About Iceland The country with the chilly name is rapidly becoming one of Europe's hottest destinations. Much of Iceland's popularity is due to its natural features, which include glaciers, hot springs, geysers, active volcanoes, portentous peaks and vast lava deserts.
In addition to its expansive landscape, it has a rich history and folklore tradition. However, Iceland's appeal is tempered by the most expensive prices in Europe. That doesn't mean it can't be visited on a shoestring, but it does mean that budget travellers will have to work a little harder.

Places To See Grímsey
Part of the island of Grímsey, lying 41km (25.5mi) north of the mainland, constitutes Iceland's only bit of territory within the Arctic Circle. The main reason for coming here is to admire the cliffs, which are 100m (328ft) high in some places - perfect for bird colonies that nest on the island.
Grímsey is the home of the most avid chess players in Iceland. Historically, losing a match has often resulted in the blunderer flinging himself into the sea - failure in chess was failure in life. While your life is probably safe if you're asked to play, it's best to treat the occasion seriously.

Places To See Mývatn

Mývatn, in northeast Iceland, is considered one of the natural wonders of the world. Although most of the interesting sights are volcanic or geothermal topographical features, the reserve's centrepiece is a lovely blue lake teeming with birdlife.Thanks to its location in the rain shadow of an enormous icecap, the reserve experiences some of the finest weather in Iceland. Travellers can relax and settle in, spend a week camping, or set out on excursions to the Kverkfjöll ice caves, Námaskaro or the Hverfell crater.

Events Overview
The largest nationwide festival of the year is Independence Day (17 June), a time of colourful parades, street music and dancing, outdoor theatre and general merriment. Other nationwide celebrations include: Sjómannadagurinn (first week in June), which is dedicated to seafarers and has participants competing in swimming contests, tugs-of-war and sea rescues; Midsummer (24 June) - tradition has it that Midsummer Night's dew possesses magical healing powers and that to roll in it naked will cure 19 different health problems; and Sumardagurinn Fyrsti (the third Thursday in April), a carnival-style celebration of the first day of summer. Among the local festivals is Pjóðhátíð (August), an earth-shaking event of immense bonfires, outdoor camping, dancing, singing, eating and getting uproariously drunk. Elsewhere in Iceland Verslunarmannahelgi (August) is celebrated with barbecues, horse competitions, camping out, family reunions and excessive alcohol consumption.

Weather Overview
Despite its name and latitude, warm Gulf Streams keep southern Iceland snugger than many a central European country. Summers are pleasant but don't make particularly enviable postcards, with average July temperatures around 12°C (53°F). Winters, however, are significantly blunted and while fresh enough to put some rose in your cheeks, it will not be freezing them solid. The higher altitudes and northern coast face early-year Arctic winds so are naturally colder. Snow turns to rain around spring but is never too heavy.

Overview
Iceland's rugged terrain has forged a resilient and independent culture, fashioned over the years by the descendants of the farmers and warriors who fled the tyranny of medieval Scandinavia. Their flight to a new and empty country resulted in the building of sturdy settlements and farms, and the beginning of a rich literary tradition dominated by the sagas - fact-based accounts of struggles, battles, heroics, religion and occupations - which are considered the finest of all Western medieval works. The country has also thrown up some significant contributors to modern literature, with Halldór Laxness, Iceland's best known writer, awarded the Nobel Prize for Literature in 1955. Traditional music - usually cowboy songs and tear-jerking lullabies - remains popular, while giddy international success has greeted the Sugarcubes' former lead singer, Björk. Icelandic cuisine is quite modern, incorporating fresh fish, and other seafood, as well as lamb. If you can bear to eat those cute little characters, puffin appears on almost every restaurant menu on the island of Heimaey; and many gourmet restaurants serve guillemot (svartfugl).

Recent History
In recent years, Iceland's economy has been looking shaky: fishing quotas have been cut back, the krónur has devalued, and inflation rates are the second-highest in Europe. The American military base, a large employer in the southwest, closed down in September 2006. In an attempt to generate some hard cash, the Icelandic government has recently sanctioned several major industrial schemes, driven by hydroelectricity from the country's many glacial rivers. The largest and most controversial is the Kárahnjúkar project, which will power an aluminium smelter owned by the US company Alcoa. A large area of Iceland's eastern wilderness is currently being flooded to create a reservoir for the project, and the smelter will be operational in 2007. Another recent environmental upset may affect the all-important tourism industry. In October 2006, despite international pressure, the Icelandic government voted to resume commercial whaling. The hunt began with all speed, and to date several endangered fin whales have been killed. It's an absolutely bewildering decision - only around 1% of Icelanders eat whalemeat; the export market is tiny; and commercial whaling is likely to generate just a fifth of the income from Iceland's highly popular whale watching tours.