The world's northernmost capital, Reykjavik (which means "smoky bay") sits on the southwest coast of Iceland. Surrounded by a ring of mountains and Faxafloi Bay, Reykjavik is immaculately clean, and visitors will find that it's easy to explore on foot.

The capital city is full of artists, writers, musicians and filmmakers, as well as the rugged fishermen who ply the North Atlantic Ocean and unload their catch on the city's docks. Reykjavik is the political and cultural epicenter of Iceland, home to the nation's parliament.

Reykjavik remains one of the world's top travel destinations, with the number of annual tourists far exceeding the country's total population. With unrivaled nightlife and pristine nature surrounding the city, there has never been a better time to visit Reykjavik.

The economic upheaval the nation faced in 2008 devalued the Icelandic krona, but it was most harmful to locals. Visitors will still find this to be among the more costly cities in Europe.

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