Akureyri is Iceland’s second largest city and is known as the “Capital of the North,” but with a population of approximately 18,000, Akureyri feels more like a town than a city. Only 62 miles from the Arctic Circle, it surprisingly has one of warmest climates in the country. Enjoy a stroll through the charming streets, especially Hafnarstræti, a pedestrian-friendly street filled with quaint coffee shops and boutiques selling locally made wares. Also in town is a lovely botanical garden near the majestic Akureyri Church, the city’s best-known landmark. A favorite local curiosity is the Christmas House, open year-round. Come August, the city becomes a prime viewing spot for the luminous northern lights, or aurora borealis.