The Icelandic capital city stands on the southwest corner of the island on the small Seltjarnarnes peninsula that pokes into the huge Faxaflói bay. The worlds most northerly capital has two airports: Kaflavik International, 30 miles west, and the smaller Reykjavik Airport, in the city itself. There are also two main harbours. If you hire a car in Reykjavik youll be able to drive to anywhere in the island within a day. Attractions nearer to the city include the Blue Lagoon, an outdoor geothermal bathing spa, and the Heiomark protected forest and nature reserve. Look out too for the Nauthólsvík sandy and geothermally heated beach and the Hofsstadir historic park with its Viking remains.