High prices are among the things most foreign visitors complain about during their visit to Iceland. Part of the explanation is that Iceland is simply an expensive country: It costs a lot to import basically all consumer goods to this remote island. High taxes are another explanation, as well as high wages. All societies with high living standards tend to have high price levels.
Price gauging?
While anecdotal evidence suggests that at least a part of the problem is caused by price gauging by unscrupulous businesses most of the high prices have logical or reasonable explanations.
But in some cases it is difficult to see the logic. The prices charged by a Chinese restaurant in Reykjavík are a good example. The local newspaper Morgunblaðið ran a story about the prices charged by the restaurant, as Icelanders couldn't believe the menu. The restaurant, which caters especially to Chinese travellers, offers a dish of lumpfish Hong Kong Style for a cool 10,900 ISK (110 USD/88 EUR). Needless to say, few Icelanders have ever even contemplated paying such a sum for a dish of fish.
Other fish courses on the menu are in the same price range. Ten pieces of Icelandic langoustine lobster tails cost 19.900 ISK. The standard price for langoustine at upscale restaurants in Reykjavík is between 6,000 ISK and 8,000 ISK for a dish which contains 6-8 lobster tails. The prices charged by Bambus are therefore twice as high as what is charged by better restaurants.
Read more: American travellers happiest with their stay in Iceland, Chinese travellers least pleased
The story has been shared on social media by countless Icelanders who wonder the restaurant should be recognized as holding the world record for price gouging or whether its operators have lost their mind. Others point out that the law of supply and demand applies: If someone is willing to pay outrageous sums for dinner, there is nothing wrong with a restaurant meeting that demand for outrageously expensive food.
Morgunblaðið notes that it's only the prices for fish courses on the menu which are sky-high. Other menu items are more reasonably priced.
The seafood menu at Bambus restaurant (March 2018):
High prices are among the things most foreign visitors complain about during their visit to Iceland. Part of the explanation is that Iceland is simply an expensive country: It costs a lot to import basically all consumer goods to this remote island. High taxes are another explanation, as well as high wages. All societies with high living standards tend to have high price levels.
Price gauging?
While anecdotal evidence suggests that at least a part of the problem is caused by price gauging by unscrupulous businesses most of the high prices have logical or reasonable explanations.
But in some cases it is difficult to see the logic. The prices charged by a Chinese restaurant in Reykjavík are a good example. The local newspaper Morgunblaðið ran a story about the prices charged by the restaurant, as Icelanders couldn't believe the menu. The restaurant, which caters especially to Chinese travellers, offers a dish of lumpfish Hong Kong Style for a cool 10,900 ISK (110 USD/88 EUR). Needless to say, few Icelanders have ever even contemplated paying such a sum for a dish of fish.
Other fish courses on the menu are in the same price range. Ten pieces of Icelandic langoustine lobster tails cost 19.900 ISK. The standard price for langoustine at upscale restaurants in Reykjavík is between 6,000 ISK and 8,000 ISK for a dish which contains 6-8 lobster tails. The prices charged by Bambus are therefore twice as high as what is charged by better restaurants.
Read more: American travellers happiest with their stay in Iceland, Chinese travellers least pleased
The story has been shared on social media by countless Icelanders who wonder the restaurant should be recognized as holding the world record for price gouging or whether its operators have lost their mind. Others point out that the law of supply and demand applies: If someone is willing to pay outrageous sums for dinner, there is nothing wrong with a restaurant meeting that demand for outrageously expensive food.
Morgunblaðið notes that it's only the prices for fish courses on the menu which are sky-high. Other menu items are more reasonably priced.
The seafood menu at Bambus restaurant (March 2018):
