The capital of Iceland is the world's most northern national capital, located only 2° below the polar circle. More than one third of Iceland's small population of 300.000 people live in Reykjavík proper, and almost an extra third in the city's metropolitan area, including Iceland's second and third cities, Kópavogur and Hafnarfjördur. The town is located in the southwest of the remote country, which is closer to Greenland (300km) than to any other country. Reykjavík was named by the first Norse settlers and means "Smoky Bay", a reference to its geothermal and volcanic activity.
The centre of the city is Austurvöllur Square. It is surrounded by some of Reykjavík's oldest buildings, like the Lutheran Cathedral (Domkirkjan) and the Icelandic Parliament (Althingshúsid). In the middle of the square is a statue of Jón Sigurdsson, the 19th century leader of the Icelandic independence movement. Just behind the Dómkirkjan is the serene Tjörnin ("The Pond") lake. The most remarkable building is the modern Rádhús or City Hall. It features a large relief map of Iceland in its basement. Just north of Austurvöllur is Reykjavík's main shopping area, with tourist shops, boutiques, and trendy cafés centred along Bankastræti.
Within walking distances is one of Reykjavík's strangest buildings is the Hallgrímskirkja church near the shopping district. It looks like a rocket waiting to be launched in space and it's Iceland's tallest building. In front of the church is a statue of Leif Erikssón, the Icelandic explorer said to be the first European to reach the Americas around 1000AD. Another remarkable structure near here is the Perlan (Pearl), located atop the Öskjuhlíd hill. It consists of six large cylindrical hot water tanks, topped with a metal-and-glass dome, offering an excellent view on the city.
Out of the city are a few of Iceland's great natural attractions. One of the most visited places in Iceland is the so-called Blue Lagoon, 40 km south of Reykjavík, fed by warm water from the nearby geothermal power plant. Bathing here is supposedly good for your health. The complex built here contains a beauty farm, steam baths, saunas and a restaurant. Another famous area to visit is located100km east of Reykjavík and is called the "Golden Triangle". This area contains the almost dormant Great Geysir and the much more active Strokkur geyser, one of the largest waterfalls in Europe, Gulfoss, and the historically and geologically interesting national park Thingvellir.
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If you look at an average climate chart of Reykjavík the weather may seem dull in this place. Precipitation averages around 60mm monthly, slightly lower in May and June and slightly higher in the winter months. The average temperature ranges from 0°C in January to 12°C in July and August. But there is a large yearly variation and during the day sudden climate changes may occur, with snowfall on an early summer morning and a warm sunshine later in the afternoon. Anyway, you should be prepared for cold weather, even in summer.
The currency of Iceland is the crown (krónur), at a rate of almost 90Kr to a Euro. Iceland does not produce much, apart from some foodstuff. This means that most goods are imported. Together with a hefty tax this means that Iceland is one of the most expensive countries in the world. A budget room in Reykjavík will cost you at least 5000Kr. A mattress in a shared room (called sleeping bag accommodation) is available for 2000Kr. The cheapest accommodation in Iceland is putting up your tent in the Laugardalur camping ground, 3km east of the centre near the good sporting facilities. It will cost below 1000Kr per person.
Food and drinks can also be a big budget eater, even when self catering. A loaf of bread will cost 200Kr and a pizza or American burger with fries in a small eatery 1000Kr. In a normal restaurant a pasta dish will be the cheapest, around 2000Kr, and usually comes in a wide variety, including vegetarian options. Other dishes are similar to those found in mainland Europe, with a fish dish the cheapest (around 2500Kr) and imported beef at the expensive side (around 4000Kr). If you would drink a beer with your dinner, this will increase your bill by around 800Kr! The food in Iceland, even in the much visited and relatively cheap petrol station snack bars, is normally of excellent quality and the portions are large.
What you may notice in Iceland is the quality of the air, mainly because all energy comes from non-polluting geothermal power plants, wind turbines and hydropower. Iceland is located on the Mid-Atlantic Ridge, making it one of the world's geological hotspots. The volcanic and geologic activity is one of the main reasons for tourists to come here and most attractions are related to this.
Best Way To Get Around:
Due to its remote location and its small population, Iceland does not attract many visitors, although Reykjavík itself receives some curious few-day tourists, largely because of the free stopover policy of national carrier Icelandair on flights between Europe and North-America. Their network extends all over Western Europe and services a few cities in North-America. A low cost carrier, Iceland Express, is now competing with Icelandair on a few European destinations, including London and Frankfurt. A few charter flights leave to major tourist destinations like Prague or Mallorca. All these flights enter Iceland in the Keflavík International Airport, located on the Reykjanes peninsula, 50km southwest of the city. The Flybus goes to the city centre for around 1000Kr and takes 45 minutes.
The older Reykjavík airport, located in the city centre near the Perlan, offers domestic, Greenland and Faroe flights. Flying has become an essential way of transportation during the winter season, when roads are regularly shut off. For the rest of the year regular and 4WD buses ply Iceland's road system even to the most remote locations in its uninhabited interior as long as at least a dirt track is leading there. The major cities in the country are served by one or two buses a day at around 20Kr per kilometre, as are a few tourist attractions near Reykjavík like the Blue Lagoon or the Golden Circle. The latter can also be visited on day tours from the city at augmented prices. Major bus companies are
BSÍ and
Austurleid. Children normally enjoy a 50% discount and highland routes by 4WD buses tend to be more expensive. Bus passes for people following a set route are also on offer, normally including (a part of) Iceland's Highway 1, forming a ring road all around the island state. "Highway" however is an overstatement for this at times still unpaved road.
For people who want to explore the country more easily, a rental car is a good option. Prices are reasonable at 300-1000 € per week depending on the season and the type of car. If you stay near Reykjavík or other towns on or near the ring road or other roads, a regular car is enough, but if you plane extensive travel in Iceland's internal highlands, a 4WD becomes necessary. Petrol prices however are high, over 100Kr per litre.