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

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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

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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.

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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/

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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