professionals and other

by Iceland
interested parties led to a more successful
peak season than even the most optimistic had
thought possible.
Joining forces, the Icelandic government, the
City of Reykjavík, airlines Icelandair and Ice-
land Express, Promote Iceland and about 80
other tourism-related companies took quick
actions to address challenges and misconcep-
tions about travel to Iceland during and after
the eruption. These actions began as an offen-
sive crisis management effort to counter the
worldwide impression that travelling to Ice-
land was dangerous.
A primary dimension of the strategy was the
launch of the successful campaign Inspired by
Iceland. The campaign encourages people to
travel to the country with the argument that
“Iceland has never been more awake and there
has never been a more exciting time to visit the
country.” Its main focus is to allow individuals
to share their stories and memories of Iceland,
and hopefully turning a negative event—the
fear caused by the volcano—into a positive
result—changing the focus of international
attention on Iceland into a chance to showcase
the island’s many unique and appealing attri-
butes. The campaign’s website, Inspiredbyice-
land.com, is its main platform.
On 14 April 2010 a volcanic eruption started wide. Within days of the eruption, a wave of The campaign was launched on 3 June with
under the Eyjafjallajökull glacier in Iceland, cancellations began across all sectors and tour- “Iceland Hour” – an hour during which the
generating considerable news about the ist arrivals shrank by 22% in April alone. Had entire nation became involved by sending tens
country, some of it inaccurate. The eruption’s the situation been ignored, it would have had of thousands of messages to family and friends
impact and the ash clouds that it caused are a disastrous impact on the important tourism all over the world. These messages included
now infamous in the tourism industry world- industry in Iceland, one of the most important links to a video promoting Iceland as a travel

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destination, using the upbeat song “Jungle And he’s right. The newest figures evaluating waves being the highlight, and from the spring
Drum” by Icelandic singer-songwriter Emiliana “Inspired by Iceland” indicate a strong global of 2011 Icelandic music and events will have a
Torrini. The video shows people joyously danc- impact. Although the full effects of the cam- new home in Harpa, the breathtaking concert
ing to Torrini’s song in various locations (both paign will take some time to register, a sur- hall and conference centre being built at Reyk-
rural and urban), demonstrating that Iceland is vey conducted in the UK, Germany and Den- javík harbour.
still full of life and unaffected by ash. Iceland mark indicated increased interest in Iceland Iceland, with its unspoiled nature and Scan-
Hour was a huge success, with one-third of the as a destination. The objective of saving the dinavian infrastructure, is also a perfect health
nation taking part. As of November 2010, the high season was also achieved, with figures and wellness destination, taking visitors far
website with the video has been visited over for travellers coming to Iceland equalling the from the madding crowd and welcoming them
three million times. number for 2009 with only a 0.6% decrease, in peaceful and tranquil surroundings. Come
Celebrities also joined the campaign by shar- and with a 12% increase in incoming travel- and be active, be inspired.
ing their stories; among them are Yoko Ono, Eric lers in October.
Clapton and Viggo Mortensen. Over 500 stories Iceland has never been more awake – its
from friends of Iceland have also been shared on rough landscape and ever-changing weather
the website. Stephen Fry, the British television is an important part of the attraction and lei- By Anna Valdimarsdóttir (anna@icetourist.is) and
presenter, tweeted: “Despite what you might sure of this Iceland in the North Atlantic. The Inga Hlín Pálsdóttir (inga@promoteiceland.is)
think, Iceland is as alive and charming as ever.” Icelandic music scene is alive, with Iceland Air- http://www.inspiredbyiceland.com

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