Travel guide: Iceland

Nature rules in Iceland: The small northern country is home to spouting geysers, lagoons filled with icebergs, waterfalls that spill down from towering cliffs and black moors patched with icy ponds. The raw power that fuels the island's geological oddities also appears to stoke its 300,000 citizens, who seem just as driven to create: Ask Icelander Gunnar Marel Eggertsson why he built and sailed a replica Viking ship from Iceland to Newfoundland in 2000 and, with a shrug of his broad shoulders, he'll say "Because I could." Ask what drove Lisbet Sveinsdottirr and her two friends to create their minimalist, avant-garde ELM clothing line and she'll say "We just wanted to be different from what we saw in the stores." There isn't much that Icelanders won't consider trying - and, for the most part, they succeed.

Isolated for the better part of the last millennium, Icelanders have also learned how to entertain themselves, which explains why the music, art and fashion scenes of Reykjavik (with a population of 175,000) rival those of some of Europe's largest cities. Björk is still probably its most famous citizen, although the band Sigur Rós is hot on her heels, as is Hollywood: Blockbusters like Batman Begins, Die Another Day and Lara Croft: Tomb Raider were filmed here.

One of the bonuses of Iceland's small size is how much you can see in a short time. Soak in the silky geothermal waters of The Blue Lagoon, dine on the sweetest, freshest lobster you'll ever taste and go beachcombing along a mysterious black-sand h beach, then head out on the town to experience Reykjavik's raucous nightlife - all in the same day.

The scene
Pop into any of the cafés along cobblestoned Bankastraeti and Tryggvagata streets and mingle with young creative types who converge here for coffee and conversation. Start a walking tour at Hallgrímskirkja cathedral - the tallest building in town - whose arching walls mimic the towering basalt columns seen in the countryside. One of the coolest museums to visit is Reykjavik 871 -2, whose cryptic name refers to the date (give or take a year) of the first Icelandic settlement. A multimedia show explores the remains of a Viking longhouse on the spot where it was discovered, pinpointing the birth of the Icelandic nation. Don't miss a visit to Perlan, a spaceship-like dome resting on top of the city's six hot-water towers. It provides a 360-degree view of the city, with Mount Esja looming above the bay. Prices in the revolving restaurant are astronomical, but the view from the bar is well worth it. Try the Sensitive Cocktail, a moody mix of crème de cassis and crème de banane with a dash of cognac.

Where to stay
The epicentre of Icelandic cool, the sleek 101 Hotel attracts Reykjavik's beautiful people, who gather for cocktails in spare but cozy surroundings. Desserts like Cognac-Marinated Chocolate Cake with Whipped Cream and Strawberries make it a must-visit.

Nostalgia buffs and art deco aesthetes should book a room at the Hotel Borg, which boasts a chic palette of black, cream and slate grey, as well as a rich history: Here, Marlene Dietrich sipped ice-cold martinis and romance blossomed between Allied soldiers and Icelandic beauties during the Second World War.