Sprawling Reykjavík, the nation's nerve center and government seat, is home to half the island's population. On a bay overlooked by proud Mt. Esja (pronounced eh-shyuh), with its ever-changing hues, Reykjavík presents a colorful sight, its concrete houses painted in light colors and topped by vibrant red, blue, and green roofs. In contrast to the almost treeless countryside, Reykjavík has many tall, native birches, rowans, and willows, as well as imported aspen, pines, and spruces.Reykjavík's name comes from the Icelandic words for smoke, reykur, and bay, vík. In AD 874, Norseman Ingólfur Arnarson saw Iceland rising out of the misty sea and came ashore at a bay eerily shrouded with plumes of steam from nearby hot springs. Today most of the houses in Reykjavík are heated by near-boiling water from the hot springs. Natural heating avoids air pollution; there's no smoke around. You may notice, however, that the hot water brings a slight sulfur smell to the bathroom.Prices are easily on a par with other major European cities. A practical option is to purchase a Reykjavík City Card at the Tourist Information Center or at the Reykjavík Youth Hostel. This card permits unlimited bus usage and admission to any of the city's seven pools, the Family Park and Zoo, and city museums. The cards are valid for one (ISK 3,300), two (ISK 4,400), or three days (ISK 4,900), and they pay for themselves after three or four uses a day. Even lacking the City Card, paying admission (ISK 500, or ISK 250 for seniors and people with disabilities) to one of the city art museums (Hafnarhús, Kjarvalsstaðir, or Ásmundarsafn) gets you free same-day admission to the other two.

Two colossal terraces of sheer rock stand either side of this extraordinarily located town - which rides a jutting spit onto an immensity of black fjord water. Surprisingly, considering the remoteness of its location and its compact size, Isafjordur is a modern and lively place to visit, offering a great choice of cafes and delicious restaurants – which are well stocked to impress visitors. The town is a perfectly located base for adventures amongst Iceland's fantastic wilderness - with skiing, hiking and water-sports popular pursuits among visitors.

Akureyri, called the Capital of the North is the second largest urban area in Iceland, and a lively one at that. Hemmed by the 60-km (37-mile) long Eyjafjörður, Akureyri is sheltered from the ocean winds and embraced by mountains on three sides. Late 19th-century wooden houses impart a sense of history, and the twin spires of a modern Lutheran church rising on a green hill near the waterfront, provide a focal point. To the south of Akureyri is the pyramid-shape rhyolite mountain Súlur. Beyond it is Kerling, the highest peak in Eyjafjörður District.

The town of Húsavík sits below Húsavíkurfjall mountain on the eastern shore of Skjálfandi bay. Just above the town is lake Botnsvatn, a popular place for outings. The lake is just the right size for a nice hike around it. The lakes surroundings are rich in vegetation and bird life and trout is said to be abundant, though small. Húsavík harbour lies below the bank right in the heart of town. The harbour once boasted a large fishing fleet, bustling with the activity of fishermen. It still serves as a fishing harbour but today's activity revolves more around the successful whale watching businesses. The first organised whale watching excursions in Iceland started from here in 1995. Since then, whale watching has become a major attraction and Húsavík continues to be the leading destination for whale watching. In addition to the tours, a fascinating whale museum is located right by the harbour. Húsavík is considered to be the oldest settlement in Iceland. The Swedish explorer, Gardar Svavarsson, spent one winter there in 870 AD during which time he built himself a house from which the settlement derives its name.

It’s hard to imagine, as you stroll Heimaey’s idyllic streets of white wooden houses, that this island was literally torn apart by a spectacular volcanic eruption, just over 40 years ago. The fact that you can visit incredible Heimaey at all is something of a miracle – because the oozing lava of the Eldfell volcano threatened to seal the harbour off completely. Fortunately, its advance was halted by gallons of seawater, pumped onto it by the plucky islanders, who saved their fishing industry in the process. Iceland's famous for its scenery, and the huge castles of volcanic rock that rise out of the sea's waves here are some of the country's most dramatic.

Sprawling Reykjavík, the nation's nerve center and government seat, is home to half the island's population. On a bay overlooked by proud Mt. Esja (pronounced eh-shyuh), with its ever-changing hues, Reykjavík presents a colorful sight, its concrete houses painted in light colors and topped by vibrant red, blue, and green roofs. In contrast to the almost treeless countryside, Reykjavík has many tall, native birches, rowans, and willows, as well as imported aspen, pines, and spruces.Reykjavík's name comes from the Icelandic words for smoke, reykur, and bay, vík. In AD 874, Norseman Ingólfur Arnarson saw Iceland rising out of the misty sea and came ashore at a bay eerily shrouded with plumes of steam from nearby hot springs. Today most of the houses in Reykjavík are heated by near-boiling water from the hot springs. Natural heating avoids air pollution; there's no smoke around. You may notice, however, that the hot water brings a slight sulfur smell to the bathroom.Prices are easily on a par with other major European cities. A practical option is to purchase a Reykjavík City Card at the Tourist Information Center or at the Reykjavík Youth Hostel. This card permits unlimited bus usage and admission to any of the city's seven pools, the Family Park and Zoo, and city museums. The cards are valid for one (ISK 3,300), two (ISK 4,400), or three days (ISK 4,900), and they pay for themselves after three or four uses a day. Even lacking the City Card, paying admission (ISK 500, or ISK 250 for seniors and people with disabilities) to one of the city art museums (Hafnarhús, Kjarvalsstaðir, or Ásmundarsafn) gets you free same-day admission to the other two.