Iceland Holiday Guide

International flights arrive at Leifur Eiríksson International Air Terminal in Keflavik, which is about a 20 minute drive from Reykjavik. An airport shuttle bus operates frequently into the city, offering drop-offs at major hotels. Once you're in the city centre, it's small enough to explore easily on foot.

Hiring a car is the best way to explore and a week is ideal to complete the Ring Road, a scenic coastal route. Beware of treacherous mountain roads. Otherwise, there is a domestic air service and an excellent bus network. Numerous ferries will get you to its islands and fjords.

Reykjavik is most likely to be your first stop on a touring holiday. Visit Hallgrimskirkja, or Hallgrims church, which offers pretty views. Hofdi House, a riverside villa, was the setting for the nuclear summit between Ronald Reagan and Mikhail Gorbachev in 1986. Learn about the country's history at the National Museum, its unique heritage at the Culture House or Viking longhouses at the Settlement Exhibition. A tourist card which gives visitors free access to attractions as well as public transport is worth considering.

The spectacular Gullfoss Waterfall, Geysir Waterfall, named after its spouting hot springs and Thingvellir National Park are among the country's biggest tourist draws. All three are part of the Golden Circle region.

In the North, highlights include Akureyri's historical houses and Dimmuborgir's lava formations. In the south, take a boat trip in the iceberg-strewn lagoon of Jokulsarlon and enjoy views of the black sand beach of Dyrolaey.

Walking, swimming, fishing, biking, blow karting (a four wheeled buggy powered by wind), kayaking and boat trips are all on offer. Bird-watching is fantastic in the more remote West Fjords. In the winter, dog sledding and snow mobile tours are popular. You can also time your visit so you'll get to see the phenomenal Northern Lights between October and March.

Children will enjoy getting close to once of the country's iconic marine mammals on a whale-watching tour. Three boat trips depart from Husavik in the north between May 1 and October 20. River rafting is possible for kids as young as six from Varmahlio.

Visit Reykjavik Zoo and Family Park in Laugardalur Valley where kids can watch seals being fed or go on boat trips or horse back rides. There's also an aquarium and Science World on site.

No holiday to Iceland is complete without a visit to the world-famous Blue Lagoon, 45 minutes outside the capital. Bathe and relax in the soothing geothermal sea water which is said to be fantastic for the skin. There's also a sauna, steam room and steam bath on site.

Kayaking tours can be arranged from the capital to Lake Thingvellir, which is studded with volcanic islands and rich in birdlife. Or opt for a 4WD safari across dramatic lava fields, mountain-side rivers and Arctic deserts to Landmannalaugar and Hekla volcano.

The country offers a broad selection of unique dishes as well as excellent fresh fish and seafood. Reykjavik has some notable restaurants - try Humarhusio for lobster or Thrir Frakkar for traditional fare such as shark or whale meat and sea bird entrees. Other local delicacies include Icelandic chocolate, liquorice and pastries covered in icing called snuour.

One of the more unusual places to eat is the restaurant, Perlan, set atop water tanks used to harness geothermal power. There are plenty of fast food outlets as well as Indian, Chinese and Thai restaurants too.

Reykjavik's nightlife is legendary. All night clubs require plenty of stamina if you want to dance not just until dawn, but typically until 10am. Check out upmarket club Pravda, Nelly's Cafe featuring good DJs, Gaukur a Stong, which offers rock music or the celebrity favourite hang-out Kaffibarinn, part-owned by Damon Albarn.

There are plenty of quiet pubs and trendy cocktail bars too. The cheapest pint in town is probably at Nelly's, which is popular with local students. Live music is also big, ranging from rock to reggae and opera to jazz.

One of the biggest parties in the calendar year is Reykjavik Culture Night in August, which offers an excellent programme of music, art, dance, theatre, sport, food, fashion and much more. The event ends with an amazing fireworks show in Reykjavik Harbour.

If you're a culture vulture, the city also boasts a symphony orchestra, opera, several theatre companies and the renowned Icelandic Dance Company.

Reykjavik's main shopping streets are Laugavegur and Skolavoroustigur. Kringlan or Smáralind Shopping Centres both stock clothing, accessories and souvenirs and include familiar British high streets brands such as Zara, Next and Debenhams. The city also has numerous galleries offering art work and sculptures.

Popular souvenirs include woollens, outdoor clothing, pottery, glassware and jewellery. Often featuring Celtic and Old Norse designs, unusual designs can be found combining gold or silver with lava rock.

Tax rebates are possible for any item costing at least around £32 (around 4000 kr). You will need to present an Iceland Refund Cheque at the airport to make your claim.