Iceland Votes, With Its Dependence on Tourism Exposed

  • Ruling grand coalition will likely fall short of majority
  • Nordic economy relied on travel growth after 2008 banking bust

Tourists and visitors watch a lava flow bubbling from a tunnel near the crater in Geldingadalir valley, near Reykjavik on Sept. 15. 

Photographer: Jereme Richard/AFP/Getty Images

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Iceland is holding an election with the pandemic largely behind it but its voters faced with a reality check.

The travel restrictions with Covid-19 have laid bare just how much the sparsely-populated island got hooked on tourism, while there is little consensus on whether climate change presents a challenge or an opportunity.