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.

Sailing around Surtsey Island

A small drop of basalt in the North Atlantic Ocean, Surtsey is a volcanic island formed by a submarine eruption that lasted from 1963 to 1967, off the Westman Islands to the south of Iceland. The island is a UNESCO World Heritage Site. To protect its virgin ecosystem against human presence, it is forbidden to land there. Only a few scientists have access to Surtsey to study the plant and animal colonisation of the island. Mosses, fungi and lichens were followed by vascular plants. Around 300 invertebrate species and 90 bird species have gradually colonised it. While sailing around Surtsey, you will enjoy a unique panorama of this extraordinary island’s contours.

Heimaey, Vestmannaeyjar

This land seated off the southern coast of Iceland is the largest of the Vestmann islands, and is the only inhabited island in the archipelago. The steep Edfell volcanoes and the green prairies of Herjólfsdalur offer rich contrast of nature. On the Stórhöfði road, look out over grey sand beaches and cliffs carved out by the Arctic ocean. From here, you can also see the bronze landscapes of the mountaintops. You could visit Eldheimar, an ultra-modern and interactive museum which traces the volcanic eruption has experienced Heimaey in 1973.

This secret boreal hideaway is located at the foot of the Kirkjufell, on Snaefellsnes peninsula. Arriving by boat means you will get a closer view of the lava-stone rock standing like a sentinel at the entrance to the bay; Grundarfjörður lies sheltered behind this cone-shaped rock. A stone’s throw from the jetty, crystal clear waters, tundra and beaches give onto the cerulean waters of Breiðafjörður. Scattered with its emerald-coloured lawns, this town, with its buildings that merge into the surrounding countryside, will most certainly win your favour.

Grímsey is the northernmost island of Iceland surging from the Arctic ocean, with the Arctic circle running through the island. Its contrasted contours are surprising. From Grímseyjarhreppur, the island’s only town located on the west coast, then heading due south, you can take in the beauty of the hillsides, lushly carpeted with moss and grass. On the rest of the coastline, imposing basalt cliffs inhabited by sea birds stand proud.

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.

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.

Iceland’s capital stretches along the edge of a vast bay in the west of the country. Perlan, the “Pearl of Reykjavík”, a museum located on ’Oskjuhlið hill, offers a panoramic view of the lush, green landscapes. A little further, one can easily spot the signpost showing the way to the evangelical Hallgrímskirkja church, and to the historical centre where one can stroll along the Skólavördustígur and the Laugavegur, two lively streets with charming small shops. For some relaxation just outside of the city, visitors have the opportunity to visit the Reykjanes peninsula and its famous thermal lagoons of the Blue Lagoon.