Akureyri

Akureyri is Iceland's second city — a fact that needs immediate context, since its population is just 19,000, but it is the undisputed capital of North Iceland and the gateway to some of the country's most dramatic landscapes. It sits at the head of the Eyjafjörður fjord, Iceland's longest, and its position at 65° North gives it exceptional Northern Lights viewing conditions. The town itself is charming and human-scale — a botanical garden (the northernmost in the world), a Lutheran church on a hill with views down the fjord, an excellent folk museum and the arts house where Icelandic classical music is performed. The heart-shaped red traffic lights (a community initiative adopted during a financial crisis to lift spirits) are an Akureyri-specific detail. The local brewery, craft shops and the fish restaurant scene are all strong. The surrounding region is North Iceland's greatest asset. Lake Mývatn (40 minutes east) is one of Iceland's most ecologically significant areas — pseudo-craters, lava formations (Dimmuborgir), boiling mud pools, hot springs for bathing and vast bird colonies are all within a short circuit of the lake. The Goðafoss waterfall (10 minutes from Akureyri) is among Iceland's most impressive. Húsavík, the whale-watching capital of Iceland, is an hour away. The Tröllaskagi peninsula and its skiing in winter, and the Arctic Coast Way scenic route, are excellent. A perfect base for exploring Iceland's dramatic north.