Date travelled: 31 January-4 February 2009
Reykjavik (or Reykjavík in Icelandic), the World's most northern capital city, and the self-proclaimed "Capital of Cool" is enjoying a mini tourism renaissance, thanks to Iceland's financial crisis which began in October 2008. With prices 30% cheaper than in January 2008 (at time of writing), now is the time to visit this charming city.
From Kevlavik International Airport, take the FlyBus to the city centre bus terminal. I recommend purchasing a PLUS ticket (price 3700 Iceland Krona - about £24 for a return ticket) which also gives you a transfer from the bus terminal direct to your hotel. I stayed at the Hotel Leifur Eiríksson, which is situated right in the centre of Reykjavik.
Reykjavik itself is a small city, with a population of just over 100,000 people. This makes it very easy to navigate by foot, though there is also a comprehensive bus service if you don't fancy walking. I don't recommend taking an organised guided tour, as they are quite expensive (around £20 for a two hour tour), and you don't get to see all the landmarks of the city. You can quite easily do it yourself, visiting the parts of the city at your own pace, plus saving yourself some spending money in the process. Get yourself a good guide book, and away you go. Or indeed, use this report!
If you are in Iceland around January/February time, you will probably have breakfast in the dark, as the sun doesn't rise until past 9am. However, if it is a clear day, you will be able to watch a glorious sunrise.

Sunrise over Reykjavik
Reykjavik's most dominating landmark is Hallgrímskirkja, and marks the starting point for my walking tour. The church, consecrated in 1986, stands on top of a small hill in the centre of the city, and dominates the surrounding area. Have a look inside at the splendid organ, containing over 5000 pipes. Take a lift to the viewing tower (400 Icelandic Krona - about £2.50) to enjoy a view of Reykjavik and the nearby mountains. It can get quite windy here, so be prepared for the cold. At time of writing, the tower is being renovated, and will continue until at least summer 2009. This means parts of the tower are blocked off, but it's still a good way to set your bearings of the city.

Hallgrímskirkja
Just outside Hallgrímskirkja is a statue of Leifur Eiríksson, a great Icelandic explorer, who first discovered the Americas in the 10th century.

Statue of Leifur Eiríksson
From the statue, head down the hill on the street called Skólavörðustígur, until you get to Rekjvaik's main shopping street, Laugavegur. The standard of the shops isn't quite the same as say Oxford Street in London, but there are still some pleasant boutiques to explore. The street features underground heating to keep the snow and ice away, so you will have no problems walking up and down.

Laugavegur
Just of Laugavegur is the Culture House (known locally as Þjóðmenningarhús). This building houses the famous collection of Icelandic manuscripts dating from the 12th and 13th centuries, known as the Sagas. These ancient documents are a source of great pride for many Icelandic's.

Culture House (Þjóðmenningarhús)
Just outside the Culture House, in the small park on the other side of the road, is a statue to Ingólfur Arnarson, the first Viking settler of Iceland.

Statue of Ingólfur Arnarson
From the statue, turn left heading down Lækjargata. On the left hand side is the Government House (Stjórnarráðið) This building may not look very impressive, but it is one of the oldest buildings in Reykjavik, dating from 1761. Formally a prison, the building today is used as the office of the prime minister of Iceland.

Government House (Stjórnarráðið)
Continuing down the street until you come to a large lake on the right hand side. This is Tjörnin Lake, and home to Reykjavik's many different species of ducks and other birds. If you are in the city during winter, the lake is often covered in a thick layer of ice, so thick in fact a local football team were practicing on the lake itself during my visit! Take a seat on one of the nearby benches to enjoy the scenery.

Tjörnin Lake
Continue walking around the lake, and cross the bridge. Take the first left until you arrive at the main road. Opposite is the National Museum of Iceland (Þjóðminjasafn Íslands). The museum features an interactive learning experience of Iceland's history, from the first settlers to the recent financial crisis. You will need at least a couple of hours to explore thoroughly. Entrance price is 600 Icelandic Krona - about £4.90).

National Museum of Iceland (Þjóðminjasafn Íslands)
After exploring the museum, walk along the other side of Tjörnin Lake, passing the modern City Hall, until you get to Iceland's Parliament Building (Alþingishúsið). The building dates from 1881, and houses 63 members of the Icelandic Parliament.

Icelandic Parliament Building (Alþingishúsið)
From Parliament, walk north towards the harbour. Follow the path that runs alongside the bay until you get to a strange boat like sculpture looking out to sea. This is Sólfar Suncraft, built in 1986 by Gunnar Árnason. The statue is of a Viking longboat, and on a clear day, you can see the mountains across the bay.

Sólfar Suncraft
Continue along the coastal path, until you get to a white building on its own overlooking the sea. Höfði House will always be remembered as the setting for the 1986 meeting between former US President Ronald Reagan and former Soviet Premier Mikhail Gorbachev. Many believe the meeting at this building was the beginning of the end of the Cold War.

Höfði House
Walk down a street called Snorrabraut until you get to an "Alien looking" building on the hill. This is Perlan, used to store geothermal water that supplies Reykjavik with hot water. It also features an exclusive restaurant.

Perlan
Perlan also features an observation platform, which is completely free of charge to enter. Once there, you can see a nice view of Reykjavik and beyond.

View of Reykjavik
After a day sightseeing, walk back along Bústa avegur and Egilsgata until you arrive back at Hallgrímskirkja. If you are in Reykjavik in winter, you will witness an early sunset, and if it's a clear day, it will be spectacular.

Reykjavik Sunset
If you fancy a bit of retail therapy after your walk, Reykjavik has a large shopping mall to the east of the city. Kringlan is easily accessible either by a 30 minute walk from the centre, or by bus (price 280 Icelandic Krona - £1.85). The mall is of a good size, and should certainly satisfy most shopaholic's needs.
Eating out in Reykjavik can be very expensive if you go to the wrong place. I recommend the restaurant "Vengalot", situated just off Laugavegur. The restaurant features an excellent menu and very reasonable prices (a two course meal and a drink for about 2500 Icelandic Krona - £17). Icelandic beer is also very nice, but again quite expensive. The main varieties are Viking, Egils Pilsner and Egils Gull. Expect to say anything up to 800 Iceland Krona (£5.20) for a small beer in bar or restaurant. Supermarkets are cheaper (180 Icelandic Krona - £1.20), but the alcohol content is much less. If you don't fancy beer, you could try the national spirit. Called Brennivin, it is a type of potato distilled schnapps, similar to Poitín found in Ireland. Be warned, this is very strong stuff! Locals tend to have Brennivin as a chaser with a large beer.
For those who fancy a non-alcoholic drink, you could try the Egils orangeade, or the excellent tap water, which is of a higher standard than the bottled mineral water found in Europe or America. Citizens of Reykjavik also love their coffee, but this stuff is considerably strong. You may like to try the malt extract drink, which locals claim contains special healing powers. The taste is similar to Guinness, but slightly sweeter.
If you are in Reykjavik for a few days, there are some excellent excursions I recommend undertaking. The first is to Iceland's main tourist attraction, known as the Blue Lagoon (Bláa Lonið). The lagoon is a naturally heated, geothermal pool situated in a lava field, about 45 minutes from Reykjavik. Temperatures of the water range from 36 to 39°C (about 97 to 102°F). Many different tour operators offer a return bus service from Reykjavik to the Lagoon, and include the admission price. A typical price is 5900 Icelandic Krona (about £36) for a three hour visit. Remember to bring your bathing clothes and a good towel, but you easily hire some from the reception building if you wish. Once inside the water, make use of the white mud, situated in tubs by the side of the pool. This is an excellent natural moisturiser. Also in the pool is an excellent spa shower, which is gorgeous for the neck and back! The lagoon also have a fully stocked shop, but you will also find similar shops at the airport on the way home, or back in Reykjavik.

Blue Lagoon (Bláa Lonið)
If you have some free time waiting for the bus, head up to the viewing platform, and have a look at the lava field scenery. Everything is calm and quiet, and completes a relaxing excursion.

Scenery near Blue Lagoon
If you are in Reykjavik during the winter, you can join an excursion to see the Northern Lights (price 5800 Icelandic Krona - about £35). If it is a clear day, you will see the green glow of the lights in all their glory. Be advised that viewings are not guaranteed. If you are in Reykjavik in summer, you could join a whale watching excursion.
One excursion I highly recommend, whatever the time of year, if the Golden Circle tour. This tour includes a journey into the centre of Iceland, to see some of its simply stunning scenery. Be warned, it can get very cold in winter. During my visit, the temperature was as low as -25°C!) Prices are around 9800 Icelandic Krona (about £64) for a daytrip. The tour starts at Þingvellir National Park, a UNESCO World Heritage site since 2004. The park is also one of the places in the World where the American and Eurasian tectonic plates meet (indeed they are slowly separating, at a rate of 1 inch a year).

Þingvellir National Park
The surroundings are simply incredible, and if you are here in winter, you will see an amazing sunrise over the valley.

Þingvellir National Park before dawn
On the tour, you will get to walk along the path down the hill to the valley. By the time you get there, you will see the sun slowly appear. The mountains slowly change from a grey colour, to a glorious red.

Sunrise over Þingvellir National Park

Mountain in Þingvellir National Park
The tour then continues east to the Gullfoss Waterfall. Actually, there are two waterfalls here, with a combined drop of 32 metres (105 feet). Follow the path around the falls to get a better view.

Gullfoss Waterfall
The tour starts its journey back towards Reykjavik, stopping first at Geysir, site of the World's largest geyser. However, this geyser is mostly inactive and only erupts a couple of times a day. Luckily, Strokkur geyser is right next to Geysir, and erupts roughly every 5 minutes. Be careful not to get wet, as the water can potentially scald you. Always ensure you stand away from the wind. You will certainly notice the smell of sulphur as you walk around the site.

Strokkur geyser
You can also view a video of Strokkur geyser erupting in the videos section of my site. Click here to view my videos.
The next stop is to Skáholt, the site of the first Christian church in Iceland. The church that is here today dates from 1963.

Skálholt church
Finally, the tour visits a geothermal power station, on the outskirts of Reykjavik. You will be able to see how the station uses the hot water from the ground to generate turbines, to supply Reykjavik and its surroundings with plenty of very cheap electricity. It makes you wonder why other nations aren't following Iceland's lead in using renewable energy sources for generating most of its power. After visiting the power station, you are taken back to your hotel.
It may not be the cheapest country in the world despite the recent economic crisis, but because of its awe inspiring scenery and very friendly people, that's why I went to Iceland.
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