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National Identity is not something thatgovernment can invent. It is more afeeling than an opinion and a policystatement.
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Trs3291 Branding and TourismAssignment 1
National Identity is not something that government can invent. It is more a feeling than an opinion and a policy
statement. Discuss with reference to country
tourism branding identity theory, which requires national tourism destination
branding to be visible, tangible and all-embracing.
Student name: Elena KirovaStudent ID: 1001695
1Content:
1. Introduction2
2. Brands, Countries, Tourism, National Identity where is the link?
2.1. BRAND3
2.2. Nation and Destination Branding4
3. Case Study- Iceland
3.1. Destination Iceland..7
3.2. Embrace the Nature.7
3.3. Advertisements.10
3.4. Embrace the Culture .11
3.5. Embrace the People13
4. Conclusion...17
5. References..18
6. Appendix A21
2Introduction
Globalization brings along increasingly intense international competition, destinations are
no longer competing for tourists attention solely with its neighbour countries but with
destinations from the other end of the world. To make the rival even more complex the
world has shifted towards the experiential economy, where the consumer wants and values
has changed.It is no longer a competition in which superb service and top quality facilities
(Morgan 2002) are the main variables but rather authencity, strong identity, culture and
lifestyle tend to generate greater importance for the 21th century tourist.Not only that but
with the www tourists now are enabled to read about choose and compare any destination
from the comfort of their homes. Furthermore, one of the main benefits of globalization is
that it enables smaller countries to find a profitable niche and compete on the basis of their
cultural, environmental imaginative and human qualities rather than on raw power (Anholt,
2010)For instanceafive star wellrenowned resort in Switzerland could be now competing for
tourists interest with an authenticmanyattas (huts) in Kenya.In respond to this trend,
destinations from all over the world have introduced branding strategies in order to
differentiate their product and shine brighter in the consumers eyes.
This paper would attempt to explain the essence and importance of branding national
identity in the tourism industry. The first part of the research elaborates on theories and
definitions of national identity relating it destination identity and branding. In the second
part a case study of Iceland would be presented. The case study aim is to showcase the
identity of destination Iceland seen through several brand from the country. Inspired by
Iceland national tourism campaign would be mainly investigated along with other Icelandic
brands. Finally, short conclusion is drawn to summarize the findings of the research.
3Brands, Countries, Tourism, National Identity where is the link?
BRAND
Brands are ubiquitous, stamping the world all around us(Nicolasen&Blichfeld 2012).Instead
of selling commodities or generic goods, businesses have invented the BRAND, this
explicit essence of a product that would differentiate it from all others and make it special
for each consumer. Not only would it create awareness about a product/services but it is
the BRAND that makes the consumer interested in knowing more about the particular
product, eventually purchasing it and spreading the word about his satisfaction of it.
Vast numbers of definitions have been developed for the term, many of which emphasising
on the BRAND as merely a trade name.
The name, associated with one or more items in the product line, that is used to identify the
source of character of the item(s) (Kotler 2000, p. 396).
A name, term, sign, symbol, or design, or a combination of them, intended to identify the
goods and services of one seller or group of sellers and to differentiate them from those of
competitors ( American Marketing Association).
Having comprehended those definitions one could get a misleading idea that brand is simply
the logo of a product. In the Handbook on Tourism Destination Branding created by
UNWTOthis issue has been pointed out and more dynamic definition has been created.
Brandrefers to the collection of perceptions that a person has of a product based on
theproducts observable characteristics, which differentiate it from all other products,thereby endowing it with a competitive advantage over other similar products(p. 159)
A new essential idea stands out from this definition thata brand exists in the eyes of the
beholder (HTDB). Furthermore, these observable characteristics mentioned in the definition
are known as brand identity, a critical term for this research paper. Brand identity in fact
could be seen as the distinctive factor of the brand; Butler defines it as a combination of
visual, auditory, and other sensory components that create recognition, represent the brand
promise, provide differentiation, create communications synergy, and are proprietary.
Additionally he keeps on explaining that names and nomenclature, logotypes, symbols and
other graphic devices, distinctive shapes and colours, brand voice and visual style, sounds,
jingles and other mnemonic devices, typography, theme lines or slogans, and characters
4that are uniquely associated with a brand are all components of a brands identity. Textures,
scents, flavours, and other sensory elements also can be components of a brands identity.
Nation and Destination Branding
It is perceived common and natural to brand products and services such as food (Nescafe),
electronics (Apple), education (Oxford) etc., but what about nations or even holiday
destinations?! According to Anholt (2005) countries have always been brands.He describes
nation branding as:
A standard product promotion, public relations and corporate identity, where the product
just happens to be a country rather than a bank or a running shoe
Likewise brands, nations possess sets of individual identities that are unique to them,
essentially helping a country to differentiate from its competitors.Dannie (2008) recognises
the growing tendency of applying branding techniques to countries and identifies five
objective of national branding: to attract tourists, stimulate inward investment, increase
export growth, enhance political influence internationally and manage negative stereotypes.
Even in the 1990s Anholt has elaborated on six areas of national competence as beingthe
key-components of the nation brand notion: exports, governance, tourism, investment and
immigration, culture and heritage, and people. Hence tourism plays a substantial role in
nation branding and destination branding is one part of the overall nation brand. In fact,
(Ginnopoulos, 2011) states that branding a nation is certainly different from destination
brand building, revealing a relationship of field-subfield.
Today the relatively new concept of destination branding has become one of the most
exciting, entertaining andexpressly competitive aspects of todays Tourism industry
(Mendiratta, 2010).
Destination branding could be simply explained as the marketing of a destination withit s
aims to promote and sell the attributes of the destination(Helgason&Sigurarson 2012). A
more detailed definition of destination branding has been coined by Blain (2005, p.337)
the set of marketing activities that (1) support the creation of a name,symbol, logo, word,
mark or other graphic that readily identifies and differentiates adestination; that (2)
consistently convey the expectation of a memorable travel experiencethat is uniquely
associated with the destination; that (3) serve to consolidate and reinforce theemotional
5connection between the visitor and the destination; and that (4) reduce consumersearch
costs and perceived risk.
The authors of the Handbook on Tourism Destination Branding have conceptualized
destination branding as: a description of the core essence of the place in terms of its values
as perceived by consumers; it isabout the emotional relationship between the place and its
visitors how they perceive the enduringnature of the destination in relation to other places.(p. 11)
Likewise any other product brand in order to be successful a brand identity has to be well
defined. In fact Pike (2004) and Therkelsen (2007) argue that it is essential to define the
brand identity of the destination, meaning identifying the core values and attributes that
best represent the destination in order to gain competitive advantage.However destinations
defer from consumer goods in the sense that destinations inherit its brand and it cannot
craft or change its topography, culture or heritage. Hence the assets in other words those
potent appeals that makes a destination unique and attractive to visitors have to be
identified, developed and promoted. Nevertheless as Olins (2002) argues, destination brand
must be based on real substance, successful national brands are not simply invented they
are based upon the current reality. A destinations brand identity could be as complex as the
destination itself, it is a surreal matrix of people, history, culture, landscape, build heritage,
languages, value systems, changing behaviours, manufacturers and service
providers.Govers&Go(2009)elaborates on the several dimensions of destination identity.
Dividing them natural environment where localities and superior resources which are
difficult for competing places to imitate, those could be climate, wildlife or
landscapes.Cultural heritage exhibited through physical assets or sites reflecting the place
roots in terms of rich history, religious or other cultural expression as the arts, architecture
and design. Furthermore the authors explain that destination identity could be visible
through the core competencies, for instance the host community unique capabilities in
attracting visitors and hosting them, service values, education, etc. In this respect
knowledge contained within the host community can play critical role, for example, the
destinations ability to host world-class events or festivals, exhibitions or conferences. It is
the collection of those unique core assets that are in fact the destinations competitive
advantage that could be referred to as destination identity (Govers& Go 2009).
6Number of different stakeholders participates in the creation of the destination image.
Consequently, horizontal cooperation is needed, meaning that a range of stakeholders need
to cooperate in the task of defining the brand identity (Morgan 2003). However, this is more
of a theoretical concept, an aim that destinations wish to achieve since in reality it is not as
yet the case as often those stakeholders who already have a strong brand may choose to
pursue their own strategies as opposed to developing and promoting a destination brand
(Therkelsen, 2007), or simply convey their own idea about the destination brand identity
(Ooi, 2004).Therefore some of the major challenges that destination marketing
organisations face could be:
How to successfully encompass the core essence of the destination taking into
consideration all aspects of national identity for the creation of realistic and appealing
brand?
Furthermore, considering all the stakeholders involved in the destination brand building one
could conclude that once created the brand develops a vibrant life of its own. Destination
marketing organisations could not impose absolute control over it but rather could act as an
agent to unite all stakeholders to covey similar visions and values.
7Case study Iceland
Destination Iceland
One of the main benefits of globalization is that it provides opportunity for smaller countries
to compete on the world global marketplace on the basis of their culture, environmental
imaginative and human qualities rather than on raw power. And it is their unique identity by
which they will achieve growth.
In recent years the tourism sector increasingly grew in importance for the Icelandic
economy, as shown from the graph below. It has been one of the fastest growing industries
in Iceland over the recent years.
International visitors to Iceland have almost doubled since 2000.They were around 300,000 in 2000. Their number had risen to 565,000 by 2011 ( Oladottir 2012)
Embrace the Nature
Noordman (2004) identifies several elements that define destination identity, one of which
is referred as structural elements including location (geography and climate) and history
(roots). Let us now investigate how those elements, known as well as the DNA of a
destination are embodied into destination Iceland branding.
8The uniqueness of Iceland landscape, the interaction between fire and ice has been one of
the main competitive advantages which the destination has identified itself with. The
volcanic eruptions are constantly forming and reforming the landscape, creating features of
unspoiled nature that are in large extent attributes that attract visitors to the
country(Josdottir 2011). Although nature has been considered as one of the most
important factors in the positive development of the Icelandic travel and tourism industry, it
also could be one of its most serious threats (Country Report 2013). This distinctive
attribute is also the main reason why tourist numbers fell drastically in 2010 when
Eyjafjallajkull eruption occurred (IceNews 2011). Nevertheless, natural hazards are
embraced and portrayed in the destination identity, making it realistic and
authentic.According to Icelandic Travel Industry Association chief ArniGunnarsson,
volcanoes and other natural phenomena are the main tourism draw to the country.
"That is what tourism to Iceland is all about: the extraordinary nature you see here, the
glaciers, the volcanoes,"
In fact even with the negative image illustrated by the media it was the biggest publicity
Iceland ever received, which tackled correctly added on the destination adventurous and
natural image.
The possibility of scrambling up an active volcano -- Iceland has around 130 of them -- has
long been a tourist magnet for the North Atlantic island state. But last year's Eyjafjoell
eruption offered unbeatable advertising.(Larson 2012)
Iceland exemplifies how negative attributes such as dangerous volcano eruption could be
transfer to benefits by incorporating them in their branding strategy. In respond to the
dropping numbers of inbound tourists Iceland lounged an Inspired by Icelandcampaign,
which changed global perceptions and led to a 27 per cent increase in tourism. Interestingly
the 2010 campaign addresses directly addresses the eruption:
Source: http//: inspiredbyiceland.com
9Inspired by Iceland is an initiative of Promote Iceland which is public-private partnership
under the umbrella of The Ministry of Industry, Energy and Tourism, aiming at improving
the competition standings of Icelandic industries if foreign markets and stimulating
economic growth (OECD 2012).
The location factor, meaning the explicit geography and climate of Iceland seems well
conveyed in destination Iceland by the government institutions. Visit Iceland the official
tourism information site has established a logo
that represents the natural competitive
advantage of fire and ice. Similar to the national
flag, the logo incorporates three colour white,
blue and red representing the combination of the
natural forces that makes Iceland to stand.
Once it has been established that the tourism
authorities seen as one of the public stakeholders do
Indeed embrace nature in their offering; let us now have a look
In a product developed by the private sector that shares this strategy of showcasing
Icelands natural assets. Icelandic Glacial Water is a premium brand product that recently
has rebranded itself, shifting the focus from glacial to Icelandic as well as changing the
label colours to sapphire blue that represents the purity of Icelands famous natural
resource (Hirasuna 2012). Through its slogan Source of an epic life the brand reminds of
the adventurous and epic identity of Iceland.
Other example of a product that transmits the message of Icelands unique nature identity
is a scent of Iceland. Gydja, a fashion label produces perfume aimed to the tourist market
called Eyjafjallajkull, or EFJ. It is made with glacial water from Eyjafjallajkull, and with a
small lava rock included around the neck of the bottle.
Visit Iceland LogoSource: www.visiticland.com
Icelandic Glacial Water Source: http://icelandicglacial.com
EFJ Perfume Source: http://www.gydja.is
10
Advertisements
Hereby are represented several advertisement campaigns of Icelandic brands discussed in this research paper.
Inspired by Iceland Source: http:// inspiredbyiceland.com
Icelandic Glacial Water
Icelandic Glacial WaterSource: http://icelandicglacial.com
Inspired by Iceland Source: http:// inspiredbyiceland.com
Icelandic Glacial WaterSource: http://icelandicglacial.com
After briefly presenting several advertising campaigns that outline
for the destination identity, the notion of adventure which comes along could not be
missed. It would be true to say that Iceland
adventure niche segment. Additionally products such as the Internat
Map Iceland and the National Geographic AdventureMap
adventurous identity that Iceland stands for.
However it is true that adventure travel largely depends on the landscape
the cultural interaction is of utmost importance a
willdetermine if Iceland brand identity
by investigating the Icelandic culture
Embrace the Culture
Maybe due to its geographical location or due its historically smal
preserve the symbols of its national identity rather successfully. The simplest example of
such well- preserved symbol of national identity is the Icelandic language, which has altered
very little in the past 1000 years due to s
International Photographer Map IcelandSource: http://international-photographer.com
everal advertising campaigns that outline the nature importance
for the destination identity, the notion of adventure which comes along could not be
missed. It would be true to say that Iceland is using theme branding strategy aiming at the
Additionally products such as the International Photographer
ational Geographic AdventureMap do support the overall
adventurous identity that Iceland stands for.
However it is true that adventure travel largely depends on the landscape of a destination,
the cultural interaction is of utmost importance as well. In the next section we
brand identity has what it takes to be truly adventurous destination
by investigating the Icelandic culture.
geographical location or due its historically small population, Iceland could
preserve the symbols of its national identity rather successfully. The simplest example of
preserved symbol of national identity is the Icelandic language, which has altered
very little in the past 1000 years due to strict language policies ( Butrico, 2013).
National Geographic Adventure MapSource: http://nationalgeographic.com
ional Photographer Map Icelandphotographer.com
11
the nature importance
for the destination identity, the notion of adventure which comes along could not be
is using theme branding strategy aiming at the
ional Photographer
do support the overall
of a destination,
s well. In the next section we
has what it takes to be truly adventurous destination
l population, Iceland could
preserve the symbols of its national identity rather successfully. The simplest example of
preserved symbol of national identity is the Icelandic language, which has altered
trict language policies ( Butrico, 2013).
National Geographic Adventure Mapnationalgeographic.com
12
Interestingly, the language preservation regulations control the names to be given to
Icelandic babies. Icelandic is so strictly safeguarded becausethere are only 350,000 Icelandic
citizens and native speakers of the language, so it wouldotherwise be in danger of extinction
in favour of a more universal language (Hilmarsson-Dunn, 2006).
The Icelandic allegiance to the protection of its national identity could be seen in the
Icelandic food too. Excluding its main functions, food symbolizes identity and can be seen as
factor of diversification. Early Icelanders were forced to adapt to the scared resources on
the Iceland which necessitated sustainable practices. According to Butrico (2013) domestic
animals as sheep and cows etc. were raised for their milk for as long as possible and were
slaughtered for meat only once they were no longer able to produce these recourses and all
edible parts of the animal were used. Some traditional dishes that originate from these
practices aresrsairhrtspungar /boiled rams testicles pressed into blocks and preserved
with lactic acid/ andsvi/boiled whole sheep heads/.Additionally, meat was generally
preserved through drying or smoking. Number of the traditional foods, methods of
preparation and festivals are still present in the Icelandic lifestyle. For instance, annual feast
orrablt/Thorrablot/which was celebration to commemorate the Norse god of Thunder-
Thor and the Icelandic perseverance to survive in a harsh climate (Butrico,2013), is still
celebrated today. The menu consists of unusual culinary delicacies, including rotten shark's
meat (hkarl), boiled sheep's head, (svi) and other authentic Icelandic dishes as well as
Icelandic traditional drink Brennivin- potent schnapps made from potato and caraway.
During the month of Thor in modern-day Iceland, these traditional delicacies can often be
found on grocery store shelves and in restaurants (Iceland Naturally).
Folklore, legends and literature are undeniably distinctive fragment of the Icelandic national
identity. The Icelandic medieval literature from 12th century The Icelandic Sagas tell
stories of Vikings lifestyle and Nordic mythology of elves and other mythical creatures. The
folklore Iceland has could be very appealing for a special niche of visitors. For instance
tourists interested in literature or those interested in fiction/ mythology/. Additionally this
rich cultural heritage would definitely enrich the adventure traveller experience by
promising not only to have physical adventure in terms of the nature but to get involved
into the fictional journey of elves and Vikings. Fact is that Iceland has been globally
renowned for its literature contributions, the capital Reykjavik is designated a UNESCO City
13
of Literature. Interestingly, it has been claimed that J.R.R Tolkiens Lord of the Ring has
been inspired by Icelands rich folklore and the author was an avid student of Old Icelandic
legends (Iceland Naturally). Those mystical creatures and folklore could be visible through
the various re-enactments, festivals and tours in Iceland. Examples of which are the Elf
Garden that is a small lava park, seen as magical place of dwarfs and elves. Vikings culture is
transmitted through festivals such as the Viking Festival in Hafnarfjordur, hotels and
restaurants such as the Hotel Viking and the Viking restaurant Fjrugarurinn.
Icelands cultural heritage adds yet another point of diversification of its brand identity. The
strange foods and folklore combined with Icelands nature assets could be translated into a
destination that brings along fantasy journey, since of quest and real adventure.
Embrace the People
Theoretically, branding a destination should act as a unifying force for the residents of the
destination, aligning all of its people, celebrating its culture, spirit, identity and future
aspirations (Mendiratta, 2010). Additionally, when residents support and live the brand
(Anhol, 2002) they reinforce the promoted brand identity, thus a stronger and more
authentic brand is created (Nicolaisen&Blicheldt, 2012).What better way to represent the
people factor in the destination brand from getting them to tell themselves who they are
and what they stand for.
In 2011s inspired by Iceland campaign, this strategic identity shapes even one step further
when Promote Iceland created a new not for everyone experience targeting the
enlightened tourists by launching open invitations to visit and participate in typical
Icelandic activities with locals( Owens 2012). President OlafurRagnarGrimsson initiated the
campaign inviting people to experience Iceland and setting up an example for the Icelanders
to follow. What is so special about this campaign is that it constantly involves active
participation of the local people. It main focus is to showcase Icelands identity by allowing
individuals to share their stories and memories of the country. Additionally Inspired by
Iceland has also organised and held many events across the county and online showcasing
Iceland culture and natural beauty. For example, Iceland Hour in 2010 when the
14
campaign involved the all Icelanders for one hour to welcome and encourage the world to
experience Iceland with online messages. The event reported over 1 million messages and
e-cards sent, the promotional video was downloaded over 1 million times that same day
and Tweets reached over 5 million people on the same occasion(IceNews 2011).
Additionally a Inspired by Iceland Passport was developed and handed to passengers on
board on the national airline inviting them to experience the local community while their
stay.
The newest campaign of Inspired by Iceland named Share the Secret, aims to inspire
travellers to seek out the countrys undiscovered treasures. Followed by the success of
embracing the residents which are an integral part of the destination experience, the
campaign not only encourages locals to invite visitors but to share their secrets and offer
the opportunity to discover unique experiences around the country.
Inspired by Iceland Passport Source: http:// google.com
15
To better present what inspired by Iceland stands for I would like to cite Inga HlnPlsdttir,
Director for Tourism & Creative Industries at Promote Iceland:
"This year we want to encourage Icelanders and visitors alike to share with others just what
makes the country so magical. We want to highlight the undiscovered side of Iceland and
show that Iceland is a place of adventure and discovery and we are hoping that travellers
will be inspired to come and seek out the secrets of others and leave with their own to
share."
Icelands brilliant all-embracing destination campaign not only transmits all aspects of the
destination identity but crates a memorable and emotional relationship not only with the
tourists but with all stake holders.
After seeing how Promote Iceland provided stage for the community to coin their identity
and values as a nation and tell their story to the potential visitor, let us now explore how
national culture is shown in other Icelandic brands.
Critical stakeholder for Iceland being an island is its national airline Icelandair. According
to ThelnaAmundadottir, project manager for Saga Shop Collection marketing and business
development, Icelandair believes that a flight with them should be an enhancing experience.
To promote local culture original music from Icelandic artists is played at boarding and
Share your Iceland SecretSource: http://inspiredbyiceland.com
16
sellslocal food and beverages. Interestingly, each plane is named after an Icelandic volcano
and usually the name and its meaning is shared with the passengers (Simson
2013).Additionally, to make travellers experience more memorable Keflavik International
Airports duty free shopping areas provides variety of Icelandic delicacies to try. For
instance, Icelandic flatbread with smoked lamb and horseradish; Icelandic pylsur (hotdogs)
with three types of sauce and two types of onions; Skyr, the famous dairy-based yogurt; and
boiled sheep's head, as well as local drinks, crafts and clothing (Iceland Naturally).
There are varieties of brands that communicate Icelands identity to the visitors. For
example the Reyka Vodka is crafted by hand in small batches, filtered through ancient lava
rocks and made from the purest Icelandic spring water. Iceland's only distillery and where
Reyka is hand crafted can be found in Borgarnes, a small village steeped in Viking History
and lore (Iceland Naturally). 66 North authentic clothing reflects the Icelandic culture that
has been shaped by isolation and the extreme forces of nature in its product advertising
campaigns. Likewise destination Iceland, the brand stands for high quality to satisfy the
active user.
Source: http://www.66north.com
17
Conclusion
Destinations Iceland has taken a path to tell a story not only about its physical attributes and
its history but a story of where they are going. It seems that Inspired by Iceland unites all
stakeholder and services as a platform for communication between them, building a strong
and meaningful relationship. For it is true that brand identity as complex as destination
identity, could be visible, tangible and all-embracing only when all stakeholder share
common vision of it.
The thematic branding strategy outlines the Icelands ambition to be seen as alternative
tourism destination, putting strong emphasis on the unique adventure experience it can
offer, not only in terms of physical adventure but in terms of fantasy-like journey. Icelands
brand identity transmits a statement that it is not for the common tourist that just wants to
enjoy a destination, but it is for the responsible traveller that wants to explore and involve
with the destination, to see Iceland through the eyes of the locals and get inspired during
the Iceland journey.
18
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Therkelsen, A. (2007): Branding afturismedestinationer mulighederogproblemer. In Srensen, A. (ed.): Grundbogiturisme. Frydenlund
Simson M. (2013) What inspires Icelandair passengers to open up their pocketbooks at 30,000ft?, APEX, Available at: http://blog.apex.aero/passenger-2/inspires-icelandair-passengers-open-pocketbooks-30000ft/
Share your Iceland Secret! , Inspired by Iceland, promotion video, Available at http://vimeo.com/74244178
UNWTO and ETC (2009) Handbook on Tourism Destination Branding, Published by the World Tourism Organization and the European Travel Commission
Visit Iceland, Available at: http://www.visiticeland.com/
21
Appendix A
Iceland Profile Based on information found in CIA World Fact Book
Iceland has strategic location between Greenland and Europe; westernmost European
country; Reykjavik is the northernmost national capital in the world; more land covered by
glaciers than in all of continental Europe.
Area:
Total: 103,000 sq kmLand: 100,250 sq km Water: 2,750 sq km Country comparison to the world: 108Natural hazards:
Earthquakes and volcanic activityVolcanism: Iceland, situated on top of a hotspot, experiences severe volcanic activity;
Eyjafjallajokull (elev. 1,666 m) erupted in 2010, sending ash high into the atmosphere and
seriously disrupting European air traffic; scientists continue to monitor nearby Katla (elev.
1,512 m), which has a high probability of eruption in the very near future, potentially
disrupting air traffic; Grimsvoetn and Hekla are Iceland's most active volcanoes; other
historically active volcanoes include Askja, Bardarbunga, Brennisteinsfjoll, Esjufjoll, Hengill,
Krafla, Krisuvik, Kverkfjoll, Oraefajokull, Reykjanes, Torfajokull, and Vestmannaeyjar
Background:
Settled by Norwegian and Celtic immigrants during the late 9th and 10th centuries A.D.,
Iceland boasts the world's oldest functioning legislative assembly, the Althing, established in
930. Independent for over 300 years, Iceland was subsequently ruled by Norway and
Denmark. Fallout from the Askja volcano of 1875 devastated the Icelandic economy and
caused widespread famine. Over the next quarter century, 20% of the island's population
emigrated, mostly to Canada and the US. Denmark granted limited home rule in 1874 and
complete independence in 1944. The second half of the 20th century saw substantial
economic growth driven primarily by the fishing industry. The economy diversified greatly
after the country joined the European Economic Area in 1994, but Iceland was especially
hard hit by the global financial crisis in the years following 2008. Literacy, longevity, and
Climate:
Temperate: moderated by North Atlantic Current; mild, windy winters; damp, cool summers
Natural resources:
Fish, hydropower, geothermal power, diatomite
22
social cohesion are first rate by world standards.
Flag Description
Blue with a red cross outlined in white extending
to the edges of the flag; the vertical part of the
cross is shifted to the hoist side in the style of
the Dannebrog (Danish flag); the colours
represent three of the elements that make up
the island: red is for the island's volcanic fires,
white recalls the snow and ice fields of the island, and blue is for the surrounding ocean.
Source: CIA World Fact Book
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