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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.

Reykjavík boasts all the trappings of a modern European city, as well as an interesting old town, whitewashed wooden buildings, and rows of brightly painted concrete houses. Nearly everything of interest is within walking distance of the old settlement. The barren lava fields that surround Iceland's international airport are an eye-grabbing introduction to this near-Arctic island, belched out of the mouths of volcanoes (some still active), awash in midnight sun from May to August, glistening with glaciers, geysers, hot springs and waterfalls.

The official Icelandic tourist season is a summer-long affair lasting from June until the end of August, a period when the region's midnight sun keeps full dark at bay. What passes for a tourist crowd in this frigid neck of the world is much smaller outside of these months, and you'll find much of the tourist infrastructure (particularly outside Reykjavík) in hibernation, for the rest of the year. Shuttered-up hotels, non-attended campgrounds, suspended bus transport and closed or limited-hour museums are the norm outside these summer months. That said, the capital retains some semblance of activity even in the deepest depths of winter, the highpoints being its joyfully excessive Christmas festivities and the spectacular (and free) light show known as the aurora borealis. The costs of accommodation, food, transport and entertainment are also less in winter though ultimately this doesn't mean much as prices in Iceland are among the highest in Europe anyway. Fans of the light would do well to remember that by the end of December the polar night is well and truly in control, and Reykjavík experiences a mere two hours of sunlight (more correctly twilight) each day.

In terms of climate, the good news is that unlike the country's interior, coastal areas are saved from unrelenting sub-zero temperatures thanks to the warm waters of the Gulf Stream. The bad news is that 'Gulf Stream plus polar seas plus neighbouring mountains' equals 'lots of grey skies and rain'. Adding to the anti-climatic misery are frequent storms, fog and drizzle, plus an almost constant wind that underlines the year-round chill factor. Reykjavik's average daily midsummer temperature is 10°C (50°F); midwinter sees a daily average of around -1°C (30°F).

The information shown on this page has been taken from the Lonely Planet Guide to Iceland. We always recommend Lonely Planet guides for reliable and authoritative travel information.