Mr Torfason (66) said that in Iceland, 98% of residents owned a computer and shared ideas by technology such as Facebook and Skype.
The residents had ''lost faith'' in traditional media because it was owned and manipulated by political parties or rich people.
''We have created our own media in Facebook ... and we are tearing everything apart what the standard media is telling us.''
Icelandic people had become ''good critics'' and more aware since the economic crash.
''We walked into a wall and we broke our noses. People woke up after the financial crash in October 2008.''
However, there was still a need for the media and good journalists, Mr Torfason said.
''There is always need for voices. You need to know what is going on. We need to share opinions. There is always a need for the media.''
In Iceland, good journalists were often fired if they disagreed with the newspaper's political terms, but could continue to communicate on Facebook, he said.
''Good journalists will always be important.''
New Zealand had a ''grand'' history of activism, with its stance on women rights, apartheid and being nuclear-free.
''New Zealand is a role model, in many ways.''
Mr Torfason, who arrived in Auckland on March 15 and gave the last lecture on his tour in Dunedin on Thursday, is now holidaying in New Zealand for two weeks with his husband, Italian architect Massimo Santanicchia.
During his Dunedin visit, Mr Torfason spoke at Otago Polytechnic, St Paul's Cathedral and the University of Otago.
