Iceland holidays

The world’s northernmost capital fuses art and innovative dining. Add nightlife and shopping to your holiday, and use the city as a base to explore Iceland’s remarkable landscapes.

You could slot in a few day trips from the capital city of Reykjavik, but that would mean missing out on one spectacular road trip. It takes about a week to circle Iceland on the popular Ring Road. For a path less travelled, choose the Arctic Coast Way along the remote northern coast. Rent a four-wheel drive or camper van to explore more rugged areas.

One of the most iconic things to do in Iceland is to enjoy a spa-like soak in nature. All the geothermal activity that takes place under the country’s surface bubbles up in natural hot springs. The most famous waters, like the Blue Lagoon and the Sky Lagoon, are part of full-service resorts. But you’ll find spots everywhere for a quick, restorative dip.

All trails here lead to something wondrous, from a lava field to a colony of adorable puffins. Don’t miss the Glymur Waterfall or Reykjadalur, a hillside hot spring beloved by locals. Þórsmörk and Laugavegur trails take several days to complete, winding through emerald-green fields and volcanic rock formations. Note that camping is only allowed in designated areas.

Reynisfjara is one of the most famous beaches in Iceland, known for its basalt columns and black sand. Diamond Beach sparkles with ice that’s washed up on its shore. Visit Rauðisandur Beach or Ytri-Tunga to watch seals bobbing in the surf. Up for a swim? Head to Nauthólsvík, where you can wade in a warm lagoon created by a mix of geothermal and ocean water.

For the country’s greatest natural hits, follow the route known as the Golden Circle. Highlights include the two-tiered waterfalls of Gullfoss and the Þingvellir National Park, where you can snorkel between tectonic plates. If the stunning glaciers and icy lagoons of the Vatnajökull region look familiar, it’s because it was a popular filming location in ‘Game of Thrones’.

The restaurants in Iceland build their menus around fresh local ingredients like cold-water fish and free-range lamb. Reykjavik’s food scene is especially buzzy, with creative new restaurants serving both Icelandic and global fare. Don’t leave without trying some of the country’s classics like tender Icelandic lobster, creamy ‘skyr’ (a type of yoghurt) and rye bread with smoked lamb.

Most museums in Iceland are located in Reykjavik. The Árbær Open Air Museum is a charming recreation of a historical village. The Herring Era Museum takes on the country’s fishing culture. And in true punk fashion, the Icelandic Punk Museum is housed in a former restroom. For a more traditional museum experience, spend an afternoon at the comprehensive National Museum of Iceland.

Summer is the best time to go to Iceland, with mild temperatures and days that can see as much as 21 hours of sunshine. While the weather starts to cool in mid-August, you can still luck out with warm pockets (and slightly fewer tourists) well into September. If you arrive during the cold, dark days of winter, you may be greeted by the Northern Lights.

A cheap holiday to Iceland is not impossible. Reykjavik’s City Card is a good deal for budget-minded travellers, getting you free admission to many museums and swimming pools for up to three days. Expect an inexpensive meal to put you back around 3,000 Icelandic krónur (kr), while a cappuccino is about kr700.