Iceland
Overview

Country Overview
Iceland is a large island in the North Atlantic close to the Arctic Circle. The landscape is wild, rugged and colourful, with black lava, red sulphur, hot blue geysers, rivers, waterfalls and green valleys. Its coastline is richly indented with bays and fjords. More than half the population lives in or around Reykjavík, the capital. Iceland is one of the most volcanically active countries in the world. Hekla, in the south of Iceland, has erupted no fewer than 16 times, and was once described by clergymen as the gateway to Hell. Reykjavík is set on a broad bay, surrounded by mountains, and is in an area of geothermal hot springs, creating a natural central heating system and pollution-free environment. It is a busy city combining old-fashioned wooden architecture and modern buildings. Local dishes include hangikjot (smoked lamb) and Icelandic sild (herring and salmon). Nightclubs and cinemas exist in major centres. During the tourist season there is an attractive light entertainment show called 'Light Nights' with traditional Icelandic stories and folk songs.

General Information

Area: 103,000 sq km (39,770 sq miles).

Population: 278,717 (1999).

Population Density: 2.7 per sq km.

Capital: Reykjavík. Population: 109,763 (1999).

GEOGRAPHY: Iceland is a large island in the North Atlantic close to the Arctic Circle and includes islands to the north and south. The landscape is wild, rugged and colourful, with black lava, red sulphur, hot blue geysers, grey and white rivers with waterfalls and green valleys, its coastline richly indented with bays and fjords. The whole of the central highland plateau of the island is a beautiful but barren and uninhabitable moonscape; so much so that the first American astronauts were sent there for pre-mission training. Five-sixths of Iceland is uninhabited, the population being concentrated on the coast, in the valleys and in the plains of the southwest and southeast of the country. More than half the population live in or around Reykjavík, the capital. Iceland is one of the most volcanically active countries in the world. Hekla, in the south of Iceland, is the most famous and magnificent volcano of them all. It has erupted no fewer than 16 times since Iceland was settled, and throughout the Middle Ages was considered by European clergymen as one of the gateways to Hell itself. Another volcano, Snæfellsnes, fired Jules Verne’s imagination to use its crater as the point of entry for his epic tale Journey to the Centre of the Earth. Iceland’s highest and most extensive glacier is Vatnajökull; at 8500 sq km (3280 sq miles), it is the largest in Europe.

Government: Republic. Gained full independence from Denmark in 1944. Head of State: President Ólafur Ragnar Grimsson since 1996. Head of Government: Prime Minister Davið Oddsson since 1991. Iceland’s Parliament (the Althing) is the oldest in the world.

Language: The official language is Icelandic, which has remained virtually unchanged since the Vikings settled Iceland in the ninth and tenth centuries. The Icelandic language refuses to accept foreign words, preferring instead to coin new words from ancient Viking roots. The word for computer thus becomes hölva, a hybrid made up of the old words for ‘number’ and ‘prophetess’. English (which is taught in schools) and Danish are widely spoken.

Religion: Lutheran, with a Catholic minority.

Time: GMT.

Electricity: 220 volts AC, 50Hz. Plug fittings are normally two-pin with round section pins 4mm in diameter with centres 2cm apart. Lamp fittings are screw-type. Almost all the power is generated by thermal hydroelectric stations.

Communications:  

Telephone

Full IDD service is available. Country code: 354. Outgoing international code: 00. There are no longer any area codes; all lines now have a seven-digit number. For Reykjavík, old six-digit numbers are now preceded by 5, while old five-digit numbers are preceded by 55.

Mobile telephone

GSM 900 and 1800 networks exist, serving Reykjavík and coastal towns. Network operators include Iceland Telecom Ltd (website: www.simi.is), Islandssimi GSM ehf (website: www.islandssimi.com) and TAL hf (website: www.tal.is).

Fax

Public facilities are available at the main telephone headquarters in Austurvoll Square and in most hotels and offices.

Internet

Internet cafes provide public access to e-mail and Internet services. ISPs include Hringidan/Vortex Inc (website: www.vortex.is) and Nyherji (website: www.itn.is).

Telegram

There is a 24-hour telegram service from the Telegraph Office in Reykjavík.

Post

There is an efficient airmail service to Europe. Post offices are open Mon-Fri 0830-1630. The post office at Austurstræti is also open Sat 1000-1400 from June-September.

Press

The most popular newspapers are Morgunbladid, DV and Dagur-Tíminn. International English-language newspapers and magazines are available.

BBC World Service and Voice of America frequencies: From time to time these change.

BBC (website: www.bbc.co.uk/worldservice):

MHz15.5712.109.4106.195


Voice of America (website: www.voa.gov):

MHz15.2111.829.7601.197


Passport/Visa

 Passport Required?Visa Required?Return Ticket Required?
BritishYesNoNo
AustralianYesNoYes
CanadianYesNoYes
USAYesNoYes
OtherEU1NoNo
JapaneseYesNoYes


Note: Iceland is a signatory to the 1995 Schengen Agreement. For further details about passport/visa regulations within the Schengen area see the introductory section How to Use this Guide.

PASSPORTS: Passport valid for at least three months after intended date of departure required by all, except:
(a) 1. nationals of Austria, Belgium, France, Germany, Greece, Italy, Liechtenstein, Luxembourg, The Netherlands, Portugal, Spain and Switzerland holding a national ID card;
(b) nationals of Finland, Norway, Denmark and Sweden travelling from a Scandinavian country.


VISAS: Required by all except the following for stays of up to three months:
(a) nationals of countries referred to in the chart above;
(b) nationals of Andorra, Argentina, Bolivia, Brazil, Brunei, Bulgaria, Chile, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Ecuador, El Salvador, Estonia, Finland, Guatemala, Honduras, Hong Kong (SAR), Hungary, Israel, Korea (Rep), Latvia, Lithuania, Macau (SAR), Malaysia, Malta, Mexico, Monaco, New Zealand, Nicaragua, Norway, Panama, Paraguay, Poland, Romania, San Marino, Singapore, Slovak Republic, Slovenia, Sweden, Switzerland, Uruguay, Vatican City, and Venezuela


Types of visa and cost: £7-£32. A uniform type of visa, the Schengen visa, is issued for tourist, business and private visits. Visa fees are payable in cash (exact money only) or cheque supported by a cheque card. Visa fees are non-refundable and payable on submission of the visa application.

Validity: Up to three months. For extensions, apply to the Immigration authority in Denmark.

Application to: Royal Danish Embassy; see Denmark section. Applications cannot be made by post. Travellers visiting just one Schengen country should apply to the Consulate of that country; travellers visiting more than one Schengen country should apply to the Consulate of the country chosen as the main destination or the country they will enter first (if they have no main destination).

Application requirements: (a) Completed visa application form. (b) One passport-size photo. (c) Valid passport. (d) Fee (non-refundable). (e) Proof of purpose of visit such as a letter on invitation and evidence of accommodation. (f) Evidence of sufficient funds to cover the duration of stay. (g) A pre-paid self-addressed envelope for registered post, if you would like your visa to be sent to your home address. (h) For business visits, a letter of invitation from a business contact in Iceland stating nature and duration of stay, type of visa and accommodation.

Working days required: Between six to eight weeks.

Temporary residence: Enquire at Embassy of the Republic of Iceland.

Money

Currency: Icelandic Krona (Ikr) = 100 aurar. Notes are in denominations of Ikr5000, 2000, 1000, 500 and 100. Coins are in denominations of IKr100, 50, 10, 5 and 1.

Currency exchange: Foreign currencies can be exchanged in all major banks, some of which (such as the Landesbankí at Keflavik airport) are open 24 hours. Most hotels also provide their guests with exchange services. Exchange services are also available from The Change Group, which has offices at Keflavik airport, the Tourist Information Centre and in central Reykjavík (near the MacDonalds restaurant). ATMs are also available throughout Reykjavík.

Credit & debit cards: Visa, Eurocard, MasterCard, Diners Club and American Express are widely accepted. Check with your credit or debit card company for details of merchant acceptability and other services which may be available.

Travellers cheques: Widely used. To avoid additional exchange rate charges, travellers are advised to take travellers cheques in US Dollars.

Currency restrictions: The import and export of local currency is limited to Ikr8000; the import of foreign currency is unlimited and the export of foreign currency is limited to the amount imported.

Exchange rate indicators
The following figures are included as a guide to the movements of the Krona against Sterling and the US Dollar:


DateMay ’02Aug ’02Nov ’02Feb ’03
£1.00=134.28131.60136.27124.57
$1.00=92.1586.5386.1778.24


Banking hours: Mon-Fri 0915-1600.

Duty Free

The following goods may be imported into Iceland by passengers aged 16 years and over (tobacco products) or aged 20 and over (alcoholic beverages) without incurring customs duty:
200 cigarettes or 250g of tobacco products; 1l of spirits or 1l of wine (under 21 per cent) or 12 bottles of beer (or a combination of two of these quantities).


Note: All fishing equipment, including waders and rubber boots, must be disinfected and a certificate of disinfection issued by an official veterinary authority should be presented on arrival.

Prohibited items: Drugs, firearms, butter, eggs and uncooked meats.

Public Holidays

Jan 1 2003 New Year’s Day. Apr 17 Maundy Thursday. Apr 18 Good Friday. Apr 21 Easter Monday. Apr 24 First Day of Summer. May 1 Labour Day. May 29 Ascension. Jun 9 Whit Monday. Jun 17 National Day. Aug 4 Commerce Day. Dec 24 Christmas Eve. Dec 25-26 Christmas. Dec 31 New Year’s Eve (from noon). Jan 1 2004 New Year’s Day. Apr 8 Maundy Thursday. Apr 9 Good Friday. Apr 12 Easter Monday. Apr 22 First Day of Summer. May 1 Labour Day. May 20 Ascension. May 31 Whit Monday. Jun 17 National Day. Aug 2 Commerce Day. Dec 24 Christmas Eve. Dec 25-26 Christmas. Dec 31 New Year’s Eve (from noon).

Health

 Special PrecautionsCertificate Required
Yellow FeverNoNo
CholeraNoNo
Typhoid and PolioNoN/A
MalariaNoN/A


Health care: All hospitals have excellent standards of medical service. There is a reciprocal health agreement with the UK. On presentation of a UK passport or NHS card, all in-patient treatment at hospitals and emergency dental treatment for children aged 6-15 is free. Citizens of EU countries, Liechtenstein and Norway get free medical treatment on presentation of an E-111 form. For others, medical and dental treatment, prescribed medicines and travel by ambulance must be paid for. If wrongly charged, one can apply for a refund by presenting any receipts to the State Social Security Institute, Laugavegur 114, 150 Reykjavík (tel: 560 4400). There are medical centres and hospitals in all major towns and cities. The emergency number for medical assistance is 112 (open 24 hours).

Travel - International

AIR: The national airline, Icelandair (FI), operates direct flights to Reykjavik (Keflavík) from London, New York, Boston, Minneapolis, Halifax and many European cities. Other, predominantly Scandinavian, carriers also operate services. Flights are operated to the Faroe Islands and Greenland during the summer months. For further details, contact Icelandair (see Contact Addresses section).

Approximate flight times: From Iceland to London is 3 hours; to Paris is 3 hours and 25 minutes; to Frankfurt is 3 hours and 45 minutes and to New York is 5 hours and 30 minutes.

International airports: Reykjavik (Keflavík) (REK/KEF) is 51km (32 miles) southwest of Reykjavík (travel time – 45 minutes). Airport facilities include bus services, departing after the arrival of each flight; taxi services; a duty-free shop selling a wide range of goods, including handmade Icelandic items; banking and exchange facilities, open on arrival of all scheduled services; restaurants and bars and car hire (Avis, Europcar and Hertz).

Departure tax: None.

SEA: There is no longer a direct service between the UK and Iceland. Sea passengers must travel from Aberdeen, with a three-day stopover in the Faroe Islands on the return journey. This is a costly and aggravating route, not recommended by travel agents. A few ferry companies also operate services to Iceland from Norway, Denmark and Germany. Although most of these are mainly cargo ships, they have comfortable and modern facilities for passengers. Smyril Line, the Faroe Island’s ferry service, runs a weekly passenger and car ferry service between the Shetland Islands, Denmark, Norway and Svedisfiordur in Iceland during the summer months. Many cruises also stop at Iceland. Operators include Holland America, Cunard, Seabourn, Crystal, Silversea, Princess, Royal Caribbean International and Orient Cruises.

Travel - Internal

AIR: Air Iceland (formed through merging with Icelandair Domestic and Norlandair) runs domestic services throughout the island to ten major destinations which link up with regional carriers in the west, north and east of the country. Air Iceland also offers a variety of special air packages for the internal traveller including the Fly As You Please pass. For further details, contact the local office.

Departure tax: None.

SEA: Ferry services serve all coastal ports in summer, although weather curtails timetables in winter. There is now a tunnel between Reykjavík and Akranes.

RAIL: There is no railway system in Iceland.

ROAD: Roads serve all settlements. The 12,000km (7500 miles) of roads are mostly gravel rather than tarred. The Ring Road is approximately 1430km (894 miles) long, of which 80 per cent is tarred. Traffic drives on the right. It is obligatory to use headlights at all times of the day and night and to wear safety belts, both in the front and back seats. The Icelandic Tourist Office publishes a useful brochure, ‘The Art of Driving on Icelandic Roads’. Bus: Services are efficient and cheap, connecting all parts of the island during the summer. In winter, buses operate to a limited number of destinations. Holiday tickets (Omnibus Passport) and Air/Bus Rovers are valid for unlimited travel by scheduled bus services; also Full-Circle Passports are available, valid for circular trips around Iceland (without any time limit). Taxi: Available from all hotels and airports. Car hire: Car rental services are available from Reykjavík, Akureyri and many other towns. Documentation: Drivers must be over 20 years of age. An International Driving Permit is recommended, although it is not legally required. A temporary driving licence is available from local authorities on presentation of a valid UK driving licence.

TRAVEL TIMES: The following chart gives approximate travel times (in hours and minutes) from Reykjavík to other major cities/towns in Iceland.


AirRoadSea
Isafjördur0.509.00-
Saudakrokur0.453.30-
Akureyri0.555.00-
Husavik1.006.00-
Höfn0.659.30-
Vestmanna Is.0.30*1.006.00
Egilsstadir0.7014.00-
Note: *To Thorlakshofn, then sea crossing.

Accommodation

HOTELS: The most deluxe hotels are in the capital Reykjavík and some of them also have hairdressers, shops and beauty parlours. Hotel or hostel accommodation is available in most areas. Grading: All accommodation is classified from one star (basic) to five stars (luxurious) and is managed by the Icelandic Tourist Board. Visiotrs should look for the blue and red sign near the entrance to a hotel for the current grading. For a complete list of classified accommodation contact the Icelandic Tourist Board (see Contact Addresses section).

PENSIONS & GUEST-HOUSES: These are available in the larger towns. Rooms are also available in private houses with breakfast included in the cost.

FARMHOUSE HOLIDAYS: Fairly widely available; contact the Icelandic Tourist Board for details. Full board (three meals daily) is included. Reductions are available for children. Futher information is available from Icelandic Farm Holidays, Sidumula 13, 108 Reykjavík (tel: 570 2700; fax: 570 2799; e-mail: ifh@farmholidays.is; website: www.farmholidays.is).

CAMPING/CARAVANNING: There are approximately 125 registered camping sites. Due to unpredictable weather conditions, camping grounds are normally open between June and late August or mid-September. The best-equipped camping grounds are to be found in Reykjavík, Husafell, Isafjördur, Varmahlid, Akureyri, Myvatn, Eglisstadir, Laugarvatn, Thingvellire, Jokulsargljufur and Skaftafell. In some places camping is restricted to certain specially marked areas. Prices are approximately US$5-7 and it is also possible to camp in National Parks that are supervised by the Convention Council. Campers, however, must request permission from the local farmer to camp on any fenced and/or cultivated land. For further information contact the Icelandic Tourist Board (see Contact Addresses section).

YOUTH HOSTELS: A total of 25 youth and family hostels are open, including Reykjavík, Fossholl, Hrauneyjar, Leirubakki, Njardvik, Reykholt, Stafafell and Stykkisholmur. Many country hostels provide overnight accommodation for travellers bringing their own sleeping bags or bedrolls for a fee. In uninhabited areas there are a number of huts where travellers can stay overnight. They must observe regulations posted in the huts and bring their own sleeping bags and food. For more information, contact the Icelandic Youth Hostel Association, Sundlaugavegi 34, 105 Reykjavík (tel: 553 8110; fax: 588 9201; e-mail: info@hostel.is; website: www.hostel.is). The Youth Hostel Association also offers a travel service to help with bookings, tours and travel arrangements.

Introduction

Only the coastal regions of Iceland are inhabited. Probably the best way to enjoy the tourist attractions is to take one of the coach tours that are arranged all over the island and use the coastal towns as a base. The main fjord areas are in the far northwest and southeast while along the southern coastline are sandy beaches, farmlands, waterfalls and glaciers. The central region consists of spectacular highland plateaux, volcanoes, glaciers and mountains. Waterfalls abound in Iceland and, with the many glacial streams and rivers in the country, are among the largest in Europe. Gullfoss – the ‘Golden Waterfall’ – near Geysir, is one of the prime tourist destinations.

REYKJAVÍK: Reykjavík is the world’s most northerly capital (although Nuuk in Greenland runs a close second). The city was named after a geothermal stream and actually means ‘Smoky Bay’. It is set on a broad bay, surrounded by mountains, and is in an area of geothermal hot springs providing it with a natural central-heating system and pollution-free environment. The city has a wondeful mix of natural beauty and lively sophistication. There are plenty of parks and wild outdoor areas for hiking, walking and exploring, but enough nightlife, shopping and museums to keep the chic city dweller happy. Reykjavík is a busy city of around 100,000 inhabitants, with a combination of old-fashioned wooden architecture and modern buildings. There are many nightclubs, cafes, art galleries and museums as well as numerous bookshops selling books in English, German and Icelandic. Icelanders are said to be among the most prolific readers and writers in the world, and literature plays an important part in Icelandic culture and history. The ‘Icelandic Sagas’, the oldest of which were written in AD 930 as a chronicle of Iceland’s history, are still very much alive in Iceland today. The language used over 1000 years ago in the sagas remains virtually unchanged.

THE SOUTH: Fifty kilometres outside Reykjavík, the Blue Lagoon is a unique natural pool of mineral-rich geothermal water located in the middle of a lava field in the Icelandic wilderness. Known for its special properties and beneficial effect on the skin, the warm waters of the lagoon – approximately 35ºC (90ºF) all year round – are one of Iceland’s most popular tourist attractions. Another natural spring is Krysuvik.

Flights can be booked to visit the Vestmanna Islands off the south coast, and Heimay, where a recent volcanic eruption partially destroyed the town. This is a great place for birdwatchers (see Sport & Activities section). There are also trips to the hot springs and geysers close to the capital. Also to be found in the south of Iceland is Pingvellir Natinal Park, Gullfoss (Golden Falls) and Geysir, with its geothermal fields and views of the active volcano Mount Hekla. There are also charming villages in the south, such as Stokkseyri and Eyrarbakki, where visitors can see beautifully preserved old houses and the village of Vik, which is a base for cruises through Dyrholaey cliff. A number of companies operate daily excursions from Reykjavík throughout the southwestern part of Iceland as well as city sightseeing tours and special itineraries. For further details contact the Icelandic Tourist Board (see Contact Addresses section).


THE WESTERN FJORDS: There are coach trips from Reykjavík to visit the small fishing villages and towns along the fjords in the northwest: Kroksfardarnes, Holmavik, Korksfjaroarnes, Orlygshofn and Isafjördur. This area of Iceland is full of lava formations and geothermal activity. There is some fine woodland, lakes and rivers, as well as breathtaking chasms and waterfalls, overlooked by glaciers. Iceland’s highest waterfall, Glymir, is found here. A replica Viking Age farmstead is located in Eiriksstaoir – birthplace of Leif the Lucky, who discovered America in AD 1000. Isafjördur is the region’s main town and it has plenty of social and cultural facilities, as well as being a starting point for tours of the region. Travelling around this area, the road takes you over mountain passes between each new fjord, stopping at Iceland’s only whaling station, the Museum of Farm Implements and Fishing Equipment between Orlygshofn and Isafjordur and the Dynjandi Waterfall. Accommodation on these trips is in community centres and schools for those with sleeping bags.

THE CENTRAL HIGHLANDS: A number of Icelandic tour companies operate ‘safaris’ in specially constructed overland buses into the mountainous interior. These are camping tours, and tents are provided. Sleeping bags can be bought or hired. Visitors are advised to take warm clothing, hiking shoes, rubber boots and swimsuits for bathing in the warm pools. The tours go through lava beds, sandy deserts and barren wilderness, passing glacial lakes with floating icebergs, glaciers, vast icefields, mountain ranges, crevasses and extinct volcanoes, and the Skaftafell National Park.

AKUREYRI AND THE NORTH: Akureyri is the country’s second most important town and is the commercial centre of a mainly agricultural region. There are museums of folklore and natural history in the town itself and coach tours to visit Lake Myvatn, an important bird sanctuary with many rare species, surrounded by lava formations, volcanoes and craters. It has been designated as Iceland's winter sports centre (see Sport & Activities section). Nordair offers a midnight sun trip flight to Grimsey, an offshore island which is within the Arctic Circle. Other places within easy reach of Akureyri include Dimmuborgir, the Dettifoss and Godafoss waterfalls and the Myvatn district, where there are hot pools for bathing. The temperature of some of these pools has risen recently making them uncomfortable for bathing, but others are still usable. On Skjalfandi Bay lies the town of Husavik, which is becoming Europe’s main whale watching centre. The district of Skagafjorour is an area of outstanding natural beauty, with glacial rivers, highlands, lush green valleys and mountains. It is, not surprisingly, a very popular area for river rafting (see Sport & Activities section). The main town in this region is Sauoarkrokur.

HÖFN AND THE SOUTHEAST: This is an area of increasing tourist development. From Höfn, a fishing village on the southeast coast, sightseeing trips leave for Jokullon, a river lake at the mouth of the largest glacier in Europe, Vatnajökull. Höfn is the main starting point for trips to the nearby glacier and visitors can indulge in ice-climbing, skiing, riding snow scooters and hiking. Höfn’s multimedia Glacier Centre gives information about the geology, formation, history and potential of glaciers. Also on the edge of this region is the scenically stunning Skaftafell National Park (see Central Highlands section above). It is made up of woodlands and black mountains and a sheer white glacier lying in the shadow of Hvannadalshukur, the country’s highest peak.

Sport & Activities

Hiking: Few places in Iceland have marked walking paths. The Touring Club of Iceland, Ferdafelag Islands, Morkin Six, 108, Reykjavik (tel: 568 2533; fax: 568 2535) operates walking tours all year round. During winter, these are mostly day tours or weekend tours, but longer tours are organised during summer.

Glacier tours: A number of travel agencies and tour operators can organise trips to Iceland’s glaciers, which cover 11 per cent of the country. Transport is by four-wheel-drive vehicles, snow cats or – the most popular option – snowmobiles (also called skidoos). The best time for skidooing is between January and March when the snow is fresh and plentiful. The most visited glaciers are Snaefellsjökull, Vindheimajökull, Glerádalsjökull and Drangajökull. A list of tour operators can be obtained from the Icelandic Tourist Board (see Contact Addresses section).

Skiing: This is a year-round activity and Iceland’s most popular winter sport. Ski resorts offering both downhill skiing and cross-country skiing can be found throughout the country. Several Alpine-style resorts are located near Reykjavik (Bláfjöll), Akureyri (Hlíðarfjall) and Ísafjörður. These resorts are equipped with standard lifts and facilities. Many good ski slopes are just half an hour’s drive from Reykjavik. The main skiing season is normally from January until May or June. Summer skiing is possible on the glaciers. Mýrdalsjókull has a ski-lift which is open throughout summer.

Swimming: This is very popular in Iceland since there are many natural and man-made pools such as the Blue Lagoon near Reykjavik (see also Resorts & Excursions section) heated by geothermal springs. Most towns and cities have outdoor and indoor pools filled with water from natural hot springs (water temperature in the pools averages around 29°C/85°F). Many places also have saunas, jacuzzis and hot pots with water temperatures of up to 44°C/112°F.

Fishing: Iceland is famous for its trout and, particularly, salmon fishing, for which it is reputed to be among the best locations in the world. The main salmon fishing season is from around 20 June to mid-September. Permits must be reserved well in advance from the National Angling Association, Bolholt Six, IS-105 Reykjavik (tel: 553 1510; fax: 568 4363; e-mail: angling@arctic.is; website: www.angling.is). The trout fishing season varies from one river to the next, but is generally from April/May until late September/October. Permits can be obtained at short notice, often the same day. Fishing boats and gear can be rented in towns around the coast.

Golf: There are approximately 55 courses in Iceland, all of which are open to visitors. During the Midnight Sun period (end of May to beginning of August) it is possible to play golf at night. The Akureyri Golf Club in the north hosts the yearly Arctic Open, an international competition at the end of June which climaxes with a tee-off at midnight continuing until the early morning hours. For further information, contact the Icelandic Tourist Board.

Wildlife: One of Iceland’s most popular special interest activities is birdwatching. Many tours, often involving a boat trip, are available. The Vestmanna Islands are particularly good for spotting seabirds as well as being home to the world’s largest puffin population. Lake Myvatn in northern Iceland is apparently the most fertile spot on the globe at that latitude and is a favourite breeding ground for many species of birdlife, particularly waterfowl. Southern Iceland is known for its great skua colony living on the sands. Nearly as popular as birdwatching is whale watching and tours to the best spots around the coast are widely available. It is also possible to see dolphins. The Icelandic Tourist Board can provide further details.

Icelandic horse trekking: When the Vikings created Iceland’s (and the world’s) first Parliament in 930, one of their acts was to prohibit further import of horses. More than ten centuries later, the Icelandic horse breed remains pure. This small but sturdy and sure-footed horse is reputed for its friendliness and willingness to carry riders over even the roughest terrain. Horses are available for hire near most towns, with experienced guides if required. Longer expeditions, including camping, can be arranged by tour operators.

Running: The Reykjavik Marathon takes places every year in August and attracts thousands of runners. Participants are offered a choice of a full or half marathon (‘fun run’). Pollution levels in Reykjavik are very low.

Geothermal attractions: Icleand is still relatively young in geothermal terms and a popular activity is to visit the naturally occurring springs for bathing.

River rafting: Because of the wide variety of rivers and beautiful scenery to be found in Iceland, river rafting is a very popular activity.

Social Profile

Food & Drink: Icelandic food in general is based on fish and lamb, as well as owing much to Scandinavian and European influences. The salmon of Iceland is a great delicacy, served in many forms, one of the most popular being gravlax, a form of marination. Fishing is Iceland’s most important export, accounting for some 80 per cent of the country’s gross national product. There is also a heavy emphasis on vegetables grown in greenhouses heated by the natural steam from geysers. Specialities include hangikjot (smoked lamb), hardfiskur (dried fish), skyr (curds) and Icelandic sild (herring marinated in various flavours). There have been some welcome additions to the selection of eating places in Reykjavík and there is now a small but attractive choice of restaurants to cater for all pockets with new tourist menus.
Bars have table and/or counter service, and will serve coffee as well as alcohol. Beer was prohibited in Iceland for 75 years and was finally legalised in March 1989. Alcohol is generally expensive (a large beer costs approximately US$8, a small one US$4.70). In coffee shops you pay for the first cup; you help yourself to subsequent cups. There is a wide selection of European spirits and wines. Brennivin (a potent variation of aquavit made from potatoes) is a local drink.


Nightlife: There are plenty of nightclubs, bars, cafes and cinemas in Iceland, most of them in the capital. Icelandic nightlife is particularly vibrant during June-August when there is nearly 24 hours of perpetual daylight (Icelanders call this period the ‘White Nights’). Leading theatres are the National Theatre and the Reykjavík City Theatre, closed in summer, but during the tourist season there is an attractive light entertainment show in English called ‘Light Nights’ with traditional Icelandic stories and folk songs. The Iceland Symphony Orchestra gives concerts every two weeks at the University Theatre during the season (September to June). Iceland has a vibrant music scene which has produced, amongst others, the internationally acclaimed artist Björk. This has, in turn, attracted a number of British and American pop stars to Iceland, such as Damon Albarn from the British band Blur, who has opened his own cafe, the BarIn, in Reykjavík.

Shopping: Fluffy, earth-coloured Lopi wool blankets and coats, jackets, hats and handknits are synonymous with Iceland. Several local potters handthrow earthenware containers in natural colours. Crushed lava is a common addition to highly glazed ceramic pieces, which are popular as souvenirs. The duty-free shop at Keflavik Airport sells all of these products, as does the Icelandic Tourist Bureau souvenir shop in Reyjkavík. Shopping hours: Mon-Fri 1000-1800, Sat 1000-1400, with variations from shop to shop. Shopping malls are open Mon-Thurs 1000-1830, Fri 1000-1900, Sat 1000-1600 and Sun 1300-1600.

Special Events: For a full list, contact the Icelandic Tourist Board (see Contact Addresses section). The following is a selection of the major festivals and special events celebrated in Iceland during 2003:
Feb 1-Feb 28 Thorrablot Feast (pagan midwinter feast), Reykjavik. Mar 1 Beer Day (celebration of the end of beer probation in 1989), nationwide. Apr 24 First Day of Summer (ancient holiday), nationwide. May 14-31 Reykjavik Art Festival, Reykjavik. Jun 12-17 International Viking Festival, Hafnarfjörður. Jun 17 National Independence Day (commemoration of birth of Jón Sigurdsson), nationwide. Jun 25-28 Arctic Open International Golf Tournament, Akureyri. Aug 1-4 Herring Festival, Siglufjördur. Aug 4 Bank Holiday Monday (big festivals take place mainly in the Westman Islands but also around the country), Akureyri. Aug 9 Gay Pride Fesitval, Reykjavik. Aug 16 Reykjavik Cultural Night, Reykjavik. Sep 7-13 International Literature Festival, Reykjavik.


Social Conventions: Visitors will find Iceland is a classless society with a strong literary tradition. Handshaking is the normal form of greeting. An Icelander is called by his first name because his surname is made up of his father’s Christian name plus ‘son’ or ‘daughter’ (eg John, the son of Magnus, would be called John Magnusson, while John’s sister, Mary, would be known as Mary Magnusdóttir). People are addressed as Fru (Mrs) and Herra (Mr). Visitors will often be invited to homes especially if on business and normal courtesies should be observed. Icelanders pay careful attention to their appearance and, as for most Western countries, casual wear is widely acceptable although unsuitable for smart and social functions. Tipping: Service charges are included in most bills and extra tips are not expected.

Business Profile

Economy: Iceland is short of indigenous raw materials and thus relies heavily on foreign trade to keep its relatively successful economy ticking over. Exports of goods and services account for more than one-third of GNP. The largest proportion of these derives from fisheries and related products such as fishmeal and oil. The economy is thus particularly susceptible to fluctuating world prices in this commodity and maintains a broad fisheries exclusion zone (320km/200 miles) to protect its earnings. As several European governments (including the British) have discovered to their cost, the Icelanders are fiercely determined and quite capable of defending their perceived territorial rights. Other sources of revenue come from the sale of minerals such as aluminium, ferro-silicon, cement and nitrates used in fertilisers, although these have lately been affected by low demand. Light industry produces knitwear, blankets, textiles and paint. There is a burgeoning advanced technology sector involved in software and biotechnology, and an embryonic financial services industry.

Accession to the European Economic Area (an amalgam of the EU and the European Free Trade Association; Iceland belongs to the latter) effected a wholesale liberalisation of trade among the member states and caused some disruption to the Icelandic economy. This highlighted the fact that Iceland’s economy is too dependent on its fishing industry and needs to diversify in areas that will allow it to compete in international markets. Iceland’s principal import suppliers are, in order of importance, Norway, Germany and the UK. The UK, the USA and Germany are the country’s main export.


Business: Businesspeople are expected to dress smartly. Local businesspeople are conservative but very friendly and most speak English. Previous appointments are not generally necessary, but visits between May and September should be planned in advance as many local businesspeople travel abroad at this time. The telephone directory is listed by Christian name. Office hours: Mon-Fri 0800-1600 (summer) and 0900-1700 (winter). Most offices are closed Saturday. Some firms close down completely for an annual three-week holiday; this is usually in July.

Commercial Information: The following organisation can offer advice: Iceland Chamber of Commerce Kringlan 7, 103 Reykjavík (tel: 510 7100; fax: 568 6564; e-mail: mottaka@chamber.is; website: www.chamber.is).

Conferences/Conventions: There are several large hotels in Reykjavík equipped for conferences and business meetings, while smaller conferences may be held at venues outside the capital. For further information, contact the Iceland Convention and Incentive Bureau, Laekjargata 3, 101 Reykjavík (tel: 562 6070; fax: 562 6073; e-mail: icib@centrum.is; website: www.icelandconvention.com).

Climate

Iceland’s climate is tempered by the Gulf Stream. Summers are mild and winters rather cold. The colourful Aurora Borealis (Northern Lights) appear from the end of August. From the end of May to the beginning of August, there are nearly 24 hours of perpetual daylight in Reykjavík, while in the northern part of the country the sun barely sets at all. Winds can be strong and gusty at times and there is the occasional dust storm in the interior. Snow is not as common as the name of the country would seem to suggest, and in any case does not lie for long in Reykjavík; it is only in northern Iceland that skiing conditions are reasonably certain. However, the weather is very changeable at all times of the year, and in Reykjavík there may be rain, sunshine, drizzle and snow in the same day. The air is clean and pollution-free.

Required clothing: Lightweights in warmer months, with extra woollens for walking and the cooler evenings. Medium- to heavyweights are advised in winter. Waterproofing is recommended throughout the year.

History and Government

History: The island was settled by the Norse seafarers in the ninth century; they established the world’s first known republic and parliament in about AD 930. The original seat of this democratic system may be found at Thingvellir, about an hour’s drive from Reykjavik, where the original Viking settlers used a natural amphitheatre, formed by a cliff wall, as an assembly. In the mid-13th century the islanders submitted to the authority of the King of Norway, and when Norway came under the control of Denmark in 1380, Iceland did too. In 1814, Norway became independent, but Iceland remained a Danish territory. In 1840 it was granted its own constitution – effectively allowing internal self-government.

Full independence was granted in 1918, although Iceland continued to recognise the Danish monarch as head of state. It was not until 1944 that Iceland became a fully independent nation with its own head of state. Contemporary Icelandic politics display the customary Western European spectrum of political parties, although a notable feature has been the influence of women within the main parties (Independents, Progressives and Social Democrats). Iceland’s most famous political figure of recent times is also a woman, Vigdis Finnbogadottir, who served four consecutive terms as President between 1980 and her resignation in 1996. She was replaced by Olafur Grimsson, who in 2001 began a second term as President. The Parliament (Althing) has generally been dominated by coalition governments. These were of a broadly centre-right persuasion until the mid-1970s, since when the left has dominated.

At the general election in April 1991, the Independence Party (IP) emerged as the largest grouping in the Althing and formed a coalition administration with the smaller SDP. The ex-mayor of Reykjavik, David Oddsson, who had successfully taken over the leadership of the IP, was made Prime Minister. Oddsson was re-elected at the 1995 general election, but a decline in support for the IP later forced him to form a coalition administration with the Progressive Party (PP). At the most recent poll in May 1999, the same coalition – still under Oddsson – retained overall control of the Althing.

Icelandic foreign policy is dominated by two factors: fishing and relations with the Atlantic powers. Iceland is a member of NATO, the Nordic Council and of the Council of Europe. Ties with NATO have been loosening since before the end of the Cold War – in May 1985, the Althing declared Iceland a ‘nuclear-free zone’ – and this process has accelerated since the reduction of the large NATO base at Keflavik. Iceland has historically eschewed membership of the European Union but, since Sweden, Finland and Denmark have joined up, it is Iceland’s opposition to the EU’s fisheries policy of stock management by quotas that is now the decisive influence. Both main parties strongly oppose the Common Fisheries Policy, so it seems unlikely that Iceland will apply for EU membership in the foreseeable future.

On the issue of whaling, Iceland has been among the few objecting to the International Whaling Commission’s (IWC) ban: in 1992, the Government withdrew from the IWC. In 2001, it applied to rejoin but, having declared its intention to resume commercial whaling, was only granted observer status.


Government: Executive power is vested in the President and Government, while legislative authority rests jointly with the President and the 63-member Althing (Parliament). Both are elected for four-year terms. The Althing has recently been reduced from two houses to one.


Copyright © 2003 Columbus Publishing Ltd.