City profile

Reykjavík (Population 120,000) is the capital and largest city of Iceland. The world's northernmost capital of a sovereign state, it is located in southwestern Iceland, on the southern shore of the Faxafloi Bay.

Icelanders tend to go out late, so bars that look rather quiet can fill up suddenly—usually after midnight on a weekend.  Because drinking is expensive in bars, people tend to drink at home before going out.  Closing time is usually around 4:30 am at weekends and 1 am during the week. The popular Iceland Airwaves music festival is staged every October.

Iceland is warmed by the Gulf Stream and has a temperate climate, despite a high latitude just outside the Arctic Circle.Iceland's economy has been diversifying into manufacturing and service industries in the last decade, including software production, biotechnology, and finance; industry accounts for around a quarter of economic activity, while services comprise close to 70%. Despite the decision to resume commercial whale hunting in 2006, the tourism sector is expanding, especially in ecotourism and whale-watching.

Though a member of the European Economic Area, Iceland is not a member of the .EU