Reykjavik is beautiful city (pop. around 300,000) sitting on a harbor with a view across to gorgeous mountains. The city is small and walkable and has a lot of charm. We spent time on the walking path around the harbor, looked inside Harpa (the performing arts center) and exploring the shops on Laugavegur, the main shopping street. There is also the beautiful cathedral, Hallgrimskirkja on the top of the hill. You can ride the elevator to the top for a panorama of the city for $9USD.
We didn’t go to the Blue Lagoon (close to Reykjavik) because it is excessive expensive. Beside this you must book long time in advance. Instead we visited the Nature Geothermal bath in Myvatn which is as nice as the Blue Lagoon but half so expensive.
The Golden Circle
Thingvellir is the site where the Vikings installed the Parliament – out of doors! The site has a superb natural setting in an immense fissured rift valley caused by the meeting of the North American and Eurasian tectonic plates.