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Guide Book: Iceland

Introduction

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. Apart from an expansive landscape, it also has a rich history, literature and folklore tradition. However, tempering Iceland's appeal is that its prices are the most expensive in Europe. That doesn't mean it can't be visited on a shoestring, but it does mean that budget travellers will have to spend some time under canvas in order to fully appreciate the country without needing to get on intimate terms with their bank manager.
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Republic of Iceland
103,000 sq km (39,768 sq mi)
Reykjavík (pop 171,500)
97% Icelanders
Icelandic
95% Evangelical Lutheran, 3% other Protestant denominations, 1% Roman Catholic, & some followers of Ásatrú, an ancient Norse religion
Constitutional republic
Ólafur Ragnar Grímsson

US$6.4 billion
US$23,700
1.7%
1.9%
Fishing, aquaculture, aluminium smelting & geothermal power
EU (esp. Germany, Norway, UK, Denmark, Sweden), USA
no
History

Iceland was settled in the late 9th and early 10th centuries, principally by people of Norse origin. In 930 A.D., the ruling chiefs established a republican constitution and an assembly called the Althingi--the oldest parliament in the world. Iceland remained independent until 1262, when it entered into a treaty establishing a union with the Norwegian monarchy. Iceland passed to Denmark in the late 14th century when Norway and Denmark were united under the Danish crown.

In the early 19th century, national consciousness revived in Iceland. The Althingi had been abolished in 1800 but was reestablished in 1843 as a consultative assembly. In 1874, Denmark granted Iceland home rule, which again was extended in 1904. The constitution, written in 1874, was revised in 1903, and a minister for Icelandic affairs, residing in Reykjavik, was made responsible to the Althingi. The Act of Union, a 1918 agreement with Denmark, recognized Iceland as a fully sovereign state united with Denmark under a common king. Iceland established its own flag, but Denmark continued to represent Icelandic foreign affairs and defense interests.

German occupation of Denmark in 1940 severed communications between Iceland and Denmark. Consequently, Iceland moved immediately to assume control over its own territorial waters and foreign affairs. In May 1940, British military forces occupied Iceland. In July 1941, responsibility for Iceland's defense passed to the United States. Following a plebiscite, Iceland formally became an independent republic on June 17, 1944.

In October 1946, the Icelandic and U.S. Governments agreed to terminate U.S. responsibility for the defense of Iceland, but the United States retained certain rights at Keflavik. Iceland became a charter member of the North Atlantic Treaty Organization (NATO) in 1949. After the outbreak of hostilities in Korea in 1950, and pursuant to the request of NATO military authorities, the United States and Iceland agreed that the United States should again be responsible for Iceland's defense. A bilateral defense agreement signed on May 5, 1951, is the authority for U.S. military presence in Iceland. Iceland is the only NATO country with no standing military of its own.
Culture

Icelanders are proof that a rich cultural life can be developed despite a small population. The country's literary heritage stems from writers of the 12th to 14th centuries who vividly recorded the sagas of Iceland's first 250 years. Other traditional arts include weaving, silver crafting, and wood carving. Poetry was the great literary form of expression in the 19th century, whereas the novel and drama have been the prime forms of literature in the 20th century. The Reykjavík area, which supports several professional theatres, a symphony orchestra, an opera, and a number of art galleries, bookstores, cinemas, and museums, has a cultural environment that compares favourably with those of cities several times its size. It also holds biennial international art festivals.

Art in Iceland was long connected with religion, first the Roman Catholic church and later the Lutheran church. The first professional secular painters appeared in Iceland in the 19th century. Gradually increasing in number, these painters, such as Jóhannes Kjarval, highlighted the character and beauty of their country. Painting continues to thrive in Iceland, where artists have fused foreign influences with local heritage. The old traditions in silver working have been retained, the most characteristic of which is the use of silver thread for ornamentation.

Literature is also alive and well in Iceland. The literary tradition of the saga has been revived, and Iceland has often been the setting of 20th-century fiction. Several Icelandic writers have received international acclaim, such as Halldór Laxness, who received the Nobel Prize for Literature in 1955. Other native writers have written for the theatre, and their work has grown more international in theme and setting. Music also enjoyed a tremendous upsurge after World War II. The programs of the Iceland Symphony are drawn from a classical repertoire and the work of modern Icelandic composers, and one or more operas or musicals are performed every year at the National Theatre and the Icelandic Opera. Popular music by Icelandic performers, such as Björk, has gained international commercial success and critical acclaim.
Getting There & Away

Icelandair, the national carrier, has regular and direct flights to Europe and the USA. While some bargain fares do exist, flying to Iceland is generally expensive: to keep transport costs down, plan as far in advance as possible, shop around for cheap fares, and purchase airline tickets at least 30 days prior to departure. A pleasant way to travel between Europe and Iceland is by ferry, although it takes a bit more time and the costs are still high. A ferry service operates from late May to early September out of Hanstholm in northern Denmark (passengers are required to spend two nights in the Faroe Islands en route).

Getting Around
Air Iceland (Flugfélag Íslands), Iceland's main domestic airline, provides the only reliable transport in winter when snow and ice inhibits most overland travel. In summer, the airline has rather expensive daily flights between Reykjavík and most major destinations. Iceland has no railways and its highway system is Europe's least developed. However, Bifreiðastöd Íslands, a collective organisation of long-distance bus lines, does a tidy job of covering the country with a feasible, though inconvenient, network. There are also a number of ferry services connecting ports.

Car-rental agencies are found in most major towns, and rates are almost bearable until you add excess kilometres, compulsory insurance and some of the world's most expensive petrol to the price. With its unsurfaced roads, steep hills and inclement weather, Iceland is hardly a cyclist's dream. Nevertheless, an increasing number of visitors are trying it, and bikes can be rented in most urban centres, hotels, hostels and guesthouses. Local transport includes taxis, which can also be hired for sightseeing, and municipal buses.
Attractions

Reykjavik (Reykjavik Hotels & Reykjavik Resort Reservatoin Service)
Iceland's capital is unlike any other European city. Not only is Reykjavík ('Smoky Bay') the world's northernmost capital, it's also one of the newest, having established itself only in the late 19th century. Despite its name, it is now known as the 'smokeless city' thanks to its incessant winds and reliance on geothermal heat. Reykjavík boasts all the trappings of a modern European city as well as an interesting old town, white-washed wooden buildings, and rows of brightly painted concrete houses. Nearly everything of interest is within walking distance of the old settlement.

The Old Town, the city's hub, is a rustic area of grassy parks, lakes, markets and museums. Anyone remotely interested in Norse and Icelandic culture should head for the National Museum, which houses exhibits of religious and folk relics, and tools dating from the period of Settlement. The most renowned is a church door, carved around 1200, which depicts a Norse battle scene, while residing in the basement are nautical and agricultural tools and models of early fishing boats and ingenious farm implements. Immediately behind the museum is the Árni Magnússon Institute, a must-see for Saga buffs. The building contains a famous collection of works, including the Landnámabók and Njáls Saga, which were returned from Denmark to independent Iceland.

Modern Reykjavík sprawls eastward from the Old Town, and features several worthwhile attractions such as Hallgrímskirkja, an imposing church designed to resemble a mountain of lava. Although the word 'tacky' may spring to mind, it's easily the city's most memorable structure. Begun in the late 1940s and completed in 1974, the church is named after Iceland's best-known poet, Hallgrímur Pétursson. You can wander its stark, light-filled interior, then take a lift to the top of a 75m-high (246ft) tower which offers superb views of the city. On the lawn is a statue of Leif Eriksson, triumphantly identified as the 'Son of Iceland, Discoverer of Vinland' (believed to be Newfoundland or Labrador).

Another place with an outwardly tacky appearance is the Volcano Show. Again, don't be put off by the design; this theatre offers invaluable insights into the volcanic spectre under (or over) which Icelanders live. Here you can see dramatic film of some of the country's greatest volcanic eruptions, including one award-winning film of the birth of Surtsey, which belched and spewed its way - Exorcist-like - out of the sea in 1963. Other sights include a pleasant botanic garden, a popular recreational park and a number of museums dedicated to the works of Iceland's leading artists.

Budget accommodation, cheap eats and bargain shopping are found in or just east of the Old Town. For entertainment, there's cinema (films are screened in their original language with Icelandic subtitles), cultural performances (theatre, opera, symphony, and dance) and light shows (sagas, Settlement and Viking extravaganzas). Runtur is a bit of a Reykjavík institution, which involves trawling through the city's hip bars, live music venues and discos to make sure no-one's missing the best action.

Myvatn (Myvatn Hotels & Myvatn Resort Reservatoin Service)
Mývatn, in northeast Iceland, is considered one of the natural wonders of the world. Although most of the interesting sights are volcanic or geothermal topographical features, the reserve's centrepiece is a lovely blue lake teeming with birdlife. What's more, thanks to its location in the rain shadow of an enormous icecap, the reserve experiences some of the finest weather in Iceland. Travellers can relax and settle in, spend a week camping, or set out on excursions to the Kverkfjöll ice caves; Námaskaro; or the Hverfell crater.
Money & Costs

Currency: Icelandic Kr?na (Ikr)

Meals
  • Budget: US$10-15
  • Mid-range: US$15-25
  • Top-end: US$25 and upwards

Lodging
  • Budget: US$20-50
  • Mid-range: US$50-100
  • Top-end: US$100 and upwards
Because just about everything must be imported, food, accommodation and transport prices in the North Atlantic are high. In fact, Iceland is generally considered second only to Japan in its ability to deplete travellers means. If you can happily drop US$500 a day you won't encounter any problems, but those with finite means may have to put in some effort not to break the budget. If you're willing to give up some comforts and sleep in youth hostels, eat at snack bars and travel on bus passes, you'll probably be able to keep expenses down to an average of about US$50-60 per day. Europeans bringing a private vehicle to Iceland, especially a campervan or caravan, will be able to enjoy a bit more comfort while still keeping within a reasonable budget. Petrol prices are over US$1 per litre though, so be prepared.

Foreign-denomination travellers cheques, postal cheques and banknotes may be exchanged for Icelandic currency at any bank. A commission of about US$2.50 will be charged, regardless of the amount changed. Major credit cards are accepted at most places. Icelanders are plastic mad and use cards even for buying groceries and other small purchases.

Tipping is not required: finer restaurants will automatically add a service charge to the bill making further tipping unnecessary. Even so, those who feel compelled to tip for particularly good or friendly service will not be refused.
Facts for the Traveler

Visas: Western Europeans and citizens of the USA, Canada, Australia, New Zealand, Hong Kong, Singapore and at least two dozen other countries do not require visas. Tourist stays are granted for up to three months, and can be easily extended at local police stations.
Health risks: Hypothermia if trekking
Time: GMT/UTC
Electricity: 220V, 50 cycles
Weights & measures: Metric
Tourism: 150,000 visitors per year

When to Go
Every year after 31 August, someone puts on the brakes and Icelandic tourism grinds slowly to a halt. Hotels close, youth hostels and camping grounds shut down and buses stop running. Many late-summer travellers are disappointed to find that all the most popular attractions are practically inaccessible by 15 September, and by 30 September it seems the entire country, save Reykjavík, has gone into hibernation. Although it's safe to predict that the situation will change in coming years, for now it's a good idea to plan your trip with this in mind.

Events
The largest nationwide festival of the year is Independence Day (17 June), a time of colourful parades, street music and dancing, outdoor theatre and general merriment. Other nationwide celebrations include: Sjómannadagurinn (first week in June), which is dedicated to seafarers, and has participants competing in swimming contests, tugs-of-war and sea rescues; Midsummer (24 June), when tradition has it that Midsummer Night's dew possesses magical healing powers and that to roll in it naked will cure 19 different health problems; and Sumardagurinn Fyrsti (the third Thursday in April), a carnival-style celebration for the first day of summer. Among the local festivals is Pjódhátíð Vestmannaeyjar (August; Vestmannaeyjar), an earth-shaking event of immense bonfires, outdoor camping, dancing, singing, eating and getting uproariously drunk. Elsewhere in Iceland Verslunarmannahelgi (August) is celebrated with barbecues, horse competitions, camping out, family reunions and excessive alcohol consumption.