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Today, the nation, one of the most volcanically active on earth, gives scientists the opportunity to observe the ongoing genesis of its geography. More visitors than ever before Minister of Industry Valgerdur Sverrisdottir has dubbed Iceland as "in." The late John F. Kennedy Jr. came to the island to get away. And when asked by locals at the airport if he would write about Iceland in George, the magazine he founded, Kennedy replied, "No. I want to keep it a secret." Most visitors limit their travels to the capital of Reykjavik, an unusual fusion of small town and international capital wrapped by beautiful bays and snow-capped peaks. There, former superpower leaders Ronald Reagan and Mikhail Gorbachev held their first round of talks on nuclear disarmament. Other Europeans now come to party on weekends and explore the hot music scene. Short-term travelers can also tour exotic Iceland on day trips. From any direction just a few heel clicks from the capital lay vast stretches of magnificent landscapes and stunning views of the Icelandic sky. A trip will lead you into your own mind as much as to the isolated destination that lies before you. This is a part of the magic of the land, which becomes a part of you. Tours are easy to arrange as English is spoken everywhere, while renting a car is the best way to get around independently. Fear not if the asphalt ends. Passenger cars can easily handle the unpaved stretches that lead to the coast. But, beware. A gaze away from the road too long can maroon one literally between a rock and a hard place. The more adventurous can hire an Arctic Truck, a monster Toyota 4x4 truck transformed by vehicle dealer P. Samuelsson to handle Iceland's ruthless terrain. The truck is the first and only automobile to cross a polar cap (Antarctica in 1998 and the Arctic in 1999). These vehicles can also take on Iceland's greatest glacier, Vatnajokull, the largest icecap in Europe. Most visitors come in the summer months due to the almost continuous daylight. Fancy midnight golf? The island has over 40 courses. The warmth also opens areas otherwise snowed in. While the colors of fall and spring carry their own powerful charm, winter offers wonders all its own -- dogsleds, snowmobiling on glaciers and the Northern Lights, or aurora borealis. Japanese couples come hoping that seeing the eerie green electro-astral light show together will bring them a son. Unattached women need not worry. Iceland is one of the few places in the world where they can travel solo safely. Liquor, which is heavily-taxed in Iceland, may be a good gift to bring an Icelandic friend, but wool sweaters, gloves, hats and slippers have long been what best says Iceland to the friends back home. The coats made of a unique breed of sheep that has remained pure due to a thousand years of isolation are believed to be superior. Their effectiveness against cold and wet winters have stood the trial of time. And the 350 women of the Icelandic Handknitting Association are the acknowledged experts. They say the best sweaters are hand-knit from the waist up and, like the sheep, have the hair long and thick on the outside to trap moisture with the short, finer hair closer to the body for comfort. Icelandic Prime Minister David Oddsson maintained that the establishment of the embassy was vital in boosting ties between the two countries. And Oddsson expressed confidence that Iceland and Japan will soon grow closer because of a certain affinity. "Although it may not seem so on the surface, we're quite similar," he remarked. Iceland and Japan are both island nations with homogenous populations. Both societies are as egalitarian as they come, with neither a super-rich nor a super-poor class; and the countries are proud of it. Their people nurture a profound appreciation of their own cultural and historical heritage. Having nearly the same small percentage of arable land and minimal natural resources, the countries have been compelled to rely heavily on imports. This heavy dependence on exports has meant that what happens elsewhere acquires paramount importance. That sensitivity to the outside world has forced the two societies to devour information from abroad, boosting their literacy rates and longevity to among the highest in the world. People of both nations have long earned their livelihood from the land and sea. From ancient times, they have faced hostile and brutal forces of nature such as earthquakes and volcanic eruptions. And such an environment has contributed to a national character that incorporates great respect and reverence for nature. "Kami" (gods), "oni" (devils), elves, trolls and gnomes remain as traces of traditional beliefs in the supernatural, offering a striking contrast to the pace-setting modernity of the two countries. Both lands look to a warrior past -- the samurais in Japan and the Vikings in Iceland, both of who still capture popular imagination worldwide. What also drives Iceland and Japan, aside from a cult-like love of hot springs and seafood, is technology. The two crave cutting-edge consumer goods. Sigfus Sigfusson, CEO of one of Iceland's largest business groups, Hekla, is among the Icelanders who have worked very closely with Japan and are aware of the many similarities in national character. "It's a natural relationship. There is so much kindred in our character and mentality. We each highly value loyalty, work hard and see trust as paramount. Iceland is small. If you are not good for your word, everyone will soon know," Sigfusson said. "Although the population of Japan is so much larger, the dynamic is similar in this way. Both cultures are based on "ningen kankei" -- human relationships -- and we each have a strong sense of responsibility to the community and do not like to rush important decisions." The volcano Hekla is to Iceland what Mount Fuji is to Japan. The two volcanoes have shaped the landscape and spirit of both nations, and both have retained their unique majesty and mystique. For Mitsubishi and many Japanese companies, Hekla is synonymous with Iceland, and for Icelanders, the company means cars. When Sigfusson's father founded the company almost 70 years ago, he named it after the volcano that the Irish monks who preceded the Vikings mistook for the gateway to hell. For Sigfusson, Hekla has meant Mitsubishi and Japan, big business, success and friendship. Aside from Mitsubishi, a leading automotive brand in Iceland, the group sells vehicles for Scania, VW and Galloper. But Sigfusson explained that the business now involves much more. Although half of sales come from the vehicles, Hekla provides state-of-the-art turbines by Mitsubishi Heavy Industry for Iceland's power plants, the most advanced medical equipment by General Electric for the local hospitals and consumer electronics and telecommunications equipment by Panasonic. Iceland is one of the few countries that enjoys a trade surplus with Japan due almost solely to its large exports of redfish (ocean perch), capellin, Greenland halibut, capellin roe, prawns and abalone, which are chiefly handled by Icelandic Freezing Plants. The company consolidates and brands the majority of the nation's catch under the label ICELANDIC, which has gained an international reputation for quality. Japanese cars and consumer electronics round out the bilateral exchange. Sigfusson has seen more than one generation of Japanese foster friendships in far away Iceland. He is confident that such exchanges will lead to more links on both the national and individual level. And little-explored and burgeoning economic opportunities could be the fastest route to boost these ties. Gunnar Svavarsson, president of Icelandic Freezing Plants Corp, claimed that the Japanese fishing industry could be modernized more than it is today. He added that "Icelandic companies have much more to offer than just a delicious product." Noting the computer software sector, Sigfusson said, "Although the Japanese do produce a lot of software, Iceland has a lot to offer in this expanding industry, especially from the younger generation." Game designers and graphic artists agree. In fact, Iceland's celebrated Web wizard Oz.com is now backed by Japanese investors. Foreign Affairs Minister Halldur Asgrimson maintained that in political terms, Iceland and Japan have a very cooperative relationship, especially on ocean and fishing issues. "Iceland has long voiced its belief that Japan should have a seat on the U.N. Security Council. Individually, Icelanders need to know more about Japan and Japanese need to know more about Iceland. The Japanese live in a heavily populated, crowded country. They are very curious," he said. "Those who visit say it is interesting for them to see what such a small society is doing. The new embassy is a big step forward. We can do a lot more together and I'm confident we will." THE VIKING HERITAGE Compared to most European markets, Iceland is miniscule. Yet, the nation sees this as an unequivocal advantage. It forces local merchants to look beyond their shores. And they are doing so fearlessly. In the highly competitive world of retail, Baugur's growth has been meteoric. Beginning with one grocery store in 1988, it has become one of the top five business groups. Listed last year on the ICEX, the nation's bourse, Baugur enjoys a 44-percent market share and annual sales one-third higher than that of other food retailers. Baugur CEO Jon Asgeir Johannesson believes much more lies ahead for the company. "We have a lot of opportunities in foreign markets. We started by testing overseas sales in the Faroe Islands and are now taking that experience to Europe and the United States." In the United States, Baugur has opened its Bonus Dollar store, a streamlined low-cost grocery and specialty retailer. The subsidiary, which in February became the second Icelandic company to list on the Nasdaq, has unveiled plans to open 200 Bonus Dollar stores across the country by 2002. Meanwhile, Baugur also founded a subsidiary in Sweden to handle operations of its stores franchised from European retailers Debenhams and Arcadia, such as TopShop and Miss Selfridges. The group foresees overseas revenues next year to reach 11 billion Icelandic krona by 2002, or nearly half of its present sales. "We are unafraid to explore new markets. Maybe it's our Viking heritage," Johannesson remarked. "We see that we have to be a part of something bigger. The younger generation is not afraid to seek opportunities abroad, but unfortunately has not been getting into politics to promote this change of thinking. Our economy is quickly becoming more global. We must connect to the euro and the EU." Although it does not belong to the European Union, Iceland belongs to the European Economic Area, a trade bloc that includes the 15-member EU and non-EU states Norway and Liechtenstein. The treaty affords each country access to a market of 350 million consumers. Amid this growth, Iceland's government has remained reluctant to push closer to Europe largely due to the economy's traditional dependence on fishing and a strong desire to protect this sector that only a few years ago contributed 75 percent of the country's export earnings. However, Johannesson feels differently. "The competition and lower prices will be healthy," he commented.
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The Iceland-adapted Toyota Arctic Truck is the first and only automobile to cross the polar caps. Freyr Jonsson, driver on these historic expeditions, eases 44-inch tires over iceland's rugged terrain. The custom-built crevasse bar in front kept the Antarctic expedition alive. Commenting on ascending icy 3000-meter slopes, Jonsson said, "It was an easy climb."
Hekla CEO Sigfus Sigfusson